GPX International Tire Co. has acquired Hebei Tyre Co. Ltd. of Hebei, China, expanding its control over its own manufacturing and enhancing its ability to sell in China.
GPX has renamed Hebei Tyre-maker of the Whale brand and one of GPX's key manufacturing partners for the past few years-Hebei Starbright Co. Ltd. Financial terms of the what GPX termed an asset acquisition weren't disclosed.
"The Hebei facility will help GPX improve fill rates which in turn allows us to increase global customer satisfaction," said Bob Sherkin, GPX chairman and co-CEO.
Bryan Ganz, GPX president and co-CEO, said Starbright significantly expands GPX's presence in the Asian market and allows it to directly service its international markets.
GPX expects the acquisition to boost its Chinese sales by about $10 million. The remainder of the plant's output will go to GPX brands. GPX didn't buy the rights to the Whale brand name.
GPX hired Phil FitzGerald, an industry veteran with more than 18 years of tire industry experience, as managing director of the Starbright plant. FitzGerald will be responsible for plant modernization and refurbishment with the goal of transforming the facility into a world-class factory, GPX said.