Shaanxi Yanchang Considering PCR Plant
Heard of Shaanxi Yanchang Petroleum (Group) Rubber Co., Ltd? We hadn’t either before last year’s Reifen China in Shanghai. However, after our brief introduction at last year’s show this year the company returned to the exhibition with another substantial stand in a similarly prime position. This time round company representatives brought with them news that despite being founded as recently as December 2008, it is already well on the well to producing 1 million truck tyres a year at its Xianyang truck tyre production plant. With the company's passenger car radial line due to break ground in 2013, this could be a production base to watch.
Continue ReadingSuntrac Brand Makes its Debut, PCR Line to Follow
One brand Tyres & Accessories met for the first time in Shanghai (at the recent Reifen China exhibition) was Suntrac, which is produced by Dubai-based Sun Global Fzco at partner factories in China and a joint venture in Sri Lanka. The company also produces Nison brand truck and bus tyres which, a brand that was established nearly six years ago. Currently the business focuses on the manufacturing and international distribution of bias and radial light truck, truck and bus, and off-the-road tyres distributed globally under the Suntrac name. However executive director Nitesh Shewakramani told T&A that the company plans to launch a comprehensive range of PCR & SUV as well as solid and implement tyres by mid 2011. Product wise the company currently offers over 20 different truck fitments across 16 different tread patterns.
Continue ReadingPirelli JV to Take Over Sibur Russian Tyre Assets
Pirelli has agreed to take over the assets of Sibur Russian Tyres after signing a memorandum of understanding (MOU) with Russian Technologies and oil major Sibur Holding in Moscow on Friday 26 November. The deal, which is likely to position Pirelli as major player in the Russian market, comes after domestic market leader Niznekamskshina, (owned by another oil major, Tatneft) confirmed it had been in merger talks with Sibur in August. However, the latest MOU even goes as far as leaving the door open for a partnership that may offer Pirelli “a further opportunity for development and consolidation through the possible acquisition of or merger with Nizhnekamskshina.”
Continue ReadingTrading Places: How Tyre-Makers are Positioning Themselves in the World Economy
As Tyres & Accessories' November issue went to press President Barrack Obama and David Cameron were out banging the drum for American and British business in India and China respectively. 24 hours after Obama set foot in the subcontinent, the Sunday Telegraph's resident cartoonist was portraying the leaders of two of the richest countries in the western world as beggers seeking scraps from two so-called “emerging markets.”
Continue ReadingNexen Aiming to Produce 20 million Tyres in Qingdao by 2017
Nexen’s Qingdao, China tyre production plant, which started manufacturing tyres in 2008, will soon enter the black and could be producing as many as 20 million tyres a year by 2017. Korean tyre manufacturer Nexen Tire published the latest details in a recent internal newsletter emailed to staff and customers, where the factory’s management also gave details of Nexen’s plans for the plant. Based on a site one hour’s drive north of Qingdao Airport in Shandong Province, China, Nexen representatives describe their most modern plant to date (the firm broke ground on a further plant in Gyeongnam Province, South Korea on 24 June 2010) as the company’s “ambitious masterpiece.” With output currently reported to be 6 million truck, bus and car radials a year and bearing in the mind the fact that it already occupies a 530,000 square metre area with further expansion still to come, it is clearly a significant operation.
Continue ReadingIndonesia/Malaysia Home to Thriving Tyre Retail Markets
As the Asian region’s car parc continues to swell in the wake of economic recovery, the demand for aftermarket products and services is also said to be increasing. GfK Asia, which conducts retail audits in the automotive aftermarket in major Asian cities like Bangkok, Kuala Lumpur, Jakarta, Manila and Seoul, recently looked into the relationship between car “populations” in these cities relative to the number tyre servicing garages and compared the saturation levels in differing economies. While each tyre servicing garage in developing cities such as Kuala Lumpur, Bangkok, Jakarta and Manila serviced an average of 2250 vehicles, this figure is almost halved, at 1172:1 in a “developed” city such as Seoul. The Malaysian figure is almost four times the 674:1 average ratio GfK published in April 2009.
Continue ReadingUS and China Both Claim WTO Victory in Tariff Dispute
The United States claimed victory in a recent trade spat with China over anti-dumping charges placed on imports pipes, tubes, OTR tyres and sacks. US Trade Representative (USTR) Ron Kirk told the AFP news agency that the World Trade Organisation (WTO) had broadly upheld Washington's right to place duties on goods from China that were unfairly subsidised: "This is a significant win for American workers and businesses affected by unfairly traded imports.” Nevertheless a report produced by China’s Xinhua news agency suggests the People’s Republic would like to present the 22 October WTO ruling as falling in its favour. China welcomed the fact that the WTO found that the US imposition of anti-dumping and countervailing duties on four types of Chinese imports was inconsistent with WTO regulations, the Chinese Ministry of Commerce (MOC) said a day after the ruling was published.
Continue ReadingMichelin and Rodi to Form Alliance in Spain
Michelin Spain has announced that it has initiated talks with Rodi, a leading tyre dealer in the Catalonia-Aragon region, on the subject of forming an alliance in the region. According to the company, the partnership would involve shareholdings and marketing ties, in particular through a cooperation agreement between Rodi and Euromaster. Under the agreement, Rodi would continue to operate in Catalonia-Aragon under its current tradename, with the addition of the label, “Member of the Euromaster Network.” Michelin expects the talks to be concluded and an agreement reach by the end of the year.
Continue ReadingPirelli to Invest US$100 million in Argentina Plant
Pirelli has announced plans to consolidate its already strong position in South America by expanding production at its Merlo, Buenos Aires, Argentina factory to 6 million units a year by 2013 with investment of US$100 million. The announcement prompted news agency Reuters to add Pirelli to its list of Italian “stocks to watch” on 21 October, owing to the fact that Argentina is “South America's number two economy.” By the end of 2010, Pirelli’s Argentinean sales are expected to grow by 55 per cent to $365 million and the target for 2013 is $500 million. This compares with 235 million dollars in 2009. Some news reports suggested the move means the firm "will move part of its production to Argentina, from Brazil and Europe." Company representatives did not comment on what, if any, affect the expansion plans would have on its existing European production capacity.
Continue ReadingToyo to Acquire Malaysian Tyre Manufacturer
Toyo Tire & Rubber has announced its decision to acquire all shares in Malaysia-based tyre manufacturer Silverstone Berhad. The company’s board of directors says it has a stock purchase agreement with Silverstone’s sole shareholder, Silverstone Corporation Berhad. According to the company’s statement, Toyo’s acquisition of Silverstone puts it in position “to make a full-scale entry into the fast-growing Southeast Asia market.” The stock transfer to Toyo from Silverstone Corporation Berhad is scheduled to take place in late January 2010 and will cost Toyo approximately 12,538 million yen (£98 million).
Continue ReadingJAXQuickfit Launches New Website
Australian independent tyre retailer JAXQuickfit Tyres has launched a new website showcasing its range of products and services at www.jaxquickfit.com.au. “JAXQuickfit Tyres is entering its next phase of business development and growth, so we have taken the opportunity to capitalise on what we have achieved over the past few years with a fresh, cleaner look going into the next strategic phase,” JAXQuickfit Tyres CEO Jeff Board said.
Continue ReadingGeneral Tire Picks Up Jeepspeed Title Sponsorship
In the US, General Tire has announced its title sponsorship of the 2011 General Tire Jeepspeed Challenge, a desert race series designed to give Jeep enthusiasts the opportunity to race their daily vehicle alongside other die-hard Jeep fans. The title sponsorship runs for a three-year period and the deal also involves the adoption of products from the Continental Tire the Americas brand as spec tyres. The 2011 Jeepspeed season begins in February 2011 and runs until December, during which time five challenge/cup events and two bonus events will be run.
Continue ReadingBest Choice Introduces New “Mazzini” Own Brand
At this year’s CITExpo, Best Choice International Trade didn’t just present a large portion of its existing range – visitors were also shown a new brand. By the end of the year this new line-up, produced under the “Mazzini Tyres” name, should be available in 13 sizes between 15 and 18-inches. As export manager Stephen Wu explained, the Mazzini brand will be separately positioned in the market to the company’s existing “Sunew” own brand. “We wanted a new brand for new customers,” elucidated Wu, stressing that the necessity to supply various distribution channels with a variety of brands. In light of this the company is looking around the world, particularly in Western Europe, North America, Australia and Japan, for new distributors.
Continue ReadingDeruibotire Targets 24 Million Tyres Produced in 2011
Deruibotire (or Shandong Deribao Tire Co, Ltd), a tyre-maker in Guangrao County, a region of China’s Shandong Province has big new production plans in the offing in 2011. Visiting Brityrex 2010 in Manchester with a Chinese delegation, the company’s president Yuan Tingshu told Tyres & Accessories that, while the company is currently producing 3 million radial tyres per year, it is developing a production line to produce 24 million units in 2011.
Continue ReadingGuangrao County Delegation Visits Brityrex
Brityrex 2010 attracted a group of visitors from Shandong Province’s Guangrao County, which met with Tyres & Accessories on the Tuesday evening in Manchester’s Renaissance Hotel off Deansgate. The delegation included the president of Deruibotire (also known as Shandong Deribao Tire Co Ltd) Yuan Tingshu; Guangrao Shandong vice county magistrate Li Jianjun; and Bureau of Commerce of Guangrao County director and party secretary Zhu Hanqing. The delegation gave a presentation on the strengths of Guangrao County – a location described by Li as “an economic powerhouse within Shandong Province” and one of China’s major tyre and automotive accessory producing regions, as well as the host of China (Guangrao) International Rubber Tire & Auto Accessory Exhibition (ChinaGRTAE), which is due to be staged for the second time in 2011. Along with Tyres & Accessories and other representatives of the UK tyre trade, the delegation met with the NTDA’s Richard Edy and Peter Gaster, also of UK wholesaler Kings Road Tyres.
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