Mitas Iowa project moves forward fast

Vol. 9
products | sport
No. 2 / 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
Mitas Iowa project moves forward fast
Mitas has commenced construction works at the Iowa facility acquired from Winnebago Industries. The facility will house the first North American factory of Mitas. Currently, the energy
centre is being built, and pits for the curing presses are being constructed.
“We are about to sign the first contract for 15
curing moulds,” U.S. Project Director Vladimír
Dušánek said. “We have approached IGTT and
the Chinese HIMILE Mechanical company.”
Other equipment is being contracted to
local suppliers, for example, to Tim Hildreth
Company Inc. to deliver the boiler, and to others for deliveries of a nitrogen unit and HUPP
Toyota forklifts.
“The American economy in the Midwest continues to suffer adverse weather,”
Dušánek added. “In this tornado season, hundreds of people were killed, and thousands of
households and businesses were damaged.
This will understandably cause some delays
in technology deliveries and increase the
strain on federal and municipal financial resources.”
Construction works at Mitas factory in Charles City. Photo by Tomáš Hanáček, 2011.
[SE]
Mitas starts hiring factory workers in Iowa
Mitas Tires Career Days in Charles City, June
2011. Photo by Ralph Kellenberger, 2011.
In June, 608 job seekers attended Mitas
Tires’ Career Days held in Charles City to meet
with Mitas HR and discuss employment opportunities at Mitas. Mitas is hiring 10 foremen and core employees, who will be sent to
the Czech Republic for training. The rest of the
work force of the initial 159 employees will be
recruited late in 2011. In addition, 522 visitors accessed the U.S. Mitas website in connection with this event. “Mitas is fulfilling the
promise made to Iowans in summer 2010,”
Mitas Human Resources Manager Ralph Kel-
lenberger said. “We seek full-time employees
to start our production of radial farm tyres in
Charles City. Mitas seeks foremen and workers for making tyres components, tyre building and tyre curing, and for machine and building maintenance.
“Agricultural tyre making requires great
skill,” Kellenberger said. Mitas will provide
training to all successful candidates. Additional information for U.S. job seekers is available
at www.mitas-tires.com.
[SE]
CGS NEWS | Vol. 9 | No. 2 / 2011 | Page 1
products | company | events
Mitas row-crop tyres
Off-road tyre producer Mitas of the CGS Group
announced that in 2011, the company will
introduce to the worldwide markets a new
Mitas-branded range of tyres for use in rowcrop agriculture. The tyre line will extend and
improve existing Continental-brand row-crop
tyres, which Mitas has been producing under
licence since 2004.
“Mitas brings a quality product to the rowcrop tyre market, which major tyre brands often neglect,” said Andrew Mabin, Mitas’ marketing and sales director. “Under the AC 85 and
AC 90 names, Mitas will offer 13 tyre sizes to
meet farmers’ needs in row-crop agriculture.”
As of 1 June, eight Mitas row-crop sizes are
available for sale. By the end of 2011, Mitas
will produce 13 row-crop tyre sizes including
five new sizes: 270/95 R32, 300/95 R46,
320/85 R34, 320/90 R50 and 320/90 R54.
A further extension of the line is expected in
early 2012. The line reflects the specific needs
of European and North American farmers.
The Czech-based Mitas produces agricultural and industrial tyres. Mitas’ own tyre
brands are Mitas and Cultor. Mitas manufactures and sells Continental-branded agricultural tyres under licence. Mitas plans to expand to North America, and currently Mitas is
building a new agricultural tyre plant in Iowa
that will begin production in 2012. [SE]
Google locates
North American
dealers
Demand for tyres continues
In April, Mitas Tires North America launched
a dealer locator service at the www.mitastires.com website to help customers find
dealers of tyres produced by Mitas. The feature runs on Google technology using Google
Maps. Currently, there are 963 U.S. and 399
Canadian dealers listed with their contact information.
“In June, a similar service will be made
available for locating dealers in the Czech Republic,” marketing manager Nenad Tutunovic
said. “Other Mitas markets will follow.”
[SE]
Mitas of CGS Group is facing increased demand for its tyres in all segments and markets. From January to April, overall sales increased 47 percent when compared with the
same period in 2010. Notably, the U.S. sales
doubled in this period. Sales of new products
have also taken off as the sales of Mitas flotation radial and EM radial tyres doubled.
“In 2011, Mitas expects increased sales
across all segments,” CEO Jaroslav Čechura
One of the EU goals is
to achieve a knowledgebased society: Increase
expenditures devoted to
research and development (R&D) up to 3% of
GDP, and avoid a European brain drain.
2005.
CGS NEWS | Vol. 9 | No. 2 / 2011 | Page 2
Source: Mitas, 2011.
said. All Mitas factories run at four shifts and
full capacity.
Due to the continuing rising prices of raw
materials, Mitas has announced a price increase of all of its products. The increase
averaged 10 percent, and it varied among
products and markets. This round of price adjustments was implemented in April and May.
[SE]
EU funds awarded to Mitas
Photo by European Commission,
A snapshot of an area close to Charles City (IA)
where the new Mitas tyre plant is located.
Mitas AC 85 and Mitas AC 90 – row-crop tyres.
Mitas was awarded new EU funds to conduct a training programme in early 2011. This
Mitas- and EU-co-financed project will allow
spending CZK 1.46 million in the Zlín region
for employee education.
“This investment will improve Mitas management systems and the implementation
of new technologies and research,” Human
Resources Director Milada Kincová said. “In
the project, we will improve the knowledge
and skills of employees who implement new
technologies and processes in off-road tyre
production.” Mitas is a major European producer of agricultural and industrial tyres.
The Czech state has also contributed financially to the project, which will run until
December 2012.
Mitas invests regularly into improving the
work force’s capabilities. In 2009 to 2012, the
company received a grant of CZK 14.54 million from EU funds on employee training and
education. The company cooperates with, for
example, the University of Tomas Bata.
[SE]
products | eu
Millions of imported tyres may
not comply with EU regulation
Rubena signs up
89 profi bikers
A testing programme finds 11% of tyres are non-compliant with the EU ban on
the use of high-PAH oils.
In 2011, Rubena has signed up 17 teams with
89 bikers to compete on bicycles mounted
with Rubena tyres. This success in a professional endorsement of the Rubena brands
follows a 38 percent increase of sales in January-March 2011 when compared with the
same period in 2010.
“We used to have about one team and
about 10 bikers,” marketing manager Jiří
Šimánek of Rubena said. “Now our team has
increased ninefold. This reflects a new drive
behind Rubena, which is rolling out new prod-
The European Tyre and Rubber Manufacturers’ Association (ETRMA) announced the
findings of the first phase of its tyre-testing
programme, which tested tyres sold in the
European Union for the use of high-PAH oils.
These oils are banned from use under European
regulations for all tyres produced and sold in the
EU after 1 January 2010. Eleven percent of all
tested tyres were found to be non-compliant.
By February 2011, ETRMA completed
testing on a sample of 110 tyres produced
under 45 brand names for sale in several EU
countries. Twelve tyres produced under nine
different brand names were found to be noncompliant, containing PAH levels prohibited by
REACH, and therefore being sold illegally on the
EU market.
The test programme covered passenger car,
light truck, motorcycle and industrial tyres produced both within and outside the European
Union. Markings on the tyres indicated they
were produced in 16 countries, including nine
EU countries and seven non-EU countries and
from a total of 92 different production plants
in these countries. The 12 non-compliant tyres
were all imported to the EU.
“While 11 percent is a cause for concern,”
said ETRMA President Dr. Francesco Gori, “this
may very well just be the tip of the iceberg. All
tyres produced within the EU tested REACH
compliant.”
Additional information is available at www.
etrma.org. Mitas is a member of ETRMA.
[SE]
Buzuluk for Continental
In April, Buzuluk Komárov started the installation of four tandem mixing lines at the Continental factory in Timişoara, Romania. The
plant was still under construction when the installation works started, and this put a great
stress on the Buzuluk team led by Karel Kotva.
The whole works are expected to last 10
months. All machinery has been designed and
produced by HF Freudenberg and Pomini.
Buzuluk contributed with the production of
320E hoppers according to HF Freudenberg
documentation. One of the units consists of
320E and 550E mixers, Convex 12 extruder
and a Roller-die calender.
In addition, Buzuluk’s team of eight will install the cooling water piping for one of the
lines and electric connection for the Convex
12 unit.
“Buzuluk has expertise in similar installations in Continental Hannover, Barum Otrok-
ovice and the Continental plant in Púchov,”
Advertising Manager Ilona Braunová said.
[IB]
Moving the IM550E mixing chamber into place.
Photo by Jan Srp, 2011.
Petr Dlask, a Rubena-sponsored biker, at the 18th
MTB exhibition “Prague Stairs,” riding Rubena 29”
Kratos tyres developed in 2010 in cooperation
with Jaroslav Kulhavý, the best cross-country
rider worldwide. Photo courtesy of Rubena marketing, 2011.
ucts, such as the 29-inch tyres, tyres with
novel features and tyres made of compounds
developed with biking champions.”
Rubena tyres are now mounted by professional teams driving Specialized, Merida,
Trek, Colnago, BMC, Duratec, Pells and others. Some of the bikers are Jan Skarnitzel,
Jiří Friedl, Jan Jobánek, Jana Horáková, Romana Labounková, Karolína Kalašová, Pavlína Šulcová, Tomáš Vokrouhlík, Martin Horák,
Petr Dlask, Štěpán Tumpach, Lukáš Tamme,
Martin Mareš, Ivan Rybařík, Ondřej Cink, Robert Novotný, Stanislav Hejduk and Jan Svorada.
[SI]
CGS NEWS | Vol. 9 | No. 2 / 2011 | Page 3
brands | company
Mitas: One company, One voice
In May, Mitas marketing presented a strategy
to overhaul the perception of the Mitas brand
on international markets. “Differentiation is
crucial,” CGS Tyres Marketing Manager Nenad
Tutunovic said. “A brand is like a human being.
Without a character or identity, you are nobody. The strength of Mitas is the off-highway
niche and reliability.”
“Mitas is linked to the Continental tyre
brand, which is the favourite ‘household’ brand
in Germany,” Tutunovic said. “The well-kept
‘secret’ in the global tyre market is the fact
that Mitas produces and develops agricultural
Conti tyres.”
The marketing strategy will increase the
perception of the Mitas-branded tyres among
various target groups so that it better reflects
the quality and off-highway properties of Continental tyres.
“We have launched the ‘Support our core
brand’ initiative among our international sales
force,” Tutunovic said.
“The Mitas brand will benefit from our expertise, research and development invested in
our Conti tyres,” Tutunovic said. “The plan is to
align our advertising, fairs and events, printed
literature, merchandising, Internet communication and media relations.”
At SIMA 2011, Mitas presented the new
fair stand concept, which drew many visitors.
Over the past eight months, the marketing
department created a number of advertising
templates and launched the first coordinated
international advertising campaign.
[SE]
Sample advertising templates. Source: Mitas marketing, 2010 and 2011.
News from Mitas Ruma
Ruma facility, tyre-building machine. Photo by Radovan
Mikulka, 2011.
In September, the Ruma tyre factory will celebrate the third anniversary of becoming a CGS
Group member. The 2011 planned output of
the factory is 14,300 tonnes of tyres, and the
facility has recently obtained the ISO 9001 certificate from SGS auditors. “We are planning
to extend production capacity,” plant director
Rudolf Mačák said. “Pending the Mitas board’s
approval, we plan to expand the factory floor,
increase production of 20-34” tyres and widen
the range of modern radial for ‘original equipment’ customers.”
Since CGS took over the plant in 2009, sales
of tyres produced at Ruma to Russian customers have increased 52 percent. “Serbia and
Russia have a customs-free agreement, and
that is why we eye Russia,” Mačák added. “In
2010, CGS Tyres substantially increased its
sales in Russia, and the Ruma factory will now
produce tyres for this market.”
“The Ruma plant is now fully integrated into
the CGS Group,” Mačák said. The Ruma factory
has changed control of financial flows and pro-
Ruma facility, tyre-building machine. Photo by Radovan
Mikulka, 2011.
curement, improved production, implemented
quality management system, begun reconstructing key machinery, implemented SAP and
introduced a Balanced Score Card system.
“We have received a lot of support from technical engineering,” Mačák said. “I am very grateful for that.” Some 60 new Ruma employees
have received training at the Mitas Zlín factory.
[SE]
CGS NEWS is published four times a year. This issue, volume 9, number 2/2011, was published by ČGS a. s. (Švehlova 1900, Prague 10, Czech Republic, identification No. 27410072) on 1 July 2011 in Prague
under Czech Culture Ministry registration No. MK ČR E 19804. Editorial board: 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. 2 / 2011 | Page 4