CGS Tyres announced a $43.81 million investment to build a new ag tire production plant in Charles City, Iowa. CGS Tyres and the Iowa Department of Economic Development began negotiations 2009.
The Charles City factory will produce the Mitas and Continental brands of farm radial tires for the North American market. The new factory will create at least 159 jobs, and production is scheduled to commence by Jan. 1, 2012.
CGS Tyres plans to develop the production plant in three stages, depending on demand, with the third stage providing employment for 262 people and providing a total production capacity of 12,200 metric tons of farm radial tires per year.
CGS Tyres is the tire-producing division of CGS Holding and operates three production plants in the Czech Republic and one in Serbia, and maintains a global sales and distribution network. In 2009, total sales of CGS Tyres decreased to $357 million, but the company maintained a stable cash flow with EBITDA of $44.5 million. In the first six months of 2010, sales have recovered and reached $217 million.
CGS Tyres manufactures and sells tires under three brand names: the company's own Mitas and Cultor, and Continental under license.
For more: CGS Tyres