VMI introduces New Body Ply Stock Splice Handling System
In mid-June the VMI Group reported the introduction of its new system for body ply stock splice handling. The company claims its new system offers an advance on previous models in that it not only prevents interference between splices from two different piles – it does this in a manner that reduces scrap and should also facilitate a high level of uniformity. Body ply stock splice detection is a standard feature on VMI tyre building machines. The system measures the position of all stock splices in the body ply. If a stock splice comes to close to one of the body ply’s ends, the system automatically slices off a piece of material to prevent the stock splice being located too close to its machine splice within the tyre.
Continue ReadingChinese Ministry Expresses “Deep Regret” after US Tyre Ruling
Continuing today’s theme of the fallout from the US International Trade Commission’s ruling that Chinese imports have disrupted the country’s markets, China’s Ministry of Commerce has expressed its “deep regret” at the decision. Yao Jian, a Commerce Ministry spokesperson posted the department’s reaction to the events on the ministry’s website: “China has repeatedly expressed its opposition to foreign governments using safeguard clauses to launch investigations of Chinese products. The decision does not conform to objective facts, and also violates relevant World Trade Organisation rules in addition to U.S. law. We hope the U.S. will fully consider the actual situation of this case and proceed from the overall interests of the two countries industries,” Yao said. Reuters reports that lawyers acting on behalf of Chinese manufacturers are arguing that US companies’ neglect of the low range market had occurred before they moved into the marketplace. The news organisation also notes that the complaint, which originated from the United Steelworkers, had not been voiced by US tyre producers.
Continue ReadingAvon Tyres helps Secure First Three-Wheel TT Victory
Dave Molyneux’s Avon shod Suzuki has given the Japanese motorcycle manufacturer its very first three-wheeled victory at the Isle of Man TT. Molyneux and passenger Daniel Sayle’s victory with A&J Racing Suzuki brings Molyneux’s TT win tally to 14, and marks the 20th anniversary of his first victory on the island. “The Avons worked brilliantly and were a pleasure to use,” Molyneux commented. “I was delighted to use Avons this year, as I’ve not used them since 1993 when I won on them. In fact my first race win at the TT in 1989 was on Avons too!
Continue ReadingReports: Michelin to Sell Apollo Stake
Indian news sources are reporting that Michelin is intending to sell the remaining 7.3 per cent shareholding it has in Apollo tyres. On June 6 2009, Michelin sold a portion of its Apollo stake for approximately 500 million rupees (£6.67 million). The French manufacturer, which held an 11 per cent share in Apollo at the time, sold 3.3 per cent through open market sales. The company has held shares in Apollo Tyres since it acquired a 14.9 per cent stake in early 2004, a deal made at a time when a truck and bus radial joint venture between the two companies seemed likely. Despite the venture’s failure to get off the ground and the September 2005 announcement that Michelin would acquire Apollo’s share in the joint venture, Michelin maintained its stake in the Indian company. According to reports, the French tyre manufacturer has made “a reasonable profit” from the sale of its Apollo shares. The reports follows Apollo’s takeover of Dutch tyre maker Vredestein Banden for a reported 175 million euros in May.
Continue ReadingEuropean Truck OE Tyre Demand Down 72.9% in May
European truck OE tyre demand fell at the fastest rate in the world in May (-72.9 per cent), according to recently released Michelin market data. Putting the company’s (and the industry as a whole’s) difficulties into perspective, Deutsche Bank analysts summed up the worst of the current volumes like this: “eight times worse than the worst year over the last 30 years (1991).” North America, Brazil and Japan suffered 53.5, 24.1 and 65.2 per cent falls in Truck tyre OE demand respectively in May, with China the only market to avoid the pain – growing 2.6 per cent. Truck tyre replacement sales faired better in most markets, albeit still falling between 12.8 and 23.3 per cent in four of the five covered zones. China remained flat. Despite the depressing figures, Deutsche Bank analysts were optimistic that the worst is over: “Since sell-out demand is not as bad, dealers destocking can’t last forever. And therefore sell-in and sell-out market trends will converge soon. Lastly, May is a relatively small month for the industry when June is much more important. For example, June represents a high 25 per cent of Michelin’s first half volumes.”
Continue ReadingNTDA Named as Principal Sponsor for Brityrex 2010
ECI International, the organiser of leading UK tyre trade exhibition Brityrex 2010, has welcomed the decision by the National Tyre Distributors Association (NTDA) to sponsor next year’s show. At the same time Tyres & Accessories will continue in its role as media sponsor, informing the market of all the latest product, exhibitor and show developments across its print magazine, e-Newsletter and online www.tyrepress.com portfolio of products. “The NTDA is a high profile and important partner in helping to spread the Brityrex message throughout the UK industry so it’s great news that the Council has given its full backing to next year’s exhibition,” said ECI managing director Paul Farrant.
Continue ReadingLiberian Rubber Workers Strike Again
Workers at Liberia’s second largest rubber plantation, the Guthrie Rubber Plantation, have again initiated strike action; the ground for this action, says the union representing employees, is a stoppage in salary payments and other benefits by the plantation’s management. Employees are demanding payment of three months’ worth of arrears salary. According to reports, the protesting workers are considering blocking the highways linking major towns in Liberia to draw the government’s attention to their plight. This latest action is the most recent in a series of strikes in recent times, confrontations that have on occasion turned violent.
Continue ReadingFirestone Launches New UK AG Website
Firestone has responded to the communications and complexity challenges of the agricultural tyre market by setting up a new website embedded in the Farmers’ Weekly magazine website. In its first full month the link was seen over 180,000 times, according to the company. Barry Coleman, Firestone’s UK agricultural product manager stated: “I’m delighted with the interest the new website has generated. It’s very interesting to see what farmers are actually looking for. The most visited area of the site is Tips and Downloads, where farmers can find advice about things like hydro inflation, tyre pressures and wheel alignment.” The site can be viewed at the following address: http://fwi.firstlightera.com/EN/Microsites/1/Firestone/
Continue ReadingMichelin Restructuring Program Could Save 150 million euros Annually
Michelin’s domestic labour reorganisation program, (announced on 17 June) will save the company between 100 and 150 million euros a year, according to Deutsche Bank research analyst Gaetan Toulemonde. Restructuring charges are estimated at a maximum of 200 million euros to be accounted for in the first half of 2009 of which half will be paid for in cash and the other half as assets write offs. In an investor’s note published today, the financial analysts explained that while the company’s complex statement appears to have been designed to avoid to much clamour after Continental and Goodyear’s recent difficult plant closures, “it looks like they aren’t doing much.” The bank’s take on the situation is that “some plants will be downsized, and the restructuring program involves 1,100 people on top of a pre-retirement program of 1,300 people. Thus, when normal attrition is included, approximately 3,000 people will leave the group by the next 18 months out of a French workforce of 25,000…of which 12,000 in production.”
Continue ReadingTIA Voices Opposition to Restrictions on Chinese Consumer Tyres
In a statement released on June 17, the Tire Industry Association has claimed the USW initiated petition currently before the US International Trade Commission (ITC) will neither benefit consumers nor help preserve manufacturing jobs in America. While the TIA refers to the proposal under consideration by the ITC as “well-intentioned”, the organisation believes it to be one that will bring severe financial harm upon many retailers and motorists by restricting the availability of affordable tyres.
Continue ReadingSapphire Energy Recovery Acquires Willow Tyres
Sapphire Energy Recovery is securing a reliable source of end of life tyres through the acquisition of a regular supplier. The company intends to purchase Surrey based Willow tyres following the announcement that founder and current owner Ray Bates plans to retire later this year. “Willow has been a long trusted and reliable supplier of around 1.4 million tyres a year to Sapphire, and it was important to us that we could maintain that security of supply despite Ray’s retirement,” explained Clive Roberts, who is supply chain manager for Sapphire Energy Recovery.
Continue ReadingSibur to Produce New Premium Compound Rubber
Sibur LLC reports that investment in a project centred on producing new rubbers at its Voronezhsintezkauchuk facility in Southwest Russia has been finalised. The project involves transferring a part of its polybutadiene rubber production to neodymium catalysts system technology (SKD-ND) plus the commencement of soluble butadiene-styrene rubber (DSSK) production. This modified technology, says Sibur, will enable the company to produce new types of compound with durability, wear resistance and environmental parameters that compare with the highest global standards. These compounds will be used in the production of medium and premium segment tyres.
Continue ReadingRetread Friendly US Postal Service Gains White House Award
The Obama administration has honoured the US Postal Service for environmental stewardship with a ‘2009 Closing the Circle Award’ for its national Green Purchasing Program. Part of this programme, notes the Tire Retread & Repair Information Bureau, is the use of retreaded tyres. Retreaded tyres, TRIB continues, play an important part in keeping vehicle maintenance costs down for the US Postal Service. And since tyres are the third highest cost of running any fleet, right after the cost of drivers and fuel, the savings offered by the use of retreads adds up to be very significant.
Continue ReadingMichelin to Invest £887 Million in India
It is cutting back in France, yet planning big in India – Michelin is reportedly planning to invest some Rs 70 billion (£887 million) there over the next decade. The Economic Times newspaper states a person directly involved in the transaction informed it that the tyre major has sought government approval to acquire a 100 per cent share in Michelin India Tamil Nadu tyres, a company formed in April 2009. This company will be responsible for establishing a greenfield production facility; the site will be set up with an Rs 40 billion (£507 million) investment in the first phase, which runs until 2016. This first phase operation is anticipated to create 1,500 jobs, and eventually half the factory’s output will be exported.
Continue ReadingProduction at Clairoix Site in 2010 a Possibility, Says MAG
Dubai’s Moaffaq Al Gaddah (MAG) Group hopes, according to numerous news sources, to complete an agreement to buy Continental’s Clairoix factory in France before the end of 2009. According to Fawaz Sabri, the company’s vice president for strategy and finance, if “they (Continental) sign (the due diligence process) by the end of this month, we can start the process on July 1, and by November or December could sign a final agreement ... production would be in 2010.”
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