Agricultural tyre production will start in Trelleborg's Spartanburg plant in 2015.
Trelleborg Wheel Systems will open its first North American manufacturing facility dedicated to making premium radial tyres for agricultural machinery.
The USD50 million investment is expected to create about 150 jobs by 2018 at the plant, which will be located in Spartanburg, South Carolina, US.
The global tyre and wheel supplier says a North American presence is central to its growth strategy and the 40,000 sqm (430,000 sqft.) production facility will boost its manufacturing capacity globally and locally, ensuring the availability of its tyres for OEM and tyre dealers.
Maurizio Vischi, president of Trelleborg Wheel Systems, says North America is the world's largest agricultural market and is therefore highly attractive for the company. "Demand for extra-large agricultural tyres, where Trelleborg is a market leader, is growing in the region. Although we already sell our products in the US and Canada, local production offers considerably more favourable conditions, thus enhancing our competitiveness."
Vischi explains that Trelleborg Wheel Systems is already a leader in the global market for premium agricultural machine tyres and wants to consolidate its position through North American manufacturing. "We'll be located in a modern facility in a prime location, capitalising on existing partnership agreements with major original equipment manufacturers and distributors while facilitating the transfer of technology from one part of the world to another."
The manufacturing facility will be located at Trelleborg's existing premises in Spartanburg and the investment includes new state-of-the-art equipment.
The company says production of agricultural tyres will start in late 2015 and all manufacturing equipment will be installed by 2018 to cater for market growth and ensure that OEMs, dealers and farmers benefit from Trelleborg's proximity and product availability.