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CGS to proceed with building Iowa ag tire plant

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CGS Tyres will proceed with its plan to build a farm tire manufacturing plant in Charles City, Iowa.

The Czech Republic-based company signed an investment agreement with the Iowa Department of Economic Development earlier this week.

The factory will produce Mitas and Continental brand radial farm tires, which will be sold throughout North America. Production is scheduled to begin by Jan. 1, 2012.

CGS will build the plant in three stages. When done, total production will reach 12,200 metric tons per year.

CGS is the tire producing division of CGS Holding. In 2009, CGS Tyres' sales totaled $357 million. The company expects to exceed that amount this year, reporting first half sales of $217 million.

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