Analysts Recommend Korean Tyre Shares
Financial analysts are recommending buying shares in Korean tyremakers (particularly Hankook and Nexen), following their initiation of stock coverage at the end of November. Their view is that internal structural and strategic fundamentals and external conditions are now favouring Korean tyre makers: “The top three global tyre makers continue to lose market share, having lost 10 percentage points in the past 10 years. On the other hand, we expect the global market share of Korea’s three tyre makers to rise to 7.2 per cent by 2010 from 5.5 per cent in 2008 (by revenue),” Deutsche Bank wrote in an investors report dated 21 November.
Continue ReadingReports: Continental Refinancing ‘Will Be Done By Christmas’
Continental AG is aiming to complete the refinancing negotiations of its syndicated loan before Christmas, Reuters quoted sources “familiar with the matter” as saying. Further reports suggest Continental is opting to pay a higher interest rate in exchange for postponing a 3.5 billion euro payment due in August next year. Instead the automotive supplier is expected to use a 1 billion euro capital increase and extend the remaining 2.5 billion in loan payments, “temporarily eliminating any need to raise cash via the disposal of its Rubber Group activities” according to Reuters.
Continue ReadingConsultation on Conti Clairoix Closure Ends
The consultation phase regarding the planned closure of Continental’s Clairoix tyre factory that began on March 11 has come to an end. After more than eight months of talks between Continental France SNC and workers’ unions over the passenger car and light truck tyre factory’s future, or lack thereof, the bodies representing employees have, in Continental’s words, “rendered their recommendations” on both the economic rationale in support of the planned closure as well as the qualification scheme included in the social plan for the plant’s 1,120 employees.
Continue ReadingLanxess Moving Butyl Rubber Global Headquarters to Singapore
Demand for butyl rubber is growing in the Asia-Pacific, and in order to better serve customers in this region, Lanxess AG intends to relocate its Butyl Rubber business unit headquarters there next year. The company made an announcement to this effect on November 9, and as of 2010 the headquarters will thus leave Fribourg in Switzerland and join the Singapore based Southeast Asian businesses of Lanxess’ 13 business units.
Continue ReadingIncrease in Michelin Revenue for 2010 Unlikely – Rollier
Revenue at Michelin & Cie. is not expected to increase next year. Managing partner Michel Rollier has expressed his caution on growth prospects due to uncertainty about the automotive industry’s recovery and rising raw material costs.
Continue ReadingPirelli Plans to Buy as Well as Build in Russia
During Pirelli’s third quarter conference call on November 5, company chairman Marco Tronchetti Provera confirmed plans to establish two factories in Russia. The first of these is to be acquired, the second a previously announced joint venture greenfield facility.
Continue ReadingTyre Business to be 95% of Pirelli Revenues Following Real Estate Spin-Off
Deutsche Bank Equity Research analysts report Pirelli’s intention to purely concentrate on the company’s tyre business following the spin-off of its real estate assets by mid-2010. Once this has taken place, tyres will represent 95 per cent of Pirelli’s revenues, the report adds. Management at the Italian manufacturer is said view the coming year with confidence, a positive view driven mostly by a recovery of volumes in replacement markets. It believes the entire seven per cent decline experienced in the passenger car tyre market and half the truck tyre market’s 14 per cent drop can be recovered during 2010. This positive effect, comments the bank’s analysts, should more than offset a small increase in raw material expenses, as the tyre industry is expected to remain “disciplined” in passing on raw material price increases to consumers.
Continue ReadingPirelli Signs 100M Euro R&D Financing Arrangement
Pirelli has organised a 100 million euro loan with the European Investment Bank (EIB) in order to support research and development projects in the years between 2009 and 2012. A financing agreement was signed on November 12 and Pirelli states this new loan consolidates the relationship it has with the EIB, which in the past contributed to the company’s “constant commitment to innovation and development of its competitiveness on a global scale.”
Continue ReadingKumho “Out for Blood”
Some say their employers want blood from them, and those at Kumho in South Korea may have grounds to make such a claim. But don’t worry – it’s all for a good cause. Due to the recent H1N1 influenza scare the country has experienced a dramatic drop in blood donations, and this has led to a noticeable shortage of the precious fluid needed for transfusions. According to Kumho, upon hearing this news, all Kumho Asiana Group executives and employees stepped forward to donate blood.
Continue ReadingThe Who to Play Bridgestone-Sponsored Halftime Show
Tire Review reports that venerable British band The Who – well, the two surviving members at least – is being lined up to provide the halftime entertainment for Super Bowl XLIV. Bridgestone Americas are the exclusive sponsor of the Super Bowl halftime.
Continue ReadingColumbus McKinnon Sells American Lifts Unit
Columbus McKinnon has sold its American Lifts unit to Autoquip for a reported $2.4 million. The plant at Greensburg, Indiana will be closed and sold. The acquisition will expand the Autoquip product range, adding scissor lift technology to complement Autoquip's vertical ram lifts and dock levellers. Manufacture will be moved to Autoquip's HQ in Guthrie, Oklahoma.
Continue ReadingIRSG Names New Secretary General
The Singapore based International Rubber Study Group (IRSG) has announced that Dr Stephen V. Evans will take on the position of group secretary general on January 1, 2010, following the end of incumbent Dr Hidde Smit’s tenure. Dr Evans, notes an IRSG statement announcing his appointment, has been involved in the elastomer industry for the past decade and operated his own consultancy business since late 2008. The qualities he brings to the position include “extensive experience in biotechnology, business and marketing development as well as strategic management and research skills.”
Continue ReadingConti Opens Asia HQ, R&D Centre in Shanghai
As part of its drive to increase localisation and provide better technical support to customers in the Chinese market, Continental AG has opened its new Asia headquarters and research and development centre in Shanghai’s Yangpu district. The new 16-floor 15,000 square metre facility currently houses around 700 employees from Conti’s Automotive Group, and a further 200 will relocate there by early 2010. The site will function, says Continental, as its Asia headquarters as well as an “important technical centre for the design and development of vehicle electronics”. The new R&D centre is the second Conti has opened in Shanghai; the company’s Continental Automotive Tech Centre in Jiading focuses on vehicle application development and systems testing for electronic brake systems, hydraulic brake systems, and engine management and system control. Some 60 million euros have been invested in both sites.
Continue ReadingContinental to Launch 1 billion euro Share Offer in January
Continental AG will reportedly run its long-expected 1 billion euro share offer in January. Sources told the Reuters news agency that "preparations are almost done," with the prospectus to be discussed “at a board meeting in mid-December." According to the reports, the capital increase will be less than the maximum 54 million shares agreed by shareholders, as Schaeffler fears the dilution of its 90 per cent stake, the sources said. Reuters reported that Schaeffler wants to keep its Continental stake to at least 75.1 per cent. This will apparently give Schaeffler direct access to Conti's earnings after 2012, subject to the two companies’ acquisition agreement, which was signed following the initial takeover move in 2008.
Continue ReadingGoodyear Debica Share Offer Fails to Attract Significant Interest
In September Goodyear announced an intention to increase its ownership stake in the company’s Polish Debica unit. Of the total 13.8 million shares in Debica, some 4.69 were still owned by other parties, and it was the US manufacturer’s intention to “acquire any and all outstanding shares of Polish tire company TC Debica for 59.52 zloty (£12.88) per share.” Goodyear has announced that its cash tender offer, which ran between October 12 and November 10, landed the company exactly 8,220 Debica shares – equivalent to approximately 0.06 per cent of the unit’s worth.
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