Titan enters negotiations to purchase Conti's Ohio OTR plant

Quincy, Illinois - Tyre and wheel maker Titan International Inc. is in negotiations with Continental Tire North America Inc. to acquire the assets of Conti´s off-the-road tyre manufacturing facility in Bryan, Ohio, Titan announced today.

Both companies want to reach a definitive agreement for the asset purchase transaction within the next 30 days, Titan said. The asset purchase is subject to the approval of each firm's board of directors, Conti's shareholders and government regulations.

Sales at the Bryan facility are about $125 million per year, Titan said.

The asset purchase also is contingent upon the negotiation of an agreement between Titan and the United Steelworkers union. Hourly workers in Bryan are represented by USW Local 890.

The Union said it welcomed the announcement. "Several buyers have shown significant interest in our plant in the last three years," said John Bowling, USW Local 890L Unit Chairperson for the employees of the Bryan facility. "Our local leadership is optimistic that Titan is committed to US manufacturing and maintaining our production here in Bryan."

"We're ready to schedule meetings with Titan to see firsthand how the Bryan plant might fit into its tire businesses," said Bowling.

Titan was in the mix to purchase the Conti plant in 2005 as well, having formed a partnership with German firm Rodos Giants LLC to pursue an interest in the facility. The most recent bid for the Bryan plant was made by Pensler Capital Corp., parent of specialty tyre maker Denman Tire Corp., back in January. But that attempt appears to have fizzled.

Titan late last year finalised the acquisition of Goodyear's farm tyre business, including its plant in Freeport, Illinois, for about $100 million.

From Rubber & Plastics News (A Crain publication)

Press release from USW