The €40bn (£34bn) industrial group Continental is quitting the agricultural tyre market – for the second time – as costs and competition threaten European production by other manufacturers.
The Vredestein tyre plant in the Netherlands is set to close and Bridgestone in Spain is making large-scale redundancies at its Puente San Miguel factory where ag tyres are produced alongside truck and bus radials.
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Continental Group first exited the farm tyre market in 2004 when it sold its off-highway tyre operations to CGS, the Czech owner of Mitas, which continued to use the Conti brand under licence.
Trelleborg’s acquisition of CGS in 2016 brought the brand name licence to an early end and gave Continental the freedom to re-enter the market with a new range designed and built from scratch.
More than €52m (£44m) was invested in manufacturing and R&D facilities at its Lousado plant in Portugal, with the first products going on sale the following year.
Now, Continental says it will discontinue production of TractorMaster, Tractor70, Tractor85, CombineMaster and CompactMaster agricultural tyres by the end of 2025.
This follows a “comprehensive” business review that noted the “disruptions” and “commoditisation” that the ag tyre market has experienced in recent years.
Tightening market
Bridgestone blames its redundancy plans on the “significant contraction” experienced in the agricultural and truck/bus tyre markets, resulting largely from inflation, uncertainty and regulatory change.
In a statement, Bridgestone Hispania Manufacturing said: “Furthermore, the rise of non-European manufacturers, who have progressively gained an increasing market share, has led to heightened competitive pressure.
“This necessitates an adjustment of production capacity to enhance our competitiveness and pursue sustainability in the industry.”
The company has not confirmed numbers or the impact the production cut will have on the future of the Bridgestone ag tyres constructed at the Spanish factory.
Meanwhile, Indian manufacturer Apollo Tyres, the parent company of Vredestein, plans to close the Netherlands factory that builds farm (and passenger car) tyres by the summer of 2026.
It is citing macro-economic disruptions, steep increases in energy and labour costs, and a decline in demand for its products.
“These factors, together with pricing pressure from low-cost competitors, make manufacturing at Enschede uncompetitive,” the company said, while offering no indication of the likely fate of the ag products range.
Apollo Tyres is one of several Indian manufacturers to have gained considerable market traction in recent years, and with increasing technical abilities to make more advanced products.
Ascenso, BKT, Ceat and MRL are also active in the European market, offering both simple and high-spec radial traction and flotation tyres, and Yokohama’s Alliance Tire Group builds ag tyres exclusively in India.
