Marathon Tyres named Magna Tyres’ Australian premium partner
Australian OTR tyre specialist Marathon Tyres has become premium partner for Magna OTR tyres in Australia. This new arrangement is said to build on the relationship between Magna Tyres and Marathon that began in 2013, and Magna describes Marathon Tyres as the “ideal partner” for the expansion of its OTR tyre activities in Australia. Provisions of the agreement grant Marathon Tyres the right to sell Magna branded OTR tyres utilised in the mining, construction, port handling and scrap metal/waste handling industries.
Magna Tyres initially entered the Australian market in September 2010, with ADG Global Supply Pty Ltd serving as local partner. The regional operation was headquartered in Western Australia and distributed Magna’s OTR and industrial tyre lines throughout the country. Although Magna Tyres has not officially commented on its relationship with ADG Global Supply Pty Ltd, an announcement made via the Australian Securities Exchange (ASX) states that the company and its parent ADG Global Supply Limited were put into voluntary administration on 6 January 2015. This measure was undertaken as a result of cash flow issues caused by a US$1.5 million debt owed by ADG’s key client, African Minerals Limited. Entry into voluntary administration followed a poor year for OTR tyre sales – in its report for the financial year ending 30 June 2014, ADG Global disclosed that sales revenue from off-the-road tyres (in addition to Magna, the company also supplies the Torch OTR tyre brand) and sales revenue from drilling clients dropped 93 per cent year-on-year.