Pirelli 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.
Continue ReadingConti 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.
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