Conti Looks to Score in Thailand Market
Looking to capture 5 per cent of Thailand’s tyre market within three years, Continental AG opened its first official sales office in Bangkok. “Within the next two, three years we hope to have captured 5 per cent of Thailand's tyre market, and within five years we will be among the top five brands here,” stated Benoit Henry, vice president of marketing for Continental’s Asia-Pacific region. Thailand has a local market of about six million tyres per year. Continental currently has two tyre plants in Malaysia that can service Thailand, but Continental may consider building a local plant there. (Tire Review)
Continue ReadingShares Fluctuate Sharply Following Obama’s China Tyre Tariffs
The Obama administration’s announcement that it is to impose tariffs of up to 35 per cent on Chinese-manufactured imports had a large impact on daily trading in the USA and Seoul, as Goodyear and Cooper shares bumped, and Hankook stock floundered.
Continue ReadingUS Imposes 35% Tyre Tariff, China Plays Chicken
President Barack Obama’s decision to apply a 35 per cent import duty on all passenger car and light truck tyres from China for a period of three years may have been intended to “remedy market disruption caused by a surge in [Chinese] tyre imports” into the US, but it has also provoked a sharp response from the Chinese ministry of commerce and played havoc with the share prices of Far Eastern tyre manufacturers. China’s state media said the US import duties would cost 100,000 jobs and $1 billion (£600 million). Announcing the decision (on Friday 11 September 2009), the White House explained that the 35 per cent ad valorem levy would be placed in addition to the existing 4 per cent import duty on imports of Chinese-product passenger car and light truck tyres. The duty will reduce to 30 per cent ad valorem in the second year, and 25 per cent ad valorem the third year. The US International Trade Commission had recommended a 55 per cent tariff in the first year, 45 per cent in the second year and 35 per cent in the third year.
Continue ReadingJury Hits MNA for $12 Million in Tyre Case
A Texas jury returned a $12 million judgment against Michelin North America, finding that a manufacturing flaw “substantially contributed” to a 31 December 2006 crash that killed six and left a 12-year-old boy paralyzed. The Willacy County, Texas, jury awarded the plaintiffs $11.96 million, ruling that a BFGoodrich brand tire failed due to manufacturing errors, causing the 2002 Ford F-250 pickup truck the victims were riding in to swerve into oncoming traffic and crash head-on into a Chevrolet Suburban. “The jury found that broken air conditioners and leaky roofs cause moisture to get on tires, which led to this tread- belt separation,” Mikal Watts, an attorney for the plaintiffs, said. “We are grateful the jury saw the evidence as it was. There was a manufacturing defect in this tire, and Michelin needed to pay for the damage it caused.” (Tire Review)
Continue Reading$151 Million Credit Line for Kumho Tire USA
Kumho Tire USA Corp. has taken a $151 million credit line, arranged by GE Capital Corporate Finance. The Rancho Cucamonga, Calif.-based tyre company plans to use the line for working capital. GE Capital has worked with Kumho since 2006.
Continue ReadingBrazil Imposes Tax On Chinese Tyres
The Brazilian Chamber of Foreign Commerce has imposed an additional tax of US$ 0.75 on each kilo of tyres imported from China. The decision was taken, says the CFC, as an anti-dumping measure to protect domestic markets and the new tax will come into force immediately. However, it could have been worse; at the same meeting the CFC also imposed a levy of US$ 12.47 on each pair of shoes imported from China.
Continue ReadingRussian Tyre Exports Down 8.6% in 1H 2009
Russian tyre manufacturers appear to have been offering significant discounts in the first half of 2009 with unit export figures falling far slower than export values. The latest data compiled by the Russian Discovery Research Group Russian tyre shows exports totalled 3,259,440 in the first half of 2009, down from 3,566,469 in the first half of 2008 (-8.6 per cent). Passenger-car tyre exports fell 7.1 per cent in the period, with truck tyre exports down 14.9 per cent. However, exports of light truck tyres countered the trend by growing 40 per cent.
Continue ReadingBridgestone Launches B250 in Middle East
Bridgestone recently launched its B250 tyre in the Middle East. According to publicity material released to coincide with the launch, the B250 promises “comfortable, low-noise journey, achieves better braking, regardless of the climate, and high level of running turning, which eventually guarantees travelling in comfort and safety with extended durability.”
Continue ReadingKumho: Vietnam Plant Sale Reports “Completely Wrong”
Kumho Europe representatives have quashed rumours that the South Korean tyre manufacturer is negotiating with Bridgestone over the sale of its new Vietnam factory. Wi Yun, Kumho Europe’s marketing manager, told Tyres & Accessories the suggestions published by Jaccar Investment are “a completely wrong statement.” Dismissing the report as “rumours” Wi added: “There have never been any negotiations nor discussion concerning this matter.”
Continue ReadingNew Zealand to Consider Winter-Regular Tyre Mix Ban
New Zealand could become the first country to ban the use of winter and regular tyres on a single vehicle by as early as 2010 when its government considers a change in the rules proposed by the Transport Agency.
Continue ReadingTransense Signs MOU With Mesnac
Transense has signed a Memorandum of Understanding (MOU) with Qingdao Mesnac Co. Ltd, the parent company of the Sailun brand’s tyre manufacturing division. According to an official statement, Transense and Mesnac have entered into an agreement to combine their individual areas of expertise, for the purpose of developing Transense's patented tyre pressure monitoring sensor technology for the attachment or embedding of these sensors into tyres. Under the terms of the agreement Mesnac have agreed to an initial upfront payment and will pay additional sums for technology transfer/engineering support on an as required basis. Transense shares rose 17 per cent following the news.
Continue ReadingCooper Sales up 40% in China
During the first half of the year Chinese market sales of Cooper Tire & Rubber’s passenger car tyres increased 40 per cent, beating the company’s own 34 per cent target. Truck and bus tyre sales, which account for 65 per cent of Cooper’s China business, grew by double digits in the first half.
Continue ReadingUS Tariffs – Compatible with WTO Rules?
As Reuters notes, the decision as to whether or not the US will impose tariffs on Chinese made consumer tyres is not a straightforward one. As the news service pointed out on August 26, Chinese trade sources indicate that these tariffs may not line up with a safeguard mechanism China agreed to when it joined the World Trade Organisation.
Continue ReadingPhase 2 of Yokohama’s ‘Forever Forest’ Completed in Thailand
Some 5,000 trees have been planted at the Yokohama Rubber tyre factory in Thailand as part of the company’s tree planting programme. The second phase of the plant’s "Yokohama Forever Forest" project – the first phase two planting conducted at a Yokohama facility outside of Japan – took place on August 12. Around 1,100 employees, family members, local residents and other volunteers planted 26 varieties of tree under the supervision of Sirin Kawlaierd, tree planting expert employed by the Thai Imperial Household Agency and Akira Miyawaki, an expert in physiognomy and Professor Emeritus of Yokohama National University.
Continue ReadingChina's Rubber Imports Jump 25% in July
China's natural rubber imports jumped 25.8 per cent to 165,876 metric tons in July. Malaysian news sources cite customs reports that show the figure is close to an 11-year high which last peaked in March. China buys rubber from main producers Thailand, Indonesia and Malaysia, as well as Vietnam, Cambodia and West Africa. The high comes off the back of China’s strong passenger car sales in July, which jumped 70.54 per cent from a year ago.
Continue Reading