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3046

Remoulding Truck Tyres with Insa Turbo

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Hall Six’s Booth 307 at Reifen 2008 housed Industrias del Neumatico, S.A.U. from Aspe (Alicante) Spain, who were presenting their new Insa Turbo hot remoulded truck tyres, 4X4 off road tyres and winter car tyres. Also this year, the company exhibited their own private brand Rodatec, which is available in sizes between 15” and 19” and is manufactured by Nexen tyres.

The Spanish company’s focus for the future will be trained on Insa Turbo off road tyres and truck tyres to a large extent, with many new models due for release soon. The firm owns 70 workshops and their wholesale distribution covers all of Spain. However, over 60 percent of tyre production is exported to over 30 countries throughout the world.

3047

73% of eBay Van Tyres “Potentially Unsafe”

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A Continental Tyre Group survey of van tyres bought online has found that the vast majority of sampled tyres were either poorly marked or potentially unsafe. Peter Robb, Continental product manager explained the process: “Through an outside agency we randomly purchased 15 tyres over a period of 3 months. We were very conscious that the test be as fair as possible so the tyres are representative of 7 manufacturers, including Continental and were bought from different areas of the country and for different tyre sizes appropriate to vans”.

Once purchased the tyres were examined by Continental’s technical tyre consultants, entyrety, The findings showed that whilst each of the tyres were within legal limit for tread depth in other respects they did not comply with the regulations which came into force in June 1995 and many of the tyres were in poor condition.

3048

The Rise of the Eco-Tyre

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Anyone who attended the Essen show will have noticed how dramatically the marketing messages propagated at the show appear to have ‘evolved’ from seemingly polar positions.

Asking certain companies what their policy was in relation to aromatic oils and low rolling resistance tyres four years ago resulted in quizzical looks and stifled smiles. There may have been a few companies ahead of the game on this issue, but in general it was all about size, speed and profile. Now this remains undeniably influential, but the ‘product narrative’ has changed completely. Today’s tyres save fuel and last longer than ever, apparently.

As global consumer markets feel the pinch from the credit crunch, one can’t help wondering how long it will take the Chinese manufacturers to catch up with ‘green’ eco-technology. However, there remain both distributors and manufacturers alike that are sceptical as to the sales value of the green message. Do consumers really buy tyres because they may save them fuel?

Pirelli Tyre CEO and European Tyre & Rubber Manufacturers’ Association (ETRMA) president, Francesco Gori, spoke on a related subject during the opening ceremony. In his speech Dr Gori was “perfectly frank” in his references to planned EU directives that will require tyre manufacturers to improve wet grip performance, material authorisation and road noise properties. By way of a warning, he pointed out the consequences these regulations could have on European producers, particularly in comparison with their Asian competitors. Despite the looming threat of legislation and the cost pressure caused by rising raw material prices, the consensus from Reifen visitors is optimistic – 20.2 per cent are even expecting a strong upward trend in the economic growth of the tyre sector, this compares with 12.2 per cent who predicted this in 2006.

As far as the exhibition itself was concerned, with 20 per cent more exhibitors than last time and 17,600 visitors, Reifen Essen has obviously received the green light from the tyre trade. In fact, according to data released by Reifen show organiser Messe Essen, the 25th Reifen exhibition was actually a record breaker. 576 exhibitors (up 21 per cent on 2006) showed their tyre, wheel and chassis technology-related products and services. Visitor numbers totalled 17,600 compared with 17,100 in 2006.

Messe Essen reports that the show was also more international that ever, with 57.4 per cent (2006: 45%) of visitors originating from outside Germany. “That is an excellent value; it highlights the position of Reifen as the leading international fair in the sector,” Dr. Joachim Henneke, Chairman and CEO of Messe Essen commented. International visitors primarily came from other European countries (78.9%) and from the Asian region (11.1%).

Visitors from “the tyre trade” accounted for 34.4 per cent of show traffic, while another 26.8 per cent reportedly worked in the tyre service side of things. 51.1 per cent of visitors described themselves as amongst the top decision-takers in their companies (2006: 44.7%). Seemingly as a result, 42.1 per cent of the visitors placed orders during the show and 42.5 per cent stated that they wanted to conclude contracts after the fair. Nearly all the exhibitors (97.5%) said they had reached their intended target audience.

Keith Jarman, President of AME International, was one particularly positive exhibitor: “Our international business would not be where it is now if this fair had not existed. In spite of the worldwide economic difficulties, the tyre industry is doing fine from a global perspective. Because of the dollar exchange rate, it is absolutely sensible to be here.”

Jean-Claude de Thibault de Boesinghe, Sales & Marketing Manager for EMEA of Bandag AG, echoed this sentiment: “Reifen has gone very well for. We always concentrate all our activities on this fair and meet our dealers from Europe, the Middle East and Africa here. On a large, open booth, we have shown the newest products and technological innovations. The first day was already very busy and the second even better.”

3049

Becoming a Global Force

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Canada-based worldwide wholesale operation, Hercules International, had long considered how to develop its ‘global’ position. Then, at the end of 2007, Corporate Business Development Officer, Joe Recchia announced plans to maintain a presence in all the major tyre trading routes by opening offices in Latin America, South East Asia, the Middle East, China and Europe. Then Hercules was aiming to grow “from international to global player in 2008.” Seven months later, those offices are all either running or near opening. Tyres & Accessories spoke to Joe Recchia and Hercules vice president sales and marketing Josh Simpson and found out how the plans are progressing.

Hercules International took the decision to move from an international to global business in 2007. Throughout the process the company’s intention has always been twofold: to develop the position of its key Hercules brand in the global marketplace; and to support rather than compete with local customers. From Recchia’s point of the view, the driving force behind the global move is to be present in each area with people who know that specific market in order to develop appropriate product lines and therefore better serve customers.

From T&A’s perspective the biggest news is that Hercules’ plans are progressing rapidly in Europe. The wholesaler has already made the necessary arrangements (through a third-party logistic company) to run a warehousing operation in Rotterdam. This move is being described as a relatively temporary action and is therefore expected to last around three years, as the company’s is continuing towards its long-term goal of acquiring a “strategically placed presence in the European market.” Recchia wouldn’t be drawn into giving further details on what that might mean, but the company is definitely considering acquisition options. In addition, the company will be ready to open a new office in Barcelona in the next 60 days.

But its not just about getting people on the ground. It’s also about product development. According to marketing vice president, Josh Simpson, one of the reasons the Hercules team attended May’s Essen Show was in order to identify which particular product offerings are suitable to which markets – with a view to adapting the Hercules range as required. “It is clear to us that the EU sets the standard [in terms of product development and design] and the US follows within a certain period of time,” Simpson commented.

Currently European business only represents around 10 per cent of Hercules’ overall sales, but it clear that executives want to increase this in ways that support its model of offering geographical exclusivity to customers who buy the Hercules brand. Hercules International is also continually reviewing which markets have particularly strong wholesale influence and would therefore make a good European base. Simpson was reluctant to give specific details about exactly what this might mean in terms of acquisitions. He did, however, agree that the Germany and the UK are both examples of wholesale-strong markets.

The first ‘global’ office to get underway was Hercules Latin America earlier in 2007. Founded by virtue of the company’s acquisition of TDI, the Latin America regional office is based in Miami, USA, but seeks to take advantage of its strong geographical position in relation to both the Latin American and Caribbean markets. This warehouse is now fully manned, with an additional seven representatives generating sales on the road.

Next up were offices in the Middle East, South East Asia and Europe. The Singapore office, which covers the Far Eastern markets with the exception of China, is already up and running. More recently Hercules gave Anirudh Rathore responsibility for the new Dubai office. According to Recchia, he has been training in the Ontario, Canada head office for the last months and is now fully prepared for his new assignment. Rathore is due to enter the marketplace in July.

And finally, for now, there is the Qingdao, China office that T&A reported on earlier this year. This operation is poised to expand into the company’s global distribution centre shortly – company representatives out there are already staffing the new warehouse, while they finalise the location.

Production pressures

Hercules International describes itself as a wholesaler to wholesaler business. However, with the amount of tyres the company produces across its various private brand labels and across a number of different factories – you may as well call them a tyre manufacturer. And with the responsibility of producing come the pressures – which are particularly sever at the moment. Everyone has heard about China’s decision to up VAT rates on tyre production and the recent difficulties associated with securing shipping, but were you aware of the effects of the Olympic games on production capacity? When you add in the fact that demand for steel, oil and rubber and fillers is all “far outstripping supply”, you can see that it is not as easy as it once was to get tyres in China.

As a result, Hercules’ plans for to enter China in a bigger way via the OE route are currently said to be on ice. Hercules representatives first mentioned the OE concept at the end of 2007, were the programme was expected to be well underway by the middle of 2008. However, the Olympics, increasing raw material price pressures and the lack of supply on some product fronts mean these plans are well and truly on-hold for the time being.

Hercules dealing with challenges on the home from, as the whole North American market faces relatively a tough time. However, despite these pressures, company represents are confident of Hercules’s ability to ride the storm. “Hercules remains stable with growth… and [we] predict further incremental growth,” vice president for marketing, Josh Simpson commented. Looking forward, the company is on-track for an even more optimistic outcome: “We are looking at programmes that will double the size of the business in the next three to five years,” Joe Recchia commented.

There are no plans to bring in any more additional brands to the Hercules stable, which currently includes brands such as Hercules, Ironman and Merit, so this means the company’s ambitious targets rest heavily on the success of the success Hercules marketing programme and the geographic exclusivity the company offers with it.

3050

Ray Darcy Retires After 37 Years in Tyres

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After 37 years in the family business, Ray Darcy is handing over the reins to a non-family member. Ray Darcy has been with the company firstly on a part time basis, then as full time manager, since his parents set up North Eastern Tyre and Exhausts in 1971, and is now retiring from the position of Retail Director. Roger Griggs, who brings with him 27 years experience in the industry, takes up the role with immediate effect.

The company, originally known as Melbourne Tyre and Exhausts was based in Brotton but expanded quickly and today boasts 11 bases across the retail and warehouse sectors, across the entire North of England. Having run the Marske and Brotton outlets for 23 years, Ray then took over the entire retail operation and took up the reigns of chairman in 1997.

3051

Amtel-Vredestein Warns of Counterfeit Tyres

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Amtel-Vredestein has alerted consumers that counterfeit Amtel tyres have been found at retail stores in some markets. The tyremaker believes that the use of these tyres may be dangerous. “Fake tyres are made of cheap rubber mix and low quality synthetic rubber,” commented Anatoly Volnov, head of Research and Quality control department at Amtel-Vredestein. “Threads of such tyres are very weak and not elastic enough, they also wear out rapidly. These fakes may lead to car accidents.”

The company reports that this year cheap imitations of certain Amtel branded light truck tyres have been discovered, notably imitations of the Amtel 185/75 R16 – Cargo AS K-156 and Kobra K-156. The counterfeit tyres combined the names of both models and appeared in the market as the Kobra Cargo КА-156.

3052

Tyre Prices Continue to Rise in Developing Economies

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Next month will see the rapid upward trend of tyre prices in eastern nations continue, as manufacturers and dealers in the United Arab Emirates have agreed to a uniform rise of six per cent across the board.

Head of the Bridgestone Tyre Centre in Dubai, Abdul Hayee, told journalists that the price increase – to be implemented on 1 July – has been necessitated by raw material costs spiralling upwards, a statement confirmed by Babu Karunanandan of Abu Dhabi Tyres. He added that “the UAE is a place where automobiles are an integral part of life and motorists have no other option but to accept the revised prices.

Meanwhile, in India tyre companies are plumping for another hike only two months after the last increase in May. JK Tyre has told domestic journalists that it plans a growth in prices of around six per cent in August, further to the two increases of 2.5 per cent each in January and June. In addition Apollo Tyres have already raised prices by five per cent in the current month.

3053

Report: Retreads are Greener than New Tyres

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An independent analysis carried out to compare the relative carbon footprints of new tyres and retreaded tyres has concluded that the process required to manufacture and distribute a retreaded tyre produces significantly less carbon emissions than that required to produce a new tyre. The report, commissioned for the Centre for Remanufacturing and Reuse (embedded within Oakdene Hollins Ltd) and carried out by carbon footprint specialists Best Foot Forward, compares the carbon footprint of a new and a retread 17.5” tyre for use by light commercial vehicles.

This study showed that the manufacture of a 17.5” new tyre produces 86.9 kg CO2 emissions compared to 60.5 kg CO2 for an equivalent retread tyre, a saving of 26.4 kg. This equates to a reduction of emissions by 30 per cent.

3054

Goodyear Dunlop to Supply 100,000 Tyres to Police

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Goodyear Dunlop has announced that it will work in partnership with the National Policing Improvement Agency, making it the main supplier of tyres to over 50 Police forces in the country. The announcement names Goodyear Dunlop as the exclusive tyre framework supplier and service provider and will see over 100,000 Goodyear Dunlop tyres fitted to police vehicles, including patrol cars, motorcycles and public order vans, each year for the next two years. The deal covers the country’s 52 constabularies located throughout Great Britain and Northern Ireland.

3055

New Goodyear Dunlop Europe Truck Tyres Marketing Director

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Boris Stevanovic has been appointed Goodyear Dunlop Tires Europe BV marketing director for truck tyres, and in this role will be responsible for the company’s operations in this sector within Europe. He takes over from Pietro Saletta, who moves to Italy and begins as the company’s European director of Consumer Tires.

3056

Second Round of Indian Price Hikes Proposed

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Another hike in India’s tyre prices looks likely, in hot pursuit of last week’s initial 2-5 per cent increase (as reported on 6 June). News Sources report that the hike will be at the increased rate of 5-7 per cent, and will apply to all ranges, with rubber and crude oil prices maintaining record highs.

Speaking to journalists, AS Mehta, the marketing director for JK Tyres and Industries, commented on the export of India’s rubber, suggesting that the 20 per cent duty on imported rubber be cut to compensate for the lack of available domestic product.

3057

Nokian Tyres Named a Candidate for Nordic Environment Price

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Finland’s Nokian Tyres is one of 37 candidates competing for the Nordic Council’s Nature and Environment Prize 2008. The regional environmental prize is contested by companies throughout the region, and this year sees entries from Sweden, Finland, Denmark, Norway, Iceland and the hard-to-spot-in-the-atlas autonomous island of Åland

The theme for this year’s Nature and Environment Prize is lower energy consumption with better tools. The prize will be awarded to a Nordic product, invention or service that helps to reduce people’s energy consumption. To be eligible, a product, invention or service must be potentially applicable to all of the Nordic countries and make a significant impact. It can be anything from a single object to a major system.

3058

Cambridge Solar Car Runs on Michelin Motorbike Tyres

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A group of Cambridge University students has been praying for plenty of sunshine – but not because they are on holiday. The team of four students are responsible for the first ever solar-powered journey from Land’s End to John O’Groats. Backed by a team of around 40 other students from the Cambridge University Eco Racing team (CUER), the drivers aim to inspire the public about environmental issues and sustainable technologies.

The solar car, Affinity, which has been given a special order to drive as a prototype vehicle, is thought to have a top speed of around 50-60mph and scheduled displays schools and other venues along the 934-mile route. And for those of us in the tyre trade, it is interesting to note that team are achieving their impressively low rolling resistance results on a set of Michelin M45 motorcycle tyres!

3059

Unity Tyres Moves into New 28,500 sq ft Warehouse

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After 26 years the Unity Tyre Co Ltd Northern Division has moved to new purpose built offices and a 28,500 sq ft warehouse in Keighley, West Yorkshire. Unity has operated its tyre distribution and wholesale service to Northern Division customers from the original site at Walk Mills, Keighley for almost three decades. Originally a woollen mill warehouse, Walk Mills was restricted in the amount of space available for the increase in stock holding that the company had planned as part of its expansion strategy. Unity needed to find premises that would allow scope for it to increase its stock holding so it could offer even more choice of products to its existing customer base in the North of England, as well as service the results of its successful sales and marketing drive.

3060

Michelin X-Crane Tyres Now Capable of 50mph

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Michelin’s latest X-Crane tyres now offer an ‘F’ speed rating (50mph) in place of the previous ‘E’ rating (43mph). The move follows technical approval from the European Tyre and Rim Technical Organisation (ETRTO) under recommendation to the Department for Transport, which has granted authorisation for ‘F’ rated tyres with the same load/speed chart used for tyres with an ‘E’ speed index. It also states that for speeds below 40mph, a formal tyre manufacturer agreement is required.

The ‘F’ rated Michelin X-Crane tyres were launched in response to requests from crane manufacturers for a tyre which could meet the high performance of the latest generation cranes, which are capable of speeds in excess of 50mph. Furthermore, legislation announced at the end of 2004 governing the use of mobile cranes on a public highway changed, with a series of new weight and speed restrictions being introduced.

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