Manufacturing Plant Closure By Hayes Lemmerz In The US
The worlds largest wheel manufacturer, Hayes Lemmerz, which is facing heavy financial difficulties and is struggling for survival, has announced the closure of its manufacturing facility in Bowling Green, Kentucky in the middle of next year. 235 employees will lose their jobs. The closure will entail costs of about 55 million US-$ for the current fiscal year.
Continue ReadingReorganisation In Store As Hayes Lemmerz Files For Chapter 11
Hayes Lemmerz, the wheel manufacturer that has been undergoing difficult times recently, has filed for restructuring under Chapter 11 of the US Bankruptcy Code. The company is at pains to point out that it has not gone bankrupt, neither is it going out of business and that Chapter 11 is a court-supervised restructuring proceeding, not a liquidation proceeding. It also applies only to Hayes Lemmerzs own operations in the USA and that operations outside the country (except for one plant in Mexico) and joint ventures are not included. Declining market conditions and excessive debt were blamed for the action. Hayes Lemmerz shares fell to 52 cents at the news.
Continue ReadingMulti-Million Investment For Pirelli UK Plant
Pirelli is to spend more than 11 million Pounds on extending its factory at Carlisle in the UK to manufacture tyres for 4WD vehicles. For some time, Carlisle has been Pirellis centre of excellence for SUV tyres and the factory produced 530,000 SUV tyres last year. The new investment will see this figure rise to 1.1 million next year and eventually to 1.6 million. 80 per cent of these will be exported to Europe and the USA. Carlisle also produces high performance tyres and total unit production at the plant will reach 4.25 million units in 2002.
Continue ReadingWheels and Brake Applications by Titan Europe
For this years Agritechnica, Titan Europe is focusing interest on its two main agricultural product areas: high speed wheel and tyre systems and brake applications for high speeds. The newly developed Titan Relocator wheel for high speed road use, will take centre stage at the show along with the new range of wedge ramp brakes, developed by the Italian Sirmac division of Titan, and which have made a significant impact on tractors of the power range 60 to 300 HP.
Continue ReadingAccreditation And Tax Credits For Tirex
Tirex, the Canadian company which has developed a cryogenic tyre recycling process, has been officially accredited as an authorised tyre recycler by the Provincial Government recycling agency, Recyc-Quebec. Tirex has also benefited from tax credits, totalling $Canadian 86,825 net.
Continue ReadingNorth American Autos – Report Paints Two Scenarios
Industry consultants Autopolis have produced a report on the US Auto industry. The terrorist attacks in September make forecasting difficult, so Autopolis has developed two scenarios. The first assumes that the US economy moves back to pre-September 11th levels fairly quickly, resulting in only a typical US recession with auto sales falling 14 per cent in 2002. Scenario number two is described as bleak and presumes a prolonged war on terrorism, problems with oil supplies, rising inflation and a fall in the value of the Dollar. In this case US sales and production would fall by one third, and fall for two years before stabilising. The reality is likely to lie somewhere between these two extremes, says Autopolis, and flexibility is the key for businesses to survive and prosper.
Continue ReadingReview Of 2001
This is a business on the move, this business is exciting. Tyres may sometimes be regarded as commodities in the eyes of marketing strategists, tyres seem to be boring, but insiders know that this is not correct. Tyres are high-tech products, the only problem is that most consumers do not realise this. Because of this we are looking for communicators who can whip up enthusiasm. The most important task of the tyre business must be to raise the image of the round black things. In reality this industry has for a long time collaborated with companies from the high tech electronics sector and there are many points of contact with the so highly-regarded IT companies. Applications in seemingly remote areas of science are checked for a possible transfer to tyres. In building tyres a revolution has happened, historical inventions since the first pneumatic tyre from John Boyd Dunlop as well as radialisation or the tubeless tyre, silica compounds or lamella technology in respect of materials or tread design, are all in the past and are only little steps in the history of the tyre. The dynamic of the tyre business in terms of technology is fantastic: a brave new world of tyres has begun. Unfortunately this feeling of progress and the many technical innovations which have had such an impact on the tyre industry and the tyre trade have not filtered through to everyday business. We – who deal with tyres day in and day out – ought also to be infected by this contagious enthusiasm which is rife in research and development departments, whose technicians are sometimes regarded by outsiders as somewhat staid. Let’s have a review of the year 2001: whoever reads the headlines of this business and comes from a totally different sector will envy us for being in such a dynamic industry.
Continue ReadingNew V-Rated Winter Tyre From Vredestein Carries The Load
Vredestein has introduced the Wintrac V XL, a V-rated winter tyre that has the same load capacity as W, Y and Z-rated summer tyres. With few, if any, winter tyres available at these higher speed ratings, drivers have previously had to fit V-rated winter tyres with lower load-carrying capabilities. The Wintrac V XL will be available for this years winter tyre season.
Continue ReadingNew Board Member For Continental
Continental AG is set to expand its management board by creating a new post covering finance, controlling and legal matters. These are currently handled by Klaus Friedland, who is also responsible for Human Resources. Recent developments, such as the acquisition of Temic, has pushed Contis payroll up to 68,000 workers and increased the necessity for a full-time HR officer. No specific candidates are being considered for the Financial post at the moment, according to Conti.
Continue ReadingPirelli/Trelleborg – Three New Tyres
Only two years after the joint venture, the company has launched the TM 900 High Power, the latest generation of radial tyres ideal for equipping high power tractors over 250 HP, and those requiring high load capacity. Furthermore the company is going to launch the first Trelleborg radial implement tyre in Hanover, which is the result of the technological synergy between the two brands. At the same time the Trelleborg TM2000 is being shown; the new generation of radial tyres for combine harvesters, created using Pirellis considerable agricultural experience.
Continue ReadingRacing Agreement Between Michelin And Porsche
Michelin and Porsche have signed a partnership agreement with Porsche for the exclusive supply of racing tyres, effective from the first of January 2002. It concerns all Porsches competition activities, the national Porsche cups, plus the current and future official entries of Porsche Motorsport. The Porsche Super-Cup, which traditionally runs alongside several Formula 1 Grands-prix, including the Indianapolis GP, will henceforth be known as the Porsche Michelin Super-Cup. The German Porsche Carrera Cup will also be run under Michelin colours. Michelin, as the official partner, will be involved in all future motorsport development for Porsche.
Continue ReadingMichelin Warns Of Truck Tyre VAT Fraud
Michelin has warned its customers and distributors in Europe to beware of truck tyres being offered at extraordinarily low prices. These are believed to be the result of VAT fraud and Michelin is working with customs authorities and police across Europe. Investigations have already identified organised criminal networks and, as a result, a number of VAT frauds have been broken up. Michelin is concerned at potential harm to its truck tyre image and to its distributor network and it asks customers to be aware of complicity should they make illegal purchases from these criminal networks.
Continue ReadingHeated arguments between Hanover and Traiskirchen
Trials, tribulations and shady deals have, in recent years, been the order of the day in the contacts between the Corporation’s management in Hanover and the Semperit GmbH subsidiary in Vienna. On the one hand, due mostly to the fighting spirit of a large part of the personnel, we had the image of a totally unruly company in Traiskirchen, and on the other hand the image of those at the top of the Corporation; not to be trusted any further than they could be thrown. Like the devil fears holy water, the Austrian associates fear the physicist Hubertus von Grünberg who, first as the Continental Corporation’s CEO and now as a sort of Supervisory Superintendent, is spending a lot of time making life impossible for the plant in Traiskirchen. As far as the Austrians are concerned, there can be no possible justification for these measures, and closure of the plant would be seen as a token of utter ingratitude, because Semperit Traiskirchen has amply rewarded the Corporation with returns on their previous investments. The question today is: can Traiskirchen be saved? The company offers employment to 1,500 associates, manufacturing products for a world market under pressure due to overcapacity. The bitter truth is this: the plant is no longer needed, however, the brand is, and so is the market. What they have not quite figured out yet, is how to lose the one and keep the others. Employees point to the closure, at the beginning of the eighties, of the Firestone Plant in Pratteln, Switzerland, which consequently reduced the then market leader to a mere also ran. The same fate will befall the Continental Corporation, is the suggestion in Vienna. But the reality may be quite different. At that time, Firestone had withdrawn from the market in the heat of its struggle for survival, tyres had to be ordered by the container load from the Spanish or French plant, the infrastructure had gone, and so had the distribution service. If lights go out in Traiskirchen today, the impact on the market may be close to zero. Austria will be in turmoil but once the telephones of the works council members have been cut, the interest of the public and the press will die down, and so will the interest of the politicians, who are trying to capitalise on the situation, pretending they are fighting to keep the jobs. It will be like in any obituary: fought, hoped and lost. Matters should be approached from a different angle: ranting and raving does not create new jobs.
Continue ReadingExpansion For Bridgestone In South Africa
South African company Bridgestone Firestone Maxiprest is expanding and forming a new organisation. The company is to acquire West Cape Bandag and merging four outlets of tyre distributor Prima bande to form Primax Tyres. The outlets will distribute the Maxiprest range of retreads and related tyre services. Maxiprest has 100 retail outlets and 20 retread factories across South Africa.
Continue ReadingHankook Becomes OE Supplier For Renault
The Korean tyre manufacturer Hankook is developing three tyre sizes for Renault. These are 155/65-14 and 165/70-14 reinforced for the Twingo and size 185/65-15 for the Kangoo. First deliveries will start at the end of next year. At present the major OE-suppliers to Renault are Michelin, Continental and Dunlop.
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