CGS Tyres to Buy EDP
Czech off-road tyre producer CGS Tyres has agreed to acquire the sales unit of the Saint-Paul-lès-Romans-based L’Européenne de pneumatiques (EDP), a French veteran of agricultural and industrial tyre sales of 25 years. The sale of Mitas-branded tyres by CGS Pneu France directly on the French market, including a transfer of the major customers of EDP of both original equipment and replacement markets, will begin immediately.
“We are improving customer relations in France,” said Andrew Mabin, marketing and sales director of Mitas, the CGS Tyre flagship company. “Now, our French subsidiary has direct control over the Mitas tyre sales channel and is better equipped to cope with customer demands.” EDP has sold tyres produced by Mitas since 1972. Formerly, EDP imported Mitas agricultural and industrial tyres while CGS Pneus France imported the CGS Tyres’ Cultor brand and the Continental brand produced under licence.
In 2009, France was, with a significant market share, CGS Tyres’ fourth most important territory in terms of sales. According to the company one in four tractors and combine harvesters leave production plants equipped with tyres made by CGS Tyres.
CGS Tyres constitutes the tyre-producing division of CGS Holding, which employs 5,430 people. CGS Holding has remained profitable through the course of 2008 and 2009, which saw a sharp decrease of demand due to the global financial crisis. “CGS Tyres is committed to growth”, said Mabin. “Despite the financial upheaval of last year, CGS Tyres has continued to invest in innovation and building production capacity.”