CGS acquires Savatech

Vol. 10/11
No. 4/2012 – 1/2013
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
CGS acquires Savatech
Czech rubber company CGS HOLDING a.s. has acquired the rubber manufacturing division Savatech, d.o.o., and related assets from Sava, d.o.o., which is
based in Slovenia.
Savatech makes motorcycle tyres, rubber compounds and
components for home
appliances and the
automotive industry,
among others. Savatech has eight sales
subsidiaries, and in
2011 it had consolidated revenues of
€123.2 million.
“CGS
welcomes
Savatech’s management and all employees in the group,” said
Conclusion of the Savatech contract, from left to right: Igor Hafnar and Vesna Čadež
Oldřich Šlemr, a co(Savatech), Oldřich Šlemr and Tomáš Němec (CGS), Matej Narat and Andrej Andoljšek
-owner of CGS, which
(Sava). Photo by Mitja Smrdel, 2012.
has 6,000 employees.
“CGS will retain all
team, together with Rubena’s researchers,
Savatech’s 964 employees. This acquisition
promises many new products in the pipecomplements CGS’s strategy to strengthen
line,” Šlemr added. Rubena is a CGS holding
its technical rubber product division. In addimember company.
tion, Savatech has an impressive 45-member research and development team. This
[SE]
Mitas grows
strong
“In 2012, Mitas sales were yet again record
high,” Mitas' CEO Jaroslav Čechura said. Sales
of tyres grew 7.6% in sales sold in 2012 compared with 2011. “I expect Mitas sales to have
reached 435 million euros in 2012,” he added.
The majority of sales (71.1%) were incurred
in the agricultural sector in 2012.
Sales in the United States grew substantially for the third year in a row, according to Čechura. Combined sales in
the USA were more than 18% higher in
Jaroslav Čechura, Mitas‘ CEO. Photo by Lenka
Pekárková, 2010.
Sava and Savatech
plants in Kranj,
Slovenia.
Photo by Mitja Smrdel,
2012.
2012 compared with 2011. “The U.S.
sales office is an important source of revenue,” he said. “Other markets are picking
up, too, such as Russia, which has outpaced
all our markets in growth. Sales in South
America and other non-European regions
have been strong.”
CGS is expected to publish the audited financial results of Mitas later this year.
[SE]
CGS NEWS | Vol. 10/11 | No. 4 / 2012 – 1 / 2013 | Page 1
sport | company
Exporter
of 2012
Mitas: Exporter of the Year 2012, the largest
increase of export volume over the 18 years of
Czech independence. Photo by Emil Houška, 2012.
Under the auspices of the Czech Chamber of
Commerce, the Czech Entrepreneur Association honoured Mitas with the Exporter of Year
2012 award in the “Largest increase of export
volume in 1993 to 2011” category. In the
category of the total volume of exports from
1993 (the year of independence of the Czech
Republic) to 2011, Mitas ranked 11th out of
all Czech-based companies.
In the main category of the total volume
of exports in 2011, Mitas ranked 12th. In addition, commercial information provider Dun
& Bradstreet, which partners the ranking,
awarded Mitas their Top Rating certificate,
which affirms that Mitas has achieved “the
highest possible […] D&B ranking.”
[SE]
From left to right: Zdeněk Somr (Czech
Entrepreneur Association), Milan Štěch (Chairman
of the Czech Senate), Jaroslav Musil (Market
Manager Mitas Tyres International). Photo courtesy
of “Exporter of the Year,” 2012.
Mitas makes tyres around
the clock
On 2 January, Mitas’ factory in Charles City
started making radial farm tyres 24/7. This is
in line with an increase of the factory’s output
as new machinery is currently being installed.
Today, the factory runs two 12-hour shifts;
each averages 40 hours of work a week.
Since summer, six additional curing presses
and eight tyre-building machines have been
installed. The factory now employs 179 local
people.
“Mitas seeks new tyre builders and other
employees,” said Pavel Charvát, the plant
director. By the end of 2013, Mitas’ Charles
City plant is expected to have up to 237 employees and a production capacity of 13,500
metric tons a year. The total investment will
have been $52 million, and the full production capacity will be reached three years earlier than originally planned.
Since April 2012, when Mitas started its
tyre production in Charles City, 1,700 metric
tons of tyres have been produced and sold to
customers, mainly in North America. There
have been 24 American employees undergoing training at Mitas’ plants in Europe.
[SE]
Spanish enduro champion
rides Mitas
Spain and Portugal. “This excellent performance contributed to by Mitas tyres is good
news for OE manufacturers and for amateur
enduro sport enthusiasts.”
[SE]
Christian Ardévol of the Beta Trueba Team,
which is sponsored by Mitas, won the Senior
B 4T category in the last race of the 2012
Spanish Enduro Championship. The race took
place in the Galician town of Porriño last
October. Ardévol rode a Beta RR350 4T, alternating Mitas C-19 and EF-06 (front) and
mounted with EF-07 rear tyres.
Ardévol won the same category of the
Catalonian Championship in 2011 in Valls de
Torruella (Barcelona).
Guillem Parés, another promising rider of
the Beta Treuba Team equipped with Mitas
tyres, placed fifth in Enduro 2 at the Spanish
Enduro Championship.
“The Beta Trueba Team achieved great results with Mitas tyres,” said Jordi Artés, the
sales manager of Mitas Motorcycle tyres in
CGS NEWS | Vol. 10/11 | No. 4 / 2012 – 1 / 2013 | Page 2
The Mitas-sponsored enduro race team ranked
high in the Spanish Enduro Championship, 2012.
Photos by José Miñarro, 2012.
customers | company
Mitas signs contract with CNH
Kamaz
In October 2012, representatives of CNH-Kamaz Industry LLC, which is the
Russian producer of Case IH and New Holland tractors and harvesters, and
tyre manufacturer Mitas signed a contract to deliver tyres in 2012 and 2013.
agricultural sector, which has great potential,”
the minister said.
“Mitas’ business in the federation is growing, and Mitas is going to sustain the momentum,” said Tomáš Němec, Mitas’ shareholder.
The company has trebled
sales in Russia between 2010
and 2012. In 2011, sales to Russia amounted to
2 percent of Mitas’ total sales,
a share that is likely to grow
significantly.
Mitas will begin delivering
tyres to CNH Kamaz shortly.
Initially, tyres will be shipped
to Kamaz via Italy. In 2013,
tyres will be shipped directly to
the CNH Kamaz facility in Naberezhnye Chelny (Tatarstan,
Russian Federation). “The
first major delivery of tyres to
From left to right – Mitas representatives Oldřich Šlemr and Tomáš
Russian OEMs took place in
Němec and the Czech Agriculture Minister Petr Bendl at Agrosalon in
2011,” said Jozef Rúček, the
Moscow, where CNH-Kamaz and Mitas signed a tyre supply agreement.
country manager of Mitas in
Photo by Leonid Volkov, 2012.
Russia. In December 2011,
The Czech agriculture minister, Petr Bendl,
was present at the signing at Agrosalon and
praised the bid as it forges ties between Russian and Czech manufacturing. “I welcome the
Czech company’s pioneering of the Russian
Timur F. Nuriakhmetov, the CEO of CNH Kamaz,
and Jaroslav Musil of Mitas sign a contract to
deliver tyres. Photo by Leonid Volkov, 2012.
Rostselmash started fitting Mitas-made tyres
to harvesters and Buhler Versatile tractors. In
2012, Mitas started deliveries to John Deere
in Domodedovo and Claas in Krasnodar.
“Sales of farm tyres in Russia are growing,”
Rúček said. “In 2012, I expect half of the sales
in Russia to come from tractor and combine
tyres. There are nine certified Mitas tyre dealers in Russia, in the tyre replacement market.
Agrosalon, with 500,000 sq. metres of
space, is a major agricultural exhibition held in
Moscow’s Crocus Expo. [SE]
The 100th truckload of
tyres, Charles City
On 19 October, tyre maker Mitas loaded and expedited its 100th truck of farm
tyres made in Charles City.
“This delivery is intended for American farmers,” said Pavel Charvát, the president of
Mitas’ North American subsidiary. Some of
Mitas’ tyres are also exported abroad. Mitas’
sales office in Moscow has confirmed the first
two containers of tyres made in Iowa were delivered to customers in Russia.
Mitas is the third American radial farm-tyre
maker as of April 2012. “This has been a very
busy summer for us in Charles City,” Charvát
said. The company presented a contribution
to the Community Foundation, the team volunteered at the Fourth of July parade, and Mitas hosted a street party in August.
“Mitas is a responsible member of
Charles City and Floyd County,” Charvát
reiterated. “Mitas provides support to local
charitable causes and communal services
while observing transparency, integrity and
efficacy.”
The truck hauling the 100th truckload of Mitas
tyres made in Charles City since April 2012. From
left to right: Calvin Patterson, Chris Wright and
Kelly Winters. Photo by Pavel Charvát, 2012.
[SE]
CGS NEWS | Vol. 10/11 | No. 4 / 2012 – 1 / 2013 | Page 3
company | sport
Dear reader, Otrokovice
update
colleagues
and friends
of CGS,
Over the course of 2012, CGS has continued to transform its assets to better focus on tyre making and related
industries. In February 2012, the group
sold Buzuluk in the Czech Republic,
and in October 2012, CGS signed an
agreement to acquire Savatech in Slovenia.
Savatech will strengthen mainly the
technical rubber division of the holding. The importance of this acquisition
equals the acquisition of farm-tyre
manufacturing from Continental AG in
2004.
In August, the group’s flagship company, Mitas, started manufacturing
tyres in the United States. In September, CGS laid down the cornerstone of
a new Mitas production hall in Otrokovice, in the Czech Republic. In Ruma,
Serbia, Mitas has invested in the production of large radial agricultural tyres.
The Mexican Guanajuato plant has increased production capacity by 30 percent; the Náchod factory of Rubena has
undergone a major refurbishment; and
the new Sico Rubena factory in Velké
Poříčí reached its full production capacity in 2012.
The CGS board believes these
projects create a strong basis for future expansion and business development.
Since September 2012,
when the cornerstone of the
new Mitas production plant
was laid, construction has
continued at a fast pace. In
four months, subcontractors
have elevated the terrain, built
roads, parking lots and pylons,
and dug space for curing
presses. Otrokovice production
hall, 21 December 2012.
Photos by František Chvilíček, 2012.
Gold-winning Rubena team
in Australia
Thank you all for your contributions!
Sincerely,
Tomáš Němec, Oldřich Šlemr
and Věra Bechyňová
CGS Board of Directors
Ivan Rybařík won the golden medal at Crocodile
Trophy 2012 with Rubena tyres. Photo by Regina
Stanger, courtesy of Crocodile Trophy, 2012.
The Rubena Rocky Trail Racing team dominated the October 2012 Crocodile Trophy,
winning overall gold (Ivan Rybařík, elite
category), ratings and first place in teams
(Rybařík, Slezák, Kafka). The 933 km trail
from Cairns to Cooktown was divided into
nine parts. A total of 170 racers competed
on mountain bikes. The total combined elevation is 16,000 metres at temperatures
topping 45 oC.
Australian members of the Rubena team
Mark Griffin and Aaron Lakeman won the
adventure team elite category while Rubena’s Milan Špolc won the Masters M3 category.
The Rubena team mounted their bikes
with Rubena ScyllaTop Design Greyline (V96)
tubeless tyres (29 x 2.25). “Rubena tyres performed flawlessly during the whole race,” said
Pavel Nosek of the Rubena bicycle tyre unit.
[SI]
CGS NEWS is published four times a year. This issue, volume 10/11, number 4/2012–1/2013, was published by ČGS a.s. (Švehlova 1900, Prague 10, Czech Republic, identification No. 27410072) on 23 January
2013 in Prague under Czech Culture Ministry registration No. MK ČR E 19804. Editorial board: Josef Brabec [JB], Emil Houška [eh], Tomáš Chytil [CH], Ralph Kellenberger [ral], Martin Maňas [ma], Jiří Šebek [se],
Jiří Šimánek [si] and Karel Špaňhel [ks].
CGS NEWS | Vol. 10/11 | No. 4 / 2012 – 1 / 2013 | Page 4