Titan Europe expands global presence through new deals
STEEL wheel manufacturer Titan Europe is increasing its exposure in the emerging markets with twin deals which will see the company expand into South Africa and China.
The Worcestershire company, through its recently-formed wholly-owned subsidiary Titan Wheels South Africa, has acquired the South African businesses of Conron Wheels & Allied CC and Conron Earthmover Wheels Ltd in a deal worth £0.9m.
The business, based in Springs, near Johannesburg, will on completion of the deal, trade under the name Titan Wheels South Africa. The business is currently involved in the manufacture and repair of wheels used in the agriculture, earthmoving and forklift markets.
Under the acquisition agreement, TWSA has acquired the business, certain assets and inventories. As at December 1, 2011, the assets acquired had a net book value of £0.9m.
Mike Akers, chief executive, Titan Europe, said: “It is encouraging to be able to establish a local presence on the African continent, a region which offers growth potential for all of our products. This business will particularly provide leverage for our large mining products in the South African market.”
The group’s Italian subsidiary Italtractor ITM has also signed an agreement with Simest, a company controlled by the Italian Ministry of Economic Development. Its task is to promote, finance and support the activity and development of Italian companies abroad.
Under the agreement, Simest will invest £0.6m in the Titan ITM (Tianjin) Co. Chinese manufacturing business in exchange for a 20% equity holding.
In addition to this investment, Titan Europe will benefit from a 3% interest subsidy on £1.4m of financing, which will be used to fund the second phase of the group’s Chinese undercarriage manufacturing expansion.
Titan Europe has also announced that its revenues and order book fully support market forecasts for 2011 trading.
It said that despite the difficult macro-economic trading environment forward order books remained strong and it had won a number of encouraging new contracts.
“Certainty is impossible in this financial climate but information to hand confirms management’s outlook for 2012,” it said in a statement.
