Trelleborg, Sweden – Trelleborg Wheel Systems has finalised the acquisition of Brazilian-based industrial tire manufacturer Standard Tyres Group, the company announced on 1 Dec.
The privately-owned company, said Trelleborg, is “the market leader in industrial tires in Brazil” and supplies to locally based, international original equipment manufacturers (OEMs) of materials handling vehicles.
“The acquisition strengthens the presence of Trelleborg in industrial tires in South America,” said Trelleborg.
Headquartered in Lorena, Standard Tyres Group’s manufacturing facility is located in Feira de Santana. The company’s sales amounted to approximately SEK100 million (€10.8 million) in 2014.
Trelleborg described the “bolt-on acquisition” as part of its “strategy to strengthen its positions in attractive market segments.”
“Brazil has the largest materials handling vehicles market in South America, with all major OEMs represented in the country,” said Maurizio Vischi, president of the Trelleborg Wheel Systems business area.
The acquisition, he said, provided Trelleborg with access to the OEM market in the region.
“In addition, the acquisition will facilitate the expansion of sales into the rest of South America,” He added.
The deal follows Trelleborg's announcement in November that it was acquiring ČGS Holding, owner of Czech-based agricultural and speciality tire-maker Mitas for around €1.1 billion.
The company also started production of farm tires at its Soartaburg, South Carolina site in November and is set to officially open the €34-million plant in January 2016.