Russian Tyre Market Value Shrunk 40% in 2009
In 2009 the Russian market for various types of vehicle tyres (including industrial equipment, tractors and combined harvesters) totalled 33 million units, down a reported 36 per cent. According to a report published in the CRIA published magazine, China Rubber, the 2008 figure was 51.4 million. The fall in value of these tyres was even steeper, down 40 per cent at 95.14 billion rubles (2008: 157.7 billion rubles). According to the research, the main reason for the market decline is directly related to the economic crisis and its knock-on effects on the entire Russian vehicle transport sector.
Continue ReadingApollo Tyres Planning China Expansion
Apollo Tyres is reportedly working on a strategy to enter China, currently the world's largest tyre producing and exporting market. If Apollo is successful in this venture it would be the first Indian tyre manufaturing company to establish a permanent production presence in China. “We aim to be a global tyre producer with footprints in all corners of the world,” Onkar Kanwar, Apollo Tyres' chairman, said at the launch of the brand in Europe, adding: “Only China is out of bounds right now but we will chart a strategy to be present there as well, through either a joint venture or a contract manufacturing arrangement.“
Continue ReadingReports: Petlas to Expand Car Tyre Output
Turkish tyre manufacturer Petlas Lastik is planning to significantly expanding its passenger car tyre production capacity. According to local news reports, the company’s tyre manufacturing finance manager, Vahit Unal told reporters that the company will invest $50 million to more than double the company’s 2005 car tyre capacity. “While in 2005 [we attained] exports of $16 million, in 2008 this figure reached $93 million. In the last 2.5 years we have invested $55 million. With additional investment of approximately $50 million related to the production of passenger tyres we will raise our capacity 2.5 times,” he is reported as saying. The commissioning of the additional investment is said to have taken place in the first quarter of 2010.
Continue ReadingReports: Michelin to Relocate, Expand China Plant
Michelin is seeking Chinese government approval to relocate its Shenyang plant to a larger site to allow for capacity expansion, according to a China Daily report. "We have to relocate the Shenyang factory for a really big capacity expansion in both truck and bus tyres as well as passenger car tyres, considering the growing demand in China's automobile market," Michelin managing general partner Michel Rollier is quoted as saying.
Continue ReadingEuropean Commission Imposes 20.6% Duty on Chinese Alloy Wheel Imports
On 12 May the European Commission (EC) imposed a 20.6 per cent duty on aluminium road wheels imported from China. The ruling, which is lower than the 30 per cent some sources predicted, is designed to put the brakes on the decline in European produced aluminium wheel sales. It comes in the form of a “preliminary measure” just over half way through the anti-dumping investigation that began at the behest of EUWA (European Wheel Manufacturers Association) in May 2009. The preliminary measure lasts for the six months necessary for the commission to make its final ruling in November at which point the 12 May ruling leaves the option open for commission to the 20.6 per cent import duty for an extra five years.
Continue ReadingConti Sime Opens Malacca BestDrive Outlet, Celebrates Dealer’s 70th Anniversary
Chop Swee Hoe and Continental Sime Tyre Sdn. Bhd. (CST) opened a new BestDrive Continental Passenger Car & Light Truck (PLT) Centre in Malacca (the third smallest state in Malaysia) on 23 May, 2010. According to Choong Kee Seng, sales and marketing director of CST, the BestDrive PLT centre empowers partners with the ability to make use of this brand to become positioned as uniform, specialised tyre dealers catering for the premium customer segment. “We have now completed a total of 18 BestDrive Continental PLT centres throughout Malaysia, with the opening being done in stages,” said Choong Kee Seng.
Continue ReadingInfinity Tyres Invests in Prime Position at Reifen 2010
After only six years in the tyre market, Infinity Tyres’ continuing efforts to increase its brand’s reputation and the awareness of Infinity tyres are embodied in the prominence of the company’s presence at Reifen 2010. As part of a 240 square metre island stand situated within Hall 3, Infinity will be exhibiting its range of passenger and truck tyres. Positioned as a premium quality economy tyre, Infinity is now distributed across five continents and in over 60 countries. And according to company representative, Infinity tyres sits comfortably amongst the tyre world “giants” exhibiting in Hall 3 at Reifen 2010.
Continue ReadingTyre Killer Film Screens at Cannes
You may remember a February report from tyrepress.com drawing your attention to a new serial killer movie named Rubber, and starring a sentient tyre as its antagonist (see ‘Mr Oizo Returns with Slasher Flick Starring Tyre’, or click the Related News link below). While tyrepress.com then described the chance of it appearing on British screens as “unlikely”, the film has garnered enough support to be shown in the Critic’s Choice programme of the world’s most (in-)famous film festival in Cannes, France. You can see the (beautifully photographed) trailer below the full version of this story in the subscriber area.
Continue ReadingContiTech Opens Brazil Factory
Contitech has opened a new production facility in Ponta Grossa, Brazil, for textile and steel-cord conveyor belts, creating a stronger foundation for the company’s activities in the Central and South American region. The new 5,000m2 facility is designed to produce 300km of textile and steel-cord conveyor belting annually and has created over 60 new jobs. The total amount invested so far by ContiTech in the factory, machinery and equipment amounts to more than 10 million euros.
Continue ReadingContinental Eyes India and Russia
A report on the Bloomberg Business Week website suggests that Continental AG will decide this year on building car-tyre plants in India and Russia to tap those countries' growth while avoiding import restrictions. In an interview, Nikolai Setzer, head of Continental's car-tyre unit, said: "It's obvious that we need to have local production in India and Russia if we want to be a strong player there. We are still evaluating different concepts and ideas, but we do want to have a decision this year."
Continue ReadingVipal and Fate Sign US$200 million Tyre Factory Memorandum of Understanding
Brazilian company Vipal, best known for its tyre retreading and repair materials, and Argentine tyremaker Fate have signed a memorandum of understanding with the Rio Grande do Sul State of Southern Brazil to set up a new tyre factory. The first bi-national industrial collaboration in the state, the Vipal/Fate project sees the companies invest around US$200 million in building a “farm equipment” and “aftermarket car parts” tyre plant. There has been no official confirmation of what brand the new tyres will be produced under, but Tyres & Accessories understands that this means production will focus on passenger car and van tyres.
Continue ReadingMarangoni Claims Leadership in Russian Retread Segment
Marangoni Retreading Systems reports that it is a strong position to capitalise on the initial recovery of the Russian truck market. The company reports that reliable estimates on the retreaded truck tyre sector, in the absence of official figures, show a market volume of around 150-200,000 tyres, half of which are retreaded locally and the other half imported, mainly from central and western Europe. Marangoni Retreading Systems, which has been operating in the Russian market for over a decade, has made significant investments in developing important local retreaders, apparently achieving good results quickly.
Continue ReadingEuropean ‘Anti-Dumping’ Investigation Could Mean 30% Duty on Chinese Alloys
While everyone has been focusing on the US-initiated anti-dumping tariffs against Chinese-made passenger car tyres, another anti-dumping investigation has escaped widespread coverage. On 13 August 2009 the European commission began an investigation into dumping allegations made against Chinese wheelmakers who allegedly sold products into the European markets beneath cost price. At the time 60 Chinese wheelmakers received notification of the impending investigation and most reportedly began cooperating straight away. Nevertheless, according to China’s Ministry of Commerce, the investigation is likely to cost Chinese wheel exporters an estimated US$390 million. There is still a chance that no tariffs will be implemented, but if they are they will apply across both the OE and replacement sectors and are predicted to be lie somewhere around the 30 per cent mark. The European Commission’s investigation, which began just a day after the Chinese companies involved were informed of the allegations, followed a complaint made by the Association of European Wheel Manufacturers’ (EUWA) in June 2009. At the time the journal of the executive arm of the 27-nation European Union said the investigation was initiated “having determined that there is sufficient evidence to justify the…proceeding.” However, China's Ministry of Commerce denied the charges saying: “It raises the cost of repairs for customers, affects the recovery of the European auto sector from the global financial crisis, and hurts the interests of both China and Europe.” Either way, with Chinese produced wheels representing a significant proportion of replacement market products on offer, any kind of trade barriers that are implemented are likely to have a similarly significant effect on the shape of the market.
Continue ReadingRösler: Kazakhstan Retreading Plant Now Fully Operational
In 2008 Dortmund, Germany-based Rösler Group finalized a deal with one of the world’s largest copper mining companies, Kazakhmys to install a turnkey retreading facility for Kazakhmys’ underground and open pit operations in Kazakhstan. 18 months later Rösler and Kazakhmys have announced that that they have completed construction of the new retreading facility in Zhezkazgan, near Kazakhmys’ operations. The plant has reportedly been in full production since December last year, retreading tyres in 25 inch to 33.00R51 sizes, with the option for 57-inch products. In order to secure quality, Rösler keeps a team of three retreading specialists based in Kazakhstan on a continuous basis to supervise production.Tyres retreaded in the Zhezkazgan facility are now in operation in copper mines.
Continue ReadingBrazil Cottons on to US Subsidies, Introduces Tyre Tariffs
US exporters have been hit with an additional tariff by Brazil, a WTO-backed retaliation for what it calls “illegal” subsidies to US cotton farmers, reports Tire Review. Brazil’s new tariff structure, set to engage in 30 days barring a last minute agreement between the two countries, hits a wide range of products, including cars (from 35 to 50 per cent), cotton and cotton products (a full 100 per cent increase) and – most importantly around these parts – tyres (jumping from 16 to 32 per cent). In all, some 100 goods are now subject to higher import rates by Brazil, and could total $830 million annually.
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