Datillo: Cooper Paid $107 million for Kumho Share
In an exclusive interview with Tire Review last week, Tom Dattilo, chairman, president and CEO of Cooper Tire & Rubber, said the tyre manufacturer ended up paying “about $107 million” for its 11 per cent stake in Kumho Tire Co. Cooper purchased the stock during Kumho’s dual initial public offerings on the London and Seoul exchanges earlier this year. “That was our 11 per cent stake. I saw a set of figures last week that put it at about $110 million, and we had expected it to come in at the low to mid $140s. A couple of analysts were speculating $140, 150, $160 million, but that was all part of the process of trying to get as high a price as they could,” Mr Dattilo told the magazine.
Continue ReadingIndian Manufacturers Deflate Tyre Prices
In India tyre prices are “tumbling” in response to the government’s decision to cut excise tax by eight per cent, local news sources have reported. According to India’s Economic Times, MRF and Ceat have announced 4 - 6 per cent price cuts, while others such as Apollo, Goodyear and Birla Tyres are likely to follow the same lead. This means that typical non-radial bus and truck tyres are 1000 rupees cheaper.
Continue ReadingImports Take Their Toll on Bridgestone SA
Bridgestone Firestone Maxiprest fell deep into the read last year, the South African Business Day has reported. The group reported a headline loss of 44 million rand (almost £4 million) for the year to ended December, compared with 2 million rand (£177,000) profit for the previous year. According to the report, the company’s losses were caused by product shortages, competition from imports and the expense payments made to former directors.
Continue ReadingMichelin Proposes Michel Rollier For Managing Partner Role
Michelin managing partners Edouard Michelin and René Zingraff will propose that Mr Michel Rollier takes up the position of managing partner, according to a company statement. The existing managing partners will formally make the proposal when the company has its annual general meeting on 20 May.
Continue ReadingVMI Launches Modular Tyre System
VMI has developed a new tyre building system, designed to produce lot sizes as small as one tyre. The company behind the technology, launched at Tyre Technology 2005 in Cologne, claims it can improve quality, reduce cost and minimize floor space. The company reports that a single unit capable of making 1200 tyres a day, requires three staff and occupies significantly less floor space than the conventional equivalent.
Continue ReadingPirelli Wins 25 Million Euro Cable Contract
Pirelli energy and cable systems has announced that its Comergy subsidiary has won a 25 million euro contract to supply the SP PowerAssets, a subsidiary of Singapore Power. The contract will see the company supply and install 400kV PPL oil filled power cables, auxiliary cables and accessories in order to reinforce the county’s power transmission network within the country. Pirelli’s Eastleigh and Bishopstoke, UK plants will manufacture the 400kV power cables and accessories, whilst Pirelli plants in Turkey and Indonesia will supply the auxiliary cables. ”We are delighted to have secured a second 400kV contract with SP PowerAssets in the extremely competitive Asian marketplace for power cables,” Valerio Battista, managing director of Pirelli Energy Cables and Systems commented. “The award of this second contract is important recognition of our capability of supplying competitively priced solutions for high voltage networks. It also demonstrates the clients trust in our ability to deliver such projects on time and within budget.”
Continue ReadingChanges at Beru’s Communications Department
Beru has appointed a new corporate communications and manager. Gala Conrad will be responsible for investor relations and corporate communications and will replace Stephen Hass, who left to company for another position in the industry. Before joining Beru Ms Conrad worked as a journalist in Silicon Valley and was later in charge of communications at Aston Tate and 3Com in Central Europe and was responsible for corporate and capital market communications at IXOS Software AG.
Continue ReadingConti Backs Out of Qingdao Agreement
Continental AG has retreated from its memorandum of understanding with China’s Qingdao Doublestar, Bloomberg has reported. A Continental spokesperson told Tyres & Accessories that the decision was made recently when the company realised it would not be able to gain a majority share in the Chinese joint venture. Because the decision was taken at this early stage, no money has been lost, the representative said.
Continue ReadingGoodyear/Titan – Update
In the aftermath of yesterday’s not-too-surprising announcement that Goodyear will sell its agricultural tyre operations to Titan International, more details have come to light, reports Tire Review. Goodyear agreed to sell the assets of its agricultural group, including its farm tyre plant in Freeport, Illinois, to Titan for approximately $100 million. The deal also gives Titan the right to produce and market agricultural tyres under the Goodyear brand name. However, under Goodyear’s current master contract with the United Steelworkers of America (USWA), any facility sale is contingent on the union and the prospective new owner reaching agreement on a new contract for the plant in question.
Continue ReadingTIA Names Summit Participants
TIA has named the participants in the first Commercial Tire Executive Summit, which will be held April 20 during the forthcoming World Tire Expo at the Kentucky International Convention Center in Lousiville. Tire Review has reported that the summit, entitled “The Commercial Truck Tire Industry: Here and Now,” will include “an energetic discussion of current issues and how they are impacting the commercial tyre industry right now,” according to TIA.
Continue ReadingOldest Independent Tyre Dealership Joins First Stop
Hawleys Tyres, of Sheffield, has joined the Bridgestone UK First Stop network of independent tyre dealerships. Established by Martin Hawley (grandfather of the current owner), in 1910, the company claims to be the oldest independent tyre dealership in the UK. The company will now receive marketing and public relations support, an exclusive tyre brand, and First Stop and Bridgestone branding on signage and work wear.
Continue ReadingSmarTire Supplies North American Coaches
SmarTire has signed an agreement with North American company, Motor Coach Industries International (MCI), for the supply of its bus tyre monitoring system. MCI designs, manufactures and markets coaches and coach-related parts and services for the market, it currently produces approximately 1400 new coaches per year. The agreement covers both aftermarket installations on existing MCI coaches and original equipment installations on at least one of the company’s production lines this year.
Continue ReadingA New Market is Born
When you have a tyre market that grows by ten per cent each year, as in the case of Russia, an impact on the retreading market is inevitable. Although retreads still don’t have the same status as they do in Western Europe, the eleven companies that are currently doing business in this market are looking forward to a bright future. The growing new tyre market has led to the appearance of a number of different retread companies, including Bandag, Kraiburg and Ellerbrock. Smaller companies like Elgitread from India and ITG from Italy have also shown interest in the Russian market.
Continue ReadingIs there a Future for Passenger Car Tyre Retreading?
The European market doesn’t appear to hold a bright future for retreaded passenger car tyres. Just recently one of the biggest manufacturers of the tyres, Reiff Reifen + Autotechnik GmbH, withdrew from this segment. Nokian Tyres has also taken a similar decision: the Finnish tyre manufacturer has sold its passenger car retreading plant to a Swedish company even though its retreading business was recently brought together under the roof of a new “profit centre”.
Continue ReadingYokohama Exhibits Advan at Geneva Show
Yokohama Rubber will show exhibit at the 75th Geneva Motor Show, highlighting the company’s Advan flagship brand. The company will exhibit a Gemballa Cayenne fitted with 22 inch Advan ST tyres emphasising its focus on high performance technology, according to a statement. Yokohama Rubber will also exhibit its safety support technologies at the show, including its Zero Pressure System, Support Ring Run-flat System, and tyre pressure monitoring system for passenger cars.
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