Trelleborg Organises Relief Efforts in Sri Lanka
The Trelleborg Group has been working since the day after Christmas to ensure that none of its employees is missing and has organised relief efforts, primarily in Sri Lanka. Trelleborg, which has approximately 22,000 employees, has operations in several of the countries affected. Reports to date indicate that none of Trelleborg’s employees are missing. The company is continuing to gather information to establish the certainty of this. The Group has approximately 800 employees in Sri Lanka. They have been heavily affected, and some have lost their homes. Since the disaster first struck, Trelleborg has focused its relief efforts on Sri Lanka. This has involved providing food, medicine and clothing to disaster victims. Efforts to rebuild homes that were demolished are ongoing. The company has allocated just over 2 million Krone for relief to Sri Lanka. In addition, the Group has donated 100,000 Krone each to Save the Children and the Red Cross. Individual Trelleborg employees have also donated money toward relief efforts. Trelleborg’s two plants in Sri Lanka are intact and production is under way.
Continue ReadingWholesaling and Retailing In a Difficult Market
Magowan Tyres is a family-owned and run retail and wholesale tyre business, based in Belfast. The founder, Darryl Magowan, has been in the tyre industry for more than three decades and is still in charge of the overall direction of the company. His son, also called Darryl, is managing director of the company and his speciality is purchasing. With the Northern Ireland market being, in his phrase, exceptionally price conscious, it is a distinct advantage if you can buy cleverly. Magowan is very active on the parallel market, importing around eight containers a month from Europe and the USA. For almost 20 years, Magowan Tyres was purely a retail business, moving into wholesaling only three years ago. I put it to Darryl Magowan (Jr.) that this was an odd time to enter the wholesale sector, with rising transportation and associated costs. His response was that the company had examined the situation carefully and weighed up the pros and cons. The main reason was that there was a growing demand in the Irish market for ultra high performance tyres and a lack of wholesale supply. The main market for Magowan Tyres is Northern Ireland, especially Belfast, where the company offers deliveries up to five or six times a day, if required. The service in the Irish Republic is less frequent, but a next-day delivery is standard. Because of the low density of population, which, apart from the major towns and cities, is very spread out, running a wholesale operation efficiently and profitably means keeping a close eye on day to day running.
Continue ReadingMarket Prepares for Breakthrough
There has been much talk about the Chinese tyre market in recent months. Now, following the news of Amtel’s takeover of Vredestein, and the collapse of one of Continental’s joint ventures, the Russian market has been a hot topic. But what about India? The Indian market may not be as large as Russia’s, but it certainly offers many challenges and opportunities to the companies working within it. One such opportunity is radialisation. Currently radial products only make up a very small percentage of the Indian truck tyre segment, around two per cent. And, according to those involved, there is a large backlog in demand. For instance, just recently Michelin entered into a joint venture with Apollo Tyres in order to produce radial truck and bus tyres destined for the domestic market. Pirelli and its partner, Ceat Ltd is also looking to fill the same gap in the market. No doubt other Indian manufacturers will follow suit in the future. Another example, and in this case a big technological challenge, is the production of radial passenger car tyres. Even so, this sector is way ahead of the truck market with 85 per cent of the segment occupied by radial tyres. According to industry association ATMA this figure is likely to peak at 97 per cent in the coming years. But one of the biggest factors influencing the Indian tyre market is the advance of motorisation. As this process gains momentum, more and more Indians want to and can afford to own passenger cars. In the last 10 years automobile production in India has quadrupled, last year alone it increased by an impressive 36 per cent. Within the pages of this supplement on the emerging Indian market, TYRES & ACCESSORIES will give an overview of the major factors that are influencing the market and the big players that are trying to stake a claim in a market they believe should be theirs. Subscribers to Tyres & Accessories can download the supplement in advance of publication. Please click the more button to download the file.
Continue ReadingThe Aftermarket Show 2005
The Aftermarket Show will open its doors to tyre industry visitors at the NEC from 13 to 16 January next year. Organiser, Haymarket Exhibitions, believes that the show will be both relevant and appealing to all sectors of the industry. “The tyre section of the show is sponsored by the TIC, and the NTDA is again taking a stand; this is an exhibition that the tyre and fast fit market is keen and willing to support,” says Haymarket’s group sales manager Giles Brown. Exhibitors such as Vredestein, Nordisk, Rage, Eurosport, Autopart and equipment suppliers like Supertracker, Tecalamit and Mace Industries will all be returning for a second successive year. The last show was the first to combine all elements of an aftermarket industry, elements that had previously been exhibited as separate entities within Autosport International. The move is also an attempt to emphasise the combination of business and pleasure, and the automotive exhibition takes place over a full weekend for the first time. More than 90,000 people, including almost 25,000 from the automotive trades, attended the NEC for the two shows in 2004. Although the focus is on the consumer, brands such as Dunlop, Pirelli, Uniroyal, Yokohama, Kumho and Silverstone will all be displaying their latest motorsport and high performance ranges to visitors. Fulda will also be present and is sponsoring the Live Action Arena at Autosport International as part of its campaign to launch its ultra-high performance car tyres in the UK.
Continue ReadingMichael Schumacher Donates 10 Million
German Formula 1 star Michael Schumacher has made a cash donation of $10 million US dollars to the tsunami victims of southern Asia. The allocation of the money in the region will be undertaken by German authorities.
Continue ReadingChanging Landscape of the Indian Market
India’s strong tyre manufacturing base dates back over five decades. With a current production level of about 55 million tyres the country’s industry is expected to grow seven to eight per cent per annum in the near future, according to market insiders. Increases in domestic demand and exports will bring about a change in the landscape of Indian manufacturers which can already be characterised as an oligopoly, with few dominating players among dozens of competitiors. In order to comprehend the changing realities of the Indian market it is important to have a close look at the companies involved and major trends. The years to come will witness many changes – however the eventual outcome is still open for change.
Continue ReadingGoodyear Cleans Up
Goodyear has won a $159 million settlement from an insurance lawsuit over environmental clean up costs. The lawsuit, originally filed in 1993, challenged insurance companies that would not honour the company’s policies and pay out for government ordered clean ups of its facilities. The manufacturer said that the settlement will be paid over the next 15 months, however it is withholding the identity of the insurance companies involved.
Continue ReadingThe Latest from the Agri-World
The Royal Smithfield Show has always been the place to be seen for those involved in agricultural tyres. Renowned as one of Europe’s largest and most comprehensive agri-business events, this year’s exhibition will span 60,000 square metres of indoor space and is expecting up to 50,000 visitors from around the world. Around 20 companies, including ATS Euromaster, Bridgestone, R H Claydon, Goodyear Dunlop, Michelin, Mitas UK, Solideal, Tyremart and Wheel Solutions, will represent the agricultural tyre and wheel sector with a range of new and existing products. Tyres & Accessories will report the latest information from the agri-world and in the light of ongoing UK trade show debates will ask whether this is one tradition the UK industry can really afford.
Continue ReadingYokohama Launches ADVAN
Having exhibited some of its latest products at the year’s major automotive shows, including the Paris Motor Show and SEMA, Yokohama is officially launching its new ADVAN branded high performance products. The Japanese manufacturer has selected Dubai’s warmer climate as the venue for this event and promises the opportunity to experience the benefits of its products first hand. Tyres & Accessories will report from the United Arab Emirate of Dubai covering all the news on Yokohama’s latest products.
Continue ReadingThe End of the Spare Tyre? – Update
Following the publication of a new “question of the month” on the T&A website, half of those who responded said: “run flats bring as many complications as benefits.” Perhaps you disagree and believe that the only way to introduce the products on a wider scale is to sell them as original equipment. Perhaps you have stronger opinions and believe that introducing run flat tyres in this way will only price consumers out of the market. Either way Tyres & Accessories would like to hear from you. To select your answer and leave a comment, please click here.
Continue ReadingHow Well Will the Russians Fare?
Manufacturers prepare for strong competition The Russian tyre market has become more and more competitive. A market that “consumes” more than 1 million cars just 10 years after the collapse of its communist regime (2003: 1,046,000 cars) was never going to be neglected for long. Russian manufacturers were formerly state-owned companies and because of this have a considerable amount of work to do to prepare for the Western competitors that will come to Russia with premium tyre imports, off take agreements and newly-built factories. A bilingual supplement looks at the Russian market
Continue ReadingPirelli Declares 2005 Year of OE
In a statement summing up the company’s plans for the New Year, Pirelli has called 2005 “the year of OE.” In the company’s words, its New Year strategy will be based on four key business pillars - MIRS, original equipment, brand and new products. The company recently announced that it would be bringing a fourth MIRS system into operation. In addition Pirelli highlighted the fact that its “Fist” advertising campaign has received awards for its “original equipment on the world’s finest” message. Gaetano Mannino, president and CEO of Pirelli Tire North America, explained that only a few days into the New Year, the list of vehicles riding on Pirellis includes the following well-known names: The Dodge Ram SRT-10, SRT-10 Quad Cab and the Durango, made by Daimler-Chrysler; Ford’s F250 and F350 pickup trucks and the Five Hundred, Freestyle and Mustang GT. Chevrolet’s new Cobalt is also shod with Pirellis as an OE fitment.
Continue ReadingKumho Competes in American Le Mans Series
Kumho Tire is to join the American Le Mans Series (ALMS) this year, as a race tyre supplier, according to American news source Tire Business. The company will begin both tyre testing and the selection of a racing team this month. The tyre manufacturer is reportedly already in talks with GT and prototype teams.
Continue ReadingBridgestone Reviews Europe
Bridgestone Corporation has told the Financial Times that it is reviewing its European operations with a view to increasing production in this area. “We are undertaking a study of what might be built and where,” said Bridgestone Europes chairman and chief executive, Minekazu Fujimura. According to the business newspaper, Europe accounts for 12.5 per cent of Bridgestones global sales, which are expected to be to total more than $17 billion last year for 2004. Bridgestone is suggesting that any new manufacturing capacity will be located in Central or eastern Europe. Any future move will be made in response to the regions low labour costs and fast-growing car markets, factors that also prompted the company to double production in Poland. In addition Bridgestone is establishing a new proving ground, training and research centre near Rome, which is due to be completed in Spring 2006. Bridgestone currently runs five plants in Europe – three in Spain, one in France and one in Poland. Mr Fujimara explained that moving to Eastern Europe also involves something of a pay-off. “Affordability is an issue for western tyre makers seeking to grow sales there - they are behind on technology but lower on prices, said the Bridgestone executive. Bridgestone says it believes it is breakthrough time for run-flat tyres. At least three major new volume-built car models will be launched this year with run-flat tyres specified as standard, said Des Collin, Bridgestones commercial vice-president. While the contracts for the first volume car application - the new Mini - have gone to Pirelli and Goodyear, Bridgestone has won contracts with BMW for its One Series small car. Bridgestone expects sales of its run-flats to rise by 50 per cent this year to 1.5 million Mr Collin added.
Continue ReadingStomil Olsztyn Becomes Michelin Polska
Michelin has announced that it has consolidated its activities in Poland and will now conduct is business under the unified name of Michelin Polska. The newly created entity also took over the activities of Stomil Olsztyn manufacturing, and Michelin Polska trade Polish media sources are reporting. According to Poland AM news digest, the aim of the move is to unify Michelin’s structure and strengthen its image on domestic market. Michelin Polska is also responsible for operations in other countries, including Lithuania, Latvia and Estonia. The French manufacturer became Stomil’s majority shareholder in 1995 when it purchased 51.2 per cent of the tyre producers shares for $105 million. Last year, the firm posted a 153 million zloty (£26.53 million) net profit on revenues of 1.55 billion zloty (£268 million).
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