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Czech ag tire company to build in Iowa

By Staff | Sep 3, 2010

BOONE – During the 2010 Farm Progress Show, held this week near Boone, a Czech manufacturer and the Iowa Department of Economic Development signed an investment agreement for a new manufacturing facility to be constructed in Charles City.

CGS Tyres, a tire division of CGS Holding Group, which consists mainly of the parent company Mitas, a Czech manufacturer of agricultural and industrial tires, has committed to a $43.8 million investment to build a new agricultural tire plant in Charles City.

Tomas Nemec, owner of CGS, spoke to reporters and government officials during the signing ceremony held Tuesday at the show.

“This marks a great milestone in our company,” said Nemec. “Today we are signing an agreement with the state of Iowa to build a plant in Iowa.”

Josef Dvoracek, with the Czech Embassy in Washington, D.C., who made his first to Iowa for the signing at the 2010 Farm Progress Show, also showed his support of CGS Tyres coming to Charles City.

“CGS was a very industrious company between the two world wars and I wish them all the best in the United States market and here in Iowa,” said Dvoracek.

Iowa Gov. Chet Culver said CGS Tyres’ commitment to build the manufacturing facility is a huge step forward for the state of Iowa and Charles City.

“There will be hundreds and hundreds of really good paying jobs thanks to the decisions CGS has made,” said Culver.

With the recent ranking Iowa received from Forbes being the fourth best place for business and careers,

Culver aid it only makes sense for companies to want to move to Iowa and said the signing of the investment agreement with the Iowa Department of Economic Development a day of celebration and a winning day for Iowans.

Jaroslav Cechura, general manager and chairman of the board for CGS Tyres, said they are thankful to be at the 2010 Farm Progress show to sign the investment agreement.

“It is a big step for a European company to come to the United States, to the state of Iowa,” said Cechura.

“Thanks to the people of Charles City and others that made this possible.”

CGS Tyres is committed to creating at least 159 new jobs with production, Cechura said scheduled for Jan. 1, 2012.

“We’re doing everything possible to keep on that schedule,” said Cechura.

CGS Tyres plans to develop the production plant in three stages, depending on demand, with the third stage providing employment for over 250 people and providing capacity of 12,200 metric tons of farm radial tires per year.

“We will be making the most advanced tires – radial farm tires,” said Cechura.

Neil Rayson, president for CGS Tyres, said they are a major supplier of radial agricultural tires for new tractors and combines produced by European plants of global leaders such as John Deere, Case New Holland, Claas and AGCO.

“We believe we can get those clientele in the United States,” said Rayson.

“We would like a global partnership to be able to be a global partner for those companies,” said Cechura.

Rayson said the company searched for a location for the new tire manufacturing plant before deciding on Charles City.

“Iowa is very good geographic and strategic position with anything to do with the agricultural industry,” said Rayson.

“Iowa is close to major markets and customers and we also found a suitable site that can be modified very quickly.”

To say the mayor of Charles City, James A. Erb is pleased CGA Tyres is coming to his city is an understatement.

“This is a grand event for Charles City,” said Erb. “This reverses some of the economic difficulty like everyone has been experiencing the last few years and this is just one more thing to help bring us back from some of these difficulties.

Contact Kriss Nelson at jknelson@frontiernet.net.

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