Vol. 10 No. 1 / 2012 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
First test tyre cured in Charles City On 25 January 2012, farm and industrial tyre manufacturer Mitas cured the first test tyre at its new Charles City facility, which was in the testing phase. e plant begins serial production in the spring. “Mitas can make tyres in Iowa,” said Pavel Charvát, plant director and president of Mitas’ U.S. subsidiary. “ is test tyre is the first tyre produced by Mitas on the American continent. Now, Mitas is tweaking the machinery, streamlining processes and training workers for the Charles City plant to be ready for serial production in April.” “Soon, Mitas will begin serial production and give real substance to the commitment we made in Boone in 2010,” said Tomáš Němec, chairman of the CGS board. Mitas is part of CGS Holding.
“I appreciate the efforts by Charles City and Charles City Area Development Corporation officials and other Iowan authorities to help Mitas make this investment happen,” said Vladimír Dušánek, Mitas’ U.S. project director. Mitas has earmarked more than $52 million for the Charles City investment. In 2013, the factory capacity is slated to reach production of more than 12,000 metric tons of radial tyres. Sales of tyres in North America reached a record level in the a ermarket and to original equipment manufacturers in 2011, according to Neil Rayson, senior
A thumbs up for the first tyre made on the American continent for Mitas. Pavel Charvát (plant director and president of Mitas in North America) and Vladimír Dušánek (vice president and project director) shake hands. Photo by Arian Schuessler, 2012.
e tyre 380/80 R38, cured on 25 January. is tyre and other first trial-run tyres will be donated to the Floyd County Museum in Charles City (IA) and the National Czech and Slovak Museum and Library in Cedar Rapids (IA). Photo by Arian Schuessler, 2012.
vice president for sales at Mitas’ U.S. subsidiary. “Mitas’ innovative tyres are wellaccepted by the American farmer. e farmer will be even more likely to accept Mitas tyres made in Iowa,” Rayson said. “It’s a big day,” said Tim Fox, executive director of Charles City Area Development Corp, according to Charles City Press. “Mitas talks a lot about mutually beneficial relationships, and I think we’ve struck onto something. We seem to work together very well.” Charles City Mayor James Erb attended the 25 January event and said, “It’s the coming together of a lot of great effort on the part of both Mitas and our local economic development and city officials.” Erb set Mitas as an example of Scan to view a video a modern manufacrecording of the turer that requires 25 January event. Requires an Internet a skilled work force. connection.
[SE]
CGS NEWS | Vol. 10 | No. 1 / 2012 | Page 1
products | research
CLAAS awards Mitas for innovations In January, farm equipment manufacturer CLAAS awarded tyre maker Mitas with the CLAAS Supplier of the Year Award 2011 for Innovation for Mitas’ CHO tyre. “Mitas won the award from among 900 serial part suppliers,” said Jens Steinhardt, Mitas’ key account manager.
“Bosch Rexroth and Raba were shortlisted for the innovation award.” Mounted on CLAAS combines, the CHO tyre carries heavy loads, achieving low soil compaction while keeping the vehicles’ overall width within 3.50 metres. Such narrow combines do not need escorting during road transport. “And the farmer saves money,” Steinhardt said. “ e secret of CHO is in the third dimension as it increases the length of its footprint.” Mitas developed the CHO tyre in cooperation with CLAAS. “Mitas’ research focuses on the farmer,” said Andrew Mabin, Mitas’ sales and marketing director. “ is award is good news for all our customers, with CLAAS acknowledging our continuous search for and introMichael Kohlem (Head of R&D CLAAS CSE), Jens Steinhardt and Andrew Mabin of Mitas, and Ruediger Mohr (head of duction of innovations into our Corporate Purchasing CLAAS Group). Suppliers’ Day of the tyres.” CLAAS Group, January 2012. Photo by CLAAS KGaA mbH.
A major overhaul of data books Mitas has issued the 12th edition of Mitas agricultural tyre data book and the 2012/2013 edition of its Continental farm tyre technical data book. e new publications are available in English and German; in addition, the new Conti data book is also available in French and Spanish. “ is is part of a continuous effort to upgrade our marketing tools,” said Nenad Tutunović, marketing manager. “Mitas data book now features a distinct style.” Other marketing literature follows. For example, Mitas has published a new motorcycle tyre brochure, U.S. farm tyre brochure, and Mitas industrial and Continental farm concertina-fold leaflets. [SE]
[SE]
Mitas research Last September, Mitas commissioned Mendel University in Brno (Czech Republic) to conduct a series of tests aimed at researching inflation pressure, farm tyre construction, fuel consumption, drawbar power, wheel slip and their effect on tractor pulling force. e team, lead by professor František Bauer, spent five days in the field, testing various configurations, conditions and tyres mounted on a John Deere 8520 tractor. “Inflation pressure is one of major factors determining efficiency,” said Jiří Přibyl, the research and development director of Mitas. “ ere is a strong correlation between low tyre pressure and high performance. In most cases, drawbar power of a tractor fitted by Continental tyres was higher in comparison with competitive brands measured under the
CGS NEWS | Vol. 10 | No. 1 / 2012 | Page 2
same inflation pressure,” Přibyl adds. “Mitas and Continental farm technical data books contain optimal and recommended pressures. e lesson learnt is that every farmer who minds his or her business should pay close attention to tyre pressure.” Mitas improves its products and their performance continuously, and it conducts tests in the field and laboratory settings. [SE]
ENDURO, MOTOCROSS, TRIAL
Testing tyres in field. Photo by Jiří Přibyl, 2011.
products | company | sport
Fendt awards four As to Mitas In January, AGCO awarded its highest supplier rating to Mitas for deliveries of farm tyres from January to December 2011. e Mitas-produced brand Continental is a standard fitment in four out of six AGCO’s model series, e.g. Fendt 924930 Vario. AGCO evaluates its suppliers’ quality, logistics, customer service and protection of the environment, in all of which Mitas received the highest grade. Mitas has received the overall A award
annually since acquiring production of Continental farm tyres in 2004. “Mitas’ core business is agricultural and industrial tyres,” said Andrew Mabin, Mitas’ sales and marketing director. “Original equipment manufacturers appreciate close attention to detail and reli-
[SE]
Increasing production capacity of Rubena bike tyres and tubes
By end of 2013, Rubena is planning to increase production capacity of tubes by 60 percent to 54,000 tubes a day and of bicycle tyres by 50 percent to 33,000 tyres a day. e total investment is planned in the vicinity of CZK 100 million (€4 million) in two phases and pending demand. e first phase will be implemented by March, according to Martin Schmidt, direc-
ability.” Mitas sales to AGCO increased in excess of 25 percent in 2011 compared with 2010. “In 2011, Mitas achieved sales exceeding all its historic business results,” Mabin added. „Mitas has weathered the storm of fluctuating prices of raw materials.” Audited business performance indicators will be made publicly available later in 2012.
CGS Group sold Buzuluk
tor of Rubena’s bicycle tyre division. Ultimately, the investment will also result in a 10 percent increase of productivity and creation of up to 100 new jobs. “Rubena is driving costs down,” Schmidt added. “We face strong Asian competition as 95 percent of all bicycle tyres and tubes are made there,” he explains. Rubena is building capacity to satisfy increasing demand from Turkey, former Soviet Union countries, Western Europe, Benelux and Brazil. “We expect an increase of demand for high-quality tyres by close to three or four million pieces there.” e new technologies will be installed in Rubena’s Velké Poříčí and Náchod plants.
Prague, 8 February 2012 – CGS group sold its 100 percent share in machinery maker BUZULUK a.s. to Dalian Rubber & Plastics Machinery and Tianjin Machinery Import & Export Corporation. CGS group sold the company in order to develop its core business, which is the manufacturing and sale of off-road tyres and technical rubber. “We are happy to find strategic partners who will allow Buzuluk to develop,” said CGS spokeswoman Věra Bechyňová. Shaoning Luo, chairman of the board of Dalian Rubber & Plastics Machinery, added, “We intend to utilise the location of the Czech Republic and the tradition of machinery manufacturing in Komárov. First, we will implement new technologies and develop production, research and development of rubber industry machinery and piston rings. We will also utilise the sales base of Buzuluk to introduce our machinery to the European market.” Representatives of new shareholders confirmed they would retain the Czech management and workers.
[SI]
[CGS press release]
e remodelled production floor in Rubena Náchod. Photo by Jiří Švanda, 2012.
Gaspi and Klauz freeride Freerider Richard “Gaspi” Gasperotti and slope-style biker Ladislav “Little” Klauz, both riding Rubena Defender tyres, took part in the January biking exhibition Downmall held at the Arkády shopping mall in Prague. In 2012, Gasperotti plans to take part in free-ride and slope-style competitions in Morocco, Spanish Tarifa and a tour in Mongolia. e Defender bicycle tyre is V93
tread designed to withstand wear and tear. e tyre contains the “Dual Extreme Light” compound; one of the rubber compounds contains silica to increase adhesion, and the other contains activated carbon black to increase durability.
[SI]
Richard Gasperotti sponsored by Rubena, Arkády shopping mall, Prague. Photo is courtesy of Richard Gasperotti, 2012.
CGS NEWS | Vol. 10 | No. 1 / 2012 | Page 3
products | company | sport
Mitas upgrades Ruma factory, invests € 3.5 million On 20 March 2012, Czech-based off-highway tyre manufacturer Mitas announced a €3.5 million upgrade of its factory in Ruma, Serbia. e factory is strategically placed to supply the Russian Federation since Russia and Ivo Somr, Ruma plant Serbia enjoy special director. Photo by Zdeněk trade relations. e Němec, 2011. Ruma factory, built in 1981, produces agricultural tyres. Mitas acquired the plant in 2008. “ e Ruma factory takes advantage of the Free Trade Agreement between Russia and Serbia,” Mitas CEO Jaroslav Čechura said. “Mitas expands production capacity of radial tractor and combine tyres.” Currently,
Rubena: Tomeček’s choice in Africa
the Ruma plant is capable of producing, for example, large radial tyres used widely by Russian farmers. “Serbia is a soaring eagle,” Čechura said. “Serbia’s strategic location, skilled work force, effective production costs and EUcandidate country status make it a perfect springboard for high-flying EU companies.” Ruma facility recently obtained the ISO 9001 certificate from SGS (www.sgs.com), and it has been fully integrated within CGS Holding, which owns Mitas. In 2012, the environmental management system ISO 14001 will be implemented. “ e factory has changed controlling of financial flows and procurement, improved production, implemented quality management system, begun reconstructing key machinery, implemented SAP and introduced a balanced score card system,” plant director Ivo Somr said. [SE]
Mitas attacks flat-track with a new tyre In March, motorcycle tyre producer Mitas unveiled a new tyre for flat-track competitions at Motosalon in Brno, Czech Republic. In flat-track racing, there are 12 motorcycles that ride at speeds in excess of 160 km/h and pass o en. “ e new tyre adheres well at fast speeds and while cutting corners,” said Karel Špaňhel, product manager of Mitas. In Q2 2012, Mitas will start selling 27x7-19 (130/80-19) H-18 TT and 27.5 x 7.5-19 (140/80-19) H-18. “Mitas dominates the speedway. Now, we aim at flat-track racing,” Špaňhel added. e new tyres will be manufactured at the Zlín (Czech Republic) plant of Mitas. e Czech premier flat-track race of FIM will take place 23 June at Prague’s Markéta stadium. Flat-track is one of the oldest forms of motorcycle racing. Unlike speedway, flat-
track motorcycles feature rear-wheel brakes, and the flat-track racing rings can be 400 or 1,600 meters long. [SE]
Outdoor repairs featuring Rubena li ing bags. Photo is courtesy of Tomáš Tomeček and his team, 2012.
Czech truck driver Tomáš Tomeček and his team won the truck category of the Africa Eco Race 2012 for the second time. eir truck, Tatra 815 Dakar 2TOR45, was equipped with Rubena bellows-type air springs and high-pressure li ing bags, which are reinforced with Kevlar cord. e race course leads from France, Spain, Morocco and Mauretania to Dakar in Senegal. e trucks ride over stone surfaces, through river beds and over sand dunes. “Extreme conditions tested Rubena products, thoroughly,” said Jiří Šimánek, marketing manager of Rubena. With 41 hours and 19 minutes, Tomeček won the truck category and ended second to Jean-Louis Schlesser, who was the absolute winner of the race, riding an open-wheel car. Additional information on Tomáš Tomeček is available at www.tomastomecek.cz. [SI]
e new Mitas flat-track tyre tread. Photo by Mitas
Tomáš Tomeček’s Tatra at Africa Eco Race 2012.
marketing, 2012.
Photo is courtesy of Tomáš Tomeček and his team, 2012.
CGS NEWS is published four times a year. is issue, volume 10, number 1/2012, was published by ČGS a.s. (Švehlova 1900, Prague 10, Czech Republic, identification No. 27410072) on 2 April 2012 in Prague under Czech Culture Ministry registration No. MK ČR E 19804. Editorial board: Josef Brabec [JB], Emil Houška [EH], Ralph Kellenberger [RAL], Martin Maňas [MA], Jiří Šebek [SE], Jiří Šimánek [SI], Karel Špaňhel [KS] and Nenad Tutunović [NT].
CGS NEWS | Vol. 10 | No. 1 / 2012 | Page 4