Bridgestone 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).
Continue ReadingInvestment Firm Acquires Performance Fibres Business Unit
Sun Capital Partners has announced that one of its affiliates has purchased Honeywell International’s Performance Fibres business unit. The terms of the transaction were not disclosed. The new business, Performance Fibers, is a global leader in high-performance industrial fibres and related materials, with operations in the US, France, Korea and China. “We are excited about the future of this business and the many growth opportunities we see in the global market for industrial fibres and related technologies,” said Greg Rogowski, Performance Fibers’ president and chief executive officer. “We plan to continue our leadership in this industry and to grow by providing our customers with the technology innovation they require and the quality and reliability they expect.” M Steven Liff, Principal at Sun Capital Partners, Inc, a leading private investment firm specialising in leveraged buyouts added, “Performance Fibers is a global leader, and by combining our business expertise at Sun Capital with the strengths of Greg Rogowski and his management team, we expect to enhance Performance Fibers’ position in its market niche. Through our investment, the company will be able to take advantage of numerous opportunities that will strengthen its core competencies.”
Continue ReadingHankook Breaks 500 Million Unit Barrier
Hankook Tire Company, South Korea’s largest tyre manufacturer has reportedly broken the half-a-billion unit mark after 63 years of tyre production, the Asia Pulse news service is reporting. “Hankook Tire can produce 1.68 tyres in one second, 481 times more than it could when it was established in 1942,” the company said. “Once the ongoing expansions of production facilities both at home and abroad are completed, we will be able to break the one-billion-unit mark before 2010.” Hankook Tire has two manufacturing plants in South Korea and two plants in China. Hankook is the worlds ninth largest tyre manufacturer.
Continue ReadingAlcoa Acquires Samara and Belaya Kalitva Facilities from Rusal
Alcoa has announced that it has proceeded with its purchase of Rusal’s fabricating facilities in Samara and Belaya Kalitva in the Russian Federation. One of the two plants will be used for forged wheel production.The news following approval of the relevant Russian governmental organisation, the Federal Anti-Monopoly Service (FAS). This resulted in an FAS private ruling stipulating condition to ensure that Alcoa complies with its legal requirements and notification obligations. With the final government approvals in place, Alcoa and Rusal say they are taking the necessary steps to complete the transaction. According to the companies, the terms of the transaction will be disclosed when the deal has been completed, which is expected at the end of January 2005. “The decision is an important step forward for both Alcoa and for Rusal,” said Alexander Bulygin, Rusal’s CEO. “For us, it means we can move ahead with our strategic focus on upstream and alloy production, and on expanding our raw materials access. We welcome Alcoa to Russia and anticipate continuing close relations in the future.” The Samara facility is located about 500 miles southeast of Moscow. It features cast house, flat rolled products, extrusion, and forging capabilities and serves customers in a number of different markets, including transportation, packaging, and industrial products. The Belaya Kalitva facility is located about 500 miles south of Moscow. The facility also features cast house, flat rolled products, extrusions, tubes, and forgings capabilities. The Belaya Kalitva facility has specialised plate rolling and finishing equipment that will complement and increase Alcoas present supply position. Alcoa claims that with its know how and management systems, the plant will not only be able to expand the product offerings for Russian customers but also will eventually be able to produce products for major customers in the west.
Continue ReadingGoodyear to Resolve Accounting Issue
Goodyear is to resolve some of its financial issues by working with South Pacific Tyres Australia to reach an agreement on how to account for $8 million through a supply deal between both companies. According to news source Forbes, the tyre manufacturer is attempting to have this supply deal aligned under US accounting principles. The financial statements for South Pacific Tyres are prepared under Australian accounting principles, and then adjusted for use in the United States. These disclosures are required before Goodyear can file its amended annual report for 2003 with the Securities and Exchange Commission.
Continue ReadingFulda Showcase at Autosport International
The new “Exelero” will be launched on the Fulda stand at Autosport International 2005 at the NEC in Birmingham. According to the tyre manufacturer which is also title sponsor of the live action of the show scheduled for 13-16 January 2005 this new ultra-high-performance tyre features shorter breaking distances on wet roads, safe handling and low noise. The tyre has also been tested and certified by TÜV, Germany’s independent test institute. As well as the Exelero launch, there will be additional activity on the stand including the Fulda 4X4 range and Fulda’s passenger car tyre showcase. There will also be on display the Fulda Challenge RAV4. On 29 January our UK representatives, Richard Jackson and Emmie Gribble, will fly to the Yukon Territory in Canada to compete in the Fulda Challenge – the ultimate endurance event. Both will be on the Fulda stand on Thursday 13 January.
Continue ReadingUK Car Production Rises in November
According to provisional output data released by the Office for National Statistics the total UK car production rose 4.5 per cent in November and has reached its highest November output since 2000. “This performance demonstrates the resilience of UK car production since the period of restructuring at the turn of the decade. Our nine volume manufacturers are now on track to produce 1.65 million cars in 2004 and similar volumes in 2005,” commented SMMT chief executive Christopher Macgowan these figures published just before Christmas. “Growth 2004 has largely focused on production for export, demonstrating the value and strength of UK manufacturing in a competitive global market. Seven out of every 10 cars made in the UK are destined for export and we expect this trend to continue in 2005,” he added. The output volume of commercial vehicles was up six per cent in November 2004 with an export growth up 25 per cent for the month, and 27.3 per cent over year-to-November respectively. “The recovery in CV demand throughout Europe has had a positive effect on UK production facilities. They have clearly been up to the challenge, delivering state-of-the-art vehicles throughout the EU. CVs produced for home markets remain broadly stable compared to 2003, reflecting the use of the UK as a positive outlet for new home produced vans and trucks. We still expect to meet the 2004 forecast for 210,000 units manufactured in the UK,” said Christopher Macgowan.
Continue ReadingPhoenix AG Sells Vibracoustic Holding to Freudenberg
Continental AG (Hanover) is fulfilling its commitment to the EU Commission to turn over to competitors parts of Phoenix AG, which it has taken over. Freudenberg & Co. (Weinheim/Germany) is taking over the Phoenix AGs holding in Vibracoustic, previously a joint venture, thus becoming the sole owner. Freudenberg is also purchasing Phoenix AGs commercial vehicle air spring OEM/OES business.
Continue ReadingGreen Light for Integration of Phoenix into ContiTech
After procuring more than 75% of the Phoenix capital stock in November, the Continental subsidiary ContiTech AG may in the future exercise a dominating influence over Phoenix AG following the vote of the Phoenix shareholders. At the extraordinary shareholders meeting of Phoenix AG on December 28, the shareholders of the Hamburg company approved a corresponding control and profit and loss transfer agreement which had already been concluded between Phoenix and ContiTech on November 16. The agreement will go into effect as soon as it has been entered in the commercial register.
Continue ReadingGoodyear Invests in Akron
According to Akron Beacon Journal The Goodyear Tire & Rubber Co. plans to modernize its Akron power plant with more than 13 million euro of improvements, making it the first major upgrade to the 80-year-old power system in more than a decade.
Continue ReadingCooper Completes Sale of Automotive Unit
Cooper Tire & Rubber Company (Findlay/Ohio) has completed the sale of its automotive business, Cooper-Standard Automotive, to an entity formed by The Cypress Group and Goldman Sachs Capital Partners for approximately $1.165 billion in cash, subject to certain post-closing adjustments. As previously announced, $30 million of the purchase price will be held by the buyer until the post-closing working capital adjustments can be finalized.
Continue ReadingRecall of Michelin Truck Tyres
Michelin Americas Truck Tires (MATT) informed the National Highway Traffic Safety Administration (NHTSA) about voluntarily recalling of about 4,000 commercial truck tyres made in Ballymena (Northern Ireland). Size 10.0 R 22.5 of Michelin’s XDE manufactured between May 23 and October 24, 2004, can experience rapid air loss due to an irregularity of the inner liner. Michelin said until now the company has no reports of accidents involving the tyres, the company will replace the tyres free of charge.
Continue ReadingAccuride Acquires Transportation Technologies Industries
Accuride Corporation (Evansville/Indiana), North America’s largest manufacturer and supplier of wheels for heavy/medium trucks and trailers, announced that it has signed a definitive agreement to acquire Transportation Technologies Industries, Inc. (TTI), one of the largest North American manufacturers of truck components for the heavy and medium-duty trucking industry. The common stock of both companies is privately held. Upon completion of the merger, the combined company will offer the trucking industry a onestop component sourcing solution and expects to become one of the predominant suppliers to the heavy/medium commercial vehicle industry.
Continue ReadingToyo Establishes a New Sales Subsidiary in Europe
Toyo Tire & Rubber Co., Ltd. (President and CEO Yoshio Kataoka) will establish a sales subsidiary in Neuss, Germany on January 1, 2005. The new company, known as Toyo Tire Europe GmbH, is a joint venture with Mitsubishi Corporation, set up to serve the entire European market.
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