SHANGHAI—The debut of Triangle Group Co. Ltd. as a publicly traded company on the Shanghai Stock Exchange will be a “tremendous boost” to the company's efforts to become a major player in the U.S. tire market, according to Triangle Tire USA CEO Manny Cicero.
Triangle Group's initial public offering, which took place on Sept. 10, is expected to raise more than $660 million in new capital, Triangle officials said. The money will be used predominantly to invest in upgrading the company's production capacity and technical capabilities for all-steel radial commercial tires and high-performance passenger car tires.
“The IPO moving forward is great news for Triangle Tire USA and provides further impetus for U.S. tire distributors and dealers to join the Triangle team on the ground floor,” Cicero said.
“It will accelerate the company's already considerable investments in R&D and developing highly-advanced, automated manufacturing facilities.”
Weihai, Shandong-based Triangle operates five tire plants in China. The company, which marked its 40th year in business in April, is considering establishing production outside of China as well.
According to Rubber & Plastics News'' 2016 Global Tire Report, the company is considered the 15th largest tire maker worldwide, based on 2015 sales revenue of $2.44 billion.
More than half of the company's products are exported to international markets, with more than 35 percent of sales generated in North America, Europe, Australia and other developed countries.
Triangle, which celebrated its 40th year in business in April, stablished Triangle Tire USA last year and opened a U.S. headquarters in Franklin, Tenn., earlier this year.
Triangle also has a technical center in Akron that it opened in 2011 to help develop tires for the U.S. market.