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Micheldever CEO Runner-up for Director of the Year

Micheldever Group Ltd CEO, Paul Fox, was pipped to the post for the Institute of Director’s (IoD) Director of the Year Award in the £25 million+ turnover category. Jonathan Neame of Shepherd Neame brewery won the award, with Steve Barber of technology company Xyratex also nominated. The results were announced at a Dinner and Awards ceremony held on 8 November in the Nash Room of the Institute of Directors, 116 Pall Mall, London.

Paul Fox joined Micheldever in February 2006 (as result of the Graphite Capital-backed management buyout) along with finance director Richard Sawney. In December 2006 Graphite Capital backed the first acquisition by Micheldever Tyre Services since the company was bought in February 2006. In this move Micheldever acquired two large retail sites, Cambridge and Stortford Performance Tyres, from the Company’s private owners, who retired upon completion. According to an official statement, this purchase demonstrated Micheldever’s intention to pursue similar transactions in the future.

9th November 2007/by Tyrepress Editors

Conti Acquires 51% of Matador Tyre & Rubber Business

Continental AG has acquired a 51 per cent interest in Continental Matador Rubber s.r.o. based in Puchov, Slovakia. The tyre and conveyor belt business, together with the rubber processing equipment business unit, were separated beforehand from the parent company Matador a.s., which now holds a 49 per cent interest in the joint company. “This shareholding enables us to expand our existing joint venture with the Matador Group in the field of truck tyres. At the same time we are significantly strengthening our production and operations base in central and eastern Europe and making lasting investments here,” explained Manfred Wennemer, chairman of Continental’s Executive Board. The newly founded company will remain a legally independent unit with sole responsibility for its business.

Matador Group CEO Dr. Štefan Rosina said “we have been looking for a strategic partnership for our Passenger and Light Truck tyre business very seriously. Therefore, I’m glad that all conditions of this strategic alliance were successfully carried out and I am sure that this joint venture with Continental will give a new future to our tyre business. We will remain in this joint venture company as an important shareholder and this will enables us to strengthen our position in the automotive sector – our new strategic business for the Matador brand.”

8th November 2007/by Tyrepress Editors

Continental AG in Talks with Potential Buyers of Parts of VDO

(Akron/Tire Review) Continental AG is in talks to spin off Electric Motor Drives, which is part of Siemens AG’s former VDO unit, management board member and human resources head Heinz-Gerhard Wente said. He said there is strong interest in the unit, which has 3,300 employees. Wente added that Continental has started exchanging information with potential buyers but has not entered negotiations.

The European Commission is set to decide on Continental’s 13.5 billion euro VDO acquisition on November 15. Until then, Continental is not allowed to negotiate the spin-off of parts of VDO. Wente said that German automotive parts supplier Brose and an unnamed Japanese company are interested in acquiring Electric Motor Drives, citing sources close to the talks. It said industry sources put the sale price at around 500 million euros.

7th November 2007/by Tyrepress Editors

Evonik Acquires Degussa Engineered Carbons

Evonik Industries has acquired the remaining 50 per cent of shares in its former carbon black Joint Venture – Degussa Engineered Carbons (DEC), effectively 29 October 2007. DEC will now be a 100 per cent owned subsidiary of Evonik. Financial details of the transaction have not been disclosed.

“Carbon black is one of our strategic growth areas that we are systematically expanding. This transaction underlines Evonik’s commitment in the North American market and will add significant value to our Group,” said Dr. Klaus Engel, Member of the Management Board of Evonik and responsible for the Chemicals business area. Thomas Hermann, head of Evonik’s Advanced Fillers & Pigments Business Unit, commented: “The acquisition is an important step to consolidate our position in one of our key strategic markets, and will help us to serve our global key accounts even better.”

1st November 2007/by Tyrepress Editors

Trelleborg’s Acquisition of Solid Service Group Finalised

Trelleborg’s acquisition of the privately owned Australian special tyre distributor Solid Service Group, which employs approximately 40 staff and generates annual sales of around £4.97 million, has been finalised. Solid Service Group, whose head office is located just outside of Melbourne, is one of the largest distributors of solid industrial tyres in Australia. The Group has branches in Melbourne, Sydney, Brisbane, Adelaide, Perth, Darwin and Tasmania. The operation focuses on specialised service for industrial customers, including fixed pressing units and mobile pressing units for onsite fitting of all types of industrial tyres, primarily for various types of forklift.

30th October 2007/by Tyrepress Editors

Conti Q3 Growth Below Predictions

Continental AG has announced a third quarter profit increase of 7 per cent, largely attained through the strong performance of the company’s tyre division. However this result has fallen short of market expectations of a 17 per cent rise in profit. Third quarter EBIT was 426.1 million euros, up 8.1 per cent over Q3 2006, while the quarter’s net profit was 251.5 million euros, a figure that failed to meet analyst predictions of 274 million euros.

The company’s consolidated sales for the first nine months of 2007 rose by 8.9 per cent to 11.92 billion euros; before changes in the scope of consolidation and exchange rate effects, consolidated sales were up 6.4 per cent. During the nine-month period EBIT rose by 19.8 per cent to 1.34 billion euros and the return on sales increased by 11.2 per cent; before changes in the scope of consolidation and special effects, EBIT rose 15.8 per cent to 1.38 billion euros. The adjusted return on sales amounted to 12.0 per cent, up from 10.9 per cent last year. The net income attributable to shareholders of the parent increased 25.3 per cent to 825.2 million euros, with earnings per share higher at 5.63 euros, as opposed to last year’s 4.51 euros.

30th October 2007/by Tyrepress Editors

Watts Tyres Acquisition brings new MD to Watts Industrial Tyres

The Watts Tyres acquisition of Mobile Industrial Tyres Limited, first announced on October 22, will bolster the company’s operations in Southeast England. The Essex based industrial tyre and wheel specialist will be integrated into Watts’ existing regional operation, with Mobile Industrial Tyres’ managing director Edward Woolley becoming the managing director of Watts Industrial Tyre Services.

Jean-Paul Mindermann, chief executive of Watts Tyres Plc, commented: “This enhances our presence and service offering in the Southeast, in line with our aim of continually improving customer satisfaction. Edward Woolley brings a vast amount of experience in the industrial tyre market with him and will focus on further developing our UK service operation. This acquisition reinforces our position as a business that is focused on and dedicated to the materials handling industry.”

26th October 2007/by Tyrepress Editors

Cooper Steel Cord Plant Share Included in ArcelorMittal Purchase

The acquisition of steel cord manufacturer Rongshen Chengshan Steel Cord by ArcelorMittal, announced on October 15, includes the 25 per cent stake in the Chinese company held by a wholly owned local subsidiary of Cooper Tire & Rubber. Cooper has disclosed it received US$7.4 million for its quarter share, which the manufacturer parted with in order to place a greater focus upon its core tyremaking business.

Cooper Tire’s acquisition of 51 per cent of Cooper Chengshan (Shandong) Passenger Tire Company, Ltd., and Cooper Chengshan (Shandong) Tire Company, Ltd., was completed in early 2006 and included a 25 per cent ownership position in the steel cord factory, which is located adjacent to the tyre manufacturing facility in Rongcheng City, Shandong Province.

16th October 2007/by Tyrepress Editors

Bekaert Acquisition Talks in Russia Abandoned

International News

Following several months of negotiations Bekaert has opted to withdraw from talks with Russian firm ZAO Uralkord regarding a possible takeover. The Russian manufacturer, located in the industrial city of Magnitogorsk, produces steel cord products for domestic tyre manufacturers and was viewed as a suitable vehicle through which the Belgian firm could strengthen its position in Russia. As recently as late July Bekaert CEO Bert De Graeve told media that the group was hopeful of closing a deal by the end of the year, adding that about 50 million euros had been offered for the purchase of Uralkord.

Despite this optimism, the deal fell through within three months of De Graeve’s announcement. The reason for this, Bekaert outlined in a statement, is that during “the course of the difficult and protracted negotiations, it became clear that no agreement could be reached with the current shareholders of ZAO Uralkord that would meet Bekaert’s criteria for pursuing its strategy of sustainable profitable growth in Russia.”

15th October 2007/by Tyrepress Editors

ArcelorMittal to Expand in China through Acquisition

Steelmaking giant ArcelorMittal made public on October 15 news that it is to acquire a 90 per cent stake in the Chinese steelcord wire drawing company Rongcheng Chengshan Steelcord. ArcelorMittal will pay US$26.6 million for the Shangdong province based business.

Lakshmi Mittal, president and chief executive of ArcelorMittal said: “This acquisition is an important step for us in expanding in a major market. We have already shown through our joint ventures in China the value and skills we can bring the Chinese steel industry and we look forward to bringing our expertise to Rongcheng Chengshan Steelcord. As well as showing our commitment to the broader Chinese steel market, this acquisition also underlines our commitment to the wire business specifically and recognises China’s leading position in this sector.”

15th October 2007/by Tyrepress Editors

European Commission sets Deadline for VDO Purchase Inquiry

The European Commission has announced that its inquiry deadline for Continental AG’s proposed 11.4 billion euro acquisition of the VDO Automotive Division from Siemens has been set for November 15. No further details were given at the time.

12th October 2007/by Tyrepress Editors

Michelin Acquisition of Oliver Rubber Completed

Michelin North America announced on October 5 the completion of its acquisition of the Oliver Rubber Company from Cooper Tire & Rubber. Oliver, which produces tread rubber and retreading equipment, will now operate as a subsidiary of Michelin North America, Inc.

The US Federal Trade Commission granted an early termination of the standard waiting period for the transaction allowing the acquisition, which included a cash purchase price of US$69 million, to proceed.

This latest acquisition complements Michelin’s tread manufacturing capacity and extends, via the Oliver dealer network, the commercial reach of Michelin’s services throughout North America’s growing retreading market. In 2005 Michelin announced a major expansion of its tread manufacturing facility in Covington, Georgia and, earlier this year, the opening of a new tread manufacturing facility in Querétaro, Mexico.

8th October 2007/by Tyrepress Editors

Trelleborg Buys Solid Service Group in Australia

Trelleborg has signed an agreement to acquire the privately owned Australian specialty tyre distributor Solid Service Group, which has about 40 employees and annual sales of approximately £5 million. The acquisition is expected to be completed during the fourth quarter 2007.

26th September 2007/by Tyrepress Editors

Ashley Croft Returns to Stapletons as a Consultant

Former managing director, Ashley Croft, has returned to Stapleton’s to act as a consultant with special responsibility for working with the management to further develop Stapleton’s as one of the country’s leading tyre wholesalers and retailers. In February Croft resigned as Warehousing, Logistics and Wholesale Sales Director of Micheldever Tyre Services, having been involved in the company’s management buy out in February 2006.

At the time he told Tyres & Accessories that the decision to leave was entirely amicable, saying that his original brief was to expand Micheldever’s wholesale and distribution base to a national level and that that project has now been completed.

13th September 2007/by Chris

Conti Acquires Chinese Auto Components Firm

Continental AG’s Automotive Systems Division plans to further consolidate its position in China through the acquisition of Zhangjiagang Fugang Heli Electronics Co., Ltd. from China’s Fugang Group. Conti intends to integrate the operations of Fugang Heli, who manufactures cooling fan modules and window lift motors, into the division’s Electric Drives business unit upon regulatory approval of the purchase.

The Chinese company was founded in 2005 and employs approximately 250 staff at its headquarters in Zhangjiagang City, Jiangsu Province and two production facilities in Zhangjiagang and Changchun, Jilin Province. Last year Fugang Heli achieved sales of RMB 84 million (£5.526 million) and sold it products to both domestic and international vehicle manufacturers.

“With the acquisition of Fugang Heli, Continental Automotive Systems will enhance the local production capability in order to better meet the demand of OEMs in China as well as develop a new base for export into other regions in Asia based on a cost competitive manufacturing,” said Dr. Karl-Thomas Neumann, president Continental Automotive Systems and member of Continental AG’s Executive Board. “The deal will greatly help Continental Automotive Systems to strengthen its worldwide leading position in cooling fan modules at existing and emerging marketplaces, where our OEM customers are doing their business.”

4th September 2007/by Tyrepress Editors