Yesterday, the High Level Group (HLG) GEAR 2030 issued its report on the competitiveness and sustainable growth of the automotive industry in the EU and offered recommendations on how the automotive industry can anticipate and adapt to current trends, specifically identifying two fields – zero emission and zero emission-capable vehicles (ZEVs and ZECs), as well as connected and automated driving (CAD). The European Tyre and Rubber Manufacturers’ Association (ETRMA) welcomes the adoption of the HLG report; in a statement, the association shares that it views the reports as constituting “a stepping stone for all stakeholders.”
Michelin has announced its acquisition of Lehigh Technologies, a US-based company that has developed a patented cryogenic turbo mill technology for transforming rubber from end-of-life tyres and industrial goods into materials for new tyres and other products. The acquisition was completed on 13 October.
Bain Capital building ‘European tyre distribution group’
This year specialist private equity firm Bain Capital has been busy making strategic acquisitions in the European tyre wholesale and retail sectors. First off the company bought Italian tyre wholesaler Fintyre from previous owners Bluegem Capital back in March. Then at the end of June the firm added the German Reiff operation to its portfolio, an acquisition that was subsequently approved by the EC in August. Tyres & Accessories recently interviewed Ivano Sessa, one of Bain Capital Private Equity’s managing directors, and learnt that there are plans for further mergers and acquisitions with a view to creating a “larger tyre distribution group across Europe”.
A grand opening ceremony has been held for Hankook Tire’s newest plant. The facility, located in Clarksville, Tennessee, is the tyre maker’s first manufacturing site in the United States and the eighth Hankook Tire factory worldwide. The opening ceremony was attended by Tennessee Governor Bill Haslam, United States Representative Marsha Blackburn, Korean Consul General Seong-jin Kim, along with many other prominent state and local officials.
Kirkby Tyres’ 80,000sqft central distribution centre expansion nears completion
Kirkby Tyres’ 2017 expansion programme will see its first warehouse completed in December 2017, with the 80,000sqft of new floor space, across nine additional new warehouses, fully operational by March 2018. In total, Kirkby will fit in 2,500 additional tyre racking units, enabling 8.9m high tyre storage facilities. The wholesaler will also add 10 more loading bays to its operation. In order to realise this expansion, Kirkby purchased three acres of land adjacent to its Speke headquarters, allowing it to increase its stock capacity and further improve its logistical operations, and increasing its total footprint to approximately nine acres. Kirkby added that the expansion would require more local personnel to be employed, and enable the company to offer customers a wider range of brands, sizes and applications.
Oak Tyres steps up operations with headquarters development
Setting foot inside the entrance of Oak Tyres’ new Newton-le-Willows headquarters, it is clear that the company has made a conscious decision to present a stride forwards in the professionalism of its operations. Renovations to the previously semi-derelict three floor building were taken on as a special project headed by the company’s Gary Cross around 18 months ago; “almost finished” when Tyres & Accessories visited, a strong, corporate aesthetic has been employed, with colours and imagery from the Oak Group’s own Davanti tyre brand, as well as exclusively distributed lines, such as Landsail, added to Oak’s red and greyscale CI.
The winners of the UK’s “tyre industry Oscars” have been announced following a five-month submissions process. Tyres & Accessories was present for the ceremony and, as in previous years was on hand to live tweet the results.
Three Bridgestone tyre plants in Europe to benefit from major investment
Approximately 266 million euros are to be invested into three key Bridgestone production sites in Europe. In a statement covering its plans, Bridgestone Europe shares that funds will be directed towards expanding capacity at its Burgos facility in Spain and the Poznan and Stargard sites in Poland. The expansion projects will take places in phases over the coming five years, with all upgrades expected to be completed by early 2022.
Two winners, one loser in Auto Bild Sportscars’ 2017 winter tyre test
Continental winter tyres have already claimed two test victories this autumn – the WinterContact TS860 took top spot in ADAC and Auto Bild tests, while the WinterContact TS850 P was voted top by Auto Motor und sport. The latter of these has now achieved a second win, in the test that will appear in the issue of Auto Bild Sportscars (11/2017) due to be released tomorrow. The victory was a shared one, however, with the Michelin Pilot Alpin PA4 named joint winner.
NTDA conference opens with launch of manifesto for change
The 2017 NTDA conference kicked off this morning, with around 200 tyre executives gathering in Milton Keynes for sessions on subjects covering people, technology and looking after business. The initial headline was the publication of the associations “manifesto for change”. This 44-page document details the associations plans for making significant change in the market.
The 15th edition of the China International Tire Expo (CITExpo), and its second at the Shanghai World Expo Exhibition & Convention Center, opened its two-hall, 40,000sqm exhibition space at a time of uncertainty for the Chinese tyre industry – especially the aspirational medium and small sized companies the show tends to attract as exhibitors. Two factors that promise to change the shape of the industry provided a backdrop for the show: in Europe, the European Commission announced its intention to initiate an anti-dumping proceeding focusing on imports of truck and bus tyres originating in the People’s Republic, prompted by the “coalition against unfair tyres imports,” a group representing the interests of manufacturers accounting for more than 45 per cent of all new and retreaded truck and bus tyre production in the European Union. Meanwhile in China, the government’s crackdown on certain factories for environmental reasons looks likely to affect some tyre manufacturers’ pricing structure at best, and ability to continue to operate at worst. Tyres & Accessories spoke to one representative who suggested that some factories could struggle to meet demands as the availability of raw materials for tyre production is affected by the state mandated closures.
Kumho takeover implosion isn’t the end of market consolidation attempts
No I am not talking about the unqualifiable rumours that Doublestar made an offer of up to 250 million euros for Zenises. Rather, that in the first week of September we learnt that Doublestar’s proposed acquisition of Kumho was collapsing before the firm’s eyes after the Qingdao-Chinese tyre manufacturer asked for a double-digit discount. And it is also worth considering what all this means for the wider tyre manufacturing sector.
SimpleTire.com – America’s 2nd largest tyre etailer in just 5 years
Blackcircles.com CEO Mike Welch left the employment of the company he founded in August 2017. Since then he has joined the board of SimpleTire.com, a fast-growing, US-based online tyre business. Meanwhile he also remains a consultant to blackcircles.com. Tyres & Accessories recently caught up with the well-known tyre entrepreneur to find out more about his latest venture.
SimpleTire.com is the brainchild of brothers Andy and Josh Chalofsky. Andy has been in the tyre business since he was a teenager and started out in the warehouse of his family’s brick and mortar tyre business. From here he worked his way up and took over a subsidiary tyre business after graduating college. In 2012, he started building the foundations of what is now SimpleTire.
Caledonian Tyres refurbishment aims to improve Bandag’s position in Scotland
Paisley based Caledonian Tyres has unveiled a £250,000 refurbishment, which aims to position it as one of the most advanced retread tyre centres in the country. One of the Bandag network’s largest franchise partners, Caledonian Tyres’ development of its facility features improved factory facilities, new look offices, improved equipment and an eye-catching rebrand of the entire premises. The company states that the investment underlines the strength of the commercial retread tyre market, and follows investments made at Lincolnshire-based Bulldog, another large Bandag franchise.
Video: Yokohama-backed Chelsea players in stunts with YouTube’s Dude Perfect
Yokohama has sponsored a new football stunt video by American YouTube sensations Dude Perfect, and starring several Chelsea FC players. Using tyres provided by Yokohama, stunts include the Smoke Show Gonger, Bounce Back Banker, Three-point Header and Goalie Goal, displaying the players’ skills.
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