TGI Opens Houston Office
Tire Group International (TGI) has opened a new sales office in Houston, Texas headed by Tom Wilbur. Wilbur comes to TGI with over 12 years experience in the tyre industry, having worked for firms such as Area Wholesale Tire and Tire Dealers Warehouse.
Continue ReadingRussian Tyre Imports Crash 8.6% in 1H 2009
With the Russian economy fairing worst that most at the moment, the tyre business in this part of the world has taken a similarly significant hit, with both imports and exports falling heavily in the first half of 2009. Tyre manufacturers appear to have been offering significant discounts (or exporting lower value items) in the first half of 2009 with unit export figures falling far slower than export values. Data compiled by the Russian Discovery Research Group shows exports totalled 3,259,440 units in the first half of 2009, down 8.6 per cent from 3,566,469 units in the first half of 2008. Meanwhile, passenger-car tyre exports fell 7.1 per cent in the period, with truck tyre exports down 14.9 per cent. Exports of light truck tyres countered the trend, growing 40 per cent.
Continue ReadingAlliance Tire Buys GPX Assets
Just a day after GPX International Tire Corporation (GPX) filed Chapter 11 bankruptcy protection, Israel-based Alliance Tire Group announced it has signed an agreement to purchase certain assets for a reported $38.3 million. According to Alliance, the deal includes: “GPX’s US operations, customer relationships, warehouse footprint, worldwide rights to the Galaxy and Primex brands, the company’s medium radial truck tyre distribution business and the Company’s South African entity, GPX Tyre South Africa (Pty.).” According to GPX the purpose of entering chapter 11 was “to separate the company’s operations into three distinct businesses in order to facilitate the sales of those businesses in transactions, which will allow 95 per cent of the company’s current North American workforce to remain employed.” Crucially, the statement points out that “the company will wind down its European operations.” GPX also explained that it has buyers lined to purchase various parts of the business.
Continue ReadingHankook Evaluates Southeast Asian Sites for New Plant
Hankook Tire intends to build a new factory – its sixth overseas plant – somewhere in Southeast Asia. South Korea’s Yonhap news reports company CEO Suh Seung-hwa as stating on October 23 that Hankook may spend between US$250 million and $300 million building the new facility, which is expected to have an annual capacity of ten million units.
Continue ReadingConti Sime Opens BestDrive Continental Car Centre in East Malaysia
On 18 October Bintang Ramai Sdn. Bhd., in partnership with Continental Sime Tyre Sdn. Bhd. (CST) opened the first BestDrive passenger car and Light Truck (PLT) centre in East Malaysia. The new branch is the 16th BestDrive in Malaysia, but the first in Eastern Malaysia. According to Benoit Henry, CEO of CST, the BestDrive PLT centre empowers the company’s partners with the opportunity to use its brand to position themselves as uniform, specialised tyre dealers catering for the premium customer segment. CST aims to offer expertise and advice for the setup of a premium BestDrive shop concept, shop layout and customer-friendly tyre-changing and car-service environment.
Continue ReadingAufine Presents an Extended Truck Tyre Range
Ever since the Aufine Group owned factory in Dongying, Shandong Province entered operation in 1986, it has specialised in truck tyres. Nevertheless, the company has considered broadening its range. As general manager David Sun explained during the CITExpo exhibition, Aufine – whose name was chosen due to its phonic similarity to the words “all fine” – has recently mulled over the idea of a passenger car tyre factory. According to Sun, Aufine calculates an RMB 700 million investment (£63.6 million) is required to establish a planned factory capable of producing five million passenger car tyres per year. These plans, admittedly, have been laid on ice indefinitely due to the global recession. If and when the Aufine Group finally presses ahead is a decision heavily dependent upon the future development of global markets, not least the US market. Should the decision be made to press ahead with the new factory, the company’s aim is to produce “high quality tyres in China,” David Sun emphasises.
Continue ReadingJAXQuickfit Tyres Opens New Pymble, Sydney Store
In Australia, JAXQuickfit Tyres has opened a new store at Pymble, completing a triangle of premium tyre locations on Sydney's north shore. JAXQuickfit Pymble joins the stores at Artarmon and Thornleigh in offering customers an extensive range of tyres and wheels, together with steering, brake and suspension servicing. “In an extremely competitive market environment, JAXQuickfit has always had a very loyal and strong customer base on Sydney's north shore, so we're delighted to be able to offer them another convenient store location,” CEO Jeff Board said.
Continue ReadingNizhnekamskshina to Commission 1.2 million Tyre All-Steel Radial Plant
Russian petrochemicals group OAO Tatneft (Kama and Niznekamshina’s parent company) said it is set to expand its tyre manufacturing capacity with the commissioning of a 1.2 million tyres a year all-steel truck and bus radial plant near its existing Niznekamshskina plant in Niznekamsk. The commissioning follows investment of around 17 billion rubles (£362 million; 388 million euros; US$578 million) in line with a plan first conceived in 2006. Increasing demand in this part of the Russian market is said to be behind the move, with Tatarstan truck manufacturer KamAZ Auto Manufacturer lined up as a customer. According to Tatneft such large-scale construction of a factory from scratch is “really unique in today's Russia” and is part of a strategic investment programme scheduled to continue until 2013 - providing for the “further increase of the Kama-Euro type tyre production.” According to a company statement, Tatneft has implemented major investment projects in this field during the past few years, such as organizing the production of Kama-Euro passenger cars and light truck tyres using Pirelli technology and the construction of a new rubber-mixing complex. The new plant, which Tatneft refers to as its “SSC Tire Factory” (SSS = Solid Steel Cord) reportedly allows the company to produce tyres which offer 8 per cent more weight capacity and “significantly reduce fuel consumption.” In addition, SSC tyres can reportedly be retreaded up to three times, thus extending potential life up to 500,000 kilometres, says Tatneft.
Continue ReadingGoodyear to Gain Compensation from Jamaica Subsidiary Liquidation
Goodyear Jamaica Ltd’s liquidator, Deloitte Touche Tohmatsu in Jamaica, is to offer “interim distribution” compensation of $3.75 per share to existing shareholders “by the end of October or early November.” Goodyear Tire & Rubber Company is a leading shareholder and will reportedly receive over J$131 million (US$1.48 million) of the first payout. The liquidation process is expected to be completed by 2010.
Continue ReadingCITEXPO 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 Reading
