Carlyle Group Closes Purchase of Goodyear Division
On 1 August global private equity firm The Carlyle Group announced it has closed its purchase of Goodyear’s Engineered Products Division. The transaction, valued at US$1.475 billion, was announced on March 23, 2007. Through a long-term license agreement, products will continue to carry the Goodyear brand, while the legal name of the company has been changed to Veyance Technologies, Inc. Veyance Chief Executive Officer Timothy R. Toppen said, We are excited about this new chapter in our history and we look forward to a strong and fruitful partnership with The Carlyle Group. Toppen said customers will continue to see the Goodyear Engineered Products brand they have known since 1898. In addition, we have adopted a new corporate name – Veyance Technologies, Inc. It combines two critical components of our daily operations. Our products convey materials, fluids or power from one location to another and are designed to optimise performance for customers and end users.
Continue ReadingSri Lanka Tyremaker Bids to Re-invent the Wheel
(Akron/Tire Review – The International News (Sri Lanka) One of the world’s biggest solid tyremakers is trying to double its turnover and turn Sri Lanka into a key exporter of rubber products.Raw rubber has been the country’s second largest export commodity after tea, but a Belgian-Sri Lanka joint venture is trying to re-invent the way wheels are made and make the island a global hub for tyres. Solideal Loadstar is one of Sri Lanka’s best-kept secrets and its biggest exporter, accounting for just over two per cent of the nation’s near seven billion dollar export earnings. “In the world market, we now control 20 per cent in the solid tyre and about five per cent in the industrial tyre markets,” chairman Nihal Jinasena told AFP. “Any fool can make a tyre,” said Jinasena, whose family controls 40 per cent of Solideal Loadstar. “What is difficult is to keep innovating, penetrate markets worldwide and to support your sales.”
Continue ReadingMore Women Wanted!
Automotive Skills has won a major bid for a Women & Work project for the UK retail motor industry – part of a wider funded Women & Work Sector Pathways Initiative. The £10 million initiative is designed to encourage women to consider careers in traditionally male-dominated professions. With an average of less than 20 per cent of the motor industry workforce made up by women, one of the key challenges facing the sector is how to attract a more diverse workforce which can contribute to increased productivity and performance and develop new ideas and improved methods of working.
Continue ReadingLassa, Brisa, Bridgestone and Sabanci – tyres from Turkey to the world
With unit sales of 7.06 million expected for 2006, a domestic replacement market share of 26 per cent and thriving export sales, no wonder Lassa producer Brisa is expanding its manufacturing and warehousing headquarters. As Brisa (Bridgestone Sabanci Tyre Manufacturing and Trading Inc) continues the $176 million production expansion programme it started at its Izmit plant in Turkey in 2004, Tyres & Accessories went to see how the plans are developing and visit some of the company’s retail outlets in Istanbul.
Continue ReadingScania Rejects MAN Bid
Scania has rejected MAN’s takeover offer. The news follows speculation and then confirmation that German truck and bus maker MAN launched an unsolicited bid worth 9.6 billion (£6.5 billion) for its Swedish rival Scania. Volkswagen and Investor, a Wallenberg family firm, each own major blocks of Scania shares and the Financial Times suggested Investor may reject the offer. The FT also hinted at possible counter bids from other firms, including Paccar. Swedish truck maker Scania says its board met on Sunday 17 September and “unanimously decided not to support the proposals” from MAN AG.
Continue ReadingGPX Expands, Buys Starbright Tyre Factory in China
Bryan Ganz, president and co-CEO of GPX adds: “Starbright significantly expands GPX’s presence in the Asian market and allows us to directly service our growing international markets”. In addition to the acquisition of Starbright, GPX is pleased to announce the hiring of Phil FitzGerald as the managing director of the Hebei Starbright factory. FitzGerald will assume the responsibility of plant modernization and refurbishment with the goal of transforming the Starbright factory into a world-class production facility focused on the manufacture of work-tyres.
Continue ReadingLast Workers Leave Dunlop Factory
The last shift at Dunlop’s Washington UK plant clocked off ahead of schedule on 14 June. The Early April announcement that Dunlop would close the plant came as a “body blow,” to workers, the Sunderland Echo reported, as it followed a similar announcement at nearby Stag Furniture. Dunlop said it is continuing to work alongside Sunderland Council and One North East to help the workers find new employment through the JobCentre.
Continue ReadingGoodyear to shut UK tyre plant in cost-cut move
The Goodyear Tire & Rubber Co. on Wednesday said it plans to close an automobile tyre plant in the United Kingdom and a bicycle tyre plant in Poland (Debica) in order to achieve combined annual savings of up to $50 million. The largest U.S. tyre company, which is based in Akron, Ohio, said it has begun discussions with union employees as a step toward shutting its Goodyear Dunlop United Kingdom passenger tyre factory in Washington, northeast England. This action is expected to create annual savings of approximately $20 million and result in charges of between $75 million and $85 million ($55 million to $65 million after-tax). The cash portion of this charge is estimated to be $35 million to $40 million.
Continue ReadingJax and Quick Fit Merge
(Brisbane/Australian Tyre Dealer) Two of the best-known names in Australian tyre retailing and associated services have joined forces to become a major power in the business. JAX Tyres was established in 1949 and Quick Fit Tyre Service in 1995, both proudly Australian owned. Combined, they have a current annual turnover of around $100 million.
Continue ReadingGetting a Grip on the Net
When it comes to online tyre sales, Delticom claims the position of European market leader, with 47 business to consumer (B2C) online shops in 21 countries. Alongside its core tyre business, Delticom is expanding its range of car products to include spare parts, roof racks, garages, motor oil and batteries for both private and business customers. Delticom’s recent financial results reflect the company’s confidence. In the first-half of 2005 Delticom increased turnover to 56 million euros, compared wit 34 million euros in the same period the previous year. This 65 per cent increase means the company expects its full-year sales to total some 110 million euros.
Continue ReadingCapitalising on e-Commerce
Whether you like it or not, the world is turning more and more into a technological marketplace. And all aspects of business are being affected, including the tyre trade. Here Tyres & Accessories looks at two of the Internet’s best-known names, and asks how their businesses might affect yours. According to the Office of National Statistics, by the end of 2004, 52 per cent of households in the UK had access to the Internet at home. And by the end of 2005, 99.6 per cent of the UK will have access to broadband if they want it. Furthermore, the Internet was the fastest growing retail sector last year, attracting one in four shoppers.
Continue ReadingThe End is Near – Time for a New Beginning?
The problems Continental faces in the US are more or less ‘homemade’. The problem is there doesn’t appear to be any solution available unless you call a total tactical retreat from the biggest market in the world a solution. In the event that this happens, it is more than likely that the company would call such a decision to cease selling tyres in the US a “strategic withdrawl.” In 1987 the Continental group did not have the financial resources (and was later unwilling) to spend the amount of money necessary to build up the company’s Continental and General brands. Now the current management has to pay for all the shortfalls left behind by its forbears. Meanwhile, in the midst of all this the US-arm of the group’s tyre division is again going to the dogs with a loss of more than 100 million euros. Nobody believes that a turnaround will take place this year, even though CEO Manfred Wennemer and his colleague Martien de Louw have suggested time and again that it would.
Continue ReadingKwik-Fit Goes to PAI for £800 million
CVC Capital Partners has sold Kwik-Fit to French private equity firm PAI for £800 million. The news follows months of speculation including suggestions that a Bridgestone/Mitsubishi joint venture was pulling out in front when it came to bidding for the UK’s largest fast-fit chain. Bloomberg reports that PAI plans to open more fast fit retail outlets as a result of the acquisition.
Continue ReadingA-Z Formen and Maschinenbau Divide Business
A-Z Formen and Maschinenbau GmbH Germany has sold its Rubber Extruder Division and the related IPR and know-how to VMI - AZ Extrusion GmbH Germany, a newly founded company which is part of the VMI Group. All staff have been transferred to the new company. VMI is a supplier of tyre manufacturing and rubber compound handling machinery. Plants operating in Europe, North America and East Asia will now produce the systems. Following the acquisition the VMI Group is now in a position to supply products, process know-how and service to rubber extrusion and retread customers worldwide. The new company’s production facility and headquarters will be based in Runding Germany, whilst its sales offices will remain in Munich and Akron USA at their existing addresses. Business contacts within both locations will remain the same, however Mr Florian Fischer, currently manager of the Machine Division of A-Z will now become the new general manager. Mr Auke Dalstra, currently VP and CFO of the VMI Group will assist him. A-Z Formen and Maschinenbau GmbH, has been supplying molds and mold closing systems for the tyre industry, special machinery for tyre mold production and components for the aerospace and other industries for over 40 years and will now fully concentrate on this sector of its business.
Continue ReadingGibara Bows Out As Keegan Takes Over
Goodyear has announced that Samir Gibara (64) will resign as chairman at the end of June. He will be succeeded by Robert Keegan (55), who is currently president and CEO and who will retain responsibility for these two roles. Gibara joined Goodyear in 1964 and has been chairman since July 1996. He paid tribute to the speed with which Keegan learned the industry and demonstrated his leadership abilities. For his part, Keegan said that Gibara had provided important and valued counsel since Keegan joined Goodyear in October 2000 as president and COO.
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