The strike that had frozen production at Pakistan’s General Tyre and Rubber Company (Gentipak) for a month has come to an end. The industrial dispute at the country’s largest tyre manufacturer, of which Continental is a minority shareholder, began on March 16 after management refused to a accept charter of demands put forward by the workers’ labour union. These demands included wage increases and the appointment of workers to permanent positions.
The thumbs down given by workers at Kumho Tires to a plan outlining wage cuts may jeopardise the company’s ongoing viability. According to the JoongAng Daily, a Korea Development Bank official dealing with the Kumho Asiana Group stated that “Since the agreement between the union and management was rejected, the workout process cannot continue. Unless union workers agree to restructuring, they won’t be able to save their company.” The deal, part of a larger agreement between Kumho Asiana and its creditors, would have permitted a 10 to 15 per cent reduction in wages and the removal of incentives. This would, notes the Korean newspaper, lead to monthly pay packets being up to 40 per cent smaller.
Volvo Group Europe has extended its established tyre supply agreement with Continental Truck Tires for a further three years. Continental will remain original equipment supplier for commercial vehicles from all Volvo Group Europe brands until at least 2012. Following the signing of this latest agreement, the German tyre manufacturer mentions that in future, customers will still not have to pay extra to have their vehicles equipped with Continental tyres.
On April 1 a nine-hour strike held by Kumho Tire workers was called off following a tentative agreement reached between union leaders and Kumho management. This agreement outlined a ten per cent wage reduction for employees at the financially burdened company, plus an additional five per cent pay cut during the time in which Kumho Tire is undergoing a debt rescheduling programme. However the Yonhap News Agency reported on April 9 that this tentative agreement has been rejected by employees.
On March 31 Bridgestone and Bekaert signed a Closing Memorandum confirming Bekaert’s acquisition of Bridgestone’s Bridgestone Metalpha Italia S.p.A., based in Sardinia, and Guangdong Province based Bridgestone (Huizhou) Steel Cord Co., LTD. steel cord manufacturing subsidiaries, a transaction first announced on February 1. According to Bekaert, its integration of the two plants and the long-term supply agreement arranged with Bridgestone come into effect immediately.
Lodge Tyre Company has signed a three year service level agreement with Cam Systems. The agreement marks the first of Cam’s Commercial Service customers to adopt its EDP Fleet Inspection and Fleet Management software. The package, which Cam calls “class-leading”, will provide Lodge Tyres with an end-to-end commercial solution which caters for inspections (and consequent recommendations), service job completion and ultimately near-real time billing via Cameo. Cam has exclusive distribution rights in the UK for the package.
ATS Euromaster has increased its share of business with Motiva Group from 30 to 100 per cent, under a new tyre fitment policy which has seen the company select Michelin as its preferred tyre brand across its fleet of over 3,500 cars. The new agreement spans each of Stoke-on-Trent-based Motiva Group’s leasing and rental arms, including Motiva Vehicle Contracts and M-Way Vehicle Rentals. The deal replaces a previous arrangement which saw tyre fitment shared between Kwik-Fit and ATS Euromaster, with a predominantly Pirelli-based policy.
Following what it calls a “highly constructive and positive meeting” of the Formula One Commission on February 1, the FIA states an agreement has been reached by all the sport’s stakeholders on a number of amendments to the sporting and technical regulations. Included in these amendments is a proposal to reduce the number of dry weather tyre sets allocated to each driver from 14 to 11. In addition, to encourage teams to run during the Friday practice sessions, one set has to be returned before the start of the second practice session, and two sets before the start of the third practice session.
One of Kumho Petrochemical’s main businesses is the production of synthetic rubbers, much of which is supplied to the tyre industry. The company’s Ulsan plant in South Korea alone produces in excess of half a million tonnes of synthetic rubber per annum. To tackle the company’s recent economic crisis, in late January the Kumho Asiana division’s labour management negotiation committee met with the three main labour unions representing Kumho Petrochemical employees at its Ulsan rubber and plastic facilities and its Yeosu rubber plant and reached an agreement on a number of matters.
In the US, Navistar International Corporation has chosen Continental truck tyres as the standard original equipment fitment for all of its International PayStar, WorkStar, and DuraStar severe service and medium duty vehicles. The agreement took effect on 1 January 2010.
Pirelli & C. SpA, parent company of Pirelli Tyre, reports that its “Sindacato di Blocco Azioni Pirelli & C. SpA” shareholders’ agreement has been renewed for approximately three years. No changes to members or shares have been conferred. The agreement’s new expiry date is April 15, 2013. All the members in the shareholders’ agreement, Pirelli adds, have expressed the will to renew the agreement within the deadline contractually determined for withdrawal, 15 January 2010.
Bridgestone UK has secured a tyre supply agreement with C&H Hauliers, part of the Charles Gee Group. C&H Hauliers will fit Firestone steer products to its fleet of more than 100 trucks, and the Bridgestone Qualitread retread on the drive axle and across the 250 trailers. The fleet will be serviced through the Truck Point network.
Greg Ward, commercial sales director, Bridgestone UK said: “We are delighted to have won the C&H Hauliers tyre contract. We have supplied Firestone tyres to this account indirectly through some of our Truck Point partners (Universal Tyres & Trinity Tyres) for many years, but the recent rapid expansion of the fleet puts the contract firmly within our “MegaFleet” environment. Universal Tyres & Trinity Tyres will continue to be a key service agent through the Bridgestone system.”
In the last year more than two hundred Israel based Alliance Tire staff have been laid off, and on December 24 Israeli financial newspaper Globes reported the possibility that the same fate may now await “dozens” of white collar employees and production support staff. It would appear those employees not covered by the collective agreement signed between Alliance and Israel’s labour federation in 2008 are most likely to bear the brunt of any redundancies – the agreement forbids Alliance from firing any staff covered by the deal without first going through a pre-agreed process.
In late December Pirelli signed a 50 million euro financing agreement with the European Investment Bank (EIB) that will provide the funds to increase tyre and light commercial vehicle tyre production capacity and Pirelli’s facility in Slatina, Romania. This sum will be used within the context of the 250 million euro investment the Pirelli Group previously earmarked for its operations in Romania in the three-year period between 2009 and 2011.
Beru AG, the TPMS sensor and diesel coldstart specialist, has officially changed its name into the German equivalent of limited company (GmbH). The company now operates as “BorgWarner BERU Systems GmbH”. According to the company, the new name expresses the relationship to the US parent company, BorgWarner, while retaining the valuable Beru brand name.
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.
