Crain News Service report
RUMA, Serbia (July 1, 2014) — Czech tire maker Mitas A.S. plans to modernize and expand its agricultural tire plant in Ruma to help meet rising demand from markets in Southern and Eastern Europe and the Middle East.
Mitas, a business unit of CGS A.S. of Prague, did not disclose any investment data but said the project will run through mid-2016 and boost annual capacity of bias and radial agricultural tires to 35,000 metric tons.
The project initially will involve the construction of a logistics center at the factory it acquired in 2008 from the now-defunct GPX International Tire Corp.
“Building a new logistic center will help us stage a further expansion of the Ruma factory,” said Mitas CEO Jaroslav Cechura, “which plays a key role in supplying the new, fast-growing markets for radial agricultural and forestry tires.”
Mitas last invested in the Ruma factory in 2012, budgeting $5 million to expand capacity for large radial tractor and combine tires are used widely by Russian farmers.
This report appeared on the website of European Rubber Journal, a U.K.-based sister publication of Tire Business.
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