Tractor town makes tractor tyres

Vol. 10
No. 2 / 2012
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 H O L D I N G
Tractor town makes tractor tyres
On 26 April 2012, Mitas opened its newest radial farm tyre factory in Charles City, Iowa, which coined the word “tractor.”
Iowan Governor Terry Branstad, Charles City Mayor James Erb and Mitas representatives Tomáš Němec and Oldřich
Šlemr cut the ribbon to start the serial production of farm tyres.
Dear reader,
With the start of serial production
at the Mitas Charles City facility,
the board of CGS wishes to
express its thanks to the project
team, the management of Mitas,
the project leader, IT department
and customer services. Œe
board’s appreciation extends
particularly to all the colleagues
and foremen who trained the
American work force and who
have helped start production of
agricultural tyres in Iowa. Sincere
thanks to all of you for your
exceptional contribution to the
development of CGS Holding and
to strengthening the company’s
position in the world markets.
Ribbon cutting.
Tomáš Němec and Oldřich Šlemr, CGS.
Photo by Mark Wicks, 2012.
Mitas announced it would accelerate its
$52 million investment to achieve the
full production capacity of 13,500 metric
tons of tyres a year by 2013, which is three
years earlier than originally anticipated.
“Mitas is now an American-made
brand,” said Tomáš Němec, the chairman
of Mitas’ parent company, CGS. “Mitas
invites all farmers to buy tyres made
in the tractor town.”
Œe newly opened plant makes all common agricultural tyre sizes and will eventually produce sizes of up to 54” diameter and 1,200 mm width. Œe last curing
press will be installed by mid-2013.
In April, the factory employed 76 full-time employees recruited locally, and
by 2013 the plant will employ 237 local
residents.
Œe Charles City facility received its
ISO 9001 in March, and the National
Safety Council has awarded it Gold-level
Recognition for Incident Rate Excellence
during 2011. Œe project has received
support from the Iowa Economic
Development Authority, the Charles City
Development Corporation, Floyd County
and North Iowa Community College.
“Œe American farmer will benefit from
increased competition,” Němec added
as Mitas has become the third radial
agricultural tyre producer in the United
States. “Good tractor tyres are worth
their weight in gold,”
said Senator Chuck
Grassley (R) in his
video message to
Mitas. “A quality
product is exactly
what we need,” he
added.
Scan to view a video
[SE]
recording of the
26 April event.
Requires an Internet
connection.
CGS NEWS | Vol. 10 | No. 2
1 / 2012 | Page 1
company
Mitas grand opening
in Charles City
Mitas cookies baked in Charles City.
Factory, front.
Czech Republic, Iowa, CGS and Mitas dignitaries.
Investment data
• Original phase one investment:
USD 43.8 million (announced in
2010)
• Total investment a¬er additional
earmarked funds: USD 52 million
(spent by 2013)
• Revised date of completion of the
investment: 2013 (originally 2016)
• Revised estimated production
capacity by late 2013: 13,500
metric tons of tyres per year
• Number of full-time employees by
April 2012: 76
• Number of employees by late 2013:
237
• Tyres produced at the Charles City
plant: agricultural radial, Mitas
brand
• Incentives negotiated with Iowa
Economic Development Authority,
Charles City Development
Corporation, Floyd County and
North Iowa Community College
Plant excursion.
Photographs by Mark Wicks of the Charles City Press, 2012. Printed with permission.
CGS NEWS | Vol. 10 | No. 2 / 2012 | Page 2
products | company
New earth-moving tyres from Mitas
In Paris-Nord Villepinte, industrial tyre producer Mitas presented a set of new earth-mover tyres that extends the family
of its ERL/ERD tyre sizes by 30 percent.
“Each off-road surface requires its own
specific tread design and functionality,”
said Petr Hala, product manager. “Mitas
now makes specific tyres for machines
operating in these demanding conditions,
including gravel and rock quarries.” Œe
new ERL/ERD-40 tyres feature a large
surface area to improve their life. Œe ERL-50 tread is designed for rocky conditions.
“Œe customer will appreciate the cut
resistance of the ERL-50,” Hala adds. All
of the ERL/ERD line is radial with a steel-enforced carcass and steel breakers.
“Customers ask for resistance to
damage and added value in the tyre
life through retreading in quarry tyres,”
said Andrew Mabin, Mitas’ sales and
marketing director. “Mitas has off-road
expertise in industrial, agriculture and
motorcycle tyres.”
Œe new tyres are made in the Czech
Republic and are available for sale
worldwide. Mitas ERL tyres are fit for
loader and grader machinery, and ERD
tyres are for transport vehicles. Œese
include wheel loaders, dozers and
graders, dumpers (incl. articulated) and
scrapers.
Photo by archive of Mitas.
Mayor of Uden’s visit
[SE]
Œe mayor of Uden visited the Mitas subsidiary in the Netherlands. Here, City Councillor Œijs Vonk and Mayor
Henk Hellegers hold a tyre mould rendition presented to them by Market Director Jean-Paul Spijker and
Account Manager Œeo Bouwmans.
Photo by Gert van Gerven, 2012.
CGS NEWS | Vol. 10 | No. 2 / 2012 | Page 3
company | products | art
New Rubena products
CGS business
results, 2011
Romana Labounková at the European
Championship in BMX, Birmingham.
Photo by Matouš Duchek 2012.
Rubena’s bicycle tyre division has announced
new BMX tyres that will be presented at Eurobike in Friedrichshafen (DE) this summer.
Œe prototypes will be tested by Czech bikers during the Olympic Games in London.
Œese include the Speedo LT for BMX (47406/20x1,75x2), DOM for flatland acrobatic
biking (44-406/20x1,60), MTB free ride biking
tyres, on-the-road Phoenix (23-622/700x23C)
and Ocelot (54-622/29x2,10), and Landmark
(40-622/700x38C).
Several champions will compete on Rubena tyres in London such as Jan Škarnitzl and
Romana Labounková.
In addition, Rubena has extended its line of
industrial and agricultural engine v-belts by
a third. Currently, Rubena makes, for example,
section wrapped belts, narrow belts for auto-
Rubena introduced its Ecology Product
Programme at the international IBF fair in Brno
(CZ) in April.
Photo by Pavel Maršík, 2012.
mobiles, variable speed belts and ribbed belts
including raw edge v-belts. In 2011, Rubena
sold 2.5 million v-belts, and its customers include Lycoming, SOR, Grimme, Iseki, Mountfield and RM, among others.
In April, Rubena introduced its Ecology
Product Programme at the international IBF
fair in Brno (CZ), including a presentation of
inflatable flood barriers.
CGS published its 2011 Annual Report
providing consolidated financial data
for Mitas, Rubena, Buzuluk (sold in February 2012) and other group holdings.
According to Hana Černá, CGS’s chief
financial officer, in 2011 the revenues
grew in all three holding divisions.
“Œe total 2011 revenues were higher
by CZK 1 billion compared with 2011,”
Černá said. In 2011, CGS revenues
reached CZK 13.8 billion (€537.1 million). Mitas has contributed with revenues of €412.2 million, Rubena €102.6
million and Buzuluk €31.0 million.
“Œe raw material price increase
negatively impacted the financial results, which were, however, firmly in the
black,” Černá said. “To lay foundations
for further growth, the holding invested
CZK 1.5 billion (€58.4 million).”
Œe total number of full-time employees grew to 5,900.
[SE]
[SI]
Tireless kunst
Œe young talented sculptor Karel Kunc exhibited a tyre-made installation at the Prague National Gallery in
June 2012. His art piece “Jonas and the Whale”, made of wood and tyre tubes, has been on display in Mitas’
Prague entrance hall.
Photo by archive of Karel Kunc, 2012.
CGS NEWS is published four times a year. Œis issue, volume 10, number 2/2012, was published by ČGS HOLDING a.s. (Švehlova 1900, Prague 10, Czech Republic, identification No. 24811742) on 20 July 2012
in Prague under Czech Culture Ministry registration No. MK ČR E 19804. Editorial board: Josef Brabec [JB], Emil Houška [EH], Ralph Kellenberger [RAL], Martin Maňas [MA], Jiří Šebek [SE], Jiří Šimánek [SI],
Karel Špaňhel [KS].
CGS NEWS | Vol. 10 | No. 2 / 2012 | Page 4