Magna Tyres Group has acquired the Netherlands’ largest retreader, OBO Tyres.

According to Magna Tyres, the acquisition is the next step for the tiremaker’s global expansion plan and will allow Magna to offer customers a larger product range, and possibly lower costs.

“We expect OBO Tyres to be an attractive add-on for existing Magna Tyres customers but also an opening to new markets, ” said Michael de Ruijter, CEO of Magna Tyres Group.

OBO Tyres was founded in 1959 and specializes in producing retreaded tires for the agricultural and OTR market. OBO already distributes Magna tires.

The integration of the two companies will start in January 2017, and OBO will continue to operate under the same name.