BOONE, Iowa and PRAGUE, Aug. 31 /PRNewswire/ -- CGS TYRES announced a USD $43.81 million investment to build a new agricultural tire production plant in Charles City, Iowa. At the Farm Progress Show in Boone, representatives of CGS TYRES and the Iowa Department of Economic Development signed an investment agreement marking the end to negotiations that begun in 2009.
CGS TYRES is committed to creating at least 159 new jobs for local residents. Production is scheduled to commence by Jan. 1, 2012.
"We bring 78 years of expertise in tire-making," said CEO Jaroslav Cechura. "U.S. farmers will benefit from our advanced tires and increased competition."
The Charles City factory will produce the Mitas and Continental brands of farm radial tires for the North American market.
CGS TYRES plans to develop the production plant in three stages, depending on demand, with the third stage providing employment for 262 people and providing a total production capacity of 12,200 metric tons of farm radial tires per year.
CGS TYRES constitutes the tire-producing division of CGS Holding. In 2009, total sales of CGS TYRES decreased to USD $357 million due to the economic crisis, but the company maintained a stable cash flow with EBITDA of USD $44.5 million. In the first six months of 2010, sales have recovered and reached USD $217 million.
ABOUT CGS TYRES
CGS TYRES is one of Europe's leading producers of agricultural and industrial tires. CGS TYRES manufactures and sells tires under three brand names: the company's own Mitas and Cultor, and Continental under license. In addition, CGS TYRES produces and distributes a wide range of Mitas-branded industrial and motorcycle tires. CGS TYRES – the tire division of CGS a.s. Holding – operates three production plants in the Czech Republic and one in Serbia, and maintains a global sales and distribution network.
SOURCE CGS TYRES