Mitas granted option extension for acreage

INDUSTRY

Mitas granted option extension for acreage

Plant needs space to expand, company treasurer tells CCADC

It very well could be the highest earthen point in Charles City. Economic development leaders are hoping that won't be the case too much longer.

Last week, the Charles City Area Development Corporation Board extended Mitas North America's option to buy the acreage on the south side of the tire plant.

Mitas had let the option expire during the sale of its parent company CGS Holdings to Trelleborg. Mitas Chief Financial Officer and Treasurer Vladimir Dusanek attended the CCADC board meeting Wednesday in the Charles City Public Library to ask for the extension to position the plant for expansion.

The board at first considered extending the option until Dec. 31, 2016, which was welcomed by Dusanek.

Board members talked themselves into lengthening that to Aug. 1, 2017 just in case Mitas and Trelleborg needed more time to make the expansion happen.

The acreage is home to an enormous pile of dirt that is overgrown with trees, shrubs, grass and weeds. Removing the pile likely would cost more that the sale price of the land, CCADC Executive Director Tim Fox said in answer to a board member's question.

Dusanek said the Charles City plant needs the space to expand.

In February, Trelleborg opened a 430,000-sq.-ft. facility in Spartanburg, S.C. to manufacture radial agricultural tires.

By Chris Baldus cbaldus@charlescitypress.com