Wednesday, May 29, 2024
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TRELLEBORG TREADS HEAD EAST

Sweden’s Trelleborg Group has agreed to sell its Trelleborg Wheel Systems unit, incorporating the entire global Trelleborg off-road tyre business, to Japanese tyre giant Yokohama Rubber for £1.75bn.

Agricultural rubberware and wheels accounted for about 60% of Trelleborg’s tyre manufacturing output and sales, worth £890m in turnover last year. Industrial applications took up around another 20%, with the remainder dedicated to construction machinery and motorcycles.

Yokohama will absorb Trelleborg’s ten tyre plants in seven countries — China, Czech Republic, India, Italy, Serbia, Sri Lanka and the USA. And besides Trelleborg’s own moniker, the brand portfolio changing hands includes Mitas, Maximo, Cultor and Interfit.

In a statement, the purchaser said: “The acquisition of Trelleborg Wheel Systems will enable Yokohama Rubber to consolidate its leading position among tyre producers in the world, becoming a global leader in the off-highway segment, covering different needs in the agricultural, construction, material handling, mining and two-wheel markets.”

This transaction will more than double the size of Yokohama Rubber’s existing off-road tyre operations, which generated £745m in sales during 2021, and should reach completion in the latter half of 2022.  

What’s left of Trelleborg Group has an ambition to grow into “the world’s foremost engineered polymer solutions company in selected industries”, according to its president and chief executive Peter Nilsson.

$-£ currency translation at forex rates applicable on 3 April

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