If you are not happy with the results below please do another search
Michelin has announced that car tyre, van tyre and rubber mixing production will cease at its Stoke-on-Trent factory in the second half of 2001. Production of truck retreads, mould and steel cord production will continue. In total, 950 jobs of the 2,350 currently on site will be lost. The move is part of Michelin’s European rationalisation programme.
In the hot cure field Michelin is the European market leader with its product Remix. “Recamic”, Michelin’s cold cure process six years in the making, is still eyed with curiosity.In Europe Michelin has been a strong competitor for many years and has a current market share in truck tyre retreading of 23 p.c., which it intends to raise to 30 p.c. by the year 2005.
The biennial Reifen show in Essen has grown and grown to become what is regarded as the most successful and most impressive show in Europe devoted to tyres and ancillary products. This year’s event was the 21st show and boasted 408 exhibitors – a 13% increase over 1998. 40 countries were represented at Reifen 2000. However, visitor numbers dropped 3.75% to 15,400, but this was regarded as not significant and due to a number of one-off factors rather than a sign that Reifen has begun to lose its appeal. Our review of the show includes articles on no fewer than sixty companies who were exhibiting, from all over the world and the coverage reflects the importance of what many regard as Europe’s premier tyre exhibition, and one which is attracting an increasingly global exhibitor and visitor base.
Goodyear announced that it is to be the official tyre supplier to the Canadian CASCAR Castrol Super Series, underlining the company’s commitment to stock car racing. Special Eagle tyres were developed in Akron and manufactured at the company’s racing tyre plant in Chile.
In Tokyo, shares in Bridgestone have risen 3.09 per cent to 1,300 Yen, having recovered from an eight year low earlier this month of 1,067 Yen. This comes despite the news that Saudi Arabia has banned Firestone tyres; an action described by Bridgestone as “uncalled for and extreme”.
Not many years ago the large tyre manufacturers still thought they had better make haste and claim a stake in the apparently huge markets of China and India, since life does not favour latecomers. Their enthusiasm was kindled by the example of some car manufacturers, which quickly calculated and estimated a gigantic (sales) potential in these two countries alone with their joint populations of two billion. Some car manufacturers learnt quickly that opportunities are not limitless. Tyre manufacturers fared similarly. Pirelli supplied China with some know-how, which was gratefully received but did not provide Pirelli with a strong base. Nor did the Italians make money out of the technology transfer. Conti’s big plans for India are hardly mentioned any more. The “Big Three” – Goodyear, Bridgestone and Michelin – are present in both countries, but business is quiet. In India, 29 manufacturers run 41 factories with a maximum capacity of about 43 million tyres, but only 34 million pieces were manufactured in 1997/98, most of them (73 p.c.) for trucks and buses. And 60 p.c. of passenger car tyres are still cross-ply tyres, 1998 has only seen 3,3 million radials in this segment. Our British sister magazine TYRES &ACCESSORIES reported on the Indian tyre market at length; we publish an excerpt in this issue in our December issue, including a brief presentation of some individual companies active in this market.
The Fürstenwalde production base of Pneumant Reifen GmbH is under threat in the long term, Dr. Rainer Schieben, Commercial Managing Director, announced at the Pneumant head office in Fürstenwalde at the beginning of September. As early as this autumn the company will draw winter tyres from the Japanese production for cost reasons, and part of the summer tyre production will also be transferred to Japan. And, according to Schieben, the new owner, The Goodyear Tire & Rubber Company, has already cut the production planning for the year 2000 by 200,000 tyres, which cannot be without repercussions on investment and employment. Schieben gave too high energy costs at Fürstenwalde as the reason for the problems. The current price per megawatt hour for the process temperature is roughly three times higher than in similar factories of the Dunlop parent company in Germany. By international comparison within the Goodyear group the high energy price has become even less justifiable. Pneumant employs a workforce of 550 plus 40 apprentices at the Fürstenwalde production base. 325 people are employed at the company’s second factory in Riesa. The tyre manufacturer is one of the few former GDR companies to have survived successfully. Thanks to an investment volume of 250 million marks since 1996 by the Dunlop parent company Pneumant possesses the most modern production facilities in Europe. In the car tyre replacement market the company is the clear market leader in the new federal states.
The Vredestein NV group consists of five companies with activities in car, transporter, agricultural and industrial as well as bicycle tyres, boots for consumer markets and industrial applications, recycled rubber, compounds and sealing extrusions. The company employs about 2,200 people in total. The first half of 1999 developed according to forecast, with net profits increased to 600,000 euros – 200,000 euros more than in the first half of 1998. Consolidated net turnover yields rose by ten per cent from 98.1 million euros to 108 million euros, and during the period in question cash-flow was up by 1.1 million to 9.9 million euros. Vredestein Banden’s turnover increased during the first quarter due to the long winter and the resulting good opportunities for selling winter tyres. The first half year was characterised by the “Sportrac” introduction, a new tyre for the high speed sector (up to 240 km/h) developed in close conjunction with Guigiaro Design, the renowned Italian designer firm. Sales of the new Sportrac have exceeded expectations, according to the manufacturer. Several sizes are not yet available, so the impact of its introduction should be felt in full during the second half of 1999. In the agricultural tyre sector the recently launched AS radial (Traxion+) was well received. Industrial tyre sales developed positively. An important part of the Vredestein group’s annual result is traditionally achieved in the second half of the year, mainly due to the strong influence of Vredestein Banden’s winter tyre sales. Assuming that economic conditions remain stable in the most important European markets, the company is optimistic that it will once again be able to increase last year’s profit.
In its August issue NEUE REIFENZEITUNG reported that Pirelli had fallen behind with its plans for Germany, in parts by 20 p.c., and that the attraction of the Pirelli brand was on the wane, with price erosion as the consequence. Dr. Wentz, the Pirelli Reifenwerke boss, it was said, had to postpone his intended retirement, because G. Sala, his successor-designate, was unable to take up his post for health reasons. We also mentioned the possible return to Höchst of Dr. P. Masera as Pirelli Reifenwerke boss. Pirelli declared that Dr. Wentz would stay in office for several more years, and that there was no question of the Pirelli brand becoming less popular, rather the contrary. Results were good, we were told, Pirelli was doing very well in Germany and no redundancies were planned. One month later the head of the group, Tronchetti Provera, announced 2,800 job cuts for this year, 800 of them on the tyre side. In this context Milan made special mention of the significant price reduction in the winter tyre segment and in super-high-performance tyres, especially in the German market. In the meantime Dr. Masera has taken over as Chairman of the management. Dr. Wentz will leave Pirelli Reifenwerke by the end of the year but retain his seat on the board of Pirelli Deutschland AG and is also in line for a seat on the supervisory board.
If you would like the latest news from the Chinese tyre industry in Chinese, visit our partner site TyrepressChina.com. Or click below to continue on Tyrepress.