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July 16, 2001 02:00 AM

International Tire Business

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    Marangoni opens precure plant

    VERONA, Italy-Marangoni S.p.A. has started production of precured tread rubber at a new plant in Belo Horizonte, Brazil, designed to supply a growing demand for retreads in Brazil. Eventually, the plant could supply the North American market as well, Marangoni said.

    The 14,000-sq.-ft. plant cost $10.9 million to build and equip. The company has earmarked $4.3 million more for infrastructure improvements and new product development.

    Marangoni expects the new venture to generate sales of $5.2 million in the first full year of operation, rising to nearly $22 million within four years. Brazil is the second largest market for retreaded tires in the world, Marangoni said, with rubber consumption standing at 12,000 metric tons of rubber per month, or 10 million retreaded tires a year.

    The plant is Marangoni's first production facility outside of Europe. It will produce precured tread rings for Marangoni Tread's RINGtread system as well as associated accessory products.

    Trelleborg buys all of joint venture

    STOCKHOLM, Sweden-Trelleborg A.B. has exercised its option to acquire 100-percent control of Trelleborg Wheel Systems S.p.A., the 60-40 agricultural tire joint venture it set up nearly three years ago with Pirelli S.p.A. Terms of the deal were not released. Tivoli, Italy-based Trelleborg Wheel Systems will now operate as a wholly owned subsidiary of Trelleborg, the company said.

    As part of the deal, Trelleborg secured rights to the Pirelli trademark for the farm and forestry markets, a spokesman said.

    Trelleborg Wheel Systems, which also includes Trelleborg's industrial tire and wheel businesses, reported sales of $330 million last year, with an estimated 55 percent coming from the farm/forestry tire sector.

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