Vol. 10 No. 3 / 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 Mitas is building a new farm tyre factory In the Zlín region, the city of Otrokovice and CGS representatives laid the cornerstone for the new Mitas farm tyre factory. Mitas will move all production from the existing hall at the Barum Continental industrial park to the TOMA park by the end of 2013. From le¤ to right, CGS representatives Oldřich Šlemr and Tomáš Němec, Otrokovice Mayor Jaroslav Budek and Zlín Regional Governor Stanislav Mišák. e cornerstone of Mitas farm tyre plant, Otrokovice, 26 September. Photo by Jiří Budek, 2012. On 26 September, Zlín Regional Governor Stanislav Mišák, Otrokovice Mayor Jaroslav Budek and CGS representatives Tomáš Němec and Oldřich Šlemr laid down the cornerstone of this CZK 900 million (€36.3 million) investment. e new production hall will be constructed by May 2013. On Friday, 3 August, the Czech producer of off-highway tyres Mitas received planning permission to build a 24,000-square-metre farm tyre factory in Otrokovice in the Czech Republic. e construction commenced on 7 August. By the end of 2013, Mitas will have moved all of its tyre production from the existing Otrokovice production hall, which it has rented from Continental since 2004, when Mitas acquired the agricultural tyre division from Continental. is new facility will have a production capacity of 42,000 tonnes of tyres per year. “We are moving a few kilometres from the existing facility, and the work force will move with us,” said Jaroslav Čechura, Mitas’ CEO. Currently, there are 600 people working at Mitas’ Otrokovice plant, out of the total of 3,200. “We will build stock to offset output fluctuations when moving production equipment to the new facility,” Čechura added. e new plant will make Mitas and Continental-branded radial farm tyres. Mitas has been investing in other plants, for example in Ruma, to optimise production capacity and to ensure that 2013 deliveries to customers are not affected. e project complies with European and Czech environmental regulations regarding, for example, health and safety, emissions and noise pollution. “Mitas is committed to using the best available technology,” said Rudolf Mačák, the project director. “e city of Otrokovice and civic associations have been involved in the project’s design from the very beginning.” In 2014, Mitas’ U.S. farm tyre plant will have achieved its full production capacity. With the transfer of production from Europe to the United States intended for North American deliveries, a substantial share of the European production capacity will thus be freed up and committed to European customers. [SE] Visualisation of the new Mitas' plant in Otrokovice. This photo is courtesy of Tebodin Czech Republic, 2012. CGS NEWS | Vol. 10 | No. 3 / 2012 | Page 1 sport | company Five Olympians with Rubena From le¤ – Daniel McConnell (AUS) and Jan Škarnitzl (CZ) at London 2012 XC race. Photo by Rubena, 2012. In cross country and BMX five competitors relied on Rubena tyres during this summer’s Olympics in London. “is is a record for us,” said Jiří Šimánek, Rubena’s marketing manager. Among them were Rebecca Henderson and Daniel McConnel from Australia and Jan Škarnitzl, Ondřej Cink and Romana Labounková from the Czech Republic. e former Rubena team member (now Specialized Racing Team) Jaroslav Kulhavý won a gold medal in cross-country biking. Labounková rode BMX Speedo LT, which Rubena developed in cooperation with Czech BMX biker Lukáš Tamme. A¤er returning from London, Ondřej Cink won the gold in the World Championship in Saalfelden, Austria, in September, where he drove Scylla Top Design tyres. In Leogang, Austria, Labounková won the silver in 4-cross World Championship also in September. [JB] Australian XC biker Rebecca Henderson at London Olympics riding new Rubena Scylla tyres. Photo by Rubena, 2012. Iowa is no fly-over country Mitas North America on Facebook In August, Mitas hosted 21 tyre dealers from Australia, Brazil, Chile, Mexico, New Zealand and Japan in Charles City, which is Mitas’ U.S. headquarters and where it started producing farm tyres in 2012. In September, Mitas’ American subsidiary launched a Facebook page to facilitate communication with farmers. “We hope to use Facebook to show our customers how Mitas, being located in the heart of the Midwest, is part of the American farming community,” said Jennifer Bauer, OE customer care coordinator. “Frankly, we want to show off our hard work and great tyres,” Bauer added. e Iowa-based subsidiary welcomes all comments and suggestions to improve its Facebook presence. [SE] “Mitas is the ship we want to sail,” many of the dealers reiterated, according to Jaroslav Musil, Mitas' head of direct sales. “e dealers appreciated the new tyre plant; many commended, for example, the general tidiness and storage system. e plant is the showcase of Mitas’ commitment to making quality and durable tyres,” Musil added. In addition, the representatives from Armstrong Tyres P/L, Tyreline Distributors Ltd., Inter Tractor Service Co. Ltd., Alpha Import Export e Logistica and Neumáticos San Jorge attended the Farm Progress Show in Boone and toured the John Deere factory Tyre dealers visiting Mitas’ factory in Charles City, accompanied by CGS in Waterloo, Iowa. Chairman Tomáš Němec and Andrew Mabin, Jaroslav Musil, Ruben Varela Ruiz and Josef Hrdina of Mitas. Photo by Tomáš Hanáček, 2012. CGS NEWS | Vol. 10 | No. 3 / 2012 | Page 2 [SE] One day a¤er the launch, 41 likes and 12 talking about it. Mitas Tires North America on Facebook. The photo is taken from the Internet, 2012. products | company Mitas launches Spanish website In early September, Mitas’ Madrid office launched a Spanish-language website dedicated to Mitas and Continental farm tyres at Mitas-tyres.com. e site provides information about the entire tyre range, technical data, news and advice on how to maintain tyres. “e website overhaul is part of Mitas’ increased marketing activities in Spain,” said Gabriel Markovič, market director. “In addition, Mitas has recently launched a business-to-business e-shop for Spanish and Portuguese tyre dealers to expedite deliveries. e dealers have live information about stock availability.” Currently, an important part of all Mitas’ sales in Spain and Portugal is made via this new portal. [SE] e Mitas-tyres.com website is now betterequipped to serve Spanish and Portuguese customers. The photo is taken from the Internet, 2012. New premium Mitas in North America In August, Mitas introduced its premium product line sold in North America to accommodate demands from the farming community with locally made products manufactured at its Iowan radial farm tyre factory. er network, growing sales to original equipment manufacturers and improving Mitas’ premium warranty conditions. e simplified brand offer will help farmers choose the right tyre. Now, nine Mitas-branded lines are designated as premium because they offer improved benefits to the farmer.” ese include, for example, the Super Flexion Tyre (SFT). Shipments of Mitas premium tyres made in Charles City (IA) began in July, delivered to customers including John Deere and Case IH. “Mitas’ Charles City factory has Mitas AC 85 made in Charles City, Iowa, on display in Boone. been increasing its output as new Photo by Emil Houška, 2012. machinery is installed,” said Pavel Charvát, president of Mitas Tires North America. A total of 110 people work at Starting in September, all Mitas-made prethe production plant, a number that is set to mium tyres delivered to U.S. farmers bear the double by late 2013. Mitas brand name. ese tyres are based on e Mitas premium product lines include Continental agricultural tyres, which Mitas AC85, AC70T, AC70G, AC70H, AC70N, AC90, has made under licence since 2004. AC65 and SFT. As production capacity at Mi“e new Mitas premium lines focus on the tas’ Charles City factory increases over the tyre sizes that American farmers demand,” next two years, the share of premium tyres said Neil Rayson, who is responsible for sales manufactured in Iowa will increase. in North America. “Mitas is extending its deal[SE] Silver Magnum mounted with Mitas In August, Case IH unveiled its 25th Anniversary Magnum 340 Silver Line tractor, mounted with Mitas Premium tyres made in Charles City, Iowa. “e response from American farmers to Mitas’ premium tyres has been positive,” said Milan Šindelář, Mitas’ OE key account manager. “Mitas’ tyres made in Iowa are now being mounted on Case IH tractors in Racine, WI, and Fargo, ND. is might be the first time so many farmers have had the chance to come across our tyres. Mitas has been making tyres for 80 years. We have learned that farm tyres are best made locally, with the knowledge of farmers’ needs and local operating conditions. And that is what Mitas intends to do in Iowa.” e introduction of the Case IH Magnum tractor in 1987 marked a major milestone. e 1988 model year Magnum tractor was the first designed and produced a¤er the birth of Case IH, the result of J.I. Case and International Harvester coming together. Since then, Case IH Magnum Series tractors have delivered producer-driven, proven technology that has helped producers be ready for 25 years. To celebrate the 25th anniversary of the Magnum tractor, Case IH will be producing a limited number of silver Magnum 340 Powershi¤ tractors. Mitas has been making radial agricultural tyres in Iowa since April 2012. [SE] Photo is courtesy of Case IH, 2012. CGS NEWS | Vol. 10 | No. 3 / 2012 | Page 3 products | sport | charity Young ploughing champ rides Mitas tyres Stefan Esterbauer (29) won the gold medal in the 2012 World Championship in conventional grassland ploughing. Esterbauer, who is from Upper Austria, drove a Steyr tractor 9105 MT mounted with Mitas tyres. According to the Rural Youth of Austria, since 1972 there have been 14 world champions in ploughing and six runner-ups from Austria. ing requires a tyre that helps the driver keep his or her tractor moving in a straight line. e World Ploughing Organisation (www. worldploughing.org) held the 59th championship on 14 to 15 September in Biograd na Moru, Croatia. irty-two nations competed for the title. “e hallmark of perfect grassland ploughing is a clearly defined and uniform furrow slice,” Heigl said. Referees judge uniformity and neatness of the cutting through the sod, and they require the crown to show no stubble, grass, weed or wheel marks. e lines must be straight and are measured four times, at the opening furrow, crown, overall and in the finish. Esterbauer’s Steyr benefited from Mitas 320/85R24 (RD-01) and 380/80R38 (RD-05) tyres, Stefan Esterbauer, gold medal winner at the world conventional which were used in the world ploughing championship. Photo is courtesy of Rural Youth of Austria (www. ploughing championship for the landjugend.at), 2012. first time. [SE] “Mitas supports rural youth,” said Josef Heigl, Mitas’ market director in Austria. “Stefan is a rising star. He has already scored gold in ploughing twice at the national level.” Plough- New tyres from Rubena F1 driver Nick Heidfeld presents Gaadi bicycle tubes made by Rubena. Photo by Rubena, 2012. In Friedrichshafen, Germany, Rubena introduced new tyres at the Eurobike show held from 28 to 31 August. ey were the ‘Top Design’ version of Scylla tyres, BMX Speedo LT and flatland tyre Dom designed in cooperation with Dominik Nekolný, Czech flatland biker. Rubena launched the Scylla tyre in the innovative 27.5” size intended for cross-country. At this 21th Eurobike, there were 1,250 exhibitors from 49 countries and 64,000 visitors. [JB] Bessie the school bus For 25 children in the Loerie and Patensie communities of South Africa, Christmas has certainly come early this year. When hearing of the plight of the children who have been unable to attend school for the past five years, Touch Africa, together with the Rover Motorcycle Club – the organisers’ of the annual Castrol Winterberg, which is an annual off-road biking event – worked together to ensure the community was provided with a school bus. Touch Africa is a registered charity in South Africa and the United Kingdom. Event participants and corporate sponsors included Northfield Engineering, Rangers, Noelex Labels, Rover Motor Cycle Club, Springwell, Bandit Signs, Pure Voice, Fleet Dynamics, Yamaha, Honda, Market Square VW, Action Frames, Midas, Telnet, Mitas and Mervyn Woods. e bus was refurbished and presented to the community on 18 August. WFO Bikes and Racing, which is Mitas’ mo- Marketing and sponsorship manager of Castrol SA with Bessie and children of Loerie and Patensie. Photo is courtesy of Touch Africa, 2012. torcycle tyre dealer in South Africa, made the contribution on behalf of Mitas. Loerie Ruskamp will operate the bus, and the farmers in the area have all contributed to the operating cost. e bus has been in service since 20 August. is simple initiative will completely change the course of the lives of 25 children; many more will ride this bus to and from school in the future. For more information see www.touchafrica.info. [SE] CGS NEWS is published four times a year. is issue, volume 10, number 3/2012, was published by ČGS a.s. (Švehlova 1900, Prague 10, Czech Republic, identification No. 27410072) on 19 October 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] and Karel Špaňhel [KS]. CGS NEWS | Vol. 10 | No. 3 / 2012 | Page 4