Industry News

Trelleborg’s is all set to expand its penetration in North America Agriculture Tyre Market

United States: Trelleborg has inaugurated its new agricultural tyre manufacturing unit in South Carolina in order to cater the North American market. The manufacturing facility will be manufacturing premium radial tyres for agricultural equipment.

The manufacturing facility covering an area of 40,000 square meter is built with an investment of USD50 million and is dedicated to produce tyre of size ranging from 24 to 54-inch diameter. The facility will target the replacement as well as the OEM market in North America.

According to Paolo Pompei, president of agricultural and forestry tyres at Trelleborg Wheel Systems, the Spartanburg manufacturing facility is one of the finest and innovative manufacturing facility for agricultural tyres. The facility is located in a prime market location and has state of art equipment according to the Trelleborg technology standards.

The company has targeted North America, primarily because of the existing potential for agricultural tyres along with increasing demand for radial agricultural tyres in the region. Apart from this, the company is also trying to save on the growing cost of importing tyres into this region. At present, company sells its tyres in North America through 30 direct dealers and more than 1,000 indirect point of sale in North America.

The company has recently acquired the Brazilian industrial Tyre manufacturer, Standard Tyre Group and further setting up a manufacturing facility in North America, implies that the company is all set to become a global force in agricultural tyre sector. In line with its existing expansion plans, company is further planning its merger with Czech Republic based company CGS.

As per TechSci Research, with the induction of manufacturing facility for agricultural tyres in South Carolina, the company would be handling the regional demand in a better manner for making a strong foothold in the region. As North America is the largest revenue market of Trelleborg, therefore catering to the demand directly through its manufacturing facility will also improvise the profits of the company. 

The recent report published by TechSci Research, “United States Tyre Market Forecast & Opportunities, 2020” states that agricultural tyre manufacturers in the country such as Trelleborg, BKT, Michelin etc. are already tapping the U.S market with their products. However, with the expected growth in the agricultural tyre segment of the country in the forecast period, the demand for tyres used in such vehicles would incline by 2020, wherein, Trelleborg with its domestic tyre manufacturing plant would eventually accomplish its goal by targeting the domestic market suitably.

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