Turkey now 100% owned by TSW19 Apr 2011 08:35
Titan Europe buys out its JV partner in Turkey
The Board of Titan Europe is pleased to announce that Titan Europe's wholly-owned subsidiary, Titan Italia SpA ("Titan Italia") acquired yesterday (18 April 2011) the remaining 50 per cent. interest in its joint venture business, Titan Jantsa Jant Sanayi Ticaret ve Sanayi A.Ş. ("Titan Jantsa") from JANTSA-Jant Sanayı ve Tıcaret A.S. ("JANTSA"). The cash consideration paid for the shareholding is €8.5 million.
Titan Jantsa, established as a joint venture in 2005, serves the Turkish market and Western European OEM customers principally for agricultural wheels up to 38-inch diameter. The Titan Jantsa operation currently manufactures 150,000 wheels per year and produces for CNH, Same, Landini and CLAAS in Europe and Turk Tractor in Turkey.
For the year ended 31 December 2010, Titan Jantsa recorded profit before tax of €1.0 million on turnover of €10.2 million. At the same date, Titan Jantsa had net assets of €10.0 million.
Titan Jantsa's unaudited results for the period January to March 2011 were revenues of €3.1 million with an EBITDA of €0.8 million (25.8%). At this date the company also had cash of €3.2 million.
Titan's Turkish factory has proved a highly successful addition to the Group's manufacturing capability providing low-cost, high-quality product in a region with easy access to the Italian ports and mainstream European operations.