STARCO will invest EUR 7.2 millions in steel wheel factory
STARCO will improve and expand in their Croatian facility to meet a growing demand from OEM customers across all product ranges used primarily for agricultural and industrial applications. There is a specific focus is on dual wheels and made-to-measure for the agricultural industry where the demand is growing from both individual end-users and major tractor manufacturers.
STARCO anticipates demand that requires a growth in output from the Croatian factory of 75% over the next 4 years. The growth will come across all wheel types: pressed, spun, made-to-measure and dual wheels.
“We will strengthen the current steel wheel manufacturing setup in Croatia by investing EUR 7.2 million over a 4-year period, whilst investing in our team and processes,” says Richard Todd, Chief Executive Officer.
Richard also highlights that key investments are already in place, giving excess capacity for pressed and spun wheels, and that the new MTM/ Dual wheel production unit is already operational since Feb 1st this year.
“We experience a growing demand from the farmers all over Europe to adjust their tractor to their need by customised wheel solutions,” states Axel Werner, Segment Director for Tractor and National Distributors. He continues: “Also, the demand is growing, and partnerships are developing with major tractor manufacturers.”
STARCO’s dual wheel solutions and made-to-measure (MTM) are sold via STARCO’s national distributors to the aftermarket. Duals and MTMs are primarily used to reduce ground pressure, enhance traction and extend the tractor’s capabilities like row crop applications, or adjust the tractor to the individual demand of the machine operator.
Duals for OEMs
STARCO has been market leading in the niche of duals for many years, however the strategic focus on partnerships with distributors and OEMs and the significant investments will drive massive growth within this business. At the recent agricultural exhibition at SIMA, STARCO duals where displayed on many of the tractor manufacturers’ stands.
”We will partner with the big tractor manufacturers and offer custom-made solutions for them, and support them with training, development and documentation, which support the sales of our dual wheels to the farmers. Thus, giving the farmer the optimum wheel and tyre solution for better tractor performance,” explains Werner.
The first investments, in both equipment and facilities, are already complete, ready for the 2019 high season. The investment period is 4 years, but most will be implemented during the first years.
For more information regarding where to buy duals and MTMs, please contact STARCO.
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