Escalating Raw Material Cost Prompts Further Bridgestone Price Adjustment
During the first quarter of 2011, Bridgestone will implement price increases on all consumer, commercial, retreaded and specialty tyres sold in Europe. Prices will rise by an average of six per cent, however this will vary between markets and product categories.
Continue ReadingKumho Tire Sales up 34% in 2010
Preliminary annual figures released by Kumho Tire show a sizable increase in sales during 2010. The Korean tyre maker reports global sales of US$2.305 billion in its home market and export markets outside North America last year, a 36 per cent year-on-year increase. Sales within the North America region amounted to $770 million, up 29 per cent on 2009. Taken as a whole, Kumho Tire gives a preliminary figure of $3.075 billion for its global 2010 sales, a year-on-year increase of 34 per cent.
Continue ReadingContinental Denies Romania Investment Plans
Media reports published on January 6 indicate that Continental AG intends to invest up to 220 million euros in Romania to build up capacity in its Timisoara plant over the next two years. Enquiries made by Tyres & Accessories to the German manufacturer’s head office, however, reveal that an inaccurate news report was released through a newspaper in Romania. The company has regularly invested its Timisoara plant since 2004, however Continental media contact Klaus Engelhardt states an investment of this size is not planned.
Continue ReadingNexen Increases Prices in Europe
In addition to price rises in the US, as of January 1 Nexen has increased tyre prices in Europe. According to Nexen Tire Europe, prices for all product segments, including passenger car, 4x4 and light commercial vehicles, have gone up by at least nine per cent. The company says it was compelled to take this inevitable measure as “in the previous few months raw material costs, above all for natural rubber, have skyrocketed.” The company notes that in addition to natural rubber, prices of all products necessary for tyre production have increased.
Continue ReadingSurvey: 92% of Motorists Support Annual MOT Tests
An article in The Times dated 29 December under the heading “Pressure Grows Not To Tinker With The MOT”, featured the results of a nationwide survey of 4,200 drivers, commissioned by the MOT Forum and supported by NTDA and other members of the Forum, in which more nine tenths of those questioned said the MOT should stay as it is.
Continue ReadingEuropean Investment Bank Loan to Finance Trelleborg R&D Projects
Trelleborg has reported signing an agreement with the European Investment Bank for an 80 million euro long term-loan. This loan, the Swedish company explains, is intended to finance a part of Trelleborg’s expenditures for selected research and development projects in number of European countries extending out into 2012. These research and development projects focus on the further development of advanced polymer technology and related products to seal, damp and protect in demanding environments.
Continue ReadingApollo Vredestein Expands East European Business
During recent years Vredestein has steadily built up its Eastern European business and overseen this region from its operation in Poland, which was established three years ago. Now, from January 1, 2011 onwards, Apollo Vredestein’s markets in Eastern Europe and the CIS will also be serviced by a second “Area Manager Export”, who will take on the responsibility of building up the company’s activities and structure within the region. Stepping into this role is Thomas Mittendorf, who is currently Apollo Vredestein’s public relations and media manager. Mittendorf explained to Tyres & Accessories that he will mainly take care of tyre markets in the Baltic States, the Ukraine, Moldova, Armenia, Kazakhstan and Belarus – markets where Apollo Vredestein currently operates no marketing organisation of its own.
Continue ReadingDouble Coin to Set Up Factory Through New Subsidiary
Double Coin Holdings has announced plans to invest at least RMB 3.18 billion (£301.5 million) establishing a wholly owned subsidiary in China’s Anhui Province. Within this subsidiary, known as Double Coin Huili Tire Co., the company will establish a new factory capable of producing 15 million tyres per annum. Double Coin will provide RMB 1 billion of the funds for the factory project, with the remainder coming from bank loans and from a RMB 900 million loan obtained from controlling shareholder Shanghai Huayi (Group) Company.
Continue ReadingTitan Takes Over Goodyear’s Europe, Latin America Agri Businesses
The European and Latin American agricultural tyre businesses run by Goodyear Tire & Rubber have a new owner following their sale to Titan Tire Corporation. On December 13 the Titan International subsidiary announced its acquisition of the businesses, including a licensing agreement permitting Titan to manufacture and sell Goodyear-brand farm tyres in Europe, Africa, Eastern Europe, Russia, Latin America and North America. The deal is valued at approximately US$130 million, subject to post-closing adjustments.
Continue ReadingDelticom Acquires Asian Retail Portal
On December 13 German online tyre retailer Delticom AG announced its acquisition of a majority stake in Singapore-based Tyrepac Pte Ltd, for an undisclosed amount in cash. The transaction, Delticom reports, is structured as a capital increase at Tyrepac.
Continue ReadingBrisa Acquires Bandag’s Turkish Operations
Brisa, the Turkish joint venture company owned by Bridgestone and the Sabanci Group, has agreed to purchase Bandag’s Turkish operations for US$3.6 million. The company says this move provides Brisa with a “cost-cutting advantage” to the logistics sector and will increase the quality of service it can offer. The acquisition was made by the purchase of 7,508 shares in Bandag Lastik Mamülleri Ticaret Limited Şirketi; the transaction is subject to the usual legal approvals.
Continue ReadingMichelin Raises European Truck Tyre Prices
Michelin says it is “maintaining its firm pricing policy” in response to rising raw material prices. What this means to consumers is that prices for replacement market new and retreaded truck tyres will increase by an average of around five per cent. The tyre maker says these increases are being gradually implemented between December 1, 2010 and January 1, 2011.
Continue ReadingDelticom Raises 2010 Forecast
Delticom has once again raised its guidance for 2010 due to a surge in demand for winter tyres leading to supply shortages. As a result of this market-wide scarcity, winter tyre prices have increased starkly across Europe. Delticom management's guidance for the 2010 financial year from November 26th has thus been overtaken by the recent developments. On the back of strong fourth quarter sales, the company should be able to grow 2010 revenues by more than +30 per cent year-on-year (previous guidance: more than +20 per cent). Due to the “very beneficial pricing environment” throughout the year and especially in the fourth quarter, profitability will be “unusually elevated” and thus significantly better than last year. Management sees a 2010 EBIT margin on the order of 11 per cent as realistically achievable (previous guidance: around 10 per cent, last year: 9.4 per cent). Depending on how the next weeks will evolve with regards to demand, stock levels and prices, margins could come in even higher than currently estimated.
Continue ReadingWikileaks: Diplomats Bemoaned US Tyre Tariff Decision
While the majority of the 250,000 documents contained in the largest leak of government records in American history focus on diplomatic and political commentaries written by the US ambassadorial network, at least one of the wires published by the Wikileaks website sheds light on behind the scenes discussions on the Obama decision to impose import tariffs on Chinese-made tyres. A document dated 29 September 2009 and classified as secret, reports that US deputy secretary of state James B Steinberg (Secretary of State Hilary Clinton’s chief adviser) discussed the tyre tariffs alongside policy objectives for Iran and North Korea with Chinese foreign minister He Yafei.
Continue ReadingGoodyear Announces Finance Leadership Changes
Several changes in Goodyear Tire & Rubber’s finance leadership have been announced. Filling the soon to be vacant position of vice president and controller, North American Tire is Richard J. Noechel, currently vice president of finance for North American Tire. Noechel replaces Thomas A. Connell, who intends to retire on March 1, 2011. The position at present occupied by Noechel will be filled by Laura K. Thompson, who currently serves as vice president of business development. Stepping a rung up the ladder into Thompson’s old job is David Campopiano, currently senior director of business development. All abovementioned changes will take effect on March 1, 2011.
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