CGS plant in Iowa would create 192 jobs

ERJ staff report (TB)

Charles City, Iowa - Czech tyre maker CGS AS's plan to open an agricultural tyre plant in Charles City would involve an investment of about $44.5 million and create 192 jobs, according to information in a resolution passed by the city council last week.

A CGS spokesman in Prague, Czech Republic, said earlier this week nothing is definite as yet, but the company is keen to complete a deal in the next few weeks.

CGS would take over an idled Winnebago Inc. assembly plant in Charles City and convert it to tyre production, according to the resolution.

CGS-which also operates as Mitas AS-is among the world's 50 largest tyre makers, with 2009 sales of $318 million. It operates three tyre plants in Czech Republic and one in Serbia. Besides its own Mitas brand, CGS owns the rights to the Continental brand for agricultural tyres.

It is represented in North America by its sales subsidiary CGS Tires US Inc. in Charlotte, North Carolina.

CGS's plan to use the empty Winnebago plant would proceed in three phases, according to the resolution: conversion to tyre manufacturing, including installation of production machinery and building an energy center; production start-up and expansion of warehouse capacity; and building a mixing room.

The jobs to be created would pay an average of $29,578 a year, the council resolution states.

To support the project, Charles City is applying to the Iowa Department of Economic Development for $924,000 in funding from the state's Grow Iowa Values Fund. The funds would be used to “overcome locational disadvantage factors,” according to the resolution.

The resolution did not specify a timetable for the project, but local media reported the plant would be on stream by June 2011.

CGS's holdings also include Rubena industrial rubber products and Buzuluk rubber processing machinery. CGS stands for Ceská Gumárenská Spolenost.

From Tire Business (A Crain publication)