BOULDER CITY, Nev. (Aug. 3)—Ace Products L.L.C., a Newport, Tenn.-based maker of semi-pneumatic and solid tires and wheels, is considering licensing technology from Amerityre Corp. to make closed-cell polyurethane low-duty non-highway-use tires.
The two firms have signed a non-binding memorandum of understanding to that effect, according to Amerityre. The agreement is expected to be finalized by Sept. 16, subject to Ace´s competing due diligence and obtaining financing, Amerityre said.
"The addition of the Amerityre product offering helps to expand Ace´s product portfolio to better serve our customers and new markets," said Ace Products President Jeff Krajacic in a prepared statement. "Ace continues to expand its portfolio of products and services (to) fulfill all of our customers plastic and rubber needs far beyond just wheels and tires. This arrangement will help Ace become a preferred supplier to a broader customer base."
The deal also involves Amerityre selling to Ace Products equipment to make the tires, as well as the existing inventory of its closed-cell polyurethane Flatfree tires, Amerityre said.
"Ace Products has a commanding presence in key domestic markets, including agriculture, outdoor product equipment and mobility sectors," said Richard Steinke, president and CEO of Amerityre.
Ace Products makes semi-pneumatic rubber tires, solid rubber tires and plastic wheel assemblies for light- and heavy-duty applications at three plants.