Bridgestone Joins RubberNetwork.com

In the middle of April, the tyre producers Continental, Cooper, Goodyear, Michelin, Pirelli and Sumitomo Rubber Industries introduced Rubber Network.com as a global electronic purchasing and procurement exchange for the tyre and rubber industry. Total industry purchases represent more than $50 billion a year spent on raw materials, equipment, machinery and goods and services.

The seven member companies represent approximately 75 p.c. of global tyre industry manufacturing capacity.

RubberNetwork.com is at the moment in an early, post-foundation phase and will be operated as an independent company. The international consultants Mc Kinsey have been named as e-commerce advisors Additional manufacturers and suppliers are expected to join the exchange, which intends to be operating before the end of the year.

To what extent Internet-auctions will have an influence on the competition is difficult to predict right now. Investors and analysts forecast an intensifying pressure on prices. But top managers at Michelin rejected this expectation only days after the creation of RubberNetwork.

com had been announced. The prices in the OE-sector are, and have been for a long time, very transparent and in addition there is no room to manoeuvre when it comes to prices, they said..