Alliance Tire Co. ltd. (TASE: ALIN) has signed a contract with Caterpillar Inc. (NYSE:CT), the world’s largest manufacturer of heavy engineering equipment. Alliance Tire expects the contract to generate $4 million revenue through December 2007.
Alliance Tire said the contract was not large, but that Caterpillar has the potential of becoming a major customer, and could create other business opportunities for the company and help it penetrate new markets.
Until now, Caterpillar’s relations with Israel were mainly based on Zoko Enterprises Ltd. (TASE:ZOKO), which imports Caterpillar tractors.
Alliance Tire president Joseph Anglister said, “This contract opens for the company additional business opportunities overseas, expands our international deployment, and the penetration of new markets.”
Controlled by Fishman Holdings, Alliance Tire manufactures tires for the domestic market and exports to 65 countries. The company has a market cap of NIS 167 million. The company posted a net profit of NIS 7.2 million on NIS 173 million revenue for the first quarter of 2006. The share rose 16% yesterday on news of the contract.
Eliezer Fishman is the controlling shareholder in “Globes”.
Published by Globes [online], Israel business news - www.globes.co.il - on July 12, 2006
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