Watts Tyres to Supply Continental
Watts Industrial Tyres Plc has signed an agreement with Continental AG to supply solid industrial tyres to its industrial tyres business unit. Continental is going to use the tyres to develop the US and Asian markets. The tyres will be manufactured to Continental’s specification at Eu-Retec (Pvt) Ltd in Sri Lanka.
Watts acquired 50 per cent of the equity in Eu-Retec several months ago after working with the company for a number of years. The UK industrial tyre producer also manufactures solid industrial tyres through joint venture agreements in China. The company sees its recent Sri Lankan investment as a good way of extending its production capabilities whilst ensuring that it is not relying too heavily on one region.
“We are delighted to be working with Continental Tyres and this agreement will ensure that our new Sri Lankan facility can benefit from the economies of scale that this volume will provide,” said Doug Pearson, managing director of Watts Industrial Tyres Plc. Dieter Saar, of Continental AG, commented “This cooperation with Watts will enable us to develop our sales in important markets.” Watts of Lydney Group chairman, John Thurston, added: “We have transformed our tyre company business model over the past few years and this has allowed us to cooperate with Continental in this way. Supply chain agreements between competitors are not unusual in other industries and it is a trend that we are keen to develop.”