CGS Tyres in Discussions to Open a US Production Plant

Prague, 21 July 2010—The Czech Republic based CGS Tyres is currently in discussions to open a tyre production plant in Charles City, located in Iowa, USA. On 31 August, CGS Tyres is expected to sign investment and incentive agreements at the Farm Progress Show in Boone.

“Iowa is central to our North American strategy,” said Jaroslav Čechura, the Chief Executive Officer of Mitas, a CGS Tyres group member. “We are expanding our production capacity, and we will provide the U.S. farmers with U.S.-made Mitas and Continental tires.”

Details of this investment such as the total sum invested, the number of jobs created locally or the average starting wage are subject to agreements with the Iowa Department of Economic Development, Charles City Area Development Corporation, City of Charles City and Floyd County. The negotiations will conclude in August 2010. CGS Tyres plans to expand the Charles City plant in three stages with production to start in January 2012.

CGS Tyres currently employs over 2 800 people and operates four production facilities in Europe.