Vredestein to start new year with agri production boost
To accommodate growing demand for all types of agricultural tyres from professional end-users, Apollo Vredestein B.V. is investing heavily to expand production capacity for these products. The production schedule and unit production at the company’s Enschede plant in The Netherlands will thus increase by 50 per cent from January 2014. This augmentation, which was first announced in August 2012, has already decreased delivery times, and thanks to improved production capacities the development of new tyres is progressing more rapidly than planned.
Luxembourg-based Maxam Tire has been very active recently in the exhibition arena, showing examples of its product range at shows in China and Belarus.
This year point S returns as official event sponsor of the World Cup Nordic Opening, which will take place in Finland from 29 November to 1 December. Billed as the “world’s biggest world cup event in winter sports”, the World Cup Nordic Opening is a series of ten ski jumping, cross country and Nordic combined competitions; point S will serve as event sponsor for the cross country 15 kilometre men’s pursuit, which will take place on 1 December.
Apollo Tyres appoints London-based global media agency
Mindshare has been appointed Apollo Tyres’ global media agency, replacing ZenithOptimedia, who serviced Apollo in India since mid-2012. The tyre maker describes its business with Mindshare as a “multi-million dollar” account and says it appointed the company following a multi-agency pitch presentation at the Apollo Tyres global marketing office in London. Apollo says Mindshare was selected due to its global reach, along with its financial and organisational fit with Apollo Tyres.
October volumes in mature markets have risen by three per cent, according to Michelin. While North American passenger car tyre volumes increased a little more than in Europe to reach an aggregate rise of two per cent, Europe led truck tyre increases at nine per cent versus North America’s six per cent.
During the Agritechnica show, Mitas reported that its new factory in the Czech Republic town of Otrokovice has commenced full capacity tyre production. The company built the 24,000 square metre plant within one year and invested approximately CZK 1 billion (£30.9 million) in the project. The new Otrokovice plant produces Mitas and Continental-branded agricultural radials and has a 42,000 tonne per annum capacity.
Current low prices for butadiene rubber have been singled out as a key reason why sales within Lanxess’ Performance Polymers business declined eight per cent year-on-year to €1.1 billion in the third quarter of 2013 despite a 14 per cent rise in volumes. Lanxess says lower raw material prices, especially butadiene, led to selling prices dropping 19 per cent. Sales were also hampered by negative currency effects.
The Grizz, aka Maurice Taylor, would have growled at Titan International’s designation as Zacks Investment Research’s ‘Bear of the Day’ on 13 November. Explaining why Titan was Zacks’ Ursidae of choice yesterday, Tracey Ryniec, a strategy analyst with the investment industry firm, opined that Titan International continues to suffer from a build-up in tyre inventory in the farm and construction industries and weak pricing.
Toyo Tire & Rubber’s third quarter 2013 results, published on 12 November, show a 10.5 per cent year-on-year increase in net sales for the June to September quarter, to ¥268.2 billion (£1.7 billion). Third quarter operating income, at ¥24.7 billion (£155.6 million), was up 159 per cent year-on-year and offered a 9.2 per cent margin.
Didn’t know today was World Quality Day? Neither did we. Nevertheless, the United Nations-established event has been held since 1990 and aims to increase worldwide awareness of the important contribution quality makes to national and organisational growth and prosperity. Continental says 16 of its Tire division locations around the world are participating in the day; under the slogan “Continuously Striving for Best in Class in Quality, employees will organise events and activities in order to raise quality awareness.
Agricultural and off-road sector wholesaler Bohnenkamp has introduced its newly-revised online shop during the Agritechnica trade fair and says the site offers many new functions and services. The new site, which goes live on 17 November, is the latest progression for the now 13-year old bohnenkamp.de online shop. Amongst the brand-new innovations are mobile and tablet apps for Apple and Android users.
The €143.85 premium that shares in Continental AG currently command (as of 1pm, 13 November) is the company’s highest-ever share price, yet US bank Citgroup anticipates a target price of €164 – and it has therefore given the company a “buy” rating. Analyst Philip Watkins writes that the tyre and automotive systems company continues to have the sector’s best business model, and opines that the company’s third quarter figures underline its technological leadership.
A filing Cooper Tire & Rubber submitted with the US Securities and Exchange Commission on 12 November does little to raise hopes that the company can provide Apollo Tyres’ creditors with financial information for the quarter to 30 September 2013 by tomorrow, as required in order for Cooper not to breach its merger agreement.
Cooper Tire & Rubber Company is appealing the partial ruling made by the Delaware Chancery Court last week. The appeal was filed with the Delaware Supreme Court on 12 November and asks the court to rule on it on an expedited basis – before 31 December 2013, the date through which Cooper’s agreement with Apollo Tyres remains in effect. Cooper confirms that until that date, the 8 November partial ruling requires both parties to continue performing their obligations under the merger agreement.
Michelin partnering in French bio-butadiene project
Three French companies – Michelin, Axens and IFP Energies nouvelles (IFPEN) – have announced the launch of a plant chemistry research partnership that aims to develop and bring to market a process for producing bio-sourced butadiene, or bio-butadiene. The partnership goes under the name ‘BioButterfly’ and in addition to developing an innovative bio-butadiene production process, the three partners are also committed to laying the groundwork for a future bio-sourced synthetic rubber industry in France.
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