TRELLEBORG, Sweden (Feb. 17, 2011)—Maine Industrial Tire L.L.C. is reducing to one plant after selling its agricultural tire factory in Xingtai, China, to Sweden's Trelleborg A.B.
The facility in Hebei Province in eastern China helps Trelleborg expand into the Chinese market for specialty tires, the company said. The purchase of the 180-employee factory gives the firm proximity to Chinese customers and supports its European and U.S. customers that operate in the local Chinese market.
Trelleborg said the purchase and investments at the location will total about $15.5 million over a three-year period. Production under the Trelleborg name is expected to begin during the second quarter.
The plant will strengthen Trelleborg Wheel Systems' competitiveness also on other markets than the Chinese, by broadening the range and through more cost efficient production, the firm said. .
Maine Industrial Tire just last month announced it would close its Gorham, Maine, factory, and consolidate production at an expanded Red Lion, Pa., facility and in Xingtai.