Magna Tyres Acquired Largest Tire Retreader in Dutch

Netherlands: The OTR tire specialist, Magna Tyres Group, recently acquired OBO Tyres, the largest tire retreader in Netherlands. As per the CEO of Magna Tyres, this global expansion strategy taken by the company would enable Magna Tyres to enter into new emerging markets, which enables company to expand its consumer base across the region.

OBO Tyres is a renowned retreaded tires producer for OTR & agricultural segment with additional tire repair services. As per the former owner of Magna Tyres, both the companies would benefit from this deal and would result in better market position in the retreading business. The integration of both companies would commence from January 2017. Moreover, the new company would focus towards introduction of green tiers which accelerates the company’s share in Netherlands.

As per the TechSci, the investment would enhance the Magna Tyres’s market penetration in OTR & agriculture retreading tire market. Further, with the global expansion, the company would able to offer a wide range of products in the market. Consequent to which, it is anticipated that the demand for company’s tires’ would increase across Netherland in coming years.

According to the TechSci Research report, “Netherlands Tyre Market Forecast & Opportunities, 2020’’, the tire market of the country is dominated by the replacement tire segment, which captured over 95% of the total tire market in 2014. However, it is anticipated that the share of replacement tire segment would decline in the coming years as OEM tire segment is expected to grow at a faster pace through 2020.