Recently, Aeolus Tyre Co. announced a first in China –100 per cent environmentally friendly tyre production. The Jiaozuo-based company has taken steps in its manufacturing process so that all tyres produced from now on are REACH-compliant, and it claims to now produce medium truck/bus radials that boast longer tread life, greater retreadability and lower rolling resistance – as much as 24 per cent lower, according to Aeolus.
China’s Aeolus Tyre reports the phasing out of aromatic oil in the production of its truck and bus radial tyres. The Henan province-based manufacturer says that as of May 2011 it has ceased using the rubber accelerator NOBS, curing agent DTDM and antioxidants in the manufacture of TBR tyres intended for the domestic market; tyres intended for export markets have been produced using environmentally-friendly oils for more than two years now. In announcing its total changeover to low-PAH (polycyclic aromatic hydrocarbon) substances, Aeolus Tyre states it the first 100 per cent environmentally-friendly TBR tyre manufacturer in China.
China’s Aeolus Tyre Co., Ltd will reportedly enter a joint venture with four other parties. The tyre maker is said to be investing RMB 40 million (£3.8 million) in the joint venture, a figure that will give it a 40 per cent share. China National Tire & Rubber Corporation will hold a 35 per cent share while a Shanxi-based tyre company, a Guilin-based rubber company, and a Qingdao-based conveyor company will respectively have a ten, ten and five stake in the joint venture company. According to Reuters, the joint venture will deal in the international trade, processing, import and export of products, technologies and equipment.
On May 1 Heuver Tyrewholesale celebrated 45 years in the business. Mans Heuver established his regional tyre business in the Netherlands as a ‘one-man band’ in 1966 and the company has grown to employ 230 people. For the last two decades Heuver has operating internationally and in recent months has placed greater emphasis on the UK market, yet the wholesaler says it has by no means reached the limits of its ambitions. In this 45th anniversary year, Heuver says it still has a host of plans for the Netherlands and international markets.
Dutch wholesaler Heuver Tyrewholesale has extended its OTR business into the UK and Ireland and says it is actively targeting this region, a move it describes as a further development of its “strong European position in the OTR sector.” Heading up the British operation is 43-year old Phil Bradburn, who is based near Manchester and has worked with Heuver for a number of years.
Aeolus Tyre posted a 50.77 per cent year-on-year drop in 2010 net profit to 153 million yuan, business news wires have reported citing a company filings. Earnings per share are said to have fallen 50.79 per cent to 0.41 yuan per share. The good news was that sales revenue rose 44.45 per cent year-on-year to 8.12 billion yuan, however this also means margins must have narrowed significantly.
The China Rubber Industry Association has referred to rising rubber costs as a ‘grim situation’. The CRIA reports that rubber prices, currently approaching RMB 40,000 per ton, have caused tyre production costs to increase by 50 per cent and squeezed profit margins to a record low, with year-on-year profits declining by up to 50 per cent last year. In light of this industry crisis, seven CRIA members met in Beijing on January 13 to discuss possible countermeasures.
Powered access rental company AFI-Uplift has chosen ATS Euromaster to supply and service the tyres across its fleet of nearly 4,400 assets. The estimated worth of the deal is in excess of £120,000 a year. AFI has 18 depots throughout the UK, a 90-strong commercial vehicle fleet and 4,300 access machines. The rental firm says its decision to sign with ATS Euromaster largely because the company has health and safety values and standards matching its own.
Tyre wholesale operation Kings Road Tyres has once again booked a significant sized stand at the world’s leading tyre exhibition. The company reports that it has always recognised the benefit of trade exhibitions and events and has attended Essen on a regular basis, group MD Peter Gaster explained why:
“We place great importance in building personal relationships with our customers and the best way of doing that is by meeting them in person and understanding their needs. It’s never been easier to communicate efficiently with advances in business technology, but there is still no substitute for face-to-face contact. That’s why our sales staff from around the UK and Ireland will be involved throughout the exhibition, giving them and our customers a chance to meet.”
Aeolus Tyre Co Ltd net profit attributable to shareholders grew 1076.26 per cent year-on-year to 124.85 million yuan (£11.033 million; 12.242 million euros; US$18.284 million) in the third quarter. In the first three quarters the company’s net profits are said to have jumped 170 per cent to 254.4 million yuan (£22.4 million; 24.943 million euros; $37.265 million). Shanghai-listed Aeolus put the exponential growth in net profits down to a significant decline in production costs.
Kings Road Tyres has a newly-opened Liverpool (Widnes) location, offering customers better service in the North West of England. The company, one of the UK and Ireland’s largest independent tyre distributors, can offer the majority of its customers, either next day/two day delivery throughout the countries using its own fleet of vehicles, from its eight strategically located sales and distribution centres.
Kings Road Tyres (KRT) had a container load of Aeolus heavy truck tyres stolen on Friday 4 September. According to KRT managing director, Adrian Bader, a container on the way to the wholesaler was high-jacked en route to Aston in the Midlands on Friday 4 September and around 100 tyres have been stolen. However, it is unlikely that the thieves will be able to shift the stock in the UK with raising suspicions as the Aeolus brand is exclusive to KRT throughout the UK. So, dealers being offered these tyres from any source other than KRT are advised to contact Adrian Bader the Wholesale Managing Director at KRT on +44 (0)1460 57353 or +44 (0)7976 442656.
The details of the stolen tyre are as follows: 315/70R22.5 HN355 (13 tyres); 315/70R22.5 HN359 (15); 315/80R22.5 HN355 (6); 315/80R22.5 HN252 (15); and finally 38 units of 385/65R22.5 HN805 tyres – a total of 87 pieces.
Aeolus Tyres has announced that it is introducing two new types of truck tyres. The new HN254 and HN369 truck tyres have a widened tread and a new rubber composition designed to improve road safety and wear resistance. They will replace the brand’s HN257 and HN355 profiles.
“Aeolus Tyres puts all its efforts into the evolution of its current tyre programme. They will not be diverted off this course, not even in the current worldwide financial situation,” says Bertus Heuver on behalf of Aeolus Tyres Europe, exclusive importer for Aeolus in continental Europe.
When is a price cut not a price cut? Answer: when international tyre imports and global exchange rates are involved. This month a number of Chinese tyre factories lowered their gate prices in response to the recent easing of raw material costs. Combined with decreases in shipping costs, you’d think this would result in cheaper tyres for mature markets. However, according to industry sources, if the mature market you had in mind was the UK – or most of Europe for that matter – you would be wrong.
Aeolus Tyres, for example, apparently became the first tyre maker to openly cut its rates, saying it was aiming to send a clear signal that as a “runner-up among major tyre brands,” it is taking the lead in terms of pricing. Clearly the idea here was for the economy tyre producer to steal a march on the premium tyre manufacturers that are fighting hard not to cut product prices, despite market analysts’ predictions that the days of price increases are over and the opposite is likely, and take advantage of raw material price stabilisation.
A number of Chinese tyre factories have lowered their gate prices in response to the recent easing of raw material costs. Aeolus Tyres, for example, is apparently the first tyre maker to openly do so, and says it is aiming to send a clear signal that as a “runner-up among major tyre brands,” it is taking the lead in terms of pricing. However, as is the case with most Chinese tyre purchases, the fact that transactions are calculated in US dollars means pound prices are in fact higher than they were 12 months ago. Industry sources have also linked the Triangle and Infinity brands with factory gate price cuts that are also negated by the weak pound. While the euro has been fairing better against the dollar, a similar effect is understood to place taking place on the continent.
Speaking on behalf of Aeolus Tyres in Europe, Heuver Tyrewholesale’s Bertus Heuver commented: “Aeolus is one of China’s largest tyre manufacturers. Identifying trends and developing tyres in response to those trends is their core business. This is partly the basis of their success in Europe and why this runner-up has quickly become a reliable and attractive alternative to name brands… Aeolus sold more than 250,000 new tyres in Europe in 2008. We aim to conquer a market share in the most important segments in Europe of at least 3 per cent in the standard sizes…We expect that many business owners will consider Aeolus when making their decisions due to its combination of favourable prices, selection and quality.”
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