Quincy, Illinois - Titan International Inc. plans to add capacity for off-the-road tyres at its Freeport, Illinois, and Des Moines, Iowa, plants because of capacity constraints at the Bryan, Ohio, facility it bought last year from Continental Tire North America Inc.
Titan said in a statement it determined that the Freeport plant -- acquired in late 2005 in TitanÂ´s purchase of GoodyearÂ´s North American farm tyre business -- can produce OTR tyres up to 35 inches in diameter. Titan's goal is to add capacity in the fourth quarter of fiscal 2006 and the first part of 2007. Titan estimates the Freeport plant could produce more than $60 million worth of OTR tyres in 2007.
Farm business in 2006 is expected to be down about $75 million from 2005 levels, but Titan believes the purchase of the Bryan plant will compensate for some of the shortfall.
Titan spent about $153 million on the acquisitions of GoodyearÂ´s farm tyre business and ContiÂ´s Bryan plant.
"Last fall, Titan set 2007 management sales goals of $800 million to $825 million for the year, and we still believe this is an achievable objective," said Maurice Taylor Jr., chairman and CEO of Titan. "We have already seen strong demand for January and February. If this continues, 2007 will be TitanÂ´s best year ever."
From Rubber & Plastics News (A Crain publication)
Press release from Titan