Continental acquires US-based belting manufacturer WCCO Belting, headquartered in North Dakota, USA. With this acquisition, the technology company complements its conveyor belting customer portfolio and strengthens its Conveying Solutions business in the agricultural industry.
Additionally, equipment manufacturers, distributors, dealers, and farmers will benefit from a combined product and service portfolio generating a full multi-tier offering that will enable better support and service. Both parties have agreed not to disclose the terms of the transaction.
Philip Nelles, member of Continental’s Executive Board and head of the ContiTech Group Sector, said, “This strategic acquisition is a threefold perfect fit: portfolio, sales market and people. Moreover, we continue our transformation towards a holistic solutions provider in one of the growing industries, namely the off-highway industry.”
Continental expects that global demand for food and feed will continue to rise and change in the coming decades. World Business Council for Sustainable Development, FReSH insight report and the Boston Consulting Group estimate that the trend is also based on global rapid population growth in the global middle class: With nearly 5 billion people in 2030, their share will have increased almost fivefold over the past three decades.
With three-fourths of WCCO’s business in the agricultural industry, the company’s product portfolio has a strong market position, serves a complementary customer base, and enjoys a favourable global reputation. Additionally, combining both product portfolios generates a full multi-tier offering that enables better support to manufacturers, distributors, dealers, and farmers.
Tom Shorma, CEO and President, WCCO Belting said, “We perfectly fit to Continental as we share the same passion for our industries. Everything we do is to better support our current and prospective customers’ needs based on our longstanding experience and our team’s dedication to contributing to the process of creating custom rubber products that impact businesses across the world. We are very much looking forward to our future common path.”
WCCO Belting manufactures and distributes farm machinery applications such as draper belts, baler belts, pickup belts, tube conveyor belts, merger belts, as well as industrial belt applications for material and package handling, recycling, forestry, and aggregates.
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