Specialty tire marketer Galaxy Tire & Wheel Inc. has extended its off-take tire manufacturing relationship with Yugoslavia's Trayal Corp. and has entered into a final phase of negotiations with privatization authorities there regarding acquiring majority control of another Yugoslav tire maker, Rumaguma A.D.
Galaxy recently signed a $27.5 million, five-year off-take and technology-sharing agreement with Trayal, intensifying a relationship that dates from 1996.
Under the terms of the agreement, Krusevac, Yugoslavia-based Trayal will produce Galaxy- and Constellation-brand skid steer and industrial tires. Galaxy said it and Trayal also plan to jointly develop lines of radial special trailer tires and radial off-the-road tires for intermodal use.
The OTR tires will replace Galaxy's current line of ML-1 and ML-4 port tires that are used heavily in the materials handling sector, particularly on vehicles used at ports to handle intermodal containers, Galaxy said.
The special trailer tires will be made initially in two sizes: 215/75R17.5 and 235/75R17.5.
Galaxy, through its Redco wheel division, produces and sells the 17.5x6.75 wheel used with these sizes. Galaxy said it intends to market the complete tire/wheel mounted assembly to OE trailer manufacturers once the tires are available in 2003.
Trayal produces a range of passenger, light truck, medium truck and industrial tires for both domestic and export customers.
Separately, Galaxy was notified Nov. 26 that its bid for buying 66-percent control of Rumaguma was accepted. This means Galaxy and the Serbian Privatization Agency now will enter a final round of negotiations to finalize details of the bid, Galaxy said.
Based in Ruma in northwest Serbia, Rumaguma primarily produces tractor tires, with an annual capacity of about 12,000 metric tons.
The company employs 675 and reported sales in 2001 of about $8 million, of which approximately 70 percent came from exports.
Malden-based Galaxy markets a wide range of farm, OTR and industrial tires that are contract manufactured at a number of tire plants around the world.