New Mitas ERL-50

Vol. 11
No. 2/2013
www.cgs.eu
A q u a r t e r ly n e w s l e t t e r f o r c u s t o m e r s , d i s t r i b u t o r s a n d f r i e n d s o f C G S G r o u p
New Mitas ERL-50
At Bauma, Mitas unveiled the newest addition to its family of ERL earth-moving tyres, the 20.5R25 ERL-50, which will become available for sale
worldwide by July. ERL tyres are used on loaders, dozers and graders in mining operations. The Mitas ERL series features 12 various tyres of 28 to 90
mm tread depth.
Mitas reveals the new ERL-50 tyre size at 2013 Bauma in Munich. Photo by Emil Houška, 2013.
“Customers demand durability and resistance to damage from our quarry tyres
resulting in added value and lowered cost
through the retreading of the tyre,” said Andrew Mabin, Mitas’ sales and marketing director. “Mitas has the off-road expertise in
industrial, agriculture and motorcycle tyres
to provide operational solutions.”
“Mitas is ready to move the earth,” Petr
Hala said. Hala is Mitas’ industrial product
manager. “The ERL-50 tread pattern is particularly resistant to cut and wear. This radial tyre is designed for durability as Mitas
altered its tread pattern and incorporated
a steel cord into the body and breaker.”
“Mitas ERL and ERD tyres respond to
various off-road surfaces by changing tread
design and functionality,” Hala said. Mitas
makes specific tyres for machines operating in specific demanding conditions, including gravel and rock quarries. The ERL50 is designed for rocky conditions.
Bauma, held on 15 to 21 April in Munich,
is the largest international trade fair for
construction machinery, building material
machines, mining machines, construction
vehicles and equipment. There were 3,256
exhibitors, 555,000 m2 of space and an estimated 420,000 visitors.
[SE]
CGS 2012
performance
CGS Holding published its 2012 business
results in March. Since 2012, Buzuluk
is no longer a part of the group, and the
production in Mitas Charles City (USA)
facility picked up pace. In Otrokovice
(Czech Republic), Mitas started constructing a new production facility. Substantial
investments took place in Mitas’ Ruma
factory in Serbia, and Rubena invested in its
Mexican facility.
These changes resulted in CGS maintaining 2012 sales at the 2011 level. The total
consolidated sales were CZK 13.7 billion.
The tyre division generated an 81.8 percent
share of these sales at CZK 11.2 billion; the
technical rubber division contributed CZK
2.6 billion in sales. Mitas increased sales
by CZK 600 million when compared with
2011 results while Rubena maintained
sales at the same level year-on-year.
The 2012 consolidated profits reached
CZK 1.1 billion, which is double 2011 profits. The one-time sale of Buzuluk and the
positive development of raw material prices contributed to this increase.
The added value increased CZK 770
million to CZK 4.3 billion in 2012. The total number of employees decreased from
5,885 in 2011 to 5,295 in 2012, which also
contributed to the increase of added value
per employee.
Even though the state of the economy in
some European countries is not improving
quickly, CGS is firmly set to continue successfully in 2013 when, for example, CGS
acquired the Slovenian Savatech.
Hana Černá
Chief of CGS financial department
CGS NEWS | Vol. 11 | No. 2 / 2013 | Page 1
acquisition | company
Savatech is now part of CGS
In January, the Slovenian authorities approved CGS’s takeover of Savatech. As of 2013, Savatech becomes a part of
the holding, and it will contribute mainly in the area of rubber processing. Rudolf Mačák of Mitas is now a member of
Savatech‘s board of directors.
With its 90 years of industrial experience,
Savatech operates production facilities in
Slovenian Kranj and Ptuj, Croatian Zagreb
and Russian Yaroslavl, and five sales offices
in Europe and one in the United States.
Savatech makes rubber compounds,
conveyor belts, rubber profiles, environmental protection and rescue products,
and for example tyres for scooters, mopeds
and motorcycles. Most of its production is
Sava and Savatech plants in Kranj, Slovenia. Photo by Mitja Smrdel, 2012.
similar to that of Rubena, which is also part
of the CGS group.
After Savatech is incorporated into
the group, it will improve overall production capacity and procuring position of
the holding. Savatech products will benefit from CGS’s sales networks, and Savatech’s customers will gain better access
to Mitas and Rubena products. Savatech’s research is also slated to contribute
to the group while Savatech gains access
to the testing facility of IGTT.
Savatech trades with some 1,300 customers who are located mostly in Europe,
and in Germany, Slovenia, Poland and Italy,
in particular. Savatech has 900 employees,
800 of whom work in Kranj. Since March,
Rudolf Mačák is a member of the Savatech
board of directors. Mačák is the former
plant director of Mitas’ Ruma factory in
Serbia, and the project manager of the
construction of the new production facility
in Otrokovice. Other members of Savatech
top management are Igor Hafnar and Vesna
Čadež.
[JB]
Mitas in Iowa: One year on
Mitas celebrates 12 months of farm tyre
manufacturing at its Charles City facility,
which currently employs 188 locals in Iowa.
In April, Mitas held its board of directors’
meeting at the facility and launched three
new tyre sizes in the SFT and AC85 ranges
available in North America.
“Mitas’ 2012 sales in North America were
the best ever,” said Pavel Charvát, Charles
City plant director. “The North American
operations represent 10 percent of all Mitas’ sales. Mitas brings tyre manufacturing
closer to the farmer,” Charvát added.
The three new tyre sizes launched today are combine tyre 750/65R26 SFT and
two tractor sizes 380/95R38 AC 85 and
480/95R50 AC 85. These tyres will be manufactured in Charles City, and they respond
to the demand from original farm equip-
CGS NEWS | Vol. 11 | No. 2 / 2013 | Page 2
ment manufacturers and the replacement
tyre market. “Customers request larger
tyres with a lower aspect ratio and improved
performance,” said Neil Rayson, senior vice
president for sales and marketing in North
America. Mitas plans to produce tyres of
up to 54” diameter and 1,200 mm width in
Charles City.
By the end of 2013, Mitas plans to install three additional curing presses reaching a total annual production capacity of
13,500 metric tons of tyres. The USD 53
million investment will provide employment
to 237 people in Iowa. The tyres produced in
Charles City are agricultural radial.
[SE]
In April, Mitas launched the new 750/65R26 SFT
tyre in Iowa. Photo by Pavel Charvát, 2013.
fairs | company
Super Flexion Tyre at SIMA
Mitas has been selling American-made SFT tyres in North America since summer 2012. The SFT tyre on display at SIMA Paris has been manufactured
in Europe.
combine and farm implement tyre lines, such
as Continental CHO, SVT, HC70 and Mitas
RD-03, AC70T, AC85 and Agriterra 03. For
example, the new 320/90 R54 Mitas AC85
increases the number of sizes in the Mitas
row-crop series to 17.
Rubena also participated at the stand.
For the first time in Europe, Mitas unveiled
a Mitas Super Flexion Tyre (SFT) at the Parisbased SIMA, which is a major international
agricultural exhibition held in February. Mitas
SFT tyres are made for high-horsepower tractors (>180 hp).
“Mitas’ Super Flexion Tyres compete with
the Improved Flexion concept,” said Andrew
Mabin, marketing and sales director. “The
SFT enables the flexibility of variable inflation
pressure and optimal performance according
to application. SFT is Mitas’ response to the
compromised performance of one-pressurefor-all Improved Flexion tyres. Original equipment manufacturers require each element of
farm machinery to contribute to the overall
performance, including tyres,” Mabin added.
“Mitas SFT draws on the performance of
Continental SVT farm tyres,” Mabin said. “Mitas has been successfully manufacturing Continental agricultural tyres since 2004, under
licence. The SFT concept will appeal to Euro-
pean original equipment manufacturers and
farmers alike.”
“The hallmark of SFT is gentle ground-han[SE]
dling,” Mabin said. The SFT tyre
on display is 900/60 R42. This
tyre exerts a ground pressure
reduced by 33 percent when
compared with an IF tyre of the
same size. The tyre on display
has a contact area (flat plate) of
4,800 cm2 and nominal load of
8 tonnes.
The 900/60 R42 tyre is currently the largest and heaviest
Mitas farm tyre. It weighs 426 kg
and has a diameter of 2.15 m.
Its recommended inflation pressure spans from 0.8 to 2.8 bars
depending on speed and load.
At SIMA, Mitas presented
various tyre sizes that are goMitas SFT at SIMA. Photo by Emil Houška, 2013.
ing to extend its major tractor,
Governor
Branstad in
Charles City
Rubena at Hanover Messe
Iowa Governor Terry Branstad visited Mitas
in Charles City, Iowa, on 18 January 2013.
From left to right: Pavel Charvát (plant director,
Mitas), Dennis Litterer (Republican Party), Terry
Branstad, Kim Reynolds (Lt. Governor). Photo
courtesy of the governor’s office.
Rubena took part in the April
2013 Hanover Messe, which
is a major industrial trade
show, and this year it partnered with Russia to display
the best of integrated industry, which was its motto.
CGS’s Rubena displayed
comprehensive product lines
in V-belts, sealing and antivibration systems, silicon products and for example rubbercoated rollers used in the
printing industry.
With 466,000 m2 of covered indoor space, 58,000
square meters of open-air
space and 26 halls and paviRubena stand at Hanover Messe. Photo by Vendula Brdičková, 2013.
lions, Hanover Messe is the
largest industrial trade show
in the world. There were 6,550 exhibitors
President Vladimir Putin inaugurated this
from 62 nations and 225,000 visitors. Geryear’s Messe.
man Chancellor Angela Merkel and Russian
[SI]
CGS NEWS | Vol. 11 | No. 2 / 2013 | Page 3
company | sport
AGCO awards A to Mitas
In January, AGCO awarded its highest supplier rating “A” to Mitas for deliveries of farm tyres from
January to December 2012. The Mitas-produced Continental is a standard fitment in four out of six
model series, for example, Fendt 924-930 Vario. The award pertains to quality, logistics, customer
service and protection of the environment, for all of which Mitas received the highest grade. Mitas has
received the overall “A” grade annually since 2004.
New Czech plant on
schedule
Mitas is building a new production facility for radial agricultural tyres at the
TOMA industrial Park in Otrokovice (Czech Republic). Mitas plans to retain all
of its current Otrokovice employees at the new facility.
tal’s division of agricultural tyres,
there is a commitment by Mitas to
rent a production facility for a limited time within the premises of the
Barum Continental industrial park.
The new production facility at the
Toma industrial park in Otrokovice
is located about 4 kilometres from
the existing facility at Barum Continental industrial park.
“The new production facility is
located near the existing tyre warehouse, which will substantially
decrease the volume of transporMitas’ new Otrokovice (CZ) plant is getting ready for production
tation,” said Josef Křemeček, Otrotechnology transfer. The photograph depicts tyre component
production and the tyre building area. Photo by Martin Frkal, 2013.
kovice and Zlín plant director.
In order to make the transfer
as smooth as possible, Mitas has
The new facility will be built by May 2013
optimised production capacity at its other
while tyre production will have been moved
factories. For example, Mitas has invested
from the current facility at the Barum Contiin the Ruma (Serbia) factory and its capanental industrial park in Otrokovice to the new
city to manufacture radial agricultural tyres. In
facility by the end of 2013. The total invest2014, Mitas’ North American factory will have
ment is about CZK 1 billion (about EUR 39.8
reached its full production capacity. This will
million), and that includes construction and
free up production capacity in its European
transfer and modernisation of the production
factories.
technology.
Mitas will increase its tyre stock so the
The general contractor for constructing
transfer will not affect its customers.
the new facility is the Syner company.
As part of the 2004 agreement between
Mitas and Continental to acquire Continen
[SE]
Schedule
Gaspi
challenges Etna
Rubena factory biker Richard Gasperotti
spent April testing Highlander Rubena tyres
on the slopes of Etna, the Sicilian active volcano. The Highlander tyre is used in free-ride
and downhill bicycle sports.
“Etna is where Hephaestus made Achilles’
famous armour,” Gasperotti said. “Now, the
mountain is Rubena’s furnace to make the
most durable tyres ever.”
Gasperotti tested the prototype 26 x 2,55
(65-559) tyre size containing the “dead compound” that he has helped develop. Gasperotti
has also tested the tyre in Tenerife and Tarifa.
Etna is Europe’s largest active volcano, standing above 3,000 metres.
“The new Highlander will become Rubena’s most advanced and flagship bicycle tyre,”
said Jiří Šimánek, the marketing manager.
[SI]
1 June to 31 December 2013: transfer of production technology to the new facility
2012
2013
7 August 2012: start of construction
30 April 2013: end of
construction
31 December 2013: the new facility will have
reached full production capacity
Biking on the slopes of Etna. Photo by Míla Štáfek, 2013.
CGS NEWS is published four times a year. This issue, volume 11, number 2/2013, was published by ČGS a. s. (Švehlova 1900, Prague 10, Czech Republic, identification No. 27410072) on 13 May 2013 in Prague
under Czech Culture Ministry registration No. MK ČR E 19804. Editorial board: Josef Brabec [JB], Emil Houška [eh], Tomáš Chytil [CH], Ralph Kellenberger [ral], Martin Maňas [ma], Jiří Šebek [se], Jiří Šimánek [si]
and Karel Špaňhel [ks].
CGS NEWS | Vol. 11 | No. 2 / 2013 | Page 4