Dunlop: Motorsport tyre production is leaving Birmingham
Dunlop is set to transfer its European motorsport tyre production to plants in France and Germany, following confirmation from the company that there are no viable plans for its manufacturing operation to stay in the UK when the lease for its Erdington home expires on 1 September 2014. The company reports that it has begun consulting with affected employees and Union representatives of the Erdington site. 241 jobs, mainly in the manufacturing part of the operation will be affected, however company representatives told Tyres & Accessories that Dunlop remains committed to motorsport tyre production and as such wants to retain talent – especially in specialist fields such as research and development – wherever possible.
Toyo Tire & Rubber reports it has expanded its automotive operations in the Americas with the establishment of Toyo Automotive Parts De Mexico S.A. DE C.V. The subsidiary specialises in automotive anti-vibration products and began operation in January. The Japanese company says the opening of Toyo Automotive Parts De Mexico will enable it to bolster sales of automotive anti-vibration rubber products in the global market through the creation of an optimal supply structure in Mexico, a location it expects will continue to grow as a global production and export base for motor vehicles.
Cooper Tire gives Chengshan option to buy, values CCT at US$435 million
Cooper Tire & Rubber Company has signed an agreement with Chengshan Group Company Ltd. According to the Findlay, Ohio-based tyremaker, the deal begins with the commitment that the Chinese joint venture Cooper Chengshan Tire (CCT) business will be independently valued and is said to position Cooper to resume regular financial reporting. Tyres & Accessories understands that the deal sets a floor value of at least US$435 million for the total company and perhaps more if the independent valuation comes in higher. Cooper’s share price rose 2.75 per cent (correct at time of publication) in response to the news.
Tyre manufacturer Sailun has confirmed to Tyrepress an “indirect interest” in Kings Road Tyres. While the direct players in the investment group have yet to be fully confirmed, Sailun’s indirect interest gives some indication of potential tyre industry figures involved in the partnership, confirmed to involve Chinese, European and North American interests.
Pirelli share price spikes, eases back on acquisition rumour
The trading price of shares in Pirelli & C. SpA jumped to €12.96 late on 29 January after financial website FT Alphaville published information from “usually well-informed sources” about manoeuvres to change the company’s ownership structure. The release of a statement from Pirelli chairman and CEO Marco Tronchetti Provera denying any deal ensured the descent from this peak, however, and by 11:00am GMT today the share price had declined 7.3 per cent from this high to €12.01.
Nobody’s attempting to buy Pirelli, says Tronchetti Provera
Marco Tronchetti Provera has already indicated he will divest his family’s share in Pirelli some time in the next few years, however the Italian tyre maker’s chairman and CEO has quashed speculation that he has received a proposal regarding a potential Pirelli sale. In a statement written on 29 January and published by Reuters, Tronchetti Provera described suggestions of a change in Pirelli’s ownership structure as “pure fantasy”.
TREC: Michelin partners to extract alcohol and rubber from used tyres
Four French companies are partnering in a project to develop further applications for used tyres. Work is being carried out under the TREC project name and Michelin’s leadership; TREC is backed by a €51 million budget that extends over an eight year period and includes €13.3 million that Frances Agency for the Environment and Energy Management (ADEME) is providing to Michelin and one other partner, SDTech, as part of the French government’s “Investing in the Future” programme. The project covers all stages of research and development processes, from the definition of scientific concepts to pilot testing and validation on an industrial demonstrator. Michelin says at least one of the project’s outcomes is expected to tie in with the BioButterfly project that began last year.
UHP tyre sales key to rising Hankook operating profit
Hankook Tire says sales of its UHP tyres were a “key growth driver” in boosting operating profit last year. Accumulated UHP segment sales accounted for 26.5 per cent of Hankook Tire’s entire global sales; UHP tyre sales rose 3.4 per cent year-on-year, growth led by the Chinese and European markets, where accumulated UHP tyre sales rose 13.6 per cent and 12.9 per cent year-on-year respectively.
“The Tire Cologne” – details of show to rival “Reifen” announced
Between 29 May and 1 June 2018, a new exhibition aimed at the international tyre industry will take place in Germany. “The Tire Cologne”, as the show will be called, will be supported by current Reifen show main sponsor the BRV (the German Federal Association of the Tyre Trade and the Vulcanisers’ Skilled Trade), and the plan is to hold the event every two years. Regular Reifen exhibition visitors may already note that the dates for The Tire Cologne coincide with this year’s show week in Essen and, presumably, those planned for future events – a sign that the BRV and Koelnmesse consider the future Cologne trade exhibition the heir apparent to the European tyre show throne.
In a regulatory filing submitted to the Korea Stock Exchange, Hankook Tire reports sales of KRW 1,708.5 billion (£953.8 million) for the fourth quarter of 2013, a year-on-year increase of 0.5 per cent. Operating income, at KRW 254.8 billion (£142.2 million), was up 14.6 per cent compared to the fourth quarter of 2012. Net profit from continuing operations (before corporate income tax) was reported as KRW 237.0 billion (£132.3 million), a 15.1 per cent year-on-year increase. Net income was not reported.
We’ll continue with ‘Reifen’ tyre show, confirms Messe Essen
As reported last week, the main sponsor of the Reifen tyre show, which is held every two years in Germany, will part ways with exhibition organiser Messe Essen after the 2016 show. Trade association and current Reifen ‘ideal sponsor’ the BRV intends to be involved in a new tyre trade fair located in Cologne. A letter sent by Messe Essen on 23 January and signed by management board chairman Oliver P. Kuhrt and director of trade fairs and exhibitions Annegret Appel, addresses the future parting of ways.
UK car producers have come out as strong supporters of Britain’s membership of the EU, and a new group has commissioned a major research study into the benefits of belonging to the trading block to underline the ramifications of a potential exit.
Heitmann leaving Lanxess – former CFO filling his shoes
Effective 28 February 2014, Axel C. Heitmann will step down as member and chairman of the Lanxess AG Board of Management. His successor will be Matthias Zachert, who served as chief financial officer at Lanxess between 2004 and 2011 and is currently chief financial officer at Merck KGaA. Zachert will begin his new role at Lanxess not later than 15 May 2014. Prior to Zachert joining the Lanxess Board of Management, current Lanxess chief financial officer Bernhard Düttmann will carry out Heitmann’s responsibilities.
While German tyre trade organisation and Reifen show ‘ideal sponsor’ the BRV has announced plans to hold its tyre exhibition in Cologne as of 2018, Messe Essen, who operates the site where Reifen has been held for some 50 years, indicates it may continue hosting the show in Essen.
This week’s agreement between Goodyear Dunlop Tires France and the CGT union over the tyre maker’s Amiens Nord factory removes the major obstacle that blocked Titan International’s acquisition of the Amiens Nord agricultural tyre business. After hearing that the two parties have buried the hatchet, Titan CEO and chairman Maurice Taylor indicated he’s once again prepared to do business.
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