Kal buys Klinge's Australian tire service biz

BRISBANE, Australia (June 15, 2016) — Kal Tire's Mining Tire Group has acquired the tire services business of Klinge & Co. Pty. Ltd. in Australia, a move that will allow Kal to expand its reach into eastern Australia, where many of Australia's major mines operate.

Financial terms of the deal were not disclosed. Brisbane-based Klinge & Co. will continue to operate as a software engineering company focused on tire management systems, training and tools, Kal said.

“Even though our reputation is strong and recognized in many countries, it has been a challenge convincing customers of our credibility inside of Australia as our experience there has been limited,” said Dan Allan, senior vice president, Kal Tire's Mining Tire Group.

“With Klinge, Kal Tire aligns with a well-respected, trusted company known to the Australian mining industry and secures our presence as a national tire service provider.”

Kal did not disclose what physical assets the acquisition encompasses but did say it covers 200 employees.

Kal Tire, which has been operating in western Australia for the past six years, began to migrate eastward earlier this year when it took over a mining tire repair facility in Muswellbrook, New South Wales, previously operated by Goodyear.

The facility, which opened April 1 under Kal Tire's management, covers more than 100,000 square feet with eight repair stations capable of handling tires up to 63 inches in rim diameter, Kelowna, British Columbia-based Kal Tire said.

Kal Tire said it now will be able to offer this valuable repair service, including its Ultra Repair technology and a number of other value-added offerings, to Klinge's customers.

“We are excited to welcome Klinge's 200 skilled personnel to the Kal Tire family,” said Kal Tire President Robert Foord. “They bring invaluable experience with Australian miners.”

Klinge & Co., co-owned since 1971 by Tom and Dianne Klinge, describes itself as an “international leader in quality tire management control systems and services.”

The company services global mining, construction and transport companies on more than 1,200 sites in 29 countries throughout Asia/Pacific, North and South America, Europe and Africa.

The firm's core software products, available in a range of languages, and services cover: tire management; tire service training; and tire consultancy services. Klinge offers 24-hour global software support service operating across multiple time zones.

“We've known Tom and Dianne Klinge for many years,” Mr. Foord said, “and we share the same commitment when it comes to how we think about our people and about our customers.”

Mr. Klinge called Kal Tire a “strong comfortable fit” for his firm's tire services business.

“We share many of the same values and objectives, in particular when it comes to looking after customers and team members,” he said. “And after much heart-felt thinking, we feel it is time to focus on the Klinge software business going forward.”

Mr. Klinge is a regular speaker at the Tire Industry Association's Off-The-Road Tire Conferences, delivering a safety message at the start of each session.

TIA honored Mr. Klinge last year with its Ed Wagner Leadership Award. ers

Kal Tire considers itself Canada's largest independent tire dealer and one of North America's largest commercial tire dealers. Kal's Mining Tire Group is a global leader in mining tire service and supply, supporting more than 150 mine sites across five continents.

Among other recent developments was the opening of an OTR retread plant and repair facility in Antofagasta, Chile, last October. Occupying 215,000 square feet, can accommodate tires up to 63 inches in rim diameter.

Plant Manager Jorge Cardenas spent 18 months training at Kal Tire's retread plant in Kamloops, British Columbia, prior to the Chilean plant's opening.