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.