CGS confirms plan to build agri tyre plant in Iowa

ERJ staff report (DS)

Prague, Czech Republic -- CGS AS has confirmed that it expects to announce at the end of August, definite plans to build a new agricultural tyre plant in Charles City, Iowa. However, said a spokesman for CGS, as of today, nothing is signed and nothing is definite, even though there is a desire from CGS to complete a deal in the next few weeks.

The Czech Republic based CGS Tyres said in a statement that it is currently in discussions to open a tyre production plant in Charles City. On 31 August, CGS Tyres is expected to sign investment and incentive agreements at the Farm Progress Show in Boone

“Iowa is central to our North American strategy,” said Jaroslav Cechura, the Chief Executive Officer of Mitas, a CGS Tyres group member. “We are expanding our production capacity, and we will provide the U.S. farmers with U.S.-made Mitas and Continental tyres.”

CGS Tyres plans to expand the Charles City plant in three stages with production to start in January 2012.

Although some reports have appeared in the local press, no official details have been released, because negotiations are on-going.

A report in the Iowa-based Globe Gazette, said the plant would serve OE customers including Caterpillar, John Deere and new Holland. It gave some inaccurate data on timing of the project.

The report indicated that total investment would be around $41 million. The initial phase is likely to be tyre manufacture and will create around 170 new jobs. The second phase will add a warehouse and logistics centre, while the third phase will add a mixing room, said the Globe Gazette report.

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Press release from CGS

Tire plant to bring about 200 new jobs to Charles City from Globe Gazette (US - Iowa)