Takeover sees Telford tyre firm plan further growth

The Telford-based distributor was recognised for the second time for the pace of its international trade earlier this month, and made it a double-whammy in July by playing a starring role in the takeover of Coventry-based Covpress, which employs 450 people.

Chinese tyre manufacturer Shandong Yongtai, which enjoys annual sales of £2.7 billion and has been described by bosses as the Chinese equivalent of Michelin, works closely with Treadsetters.

The two companies have now joined forces to complete the deal for the Coventry business, whose biggest clients include Jaguar Land Rover, Nissan and Renault.

It saw Treadsetters invest around £10 million for a 30 per cent stake in the firm, while Shandong has taken the other 70 per cent after an investment of closer to £20 million. It follows a 14-month brokering process on the part of Treadsetters.

Now the Hortonwood Industrial Estate company is fixing its gaze on further expansion after completing the deal.

Trefor Jones, of Treadsetters, said: “The main benefit this deal will bring is that it will continue the long development of our relationship with our suppliers.

“There’s still some way to go on deciding on the management of Covpress, but we will be actively involved, that’s in no doubt. The news for Covpress employees is very good.

“The deal is particularly important to Shandong Yongtai as it gives them access to Covpress’s market, and gives them that gateway especially as many of those major manufacturers are moving to China.”

The International Track list showed that Treadsetters, which employs 33 people, grew overseas sales by 74 per cent to £31 million, while total sales clocked in at £71 million.

Earlier in the year, another list showed that Treadsetters’ growth over the last three years placed it 76th in the country for the pace of turnover growth.

Mr Jones added: “We have always been a company that is 100 per cent intent on growth, and this is another part of that ambition.

“We will continue to grow our business. Shandong Yongtai wants to sell more tyres into the major car manufacturers and that will have a knock-on effect for us, as their tyre sales will be our tyre sales as well.

“Our business with Yongtai is a partnership and will always remain that way. For Telford, it relates to that link developing, and being able to open up more markets.”