Updated: ContiTech divests US rubber track products unit

Plymouth, Michigan – US military and industrial components supplier Loc Performance has acquired Continental's rubber track production facility in St. Marys, Ohio.

The transaction, the amount of which was not disclosed, closed on 1 Dec, said Loc in a statement on the same day.

The St. Marys facility manufactures rubber track products for agricultural, construction, and defence industries.  Established in 1940, the site spans over 800,000 square feet and employs 450 people,.    
    
Plymouth-based Loc provides track systems, mechanical products, fabricated structures, and assemblies for both military and industrial applications.

The company has been providing track systems to military customers to support the US Army's portfolio of ground combat vehicle systems since 2014. 

With the acquisition, Loc said it could now offer its military customers “continuous and band track solutions.” 

The purchase also expands Loc's manufacturing capabilities by bringing rubber application processes in-house and offering “vertically integrated track production capabilities” to customers.  

"This acquisition fits like a glove with Loc, bringing more of the military track manufacturing capacity under US ownership," said Lou Burr, CEO, Loc Performance. 

In addition to increasing Loc's military capabilities, the acquisition also expands the company’s commercial portfolio to include the Trackman brand. 

Trackman products are installed on off-highway vehicles and highly-engineered undercarriage suspension systems for construction and agricultural vehicles. 

"We look forward to the continued development of next generation track systems for both our military and commercial customers," Burr concluded.

According to ContiTech, its decision to sell the St. Marys operation was primarily based on economic and strategic considerations. However, the company insists that it remains “strongly committed” to the agricultural business

“In fact, we continue to expand our products and services as we evaluated the agricultural industry as one of our future strategic growth fields which offers additional business opportunities,” said a ContiTech statement.

The company, it noted, returned to the agricultural tire industry with a new product portfolio, manufactured in a new site in Lousado, Portugal since 2017. 

“We have introduced roughly 100 tire sizes in eight different product lines and will continue to expand our products and services for the agricultural industry,” added ContiTech.