CITEXPO Shows Stability Despite the Crisis
There are exhibitions where people are encouraged to “see and be seen.” And there are other exhibitions where employees from various market players meet and engage in what is important: doing business. One such exhibition is the China International Tire Expo, or CITExpo for short. At the start of September numerous representatives from the international tyre business met in Shanghai, and many of them attended to meet the stated aim of doing business with international (preferably Western) distributors. The particular quality – the meeting of Chinese manufacturers and exporters with overseas importers – has clearly evolved during the previous seven years and today is CITExpo’s greatest strength.
Continue ReadingYokohama Philippines Extends Help to Typhoon Victims
Yokohama Tire Philippines (YTPI) is lending a hand to the victims of the Mt. Arayat mudslide, which was brought about by Typhoon Ondoy. As part of the company’s relief operations, on October 2 YTPI employees gave each affected family at the Arayat, Pampanga evacuation area a set of equipment including a mat, mosquito net, blanket, pail and charcoal stove. Approximately 297 families, left homeless after the mudslide, received assistance from YTPI.
Continue ReadingDestination Europe: More Chinese Products En Route to Europe?
Now President Barack Obama has stuck 35 per cent import duty on all passenger car and light truck tyres from China for the next three years what happens next? Chinese tyre manufacturers won’t want to sell fewer tyres each year. But US importers, consumers and manufacturers are equally unlikely to want to pay or absorb the additional costs. Tyres & Accessories spoke to a range of US, Far Eastern and Chinese companies and found that manufacturers are having to rely heavily on production flexibility, while traders are now setting their sights on one market in particular - Europe. Stephen Wu, managing director of Chinese tyre trading operation, Best Choice International, reports that orders from the US stopped came to a virtual standstill in July. Their strategy is now openly towards producing more European market orientated products: “We stopped an SUV/LT project and waited for the decision. And we produced more European UHP tyre sizes, not US sizes.” Companies like Best Choice are now prioritising orders in other markets – especially Europe – where they aim to sell the most popular sizes, UHP and winter tyres. Best Choice is apparently interested in other markets as well, but Wu refused to give further details at this time. As far as Best Choice is concerned there is now zero chance of getting orders in the first year of the tariff, except in the 19-inch and over category. As a result competition is likely to be based on just two factors: price and delivery time.
Continue ReadingChem-Trend Release Single Application Curing Envelope Treatment
Chem-Trend recently launched a single application curing envelope treatment aimed at the retreading industry. Mono-Lube 2006 is designed to increase curing envelope life, while providing “easy release from the cured tyre.” A typical life for a tyre retread curing envelope is 40 – 60 tyres, however according to the Chem-Trend Mono-Lube 2006 can extend life by between 33 to 100 per cent. In addition to providing good release from a cured tyre, it also provides good slip, enabling accurate positioning over the next, uncured tyre.
Continue ReadingThe Market is Ripe for Korean Tyre Makers
2009 could be a breakthrough year for the Korean tyremakers. A collection of circumstances (some clearly the result of famed Far Eastern forward planning, and others distinctly more fortuitous), mean Kumho, Hankook and Nexen have found themselves poised to sell increasing numbers of replacement tyres in the UK and Europe. In addition, their successful efforts in the OE department – ironically helped along by the shaky macro-economic environment – mean this perfect storm of variables could leave the Korean manufacturers in an even stronger position when the dust settles. In the UK, a market where mid-range and economy tyres make up around 60 per cent of unit sales, official figures show that 4.7 million passenger car tyres of South Korean origin were imported last year. However, this cannot be the complete total because it only includes tyres imported from factories actually situated in South Korea. Owing to the fact that all three have significant manufacturing presences in China, and tyres often enter the market by “indirect routes,” it is likely the true total is a lot more.
Continue ReadingGoodyear's Newest Blimp Pilot Takes to the Skies
Nathan Brooks has become the latest to sign on as a Goodyear blimp pilot following his “check flight" at the company's Airship Operations facility in Carson, California. The 29-year old joins pilot-in-charge Jon Conrad, assistant pilot-in-charge Matthew St. John and senior pilot Kristen Davis as pilots for the California-based "Spirit of America" airship.
Continue ReadingPirelli to Build Emissions Filter Plant in China
In mid-September Pirelli demonstrated its commitment to reducing vehicle emissions in China through the signing of two agreements. On September 15 the Italian firm, along with the Italian Ministry for the Environment, Land and Sea and China’s Ministry of Environmental Protection signed a protocol agreement on the distribution of diesel vehicle emission reduction technologies in China. Pirelli also signed a memorandum of understanding with the Hixih Group to set up a filter manufacturing plant in Shandong Province.
Continue ReadingHundreds of Jobs in Danger at SRT’s Ekaterinburg Factory
The website RusBusinessNews reports that Sibur-Russian Tyres will end the manufacture of non-military products at its Ekaterinburg Urals Tyre Plant Ltd. factory, resulting in the redundancy of two-thirds of its workforce. Demand for the cross-ply tyres produced by the factory is steadily falling, and despite considering investing in modernisation, Sibur-Russia opted not to do so has the equipment and construction work involved would have taken more than a decade to repay. The only product made by the Urals Tyre Plant still in demand is a roller for tanks.
Continue ReadingSumitomo Opens Tyre Technical Centre
Kobe, Japan based Sumitomo Rubber Industries celebrates its 100th anniversary during 2009, and this red-letter year for the company has seen the inauguration of its new Tyre Technical Centre. A ceremony to celebrate the opening of the new centre – which Sumitomo says will “play a major role in heritage and creation of technologies to enable the company to continue to grow in the next hundred years – was held on September 17.
Continue ReadingAnalysts: Continental Can’t Afford Emerging Market Investment
Within 24 hours of Continental AG confirming it is partnering with Modi Tyres to make bias truck tyres in India, and after a month of local speculation that the company will now buy a stake in the Indian tyre maker, financial analysts are reporting that the company “can’t afford making any acquisitions or expansion projects in emerging markets which are growing fast.” Rather “all free cash flow generated by the rubber business should be used to reimburse the group’s high net debt of 10 billion,” Deutsche Bank analysts wrote in an investor’s note published today (23 September). Continental’s tyre business reportedly generates 500 million euros of annual free cash flow.
Continue ReadingContinental Confirms Modi Tyres Partnership Reports
Continental AG’s Commercial Vehicle Tires division has confirmed reports that it has revived its collaboration with Modi tyres Company Private Ltd. (New Delhi). According to the company, Modi will initially produce around 1 million Continental-branded cross-ply truck tyres for the Indian market. As a result of the move, the company has secured access to the 12 million commercial vehicle tyre-strong Indian market, which has been projected to grow at around 7 per cent. Production already began at the start of June 2009. The collaboration includes a technical cooperation agreement and a license agreement for Continental brand bias tyres. The Continental bias tyres will be distributed via a revived Modi sales network. “For us, this new agreement represents an extremely useful revival of our activities in India, a market, which we know will grow significantly over the coming years,” Continental project manager Christian Sass explained. Bias products still account for over 90 per cent of the Indian market.
Continue ReadingToyo to Seek Greater Thai Market Penetration, Build New Factory
Thai news source, The Nation has reported that the country’s sole distributor of Toyo-manufactured tyres is to begin a process of aggressive penetration in the domestic market via a change of segment emphasis from premium to the wider market and the opening of more shops in 2009. The company may also build a new manufacturing facility in Thailand, according to the report.
Continue ReadingTendulkar Closes MRF Innings after Decade at Crease
Indian cricketing icon, Sachin Tendulkar has left the MRF dressing room, following ten years with the tyre-maker and sports equipment manufacturer. During this time, Tendulkar spent weeks at the crease, helping spread brand awareness by carrying MRF’s logo on the front of his perfectly straight bat. The Little Master will now promote equipment for Adidas, while relative – though impressive – new-boy Gautam Gambhir steps into the Sachin-shaped hole with MRF.
Continue ReadingPirelli Extends China JV Relationship
Pirelli Tyre has reportedly signed a memorandum of understanding with Hixih Group to build a new filter plant in Yanzhou Shandong province. The new plant will be located near its existing tyre plants that were jointly established by the two companies. Construction for the new 50 million euro plant is expected to start in the first quarter of 2010. (Tire Review)
Continue ReadingFederal and Hero Tires Launch New HA Oil-Free Technology
With an ever-growing awareness of the ecological climate, as well as a new precedent currently being set for economical measures introduced specifically for levies on manufacturers of tyres in the Far East, those wishing to import tyres to Europe and the USA need show an awareness of current regulations governing the properties of their products. This has not passed Federal Corporation by: “In an effort to contribute to the conservation of the environment and demonstrate our ongoing commitment to a safer and greener society,” Federal announces it is “to phase out use of the PAH rich extender oils by shifting all categories of tire segments to HA oil free tires following the REACH regulations.” The implementation of the environmental initiative, the company continues, is in compliance with EU directives concerning the tyre industry and is clearly designed to show how the Far East is by no means standing still when it comes to the use of new technologies to meet EU regulations.
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