Africa
Russia’s third-largest tractor manufacturer, the ZAO AgroTechMash (ATM) group, has selected Starco as original equipment supplier for its Terrion brand. This agreement is described by Starco as a further step in the company’s agricultural strategy and will be implemented by its Riga-based Eastern group; under the new agreement, Starco will supply the ATM group steel wheels from Titan, row crop wheels from Starco Schaad and tyres from BKT.
The Al Dobowi Group has been distributing Chinese manufacturer Hangzhou Zhongce’s Westlake tyre brand in certain key markets for 20. The Group’s chairman, Surender Kandhari marked the occasion by presenting Ge Gourong, CEO of Hangzhou Zhongce, with a commemorative gold dagger. The gift, a symbol of strength, is designed to reflect the 20 years of partnership and “years of future growth together”, Al Dobowi states.
Apollo Tyres South Africa intends to reintroduce the Dunlop tyre brand into Nigeria. The country’s Guardian newspaper reports Apollo Tyres South Africa CEO Riaz Haffejee as saying the brand will return due to its long history in Nigeria. Distribution will be handled by Somotex Nigeria Limited; Haffejee commented that Somotex has the requisite distribution channels for the job.
The organiser of Tyrexpo Asia 2013 recorded a “substantial increase in visitors” to this year’s Singapore show. Exactly 4,355 individual visitors from 97 countries attended the trade exhibition held at the Singapore Expo Centre between 19 and 21 March, an increase of 22.5 per cent in comparison to the 2011 show’s prior record. Exhibitor numbers at the 2013 show were 64 per cent higher than two years ago, with 250 suppliers displaying their products at Tyrexpo Asia 2013.
China’s fifth largest tyre manufacturer by sales, Aeolus announced its entry to the southeast Asia passenger car market on 20 March with the launch of a complete range of PCR tyre products. The new venture comes on the back of the construction of a new car tyre manufacturing plant in Jiaozuo; the 625,000sqm factory is capable of manufacturing six million tyres a year. Aeolus is exhibiting its new tyres at Tyrexpo Asia 2013 in Singapore.
Demand for used vehicles overseas is leading to cars targeted for export selling for up to twice their UK value or more at auction, say independent car information experts CAP. But the used vehicle export phenomenon is not confined to cars, with CAP's experts also reporting a constant flow of trucks, trailers, motorcycles and vans abroad as the export trade grows every day. This trade, supplying almost every continent with used British vehicles, is pushing prices ever higher in the UK and creating shortages of certain models.
Goodyear Dunlop Tires Europe has appointed Leszek Szafran as Director Retread Operations Europe Middle East and Africa (EMEA). He will take over the position from Hubert Moquet, who retires after more than 34 years’ service with the company.
Despite a dip in the overall market last year, some analysts are predicting that global heavy and medium truck sales will increase “moderately” in 2013 owing to rising demand from so-called Next-11 countries and other emerging markets.
The report by Frost & Sullivan forecasts that the combined GDP of key commercial vehicle markets will grow at 3 to 3.5 per cent in 2013. This is expected to stoke medium-heavy truck sales growth at the rate of 4.3 per cent in 2013. Furthermore, the slowdown in Europe and moderate expansion in truck demand in North America will be largely offset by robust growth in Next-11 and other Rest of World (RoW) markets, resulting in global medium-heavy truck sales reaching 2.8 million this year.
For the year ended 31 December 2012, Japan’s Sumitomo Rubber Industries Ltd. recorded net sales of 710.2 billion yen (£4.9 billion), a year-on-year increase of 4.9 per cent. Operating income, at 69.7 billion yen (£481.5 million), was up 29.3 per cent on the 2011 result, while ordinary income of 67.4 billion yen (£465.1 million) represented a 34.9 per cent rise. Net income for 2012 amounted to 35.5 billion yen (£237.9 million), a 24.9 per cent year-on-year increase.
In prior years the US-based off-road tyre specialist Titan International has expanded not just through organic growth, but also through strategic acquisitions. And according to company chairman and CEO Maurice Taylor, the shopping tour is not over yet. The next goal is the 50-year old Indian steel wheel manufacturer “Wheels India Ltd.”, a TVS Group company.
Goodyear has reported that its fourth quarter 2012 sales amounted to $5 billion, down 11 per cent from 2011. According to the company, the drop reflects $338 million in lower tyre unit volumes, $221 million in lower sales in other tyre related businesses and $85 million in foreign exchange effects. It is worth pointing out that although tyre unit volumes totalled 40 million, this is generally down 7 per cent compared with 2011. And what’s more Goodyear reported that this primarily reflects lower volumes in Europe.
Hankook says its market share in Britain is on the rise, and this has led to the need for an additional local stock holding facility. The company has established a new warehouse in Daventry to meet its requirements, and recently celebrated the opening of the new facility. Her Royal Highness the Princess Royal, patron of charity Transaid – a charity also supported by the tyre maker – joined staff at Hankook’s new Daventry warehouse on 7 February, where she officially opened the new stock holding facility.
In the three months to 31 December 2012, Apollo Tyres Ltd’s net sales grew 9.4 per cent to Rs 97.57 billion (£1.17 billion), while net profit jumped 86.1 per cent to 1.8 billion (£21.63 million). Operating profit for the third quarter of Apollo’s 2012-13 financial year amounted to Rs 4.1 billion (£49.27 million), up from Rs 3.3 billion a year earlier.
Bridgestone Corporation subsidiary Bridgestone Middle East & Africa FZE has opened a new multipurpose facility in Dubai. The centre, known as ‘Bridgestone Park’, is located in the Jebel Ali Free Zone and will be used for training company employees and distributors throughout the Middle East and Africa in the areas of sales and technical support for passenger, truck and bus tyres, along with training in the technical skills required in the manufacture of Bandag brand retreads. The 21,678 square metre facility also contains a passenger tyre retail shop that is intended to serve as a model for shops in the Middle East and Africa that handle passenger tyres and car maintenance, plus a truck and bus tyre service centre. At present 20 people are employed at Bridgestone Park.
Recent reports published by financial analysts suggest Goodyear could be forced to restructure its business in the Europe Middle East and Africa (EMEA) region.
Reporting on an investor’s presentation given in Detroit, Deutsche Bank market watchers relayed that Goodyear cautioned that financial targets established two years ago – specifically US$1.6 billion segment operating income by 2013 – would be “difficult to achieve if current European market trends persist”.
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