Mesnac acquires Test Measurement Systems
Tyre equipment manufacturer and software provider Mesnac has purchased a majority interest in US firm Test Measurement Systems, Inc. (TSMI) for an undisclosed amount. The TSMI brand and identity will be retained following the deal, states Mesnac. Dr. Jerry Potts, CEO of the Akron-based firm, and other senior TSMI management staff will remain with the business and work with Mesnac to identify opportunities for growth, product innovation and diversification.
Continue Reading‘In line’ results leave analysts expecting more from Hankook
Hankook’s second quarter results show that the manufacturer is well-placed to take advantage of the anticipated gradual recovery of replacement markets in the next year and a half. Indeed, the 1.4 per cent increase in revenue growth indicates that the Korean manufacturer is already experiencing some upward momentum, this figure having declined in the previous two quarters. Deutsche Bank analyst Sanjeev Rana commented that the company’s ongoing product mix improvement and falling raw materials costs should combine with the American and European recovery to keep Hankook’s margins “resilient”, while the bank also expects its operating profit to “grow 18 per cent” year-on-year in in the second half of 2013.
Continue ReadingShandong Yongtai, Treadsetters buy Covpress
China’s Shandong Yongtai Chemical Group, manufacturer of the Durun tyre brand and the DMack tyres used in the World Rally Championship, and UK tyre wholesaler Treadsetters have jointly acquired automotive supplier Covpress. The two companies are believed to have paid £30 million to buy the Coventry-based firm, which employs around 450 people and manufactures body panels for vehicle manufacturers such as Jaguar Land Rover, Nissan and Renault. Chinese and UK media sources report Shandong Yongtai will hold a 70 per cent stake in Covpress and TIA Group company Treadsetters the remaining 30 per cent.
Continue ReadingTsuruno to head Yokohama Asia
Yokohama Rubber Corporation has appointed Koichi Tsuruno president of Yokohama Asia Co., Ltd. Tsuruno begins in this role on 1 August. He retains his position as corporate officer and president of Yokohama Tire Manufacturing (Thailand) Co., Ltd., which he commenced on 1 July.
Continue ReadingHankook continues upward trajectory
Hankook’s results for the second quarter (April-June) of 2013 continue to show steady growth with operating profit up 11.3 per cent and sales up 1.4 per cent year on year. The company achieved a global sales revenue of KRW 1.87 trillion (1.276 billion euro) in the quarter, with operating profit marked at KRW 271.3 billion (185.2 million euro). The company stated that increased sales in the ultra-high performance tyre sector and premium brand equity helped it secure solid sales increases in its major markets.
Continue ReadingGoodyear income 39% above consensus
Goodyear Tire & Rubber has announced what it says are record second quarter earnings, and even its European business showed signs of improvement. Net income more than doubled year-on-year from $85 million in Q2 2012 to $181 million, or $0.67 per share. This exceeded the average analyst estimate by $0.19, and company chairman and CEO Richard J. Kramer said the result demonstrates “the disciplined execution of our strategies by Goodyear associates around the globe as our operations become more efficient, reliable and integrated.”
Continue ReadingBFGoodrich, USW reach agreement
BFGoodrich has joined Goodyear and Bridgestone in reaching a tentative agreement with the United Steelworkers. The tyre maker and union negotiating teams have nutted out a three-year contract covering 2,400 workers at the company’s Tuscaloosa and Fort Wayne plants in the US.
Continue ReadingReports: Cooper Chengshan strike over Apollo acquisition
Workers at Cooper Chengshan, a joint-venture between Cooper Tire & Rubber Company (USA) and Chengshan Group (China), are reportedly on a strike in protest against Apollo’s proposed acquisition of Cooper. If correct the reports could throw up a fairly significant spanner in the works as the trade union which represents workers at what is deemed to be “the largest, most profitable and fastest-growing factory of the eight” plants that come as part of the Cooper deal, Cooper Chengshan, have expressed their opposition to the deal.
Continue ReadingApollo and Cooper – is this the start of the expected wave of consolidation?
Is this the opening shot in the anticipated round of consolidation within the tyre industry? Or is it merely an expression of courage, or cockiness, with Indian tyre manufacturer Apollo in the role of a predator, seeking to grasp the much-larger rival Cooper as prey and in doing so exposing itself to the risk that the US$2.5 billion price will land it in debt above its head? Is attack the best form of defence or has the Indian company overreached with this ambitious and financially-edgy expansion plan?
Continue ReadingComment: Explosive action – a life lesson for tyre buying consumers?
To say that June was an interesting month for the tyre industry is something of an understatement. It was explosive - and in at least one case literally so. But the drama of it all offers consumers a challenging life lesson.
Continue ReadingCooper acquisition is a game changer – Apollo MD talks to T&A
With the ink still drying on Apollo Tyre’s agreement to purchase Cooper Tire and Rubber, on 27 June Tyres & Accessories met with Apollo vice chairman and managing director Neeraj Kanwar at the company's new global marketing office in central London in order to get the inside line on the deal, the impending integration and the strategy behind the purchase. In 2010, Apollo's owners, chairman Onkar Kanwar and vice-chairman and managing director Neeraj Kanwar, told the world that the company was aiming to break into the global top 10...at least. At the time this announcement was made you could be forgiven for thinking such a proclamation was either an exercise in hyperbole or in corporate goal setting. And why not? There's nothing wrong with aiming high, as many of the world's fastest growing tyre companies are clearly doing. After all, as the saying goes, “he who aims at nothing hits it”. But with all the speculation that surrounded the company's decision to engage in takeover talks with Cooper at the end of 2012, the fact that the deal has now been agreed arguably isn't as much of a surprise as the speed with which the top 10 goal has been attained. Early indications suggest that the amalgamated Apollo/Cooper will be the seventh largest tyre company on earth. So whats next? The exclusive club that is dominated and fiercely defended by the big five? Or, as is more likely, a period of integration and consolidation while the dust settles?
Continue ReadingAutopromotec: 2013 show the largest ever
Autopromotec 2013’s organisers lauded the latest Bologna show, which took place in May and described it as “the largest and most international ever”. This is supported by a record-breaking number of exhibitors and the largest exhibition space ever – that is 1,512 exhibitors from 52 countries covering a total exhibition area of 156,000 square metres (20,000 of which outdoors). Visitor numbers were also huge - 102,536 attended in total, of which 83,594 from Italy and 18,942 from abroad.
Continue ReadingGood supplier business: Pirelli CPO talks to T&A
Following the announcement of Pirell’s 2013 Supplier Awards on 10 April, Tyres & Accessories spoke with Luigi Staccoli, Pirelli’s chief purchasing officer (CPO), to find out more what makes a good supplier. First, Luigi Staccoli offered his appraisal of the awards event itself: “It was a very successful presentation of the awards with an event demonstrating the performance of Pirelli products running in parallel.” The parallel event is said to have offered representatives of the winning suppliers the opportunity to drive some of the most exciting vehicles available such as the Ferrari California and Lamborghini Galliardo on a test track near Milan.
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T&A meets Goodyear Dunlop UK managing director Erich Fric
The latest in a succession of leaders at Tyre Fort in Birmingham, Erich Fric brings with him an easy-going, but teutonic clarity into his (relatively) new role of Goodyear Dunlop UK managing director. Almost a year after news of the appointment was released, Tyres & Accessories visited the company headquarters in mid-April for the MD’s first published interview in his current role where he shared his views on the British tyre market and recent corporate criticism of the companies EMEA region.
Continue ReadingBridgestone Russian plant spells end of supply/demand gap
Following the news that Bridgestone is investing in the construction of a passenger car tyre plant in Russia, market analysts have shared various views on the impact this move will have on the local market. For its part Deutsche Bank took the opportunity to situate the news in the context of wider domestic market development.
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