Veyance Expands Into Brazil

Veyance Technologies Inc., the former Engineered Products division of Goodyear Tire & Rubber, has acquired RCT Servicos de Vulcanizacao, a Brazilian conveyor belt supplier and service provider. No financial terms were disclosed. Veyance was acquired last year by The Carlyle Group for $1.475 billion.

PRESS RELEASE

The world's No. 1 conveyor belt manufacturer and exclusive producer of Goodyear Engineered Products is expanding its conveyor belt installation, splice and repair service footprint into Latin America.

Veyance Technologies, Inc., has bought RCT Servicos de Vulcanizacao Ltda., based in Belo Horizonte about 600 kilometers or 350 miles north of Sao Paulo, subject to regulatory approval.

 

RCT is Brazil's leading conveyor belt service provider with several operations and more than 300 associates in the country's northern and southeastern regions. It will continue to use its name and provide conveyor belt installation, splicing, monitoring and repair services.

 

Goodyear-branded conveyor belts are the market leader in Brazil and Latin America.

 

Bringing together the region's leading conveyor belt supplier and service provider gives Veyance significant growth opportunities in Latin America, according to Renaldo Calderini, Veyance's vice president and general manager for Latin America. “The company will use the dual offerings to enter other markets,” he said.

Calderini said the acquisition helps provide its distributors and their customers with comprehensive conveyor belt support. “The service complements our technologically-advanced conveyor belt products, splice kits and monitoring systems.”

This is the third conveyor belt service acquisition announced by Veyance this year, including North America's Monk Mining Supply based in Virginia and National Belt Service based in Alabama that cover U.S. and Canada coal industry needs.

RCT has operated for more than 17 years. Previous owners Arthur Sternick and Marcio Alves de Oliveira will remain with the organization to ensure consistency of customer support.

Veyance's mining industry support reaches back to the first Goodyear-branded conveyor belt produced in 1913. It operates Brazil, Chili, U.S., Canada, South Africa and Australia conveyor belt plants; recently formed Shandong Aneng Conveyor Belt & Rubber Co. – China's leading conveyor belt manufacturer; and recently acquired a U.S. conveyor belt fabric business.

In addition, an $18 million expansion underway at its Marysville, Ohio, heavy-duty conveyor belt plant adds new process technology and equipment.

Veyance Technologies has 35 manufacturing facilities worldwide and employs 9,000 associates. Along with conveyor belts, Veyance manufactures and markets Goodyear-branded industrial and automotive products, including industrial and hydraulic hose, power transmission belts, rubber track, air springs and tensioners, as well as metal sprockets, fittings and couplings.