Mitas in North America
Farm tires made in Iowa
In April 2012, Mitas opened its newest radial farm tire factory in Charles City, which originally coined the word “tractor.” Mitas announced it would accelerate its $52 million investment to achieve the full production capacity of 13,500 metric tons of tires a year by 2013, which is three years earlier than originally anticipated. Mitas signed investment agreements on August 31, 2010, at the Farm Progress Show in Boone, IA. In fall 2010, Mitas bought the Winnebago facility in Charles City. In January 2012, Mitas cured the first test tire in Iowa, and in April 2012, Mitas started serial production.
Investment data (as of 2012):
- Total investment after additional earmarked funds: USD 52 million (spent by 2013)
- Date of completion of the investment: 2013
- Estimated production capacity by late 2013: 13,500 metric tons of tires per year
- Number of full-time employees by August 2012: 110
- Number of employees by late 2013: 237
- Tires produced at the Charles City plant: agricultural radial, Mitas brand
- Incentives negotiated with Iowa Economic Development Authority, Charles City Development Corporation, Floyd County and North Iowa Community College
Reasons for investment
- Proximity to original equipment manufacturers such as John Deere, CNH, Unverferth and local replacement tire users.
- Locality suitable for American and Canadian original equipment manufacturers and replacement markets.
Mitas – Introduction
Mitas (www.mitas-tires.com) is a Czech-based manufacturer of off-road tires (agricultural, industrial, motorcycle). The history of Mitas dates to the 1930s, when tire production started in Prague, the then capital of Czechoslovakia, and in the Moravian city of Zlin. Mitas currently operates three plants in the Czech Republic, one in Serbia and a new one in Charles City, Iowa. In addition, Mitas has an extensive international sales and distribution network operating in 14 countries, including the United States and Mexico. The Czech-based tire manufacturer, which has an annual turnover of more than USD 500 million (2011), is one of the top European producers of agricultural and construction equipment tires. Mitas is a member of CGS Holding Group (see www.cgs.cz).
A strategic decision to invest in the U.S.
With its current operations based in Europe, the majority of Mitas’ sales have historically occurred in the European market and through original equipment manufacturers with facilities on the Continent. Currently, the majority of tires produced by Mitas are delivered to its customers in Europe. The company is, however, committed to expanding its global presence. One of its milestones is establishing a production base in the United States, close to U.S. farmers and OEM customers as the U.S. agricultural market is large and demanding. In 2012, the company started producing radial agricultural tires and decided to establish its U.S. base in the state of Iowa.
Mitas is a major supplier of radial agricultural tires for new tractors and combines by John Deere, Case New Holland, Unverferth, Claas and AGCO Group.
Mitas is regularly recognized with awards by those OEMs as the best supplier. One in four new tractors and harvesters in Europe is fitted with tires produced by Mitas. It is the company management’s belief that with its competence in production and services, and quality of products, and by establishing a production base in Charles City, Iowa, the company will be able to approach U.S. customers and become a successful American tire manufacturer.