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November 14, 2005 12:00 AM

Amerityre to sell technology, equipment to Ace Products

ERJ Staff
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    By Liz White, ERJ staff

    Boulder City, Nevada-Amerityre has signed a Memorandum of Understanding with Ace Products llc covering technology licensing for low-duty non-highway-use tyres.

    The non-binding deal, announced 2 Aug by Amerityre president and ceo Richard Steinke, also involves Amerityre selling to Ace Products equipment to make the tyres, as well as the existing inventory of its closed-cell polyurethane Flatfree tyres.

    The agreement is expected to be finalised by 16 Sept, subject to Ace competing due diligence and obtaining financing, said Amerityre in a statement.

    Ace Products, headquartered in Newport, Tennessee, has three plants that provide a full line of semi-pneumatic rubber tyres, solid rubber tyres and plastic wheel assemblies for light- and heavy-duty applications.

    "Ace Products has a commanding presence in key domestic markets, including agriculture, outdoor product equipment and mobility sectors,” said Steinke. We believe that this license provides Ace with an excellent opportunity to expand domestic markets for its products by manufacturing and selling tyres utilising Amerityre's proprietary technology,” he added, in the company statement.

    Jeff Krajacic, president of Ace Products, said that the addition of Amerityre's products will expand ACE's portfolio, and help further its aim to become a one-stop shop… [fulfilling] all of our customers plastic and rubber needs far beyond just wheels and tyres. This arrangement will help ACE become a preferred supplier to a broader customer base."

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