Debica Celebrates Its 75th Birthday!

04.04.2014

Debica Celebrates Its 75th Birthday!

Tire Company Debica S.A. pays tribute to the creators of the Central Industrial Region and the Automobile Tires Factory in Debica, thanks to whom the Polish tire company is now one of the largest and most modern plants in the world

Today, the monument was unveiled in tribute to the creators of the Central Industrial Region and the Automobile Tires Factory in Debica, founded by Tire Company Debica S.A. on the occasion of the 75th anniversary of the plant establishment. The ceremony was attended by the representatives of the Presidential Chancellery, the Ministry of Economy, Provincial Offices and the Marshals of Podkarpacie and Małopolska, as well as the local government of the city, municipality and district of Debica.

On April 4th, 1939 the Automobile Tires Factory was officially opened in Debica. At that time nobody knew that on this agricultural wasteland one of the largest tire powers in the world and one of the most advanced Goodyear production plants would grow. It could not spread its wings at that time. The war came and thwarted the plans. However, soon after the war, the plant rose again. It survived the six-year plan, the “small stabilization” period, the reign of Edward Gierek, the martial law and the difficult 1980s. All the time, the production kept going and was continuously improved. The plant was modernized and its products were exported. However, it was not until the transformation of the 1990s that the plant seized a real opportunity and made the most of it. In 1996, The Goodyear Tire & Rubber Company acquired a majority stake in Debica, for which it paid over PLN 132 million, i.e. USD 55 million, and committed to invest in the Polish company USD 100 million over 10 years. During the first three years – until the end of 1998 – Goodyear invested in USD 73 million in Debica, and by the end of 2005 it was as much as USD 170 million, instead of the promised USD 100 million!

“Today, Tire Company Debica S.A. is one of the largest of its kind in the world. It is third in Goodyear livery and the first in Europe. It employs almost 3 thousand people. Every year, it pays millions of zlotys in taxes to the budget, it is profitable and it is one of the largest Polish exporters. It is here that the most advanced HP and UHP tires are produced under such brands as Goodyear, Dunlop, Fulda, Sava and Debica, which we export to the whole world”, says Jacek Pryczek, President of the Board at Tire Company Debica S.A.

Over the past 20 years Tire Company Debica S.A. and its strategic partner – Goodyear – invested hundreds of millions of zlotys in Debica. The last investment, which has just been completed, has been implemented in the Special Economic Zone Euro-Park Mielec, for ca. PLN 205 million. Thanks to the investment, Tire Company Debica S.A. meets the technical and legal requirements defined in the EU directive on tire labeling. In this way, the company maintains a competitive position in relation to other tire manufacturers in Poland and around the world. Moreover, the investments allow the company to offer tires with the highest technical parameters, the so-called High Performance and Ultra High Performance tires, designed for cars reaching high speeds, and tires reducing fuel consumption and noise levels. Debica manufactures tires with some of the highest parameters set by the European Union – including Goodyear EfficientGrip Performance and Dunlop Sport BluResponse, with the BA categories on the label, and also OEM tires for such car makes as Ford, Opel, Peugeot, Renault and Volkswagen.

“We continue to invest, but we also support the local community and help those in need. We are innovative and eco-friendly. Our Company wins awards and distinctions, including a high position in the Polish brands ranking by the Rzeczpospolita daily; we are among the fastest growing listed companies according to Forbes, and among the best employers according to the Top Employers ranking” – adds Jacek Pryczek, President of the Board at Tire Company Debica S.A.

With these business successes, Tire Company Debica S.A. may regularly support the local community in Debica, the local government, charities or organizations working with ill people, the disabled and victims of fate. In recent years Tire Company Debica S.A. has allocated over PLN 4 million to help ill people, the disabled and those threatened with exclusion, as well as for charities, subsidies, grants for talented students, donations to schools, fire brigades, emergency rescue and police. Tire Company Debica S.A. is also the initiator of a great cultural project. For the third time, on the last Saturday in August 2014, Debica will host GOODFEST: free admittance festival of young alternative and electronic music. The Municipal Stadium in Debica will be the stage for artists who go beyond the generally applicable musical trends, offering all fans of new areas of experience. This year we will host BRODKA, Kaliber 44, Dawid Podsiadło, KAMP!, BOKKA, Fismoll, Stara Rzeka and Rebeka. GOODFEST artistic director is Filip Berkowicz, the creator of such renowned festivals as Sacrum Profanum, Misteria Paschalia, Actus Humanus or the penderecki // greenwood project. The partners of the Festival are: the National Cultural Centre, the Adam Mickiewicz Institute, The Marshal’s Office of the Podkarpackie Province and the Municipal Office of Debica.

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The Beginnings: Central Industrial Region

The history of Tire Company Debica is inextricably linked with the Central Industrial Region. It is due to the decisions of the 1930s that one of the largest Goodyear manufacturing plants in the world is situated in Poland today.

It was 1937. In the face of armaments in Europe, the Polish government decided to build the Central Industrial Region. The intention of the authorities was to create in the south and central regions of the country industrial facilities that would allow Poland to increase its economic and military potential and to reduce unemployment, which was the result of the Great Depression. This was one of the largest economic projects in Poland before the Second World War. In 1937-39, the government allocated ca. 60% of its total capital expenditures to the construction of the CIR (i.e. almost 2.4 billion of pre-war zlotys). The Deputy Prime Minister and the Minister of the Treasury, Eugeniusz Kwiatkowski, believed the investment will ensure economic prosperity for the country for many years ahead.

The location was not chosen at random. The CIR was to be built in the so-called “safe triangle” which was beyond the reach of German and Soviet aviation, and was additionally shielded by the mountains from the south. It also had a huge agrarian overpopulation and unemployment, as well as a considerable acreage of uncultivated land. The development of heavy industry was supposed to solve this problem.

More and more factories, power plants and steel mills were instantly built in the CIR. Since the very beginning, one of its elements was to be a branch of Stomil Poznan, whose task would be to produce army tires. The decision was made to locate the plant in Debica.

Construction works started in the spring of 1937. In June 1938 the installation of the most advanced English vulcanizing machines commenced. In 1939 facilities of 9.5 thousand square meters and 73.5 thousand cubic meters were put into operation. The cost of construction – PLN 300 thousand. This was the beginning...

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Tire Company Debica S.A. – Historical Milestones

1. 1939. A humble beginning. On March 30th, 1939 the first tires leave the production lines of Automobile Tires Factory in Debica. At that time, the factory employed 260 workers, 16 engineers and 9 persons at the administration department. The daily output was 350 sets of tires.

2. 1939-45. The great turmoil. The development of the plant was stopped by the outbreak of the Second World War. The factory was taken over by the Germans and sold to Continental. However, the latter was not interested in tire production. The company was transformed into an auto repair shop and its machines were removed to the Reich. The Poles, who worked here throughout the war, sabotaged the production all the time, as they knew that the cars they repaired went to the front.

3. 1945-53. Restoration. The first years after the war saw the revindication of machinery and equipment, which were found in 1947. War losses were estimated at PLN 487 thousand. After necessary repairs the production of tires was resumed and in 1949 the factory passed under state administration.

4. 1953-60. Six-Year Plan, or Development. The plant had to meet the growing demand for tires, so it was decided to invest and change the technology. Several new facilities were built (a total of a dozen or so) and new machines were purchased. It was then that the factory was officially named “Debica”. In 1960, the production, as compared to 1950, increased more than 30 times.

5. 1960-69. 1960s, or our small stabilization. The period of further growth. New facilities and the R&D department were built. “Debica” begins to manufacture bicycle and motorcycle tires. In 1965 Debica’s share in tire production in Poland amounted to 75%. The tires were exported to 35 countries around the world. The plant manufactures wheels for Syrena and Fiat 125p.

6. 1970-79. The reign of Edward Gierek. This is a breakthrough for the factory. The company begins serial production of radial tires and several large departments are built. The name is changed into “Stomil”. Research is carried out and the first speed records are set on Debica tires (hence, later on the tires were called “Record”). This is also the time of investment and technology boom. As a result, the company starts manufacturing tubeless tires, sought after by foreign buyers. In 1979, the first computer and automated lines arrive to the plant.

7. 1980-89. Great standstill. Like in any other sector of the Polish economy, Debica faces a standstill and a serious crisis – the development of the factory slows down. Even more so due to the lack of raw materials necessary for production. Although the economy is centrally managed, the plant remains relatively independent – its products are exported, which is a source of valuable foreign currency. Its products are shipped to 63 countries on six continents. In the second half of 1980s, the construction of the truck and farming tires factory is commenced (target output of 800 thousand tires per year). Debica closes the last year of operation under centrally controlled administration with a profit of PLN 52 million.

8. 1990-2000. Restructuring and changes. After the breakthrough of 1989, “Stomil” in Debica rapidly adapts to new economic reality and prepares for privatization. The company returns to the rules of the free market. It is first transformed into a single-shareholder company owned by the State Treasury (April 26th, 1991) and then the company makes a successful debut on the stock market (November 24th, 1994). In early December 1995 the strategic stake is acquired for USD 55 million by the U.S. tire giant: Goodyear Tire & Rubber Company. Goodyear also undertakes to invest USD 100 million. “From the beginning we were impressed by the ability and the spirit of cooperation in the company. We realized that “Debica” is a great company. But since we are partners, we have seen it is excellent and it exceeds our earlier expectations”, said Stanley Gaul in May 1996, Head of Goodyear at that time, during his visit to the plant.

9. 2000-2010. Rapid expansion. Goodyear keeps its promise and indeed invests in “Debica”. More than it originally promised. Both in the expansion and modernization of the plant and in environment protection. In 2000, an ultra-modern logistics center is opened in Tarnow, with the storage area of two football pitches, from which the tires produced in the factory hit the whole world.

10. Since 2010 on. A step into the 21^st century. The factory is still developing. It receives quality certifications (ISO 9001, QS 9000, ISO 14001, ISO/TS 16949). It becomes one of the largest employers in the region, one of the largest exporters in Poland and one of the most recognizable Polish brands. It obtains the Commercial Award from the President of Poland. The outbreak of the crisis does not hinder the development of the plant, and the recovery, which the economists speak of more and more often, heralds further dynamic development.