2 Jun 2004
From Rubber & Plastics News
Hanover, Germany-Continental AG has agreed to sell its agricultural tyre business unit to CGS Group of Czech Republic, the maker of Mitas-brand farm, industrial and motorcycle tyres. Terms of the deal were not disclosed.
CGS Group, which also includes Rubena industrial rubber products and Buzuluk rubber processing machinery, will integrate Conti's ag tyre unit its own tyre division, which operates plants in Prague and Zlin.
Continental said it views this to be a good opportunity for the unit to attain a better position internationally, since CGS is developing its industrial, agricultural and motorcycle tyres. At the same time, Continental said this reflects its strategy of leaving business sectors it does not consider core.
The companies have concluded agreements governing the use of the Continental, Semperit, Barum and Euzkadi trademarks by CGS. For the transitional period, Continental will assist in several areas to ensure continuity in the wide variety of services provided to customers.
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