Alliance Tire Group (ATG), a leading manufacturer of off-highway tires (OHT), has a rich history spanning over seven decades. Specializing in tires for agricultural, forestry, construction, and industrial applications, ATG has grown from a small Israeli factory into a global powerhouse. Founded in 1950, the company has pioneered innovations in tire technology, focusing on durability, performance, and sustainability. Today, as part of Yokohama Off-Highway Tires (YOHT) under the Yokohama Rubber Company, ATG operates manufacturing facilities in Israel and India, serving markets across six continents with brands like Alliance, Galaxy, and Primex. With a commitment to "better value" and customer-centric solutions, ATG continues to thrive, celebrating its 70th anniversary in 2025 amid milestones like selling one million Agri Star II tires worldwide.
Founding and Early Development (1950–1980s)
Alliance Tire Company was established in 1950 in Petah Tikva, Israel (later moving to Hadera), by executives from the construction cooperative Solel Boneh, with technical know-how from the Dayton Tire and Rubber Company (later acquired by Bridgestone). Supported by American Jewish investors, including A. L. Friedlander, who held a 49% stake, the company initially focused on producing pneumatic tires for cars. By the 1960s, Alliance shifted its expertise to tractor tires, capitalizing on the growing demand for agricultural machinery. During the Cold War, it exported products to the Eastern Bloc via Cuba, demonstrating early international reach.
A key milestone came in 1971 when Alliance acquired Samson, a competing tire manufacturer founded by General Tire and Rubber Company, expanding its product portfolio and market presence. In 1983, Koor Industries became the major shareholder, providing stability during a period of growth.
Challenges and Restructuring (1980s–2000s)
The late 1980s brought financial difficulties, leading to Alliance operating under the Official Receiver of the State of Israel from 1988 to 1992, akin to U.S. Chapter 11 bankruptcy protection. By 1990, the company returned to profitability through operational efficiencies. In 1992, its assets were sold to Fishman Holding (Israel), U. Zucker, and Bear Stearns (U.S.). The following year, Alliance went public on the Tel Aviv Stock Exchange, floating 10% of its shares and solidifying its position in the industry.
Transformation Under New Ownership (2007–2016)
In July 2007, Indian entrepreneur Yogesh Mahansaria, backed by Warburg Pincus, acquired Alliance for approximately $48 million plus $100 million in debt. Mahansaria, who had previously turned around the off-highway tire business at Balkrishna Industries before being ousted in 2006, formed the Alliance Tire Group (ATG) that year by acquiring the Israeli company and its 'Alliance' brand. Under his leadership, ATG shifted low-margin production to new plants in India (Tirunelveli in 2008), while the Israeli facility focused on high-margin products. This strategy turned around the company, which had reported a $7 million loss in 2006.
In 2009, amid the global financial crisis, ATG acquired GPX International, a U.S. company owning the Galaxy and Primex brands, for $54 million. This added strength in forestry and construction segments, expanding ATG's portfolio to three brands and boosting its U.S. presence. By 2011, the group was cohesive, with investments in production efficiency and environmental sustainability, including ISO certifications and zero-discharge facilities.
In April 2013, private equity firm KKR acquired an 80% stake from Warburg Pincus and 10% from the Mahansaria family for an enterprise value of $650 million. ATG continued expanding, establishing a third plant in Dahej, India, in 2013, with full production by 2016. The company grew its dealer network from 40 partners in 2008 to 85 across 40 countries by 2015, achieving double-digit market share and a 200% turnover increase over five years. Innovations focused on agriculture, emphasizing productivity, soil protection, and longevity.
Acquisition by Yokohama and Global Integration (2016–Present)
In July 2016, Yokohama Rubber Company acquired ATG for $1.18 billion (90% from KKR and 10% from Mahansaria), aiming to expand its commercial tire business. ATG reported $529 million in sales and $95 million in operating profits the prior year. This integration brought ATG under Yokohama's umbrella, enhancing its global reach.
By 2021, Alliance Tire Group and its Americas subsidiary rebranded as Yokohama Off-Highway Tires (YOHT), unifying operations. The company maintained facilities in Hadera (Israel), Tirunelveli, and Dahej (India), employing over 4,000 people and exporting to 90 countries. Revenue exceeded $163 million by 2006, with 78.5% from exports.
In recent years, ATG has emphasized innovation, such as Very High Flexion (VF) technology and the Agri Star II series, launched in 2020, which features Stratified Layer Technology for superior traction and longevity. In 2025, marking its 70th anniversary, ATG achieved a milestone by selling one million Agri Star II tires globally. The company showcased products at events like Ag in Motion and LAMMA, hosted field demonstrations, expanded warranties to 10 years for R1-W radials, and announced price adjustments up to 6% effective May 1, 2025.
However, in November 2024, reports emerged of potential layoffs and closure at the Israeli factory due to financial pressures, though 2025 activities indicate continued operations and growth.
Conclusion
From its humble beginnings in 1950 as a car tire producer to becoming a global leader in off-highway tires, Alliance Tire Group has demonstrated resilience through ownership changes, innovations, and strategic expansions. Under Yokohama's ownership, ATG continues to prioritize sustainable, high-performance solutions for farmers and industrial users worldwide. As it navigates challenges and celebrates its 70th year, ATG remains committed to driving value and innovation in the tire industry.