Pirelli is cooperating with a property developer on plans to build a housing estate on the site of its Burton factory’s former retail division. Developer St. Modwen Properties, who purchased a 21-acre plot from Pirelli in 2005 and a further nine acres in 2007, intends to construct around 200 houses on a 20-acre site.
Those of you fortunate to have an example of the classic 1950s Mercedes 180 or 190 in SL or saloon guise tucked away in your garage now have a new tyre at hand for your baby. Hampshire based Vintage Tyre Supplies now stocks the new 640/700SR13 Vredestein Classic Tyre, a radial featuring a raised curbing rib and suitable for speeds of up to 113 mph (180kmph).
Natural rubber cost increases of 60 per cent during the course of 2009 could force tyre manufacturers to increase selling 2 per cent. Current prices of US$ 2.4/kg (RSS3 grade, according to SICOM) compare with a recent low of US$ 1.5/kg last January, and US$ 3.2/kg in June 2008. Average prices reached US$ 2.3/kg in 2007, US$ 2.8/kg in 2008 and are expected to fall around the US$2.0/kg mark for 2009.
According to financial analysts at Deutsche Bank the recent surge is due to inventory build up from tyre companies; the weakness of the US dollar; and recent flooding in Indonesia, which is responsible for 15 per cent of the world’s natural rubber production. Writing in an investor’s note dated 13 October, the analysts reported that natural rubber costs represent approximately 8 per cent of sales of leading tyre makers. This equates to an estimated 550 million euros for 2009 in Continental’s case; 1.2 billion euros for Michelin; 60-65 million for Nokian Tyres and 400 million euros for Pirelli. Therefore if rubber stays at current levels the industry would have to increase selling prices by approximately 2 per cent to offset the added cost, say the analysts.
(Tire Review) TBC Corp. is taking on a 1.1 million-square-foot distribution near Charleston, South Carolina. Construction of the new DC, located in the Rockefeller Group Foreign Trade Zone/Charleston in Berkeley County, is expected to start by the end of this year, and is slated to open in 2010. “We are excited about the opportunity to consolidate a portion of our distribution network to a new and larger facility in the Charleston area,” said Erik Olsen, president and CEO of TBC Wholesale Group. “The infrastructure and location of the Port of Charleston complements our growth and will allow us to meet the growing demands of our customers.” TBC expects to bring “thousands of containers” through the Port of Charleston, according to reports. The new DC will reportedly add 100 jobs to the region.
Wheel supplier Superior Industries has announced the resignation of chief financial officer Erika Turner. In the short term her shoes will be filled by Emil “Bud” Fanelli, who has served as the company’s vice president and corporate controller since 1997. Superior Industries has begun the quest to bring a new CFO into the fold.
(Tire Review) Amerityre Corp. has been notified by NASDAQ that its current financial status “was out of compliance” and that its stock may get delisted. NASDAQ claims Amerityre is not meeting the exchange’s Equity Standard Listing Rules, because it does not have a minimum of $2.5 million in shareholder equity, $35 million in market value of listed securities or $500,000 in net income from continuing operations for the most recent fiscal year. To remain listed, Amerityre must deliver by 20 October a “specific plan” on how it will meet and sustain those requirements, NASDAQ said. For its part, Amerityre said it “anticipates that its implementation of cost cutting measures combined with anticipated increases in revenues and successful fundraising efforts will be sufficient to bring it back into compliance with the minimum stockholders' equity requirements”.
Avon Tyres were the dominant rubber at the recent Goodwood Revival. All top ten finishers rode on Avon tyres, while the top five were utilising a new race version of the 100/90-19 Roadrider on the rear, with an AM20 front. Top slot went to a Fred Walmsley machine, ridden by 1987 500cc GP champion Wayne Gardner. Walmsley remarked, “I know this is classic racing, but I’ve been using Avons and helping to develop them for the last 30 years. In all that time, I have to admit this recent development is truly impressive. In the past we’ve never had all the range of fitments we’ve required, but now we can get Avon’s latest in 18- and 19-inch sizes which are perfect for us – and they suit the bikes a treat! On classic machinery, no-one makes the original tyres anymore, so you’ve always got a trade-off when selecting rubber, but over the last 12 months Avon’s products have really come on.”
A 16-year old boy has been arrested on suspicion of arson following a blaze that destroyed a tyre business in Stockport. The fire at AL Tyres, in Sheffield Street, Heaton Norris was lit some time shortly after 8pm on the evening of October 12, and during the course of the evening around 60 firefighters were engaged in containing and extinguishing the blaze.
The media team at Accuride Corporation have given details of a “debt restructuring agreement.” As part of this agreement the company is filing a voluntary petition for bankruptcy under Chapter 11 of the US Bankruptcy Code and has secured a US$50 million “debtor-in-possession” credit facility to enable normal business to continue.
The British Tyre Manufacturers Association (BTMA) is moving to offices outside central London. BTMA chief executive Graham Willson wrote to members this week explaining the reasons behind the move: “The way we all do business has changed dramatically over the last 10 years. An office in London is no longer a prerequisite for effective operation as a trade association,” he wrote. The decision is said to have been made after careful review we have decided to relocate our offices within easy reach of the capital. This will open new gains in efficiency and cost effectiveness whilst maintaining service to the membership.
Goodyear announced farmer Richard Ledger as the winner of the Goodyear Farming Innovation Award 2009 at the British Ploughing Championships on 10 October. His Rabbit Fencing Machine was selected as one of three finalists from a wealth of entries to Goodyear in July. The finalists were presented to Harper Adams University College to select an overall winner. Ledger, owner of a family-run arable farm of 1,600 hectares growing wheat, rapeseed, linseed, beans and grain maize in East Kent, was given £3,500 worth of Goodyear farm tyres.
Shares in Pirelli Tyre parent company Pirelli & C SpA have risen four per cent to a one-year high on hopes that the company may focus more intensely upon its tyre business. The possibility exists that the Pirelli & C Real Estate SpA business unit could be detached from the company. "That would help it being seen as a pure tyre company, valued without the classic discount for holding companies," a trader told Reuters.
Nissan will recall close to 150,000 cars in the US due to a fault in the vehicle’s tyre pressure monitoring system. A nut in the TPMS fitted to several Nissan models, including the Murano, Cube and the beautifully named Rogue (who, with 73,845 TPMS units to be recalled, is indeed the most roguish offender) is vulnerable to corrosion and cracking in areas where road salt is heavily used. This defect could lead to the nut falling out, causing the entire TMPS display unit to illuminate.
Various news sources report a large tyre storage building in Stockport has been destroyed by fire. At the height of the October 12 blaze as many as 65 firefighters were at the scene in Heaton Norris. A spokesman for Greater Manchester Fire and Rescue Service said the fire is believed to have been started deliberately.
Wheel manufacturer Kei Racing has apparently gone all ‘old school’ on us with its latest design, the Okoyama. Named after the famous circuit in Japan, this pseudo split rim serves up a dollop of authentic JDM style with a deep polished lip and eye-pleasing rivet detailing.
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