We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
Home » Trelleborg sells off forklift tire-making unit for $2.3 billion

Trelleborg sells off forklift tire-making unit for $2.3 billion

Yokohama Rubber Co. buys industrial wheel systems division to support forecast that global transportation market is set to shift from personal vehicles to shared mobility model.

trelleborg industry_material-handling_1600x445.jpeg
March 25, 2022
Ben Ames
No Comments

The Swedish engineering and manufacturing firm Trelleborg AB will sell off its Trelleborg Wheel Systems division, which makes specialized tires for material handling vehicles and agricultural tractors, in a $2.3 billion deal with Yokohama Rubber Co., the companies said today.

Tokyo-based Yokohama said it made the deal as a forecast that the global tire market is undergoing a shift from consumer applications to commercial ventures, thanks to trends like the rise of Connected, Autonomous, Shared and Electric (CASE) vehicles, mobility as a service (MaaS), and digital transformation (DX).

“The global tire market can be broadly divided into two sub-markets—consumer tires, which includes passenger car tires, and commercial tires, which covers tires used on trucks and buses, agricultural and construction machinery, and other special-purpose vehicles. These two sub-markets currently are similar in scale,” Yokohama said in a release. “However, Yokohama Rubber expect the trends toward CASE, MaaS, and digital transformation (DX) to greatly change the tire market landscape. Specifically, the Company expects individual ownership of cars to decrease and infrastructure-related vehicles devoted to moving people and goods to increase, leading to consumer tires becoming commercial tires.” 

Proponents of that vision, such as Toyota Motor Corp., predict that technological advances are already changing the sector, prompting automakers to evolve from simply building cars to operating as "mobility companies" that provide a wide range of services related to transportation.

Yokohama said the acquisition will help it serve that growing market, since Trelleborg Wheel Systems’ product catalog includes sales of 60% for agricultural tires, 20% for industrial, and 20% for construction machinery and motorcycles. For its purchase price, Yokohama will take over the wheel unit’s 14 manufacturing plants in nine countries, including seven in Europe, two in the U.S., one in Brazil, and four in Asia. By geographical market, Trelleborg Wheel Systems draws about 70% of its sales from Europe.

The wheel systems unit recorded $129 million operating profit on $1.1 billion net sales in 2021, employing some 6,750 workers. That represents nearly one-third of its parent company’s $3.6 billion yearly revenue for 2021, generated from a much larger labor force of 21,230 total employees.

Completion of the transaction is subject to the approval of the relevant authorities and is expected to be completed in the latter part of 2022.

This morning Trelleborg Group signed an agreement to divest Trelleborg Wheel Systems to Yokohama Rubber Company, Limited for EUR 2,100 M (SEK ~22,000 M).

Read the press release here: https://t.co/4uilsed4RD

— Trelleborg Wheels (@TrelleborgWheel) March 25, 2022
Lift Trucks, Personnel & Burden Carriers
KEYWORDS Trelleborg Yokohama Rubber Co.
  • Related Articles

    Roadrunner sells off intermodal business unit for $51.25 million

    YRC sells off part of logistics unit

    GE Transportation spins off rail unit in $11.1 billion merger with Wabtec

Benames
Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.

Recent Articles by Ben Ames

Jungheinrich buys Indiana warehouse automation vendor for $375 million

Shipping groups back bipartisan trucking overhaul bill

Walmart boosts investment in GoLocal delivery-as-a-service platform

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Big and bulky last-mile delivery segment set for hot growth

  • Outlook 2023: What’s in store for logistics/supply chain?

  • Ports, maritime operators see tide turning as ocean freight tsunami subsides

  • In Person: Steve Beverly of Penske

  • InPerson interview: Rob McKeel of Fortna

Now Playing on DCV-TV

89cfed30 8aac 4284 960d c8c8c1886e16

Have you checked your read rate lately?

DCV-TV 4: Viewer Contributed
No reads. Unaccounted for boxes. Boxes sent to the wrong place. A logistics nightmare! But this nightmare doesn’t have to come true. SICK’s linear line scan camera is what dreams are made of for your logistics operations. And if you’re worried about motion and vibration from conveyor belts...well, there’s no reason...

FEATURED WHITE PAPERS

  • The five best applications for robotic lift trucks in warehouse environments

  • Fulfillment Facility Improved Efficiencies by 4x

  • 3PLs: Complete Orders Faster with Flexible Automation

  • Reusable Packaging for the New Wave of Supply Chain Automation

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing