02/12/11 - Group trading update; Italtractor ITM S.p.A agreement with Simest S.p.A.; acquisition of South African wheels business

Titan Europe Plc ("Titan Europe" and "the Group")

Group Trading Update
The Board is pleased to confirm that its revenues and order book fully support market forecasts for 2011 trading.

Despite this difficult macro-economic climate forward order books remain strong and Titan Europe has won a number of encouraging new contracts. Certainty is impossible in this financial climate but information to hand confirms management's outlook for 2012.

The Board takes this opportunity to update shareholders on recent corporate activity.

Italtractor ITM agreement with Simest S.p.A.
Italtractor ITM has, on 30 November 2011, signed an agreement with Simest S.p.A. ("Simest").

Simest is a controlled company of the Italian Ministry of Economic Development. Its activity is to promote, finance and support the activity and development of Italian companies abroad.

Under the agreement, Simest will invest £0.6m in the Titan ITM (Tianjin) Co. Chinese manufacturing business in exchange for a 20% equity holding.

In addition to this investment, Titan Europe will benefit from a 3% interest subsidy on £1.4m of financing, which will be used to fund the second phase of the Group's Chinese undercarriage manufacturing expansion.

Titan acquisition of South African wheels business
Titan Europe announces that its recently formed wholly owned subsidiary Titan Wheels South Africa (Pty) Ltd ("TWSA") has acquired the South African businesses of Conron Wheels & Allied CC and Conron Earthmover Wheels (Pty) Ltd ("the business") for a cash consideration of £0.9m.

The business is based in Springs near Johannesburg and, on completion, will trade under the name Titan Wheels South Africa (Pty) Limited. The business is currently involved in the manufacture and repair of wheels used in the agriculture, earthmoving and forklift markets.

Under the acquisition agreement, TWSA has acquired the business, certain assets and inventories. As at 1 December 2011, the assets acquired had a net book value of £0.9m.

Mike Akers, Chief Executive, Titan Europe commented:
"It is encouraging to be able to establish a local presence on the African continent, a region which offers growth potential for all of our products. This business will particularly provide leverage for our large mining products in the South African market."

Enquiries

Mike Akers, Chief Executive Gary Chesterton Group Finance Director Titan Europe Plc Today:+44 (0) 1562 850561

Steve Douglas Director, Corporate Finance Arden Partners Tel:+44 (0) 20 7614 5900 Tel:+44 (0) 121 423 8900

Fiona Tooley Keith Gabriel Citigate Dewe Rogerson Tel:+44 (0) 121 362 4035 Mobile: +44 (0) 7785 703523 (FT) Mobile: +44 (0) 7770 788624 (KG)

 

19/10/11 - Holdings in Company (TR-1 Notification)

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