GPX International to Sell Solid Tyre Business
GPX International Tire Corporation CEO Craig Steinke has announced the company’s entry into a “definitive sale agreement for its Solid Tire business and Starbright manufacturing facility in China”. Steinke states “an investor group will partner with members of the management team to purchase the operations and underlying assets of the Solid Tire business.” The transaction will include the MITL, ITL and Brawler brands, as well as the Gorham, Maine; Red Lion, Pennsylvania; and Hebei, China manufacturing facilities.
The company filed for reorganisation under Chapter 11 of the US bankruptcy code on October 26; this recent event was, the company believes, the end result of a Department of Commerce Antidumping/Countervailing Duty inquiry that commenced in June 2007 and eventually resulted in “crippling (44 per cent) duties levied against GPX’s Starbright facility while leaving all other major Chinese off-the-road tyre manufacturers with nominal or manageable duties.”
GPX International expects to complete this transaction and the sale of its other business units by December 31, 2009, pending approval by the bankruptcy court. Until the sale is finalised, GPX will continue to manufacture and distribute tyres and service its customers.