YOUNGSTOWN, Ohio (May 21, 2010)—Off-road tire and wheel specialist Titan Tire Corp. hopes to generate upwards of $15 million in annual sales initially from the new product lines it'll be making as a result of its taking over a package of assets from bankrupt Denman Tire L.L.C.
Titan Chairman and CEO Maurice Taylor Jr. said Titan will move most of the tire molds it's acquiring to one or more of its tire plants, in Des Moines, Iowa, Freeport, Ill., and Bryan, Ohio, and restart production of selected product lines. He said Titan could start limited production of select lines within 30 days of closing, which Titan expects to take place next week.
Titan's surprise bid of $4.4 million for selected assets — molds, technical drawings, patents, the Denman trade name and marks, etc. — was accepted at a May 19 hearing at the U.S. Bankruptcy Court, Northern District of Ohio, Eastern Division, in Youngstown.
Taylor said he's confident Titan initially can recover about a quarter of the $75 million in annual sales Denman had been generating in recent years and then build upon that .
Denman's remaining physical assets — the factory and manufacturing equipment — will be auctioned off later. The court has scheduled a hearing for June 17 to consider that and other remaining matters.
Taylor singled out Denman's underground mining tire line as an example of products that are complementary to Titan's.
“We competed in a lot of Denman's product areas,” Taylor said, “and we knew what the costs for molds, etc., for these lines should be.”