Charles City factory in testing

Vol. 9
No. 4 / 2011
www.cgs.eu
A q u a r t e r ly n e w s l e t t e r f o r c u s t o m e r s , d i s t r i b u t o r s a n d f r i e n d s o f C G S G r o u p
Charles City factory in testing
Regular production is set to start on schedule in early 2012. With most of the
machinery already installed, the 200-strong team of technicians, construction
workers, management and contractors is testing and setting up the new plant.
In November, the very first batches of the rubber compound made by API (Eau
Clair, WI) arrived.
“In December, we ran the first batch through
a strip winding system extruder followed by 2-roll
mills, 3-roll and 4-roll calenders and bead wiring
line,” Pavel Charvát, the newly appointed plant
director, said. “The plant is fully powered, there is
a sufficient supply of compressed air and cooling
water, and inspectors have approved the boiler
room.”
The boiler supplier is expected to have the boiler
room in operation by mid-December. “From that
day onward, we’ll have steam,” Charvát added.
By the end of 2011, the new plant’s information
technology systems will be upgraded. From
November to December, a team led by Roman
Petrus, Mitas’ IT chief, set up SAP connectivity
and installed data networks, security and phone
systems throughout the facility.
In human resources, Ralph Kellenberger has
negotiated an incentive-for-training programme
funded by North Iowa Area Community College,
and he has assessed about 460 local applicants.
“Mitas seeks people with experience in industrial
engineering and production industrialisation,”
Kellenberger said.
The first rubber in Charles City. Jim Breutkreutz
of Mitas and Pavel Charvát, the newly appointed
plant director at Charles City.
Photo by Tomáš Hanáček, 2011.
Mitas farm tyre plant online soon
On 29 November, Mitas held a meeting among
CGS Holding owners and Mitas management,
suppliers and representatives of the Charles
City Area Development Corporation to review
the status of the construction and machinery
installation in Charles City.
“The 18-month project is on schedule,” Vladimír
Dušánek said. Dušánek is the subsidiary vice
president for finance and controlling and the U.S.
project director. “The cooperation at the state and
local levels is excellent,” he added.
“The first test tyre will be cured in late January,”
Charvát said. “This will be the first-ever tyre that
our company will have produced on the American
continent.”
“Charles City, located among the ‘ocean of
farms,’ will be Mitas’ Jamestown,” Mitas CEO
Jaroslav Čechura said. “Mitas has planted
a strong foothold in Iowa.” Regular radial farm tyre
production will start in early 2012 at the facility.
In summer, Mitas started hiring workers in Iowa.
In September, the first group of its U.S. employees
commenced training in the Czech Republic.
American OEMs watch the new plant’s
progress
“The reason for building the new tyre factory
in Iowa is the proximity to OEMs,” Čechura said.
Other reasons, according to Čechura, include
location in the agricultural heartland, adequate
facilities and the business-friendly Iowan approach.
Several major OEMs have initiated audits
and conducted inspection visits of the Charles
City facility. “We hope to impress OEMs with
our ambitious schedule,” Dušánek said. “My
country (Czech Republic) used to export
whole manufacturing units around the world.
Engineering is in our blood.”
[SE]
Mitas’ record
sales
“The 2011 sales were
record high,” CEO Jaroslav Čechura said. Sales
of tyres grew 11.9%
in tonnes sold in 2011
compared with 2010. “In
euro terms, I expect Mitas’
sales to beat 400 million
Jaroslav Čechura.
in 2011,” he added.
Photo by Lenka Pekárková,
“The split between
2010.
agricultural, industrial and
motorcycle tyres has not changed much,”
Čechura added. The majority of sales (72.5%)
were incurred in the agricultural sector in
2011.
Tonnes of tyres sold, a year-on-year change in percent
2009
–26.2 %
2010
33.3 %
2011 (est.)
11.9 %
0%
Sales in the United States grew substantially
for the second year in a row, according to
Čechura. Combined sales to the United
States more than doubled between January
and November. “The U.S. subsidiary is quickly
becoming an important source of revenue for
Mitas,” he said. “The North American growth
of business has outpaced all our markets.
In addition, sales in, for example, Italy and
Germany have been particularly strong.” [SE]
Václav Havel
died on Sunday, 18 December 2011.
He will be greatly missed.
Editors
CGS NEWS | Vol. 9 | No. 4 / 2011 | Page 1
products | sales
New Conti CHO harvester tyre
In January, Buzuluk company will finish assembly
of a cooling machine for rubber compounds.
The machinery is intended for Mitas‘ rubber
compounds production unit in Zlín (Czech
Republic). Photo by Miroslav Charvát, 2011.
Mitas supplies
Rostselmash
In November, Mitas shipped its first tyres to
Rostselmash, a major Russian manufacturer
of farming machinery. Rostselmash, seated
in Rostov-on-Don, will mount Mitas tyres on
tractors and combines.
“This deal is a milestone for our business
in Russia,” said Josef Rúček, Mitas’ market
manager in Moscow. “This shipment is our
first OEM shipment to Rostselmash, and
I expect the volume of sales to Rostselmash
to increase.”
Ten Mitas tyre sizes have been tested in
Rostov (Russia) and Winnipeg (Canada).
They are now approved for mounting. Mitas
tubeless tyres will be mounted on Accros
harvesters (800/65 R 32, 480/70 R 24) and
new combines Torum (900/60 R 32, 600/65
R 28). In addition, tractors Buhler Versatile
(520/85 R 52 RD-01, 600/65 R 28 RD-03
a 710/70 R 38 RD-03) will be shod with Mitas
tyres, starting in 2012.
“Mitas will deliver tyres for tractors series
S2000, row-crops of 46”, 50” and 54”, in
2012. In total, Mitas is set to deliver 2,000
tyres,” Rúček said.
The Moscow subsidiary has been
negotiating with Rostselmash since 2009.
Mitas will deliver tyres directly to the Rostov
manufacturing facility and provide storage for
excess tyres.
[SE]
CGS NEWS | Vol. 9 | No. 4 / 2011 | Page 2
At November’s Agritechnica in Hannover,
Mitas unveiled the Continental SVT CHO tyre,
designed for cycling harvesting operations. The
tyre was developed in cooperation with Claas.
“Farmers demand a high-performance
combine harvester tyre,” said Hans-Ulrich
Klose, head of the automotive engineering unit
at Mitas. “The new tyre must solve the conflict
between compliance in road applications and
soil protection.”
Klose identified the challenge of increasing
the harvester tyre load in the field with full grain
tanks and a mounted cutter bar. “We could not
use the conventional means of using wider
tyres, as this would conflict with the vehicle’s
width regulations,” Klose explained.
“The new CHO tyre provides a solution to
this challenge,” Klose said.
Specifically, the 800/70 R 32 CHO allows
up to a 31% reduction of inflation pressure at
the same load when compared with a standard
tyre. This lower inflation pressure results in
a larger footprint of up to 24%. The CHO tyre
lessens soil compaction and slippage, and
provides better mobility on wet soil.
As opposed to substantially wider tyres,
this CHO tyre, when mounted on the newest
generation of combine harvesters, ensures
that the total vehicle width is within 3.50 m
to comply with legal requirements. “This saves
money, because the farmer doesn’t have to
pay for escort vehicles,” said Jens Steinhardt,
Mitas’ key account manager.
“Mitas is a strategic partner providing
Continental farm tyres to Claas,” Klaus
Schäfer of Claas said. Claas and Mitas have
developed the Cyclic Harvesting Operation
concept based on the Continental super
volume tyre technology. “Claas and Mitas have
a strong development partnership,” Steinhardt
concluded.
Mitas has been selling SVT CHO tyres
through its subsidiaries since November. [SE]
Source: Mitas, 2011.
Mitas’ 3rd generation flotation tyre concept
This November, Mitas presented a new flotation
tyre concept, the Agriterra 03, at Agritechnica.
This tyre is intended for use on the heaviest
agricultural implements, such as slurry tanks.
“Agriterra 03 will be Mitas’ largest
flotation tyre,” said Pavel Kott, who is Mitas’
agricultural tyre product manager. Agriterra
03 size 650/65 R30.5 will feature a diameter
of 1.6 metres, a weight of 220 kg and a radial
steel belt. With a ‘D’ speed symbol, it will allow
speeds of up to 65 km/h with a maximum
load of 14,200 kg per axis at 400 kPa.
Agriterra 03’s tread is slated to have voids
larger than that of Agriterra 02 to improve its
self-cleaning properties. “Agriterra 03’s tread
will also be deeper than Agriterra 02’s. This
will improve tread life,” Kott said.
Currently, Mitas produces the size 600/55
R26.5 with Agriterra 02 tread pattern. By
end of 2011, Mitas will produce a 710/50
R 26.5 tyre also featuring the 02 pattern. “In
the Agriterra project, Mitas aims to develop
flotation tyres with technical characteristics
matching premium tyres,” Kott said.
[SE]
Agriterra 03 and Agriterra 02 on display
in Hannover. Photo by Emil Houška, 2011.
products | company
A Dutch welcome
Mitas expands sales network in the EU.
Mitas, the Czech producer of off-road tyres,
will open a sales and distribution office and
warehouse in Uden to improve services and
increase its market share in the Netherlands
and Belgium. The announcement was made at
Agribex, the chief Belgian farming fair. Mitas
has acquired Tribatyre, headquartered in Uden
(NL). Tribatyre is a major Dutch importer of
agricultural and industrial tyres.
Tribatyre and Mitas signed the purchase
agreement 8 December, and the contract
comes into effect 1 January 2012.
“Mitas is expanding its sales network in
Europe,” Andrew Mabin said. Mabin is Mitas’
sales and marketing director and vice chairman
of the board. Tribatyre and Mitas have been
cooperating since 2002.
“Tribatyre’s experienced team of nine
gives Mitas leverage for success in a fiercely
competitive market,” Mabin added. “Mitas is
now set to increase market share and rapidly
improve logistics, marketing and customer
services in the Netherlands and Belgium.”
This latest acquisition is one in a string
of recent moves to strengthen sales in, for
example, France and Russia. “It is the farmers,
construction industry and original equipment
manufacturers who benefit when Mitas
establishes a local presence,” Mabin added.
One in four new tractors and harvesters in
Europe is fitted with tyres produced by Mitas.
Mitas also makes industrial and motorcycle tyres.
“The takeover by Mitas is a great benefit to
our customers,” said Wouter Trienekens, the
owner of Tribatyre. “They can still enjoy the local
advice and knowledge of the sales team, and on
the other hand the global player provides much
appreciated backup,” Trienekens added.
Tribatyre, established in 1990, sells tyres
and wheels for agricultural and industrial
applications, such as tyres for tractors and other
farming machinery, dumpers, cranes, excavators,
loaders, forklift trucks and trucks. Tribatyre also
operates a tyre and wheel assembly.
“I will expand my activities in East Africa with
Mitas products and will focus on that part of the
world in the near future,” Trienekens concluded.
[SE]
Jaroslav Čechura (Mitas CEO), Wouter Trienekens
(Tribatyre owner) and Andrew Mabin (Mitas)
signing the takeover agreement.
Photo by Wendy Trienekens, 2011.
‘CGS Neumáticos
Ibérica’ to
become ‘Mitas
Tyres’
On 1 December 2011, the Spanish subsidiary
of Mitas, CGS Neumáticos Ibérica S.L.U.
changed its corporation name to Mitas Tyres,
S.L.U.
“Mitas’ subsidiary in Madrid sells our tyres
on the Spanish and Portuguese markets. The
company’s name change will allow us to focus
sales and marketing resources on promoting
our core brand, Mitas,” said Gabriel Markovič,
managing director of the Spanish subsidiary.
The change to the new subsidiary name has
taken effect already in Germany (‘CGS Reifen
Deutschland’ to ‘Mitas GmbH’) and Austria
(‘CGS Reifenvertrieb’ to ‘Mitas GmbH’), for
example.
Over the past 12 months, Mitas has
consolidated the sales network that now
handles sales of all tyres produced by Mitas,
i.e. Mitas, Cultor and Continental farm tyres.
“Mitas is changing the subsidiaries’ names
purely for marketing purposes. The ownership
of Mitas remains unchanged,” Marketing
and Sales Director Andrew Mabin said. The
company maintains 13 sales subsidiaries,
mainly in Europe, and sells tyres in 95 countries
and territories worldwide. In January, Mitas will
open a sales office in the Netherlands.
[SE]
Endorsements at Agritechnica
At Agritechnica, AGCO displayed a Fendt
210 Vario tractor for row-crop application in
vegetable production mounted with Mitas AC
tyres, 270/80R32 (front).
“Mitas strives for perfection,” Key Account
Manager Jens Steinhardt said. “Being
mounted on a Fendt tractor is a breakthrough
for Mitas. Fendt will appreciate the tyre
performance based on its Conti predecessor.”
“In five out of eight product lines, the
farm Continental tyre is the standard tyre
for Fendt,” Steinhardt said. Mitas produces
Continental agricultural tyres under licence.
“We measure our success by the yardstick
of original equipment manufacturers,” said
Andrew Mabin, Mitas marketing and sales
director. “Mitas is a traditional European
producer of tyres.” In 2012, Mitas will
celebrate 80 years since the first tyres were
made at its oldest production plant in Moravia.
Also at Agritechnica, tyres made by Mitas
were put on display and mounted on for
example ASA-LIFT vegetable harvester (sizes
380/80 R 38 RD-05 a 400/70-20 TR-01),
Weidemann T4512cc telehandler (31x15.5015 TR-07) and a Bergmann trailer (710/50 R
26.5 Agriterra 02).
[SE]
Fendt on show mounted with Mitas AC 85 rowcrops. Photo by Emil Houška, 2011.
CGS NEWS | Vol. 9 | No. 4 / 2011 | Page 3
sport | company | events
Season’s Greetings
Dear reader,
The year 2011 felt like a rollercoaster ride,
but all of our companies have weathered
the storm of fluctuating raw material prices
and emerged stronger from the global
credit crunch. Over the past 12 months, we
have launched many new investments to
satisfy the demand for our tyres, silicon and
rubber products, machinery, piston rings
and services. Thank you all for
your good work; Merry Christmas
and a Happy New Year to all our
business partners, colleagues
and friends.
CGS Holding
Board of Directors
MITAS INVITATION
Mitas and Rubena invitation
VISIT US
Birch: ‘Jeez, that tyre is
amazing’
The early summer in South Africa framed the hardest of all known ExtremeEnduro Races of the world, the Roof of Africa, the mother of hard enduro.
In November, Mitassponsored top enduro driver Chris Birch,
in an attempt to
defend his Roof of
Africa championship
title, came in second
behind British Graham Jarvis.
The three-time winChris Birch.
ner
of the race is
Photo by Nick Muzik, 2011.
a New Zealand native.
Birch owns the Comsol Alfie Cox Racing team,
which relies entirely on enduro and motocross
tires made by Mitas in Zlín, since May 2011.
14 to 18 February 2012
VISIT US
AT
MOTOSALON BRNO
7 to 11 March 2012
[Daniel Uebrick, SE]
Rubena at Phoenix’s birth
AT FIMA ZARAGOZA
DISCOVER
OUR TYRES
“If it weren’t for the tyre, I might still have
been out there!” Birch said.
The Roof of Africa is now in its 44th year
and is the most prestigious off-road race on
the South African calendar. It is staged in the
kingdom of mountains, Lesotho.
Only the toughest of the toughest compete,
and this three-day race saw a total of more
than 200 competitors.
“Thanks to the tyre importer, the WFO,
we were able to adapt Mitas EF-07 for Chris’
challenging needs,” said Daniel Uebrick who is
Mitas’ motorcycle tyre manager.
Photos by Tatra and Rubena.
Rubena, a CGS Holding company, became
the supplier of bellows type air springs to
Tatra’s newest line of trucks, the Phoenix.
The traditional Czech manufacturer Tatra has
launched Phoenix in cooperation with Dutch
DAF, a subsidiary of PACCAR, which is the
third-largest heavy-duty truck manufacturer
worldwide.
The new Tatra truck will use DAF engines
and cabins. Rubena will supply air springs to
chassis.
“Tatra chassis are well tested in motorsport
events such as the Dakar Rally,” Petr Holeček
said. Holeček is a Rubena sales manager. “Tatra
pioneered the use of Rubena bellows type air
springs to provide suspension to the front axle.”
Phoenix trucks can be used, for example,
in construction industry, mining, forestry, gas
and oil industry. Tatra representatives expect
to break through to new sales territories with
this industrial truck. For example, as part of the
joint venture, DAF allows Tatra trucks to be sold
by dealers in the Netherlands. DAF will acquire
a 19 percent share in Tatra.
[SI]
Rubena presented v-belts for agricultural
machinery at Agritechnica, Hannover. “Agritechnica
was a great opportunity to meet major equipment
manufacturers,” said Jan Sousedík, Rubena sales
manager for v-belts. Photo by Emil Houška, 2011.
CGS-MIT_Invitation_Ad
1
14.12.11
11:28 was published by ČGS a.s. (Švehlova 1900, Prague 10, Czech Republic, identification No. 27410072) on 27 December 2011 in Prague
CGS NEWS is published
four times a year. This issue, volume 9,
number 4/2011,
under Czech Culture Ministry registration No. MK ČR E 19804. Editorial board: Josef Brabec [JB], Ilona Braunová [IB], Vlastimil Founě [vf], Emil Houška [eh], Ralph Kellenberger [ral], Martin Maňas [ma], Jiří Šebek
[se], Jiří Šimánek [si], Karel Špaňhel [ks] and Nenad Tutunovic [nt].
CGS NEWS | Vol. 9 | No. 4 / 2011 | Page 4