TRELLEBORG, Sweden (March 8, 2011)—Trelleborg Wheel Systems S.p.A.'s recent acquisition of pneumatic tire-manufacturing assets in China will support the farm and forestry tire specialist's strategy of building business in Asia, according to the firm's top farm tire executive.
“The project represents an important step forward for our company in creating added value for our customers and in reinforcing our brand-leading position as a specialist in agricultural solutions” said Paolo Pompei, president of agricultural and forestry tires. “There is huge potential in Asia for the development of agricultural mechanization.”
For example, he said, 41 percent of Chinese farm work is mechanized and there are 300 million acres of arable land, or about half as much as in Western Europe.
Trelleborg recently bought the pneumatic tire assets of Maine Industrial Tire L.L.C.'s specialty tire plant in Xingtai, Hebei, China. Trelleborg said it has budgeted $15.6 million for the acquisition and for investments over the coming three years.
The industrialization plan includes both bias-ply and radial tires necessary for the local markets, a new agro industrial radial line and the Maximo radial farm tire line for tractors between 40 and 180 hp.
Trelleborg expects to begin producing Trelleborg-branded tires in the second quarter at the Xingtai site. The company took over about one-fourth of the plant's floor space, according to Maine Tire, which said the pneumatic and solid industrial manufacturing spaces are clearly separated from each other, allowing each company to operate independently of the other.