Trelleborg has acquired an operation in Xingtai (Hebei), in eastern China, to facilitate the Group’s expansion in the Chinese market for specialty tires, primarily agricultural tires.
Trelleborg has acquired an existing facility from a Chinese company, part of the US Group Main Industrial Tire LLC, and will also take over approximately 180 employees.
“Our customers are becoming increasingly global. They are now becoming established in Asia, mainly in China, which is why we are implementing this acquisition. This is an excellent way of entering the rapidly expanding Chinese market,” says Maurizio Vischi, Business Area President of Trelleborg Wheel Systems.
Through this establishment, Trelleborg becomes the first manufacturer of agricultural tires from the West to have its own production in China. The establishment provides proximity to Chinese customers, but also support to European and US customers in the local Chinese market.
“This acquisition will give us a lead in this expansive market,” continues Maurizio Vischi. “There is enormous potential within agricultural machinery in China. Today, more than half of all agriculture in the country is conducted manually and the shift to using more vehicles and machinery is taking place rapidly.”
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 acquisition and investments total approximately SEK 100 M over a three-year period. Production under the Trelleborg name is expected to commence during the second quarter of 2011.