Trelleborg Wheel to expand operations in South America

Tivoli, Italy (Jan. 04, 2016) – Trelleborg Wheel Systems S.p.A., the Italian tyre manufacturer, recently took a step towards expanding its reach in the South America's industrial tyre market by extending its company's base.

Trelleborg purchased the industrial rubber tyre manufacturer of Brazil, Standard Tyres Group, the financial details of which were not disclosed in the acquisition process.

According to officials of Trelleborg, Standard Tyres is one of the prominent player in Brazil industrial tyre segment and is also a key supplier of tyres to locally based global OEMs (Original Equipment Manufacturers) of material handling vehicles. The overall sales of Standard Tyres during 2014 was estimated to be USD11.5 million.

According to Maurizio Vischi, President of Trelleborg Wheel Systems, with all the major OEMs located in Brazil, the country holds the largest material handling vehicle market all across South America.

The President of Italian tyre giant also added that this acquisition would give Trelleborg an immense exposure Latin region along with strengthening its position as a global solid tyre supplier to major OEMs.

The company’s official also claimed that based on Standard Tyres total revenue generation from business, it was strategically a significant but comparably small step taken by Trelleborg.

Standard Tyres use to employ almost 100 people, which were spread across its headquarter located in Lorena, Brazil and its tyre production facility located in Feira de Santana. As per the spokeswoman, Trelleborg does not claim to make any major changes to Standard Tyres employees or the management.

Trelleborg Wheel Systems is on a continuous stage of expansion via acquisition process. In November 2014, Trelleborg made decision to buy CGS Holding a.s. and three subsidiaries, namely, Mitas a.s., Rubena a.s. and Savatech d.o.o., which costed nearly USD1.25 billion. These acquisitions is expected to literally, double the business revenue of the company after finalizing the procurement process in the first half of 2016.

In April 2014, Trelleborg also purchased Armstrong Tyres, an Australian agricultural tyre service and distribution company. Whereas, in February 2014, the company bought industrial tyre distributor D.G. Manutention Services S.A.S. to bolster its reach all over France. 

TechSci Research believes that Trelleborg Wheel Systems took a major step by taking over Standard Tyres, also, with the acquisition, the company would able to mark its presence with a suitable access to South America’s market including Brazil.