Zhongce Rubber Group Co. Ltd. (ZC Rubber) is acquiring the maker of Tianli tires, Tianjin United Tire & Rubber International Co. Ltd. (Tutric).
ZC Rubber says the acquisition of Tutric "will further strengthen" the company's work to supply off-the-road tires to customers around the world. The deal is to be completed on April 1.
The company is creating a new wholly-owned subsidiary, Zhongce Rubber (Tianjin) Co. Ltd. to oversee day-to-day operations of the Tutric factory, located in the port city of Tianjin, China.
Henry Shen, president of the new Zhongce Rubber (Tianjin) Co. Ltd. says the acquisition provides ZC Rubber with a brand that produces tires that range from 6 inches to 63 inches. The line has more than 2000 SKUs in off-highway applications.
Shen says the deal will expand ZC Rubber's "business into the radial agricultural tire and giant OTR tire segments. It will also reinforce Zhongce’s current OTR business by expanding our radial OTR production capacity.
"Zhongce now has one of the largest ranges of agricultural and OTR tires available to our customers, as we hope to provide them with a one-stop solution for all their off-highway tires.”
ZC Rubber says the investment is a commitment to the company's customers, who said they needed a supplier of agricultural tires.
"From this acquisition, Zhongce can now offer their customers an excellent range of radial agricultural, flotation, and implement tires produced at the Tianjin factory along with access to giant OTR tires which have been manufactured at the Tianjin factory for many years."
The Tutric factory was established in 1985, and the company says the goal is to make it the second-largest OTR tire factory in Asia. The company says it "plans to be in the top three global OTR tire manufacturers soon."
ZC Rubber Group President Shen Jinrong says the company's vision is "to be the most respected" tire manufacturer in the world.
