ELM MOTT, Texas, (July 2, 2014) — Dutch OTR tire distributor Magna Tyre Group has signed Armadillo Tire L.L.C., a recently established wholesale distributor in Elm Mott, as its exclusive U.S. distributor for Magna-branded solid tires.
The deal covers Magna’s lines of solid tires for construction (skid-steer and telehandler) and scrap metal/waste-handling applications, the companies said.
The deal does not cover Magna’s lines of radial pneumatic tires, which are handled by Colony Tire Group. Magna is seeking additional dealers for its pneumatic tire lines.
Armadillo Tire’s deal with Magna calls for it to coordinate container shipments directly to customers as well as maintain an inventory in the U.S. at its Waco, Texas-area warehouse for additional coverage, Armadillo said.
Magna anticipates demand for its solid tires in the U.S. potentially could represent up to $15 million over the coming three years.
In Canada, Magna operates a subsidiary, Magna Tyres Canada Ltd. in Aurora, Ontario, which has concentrated on mining tires since opening two years ago.
Armadillo Tire Owner Steven Smith said securing this partnership “underlines Armadillo Tire’s understanding of what the market demands and its ability to effectively market and sell products across the USA…. Armadillo Tire understands that our very success is dependent upon our dealers’ success.”
Armadillo Tire is owned by Steven Smith and Phil Jandrokovic. Mr. Smith has 13 years’ experience in the materials-handling business, starting at Darr Equipment in 2001 and then founding Aftermarket Material Handling Parts L.L.C. in 2006.
Mr. Jandrokovic has 20-plus years’ experience in industrial tires, having worked for Trelleborg Wheel Systems, GPX International Tire and Maine Industrial Tire, according to his LinkedIn page.
Waalwijk, Netherlands-based Magna Tyres Group describes itself as a privately held manufacturer of off-the-road (OTR), industrial and truck tires, with 10 sales offices worldwide. It operates a 250,000-sq.-ft. warehouse in Waalwijk.
The company designs and engineers its tires in Netherlands, but final production is at plants in China and Taiwan using rubber compounded in Netherlands, Russia and the U.S., Magna said.
Annual sales, according to Magna, are in the $120 million range,
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