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TWS wants to become the market leader in agricultural tyres

Two years ago Trelleborg took over from Pirelli the 40 per cent share of the former commonly owned company Trelleborg Wheel Systems (TWS), which produces agricultural tyres. Now TWS aims at becoming market leader with its two brands Pirelli and Trelleborg.

A major part of this strategy is improving the name recognition of the Trelleborg brand, which up till now has been regarded as another name for bias ply tyres within the TWS-group while Pirelli covered the radial segment. In addition to that TWS is thinking about bringing another brand into the company’s portfolio. Whether this will be accomplished by the creation of a completely new brand, or by the acquisition of a known brand, has not been decided yet, Maurizio Vischi, president of TWS, told Tyres & Accessories.

The Swedish corporate group Trelleborg, named after the town where it is located, has reached a turnover of about 1.95 billion Euro and has almost 15,000 employees. As one of four Business Units, Trelleborg Wheels Systems (TWS) contributes about 330 million to the overall turnover, with 2,380 employees.

When it comes to the agricultural tyre segment, the direction of the TWS brands has been contrary. While the Pirelli brand was regarded as a synonym for the use of radial technology for agricultural tyres, the Trelleborg brand stood for bias ply forestry and implement tyres. Slowly, the boundaries seem to become blurred. For example, the new TM 2000 radial tyre for harvesters, and a new radial implement tyre, are produced with the Trelleborg logo on the sidewall.

11th August 2003/by Tyrepress Editors

Sales And Profits Rise For Nokian

Good 4Q sales have helped Nokian to increase turnover and profits for last year. Sales rose 13.2 per cent to 479.2 million Euros (2001: 423.4 m). Operating profit was up at 60.1 million Euros (2001: 50.1 m) and profit before taxes rose 29.5 per cent to 48 million Euros (2001: 37 m). Sales from car tyres were up 17.5 per cent to 242.8 million Euros (2001: 206.6 m) and operating profit rose 10 million to 51.4 million Euros. Much of the tyre sales (73 per cent) came from winter tyres. There were increases too in sales of heavy tyres and bicycle tyres, but sales of retreading materials slipped slightly. The Vianor chain also showed an increase in turnover and profit.

19th February 2003/by Tyrepress Editors

Production Record At Fulda

The Goodyear plant at Fulda, Germany, set a production record of exactly 7,141,095 units in 2002. The plant, which employs 1,648 staff, manufactures high, ultra high, offroad, light truck, truck and agricultural tyres carrying the Fulda name, as well as tyres for other brands from the Goodyear group.

4th February 2003/by Tyrepress Editors

Kirkby Tyres: Re-focusing For The Future

Product News, UK News

Kirkby Tyres is a major wholesaler in the agricultural sector and is increasingly turning towards that market to develop its business. Kirkby Tyres has been around for a long time, almost 50 years in fact. In that time the business has seen many changes but through all the changes it remains in the hands of the Rosenthal family, with Gordon Rosenthal, grandson of the founder “Joe Rose” at the helm.The company started as a casings collector and dealer, before developing into wholesaling. When the wholesaling of new tyres outgrew the casing side, the company made the decision to concentrate on new tyre distribution. Gordon Rosenthal took over from his father, Leslie Rosenthal, as Managing Director in 1980. Gordon is now Chairman, with Dave Dorrity joining the company in 1999 as Managing Director.Kirkby Tyres operates with three depots to cover the British Isles. The head office is at Liverpool and there is a depot in Perth, Scotland which offers a very similar stock profile to that in Liverpool, though the demand for high performance and premium car tyres is stronger north of the border. Ireland is covered from Dublin by Kirkby Tyres (Ireland) Ltd and in addition to the full range offered in the UK is the Irish agent for Ohtsu/Falken, and is the sole distributor of Wolfrace and Smiths alloy wheels in Ireland. The Group has a turnover in excess of 16 million pounds and employs 61 staff. It is worth noting that the breakdown of the business puts the agricultural sector at 45 per cent of the Group’s turnover, truck at 35 per cent, and car and earthmover at five per cent each.

9th January 2003/by Tyrepress Editors

Shanghai Tyre & Rubber Company Limited: Double Coin

Along with the dawn of the 21st century, Shanghai has very quickly become the international economic trading capital of China. The city is the showcase of reform, increasingly attracting foreign investment in new business enterprises. Just outside the city centre is the industrial district of Min Hang and this is home to China’s largest tyre producer, Shanghai Tyre & Rubber Company Limited.The Shanghai Tyre & Rubber Company was incorporated on 4th July 1992. It was restructured from the two oldest tyre manufacturing plants in China, both having a history stretching back over seventy years, the Ta Chung Hua Rubber factory and the Tsen Tai Rubber factory. In the early 1930s these two tyre producers first established the brand names Double Coin and Warrior. In September 1998 a joint venture was agreed with First Tractor Group of China to produce agricultural tyres, expanding the existing capacity by nearly 50 per cent to 900,000 tyres and consolidating its access to the agricultural market. In the same year the company completed a $95 million US dollar expansion programme at the Min Hang factories. Weak domestic demand and the Asian crisis did see a downturn in profits as the decade came to an end, at the same time, selling prices were cut by ten per cent in order to compete with some foreign, and particularly South Korean, tyres. This was a setback, but no more than that. The company has shown itself to be extremely perceptive and very determined.Within the Shanghai Tyre Company today there are three principal tyre producing factories. An all steel radial truck tyre plant manufacturing the Double Coin brand, and a passenger and light truck tyre radial factory producing the Warrior brand; this plant has been a joint venture with Michelin since March 2001. Finally, a bias-ply plant manufacturing passenger, truck, a massive range of agricultural, off-road, industrial and motorcycle tyres in a total of over 350 specifications. The company is the 15th biggest tyre producer in the world, employing over 11,000 people.

9th January 2003/by Tyrepress Editors

Agricultural Tyres

They say that you never see a satisfied farmer. What about agricultural tyre manufacturers and distributors – what sort of year has it been for them? We take a look at the factors affecting the agricultural tyre market and some of the latest products available. We also get the views of those who attended the biggest UK agricultural event, the Smithfield Show.

11th December 2002/by Tyrepress Editors

Continental Wants To Be A Major Global Player In The Agricultural Field

If everything in life went according to plan or the way it was once written down in the corporate strategy books, then the production of agricultural tyres would have been abandoned long ago. Already way back when Messrs. Haverbeck and Borgmann were board members, there were such angry arguments about the distribution of costs that closing down production looked to be a foregone conclusion. Eventually, however, they changed their minds and production of agricultural tyres continued, even though there was next to no money to be made from it. Closing down production would have cost the corporation even more and so it opted for the lesser evil, but for the company’s dedicated agricultural tyres there was virtually no scope for future growth. And yet in this new millennium the German corporation is one of the few truly serious suppliers in this highly specialised field.In an interview with NEUE REIFENZEITUNG in August 2002 in Otrokovice, Werner Flebbe, head of the agricultural tyre sector at Continental AG, and Thorsten Bublitz, head of corporate marketing and distribution of agricultural tyres, admitted that up until 1995 the company did not exactly cover itself with glory – and yet, in the same breath they were able to add that the largest and most modern agricultural tyres demanded by the industry are now built in the Czech Republic. And the price ratios are now ‘OK’. What is more important, according to Werner Flebbe, is that the major Original Equipment suppliers are now strongly interested in co-operating with Continental.

28th November 2002/by Tyrepress Editors

The Market For Agricultural Tyres

Related news: Alliance Reports Record Sales in Second Quarter First delivery of largest agri tyre Agri contractor aiming for 5 years on Michelin OE tyres Titan introduces extreme flotation agricultural tyres

5th November 2002/by Tyrepress Editors

Jean Bergh New Managing Director At GTC*L

The new Managing Director at the Goodyear Technical Centre in Colmar-Berg, Luxembourg (GTC*L) is Jean Bergh (59) after the retirement of Theo Famulok. Famulok has headed up the 900 technicians at Goodyear’s R & D centre since 1994. 900 technicians in Luxembourg develop car, truck and agricultural tyres for Europe as well as for the Asian and African markets.

20th June 2002/by Tyrepress Editors

2001 Net Loss For Titan International

Titan International has published its 2001 financial results. In the fourth quarter, Titan’s net sales were $100.6 million (Q4 2000: $113.4 m). For 2001as a whole, sales were $457.5 m ($543.1 m). The net loss for Q4 was $21.5 m ($8.0 m) and Titan turned in a net loss for the year of $34.8 m, compared to a net income in 2000 of $4.5 m. President and CEO Maurice Taylor Jr. described 2001 as “difficult for all manufacturers.” On the positive side, Titan settled two long-running (39 months and 40 months) labour disputes and received approval to offer agricultural tyres and wheels through the Case New Holland dealership network.

21st February 2002/by Tyrepress Editors

New Products From Michelin and Kleber

Michelin wants to underline its reputation for innovation concerning agricultural tyres with the presentation of three new tyres: “MACHXBIB”, “XM 28” for tractors exceeding 180 horse power and the trailer tyre “CARGOXBIB”. The first one comes in two versions: an on-land version (650 mm wide) for transport and for work along the furrow and the in-land version (900 mm wide) with significantly reduced soil compaction and excellent traction performance. Highlight on the Kleber stand is the new “FITKER” a 70-series tyre that will be available in the two dimensions 480/70 R28 and 580/70 R38, and which replaces its predecessors, the “Super 8L” and “9L”.

28th December 2001/by Tyrepress Editors

“Ypsilon” by Continental

With the new “Ypsilon” tyre, which was shown for the first time at Agritechnica in Hanover, Continental is breaking into the 22.5 inch tyre sector. The Ypsilion combines all the benefits of implement and MPT radial tyres and is approved for speeds of up to 90 km/h (56 mph). Its all-round suitability means it can be fitted not only to trailed axles but also drive axles. In addition the new, revised Technical Manual comprising of over 100 pages has been published to coincide with Agritechnica. It contains a wealth of information about agricultural tyres, their tread patterns, tyre pressures and application conditions.

28th December 2001/by Tyrepress Editors

The European Market For Agricultural Tyres – Consolidation At All Levels

The worldwide market for tractors has seen many mergers over recent years but, with four big groups, this now seems to be coming to an end. Consolidation among tractor producers was regarded by their suppliers as a negative move, because the tyre manufacturers knew very well that the pressure on oe prices would intensify. In the European original equipment market for tractors, the three market leaders Michelin (including Kléber), Pirelli and Goodyear have a combined market share of 85 percent. This dominance was threatened in 1994, because the big tyre companies all trusted the (completely wrong)forecasts of their oe customers. Instead of the market contracting, the tractor producers found they could increase their sales. This was the hour of smaller tyre market competitors in the field, such as Continental or Firestone, “oe exotics” like Taurus or Galaxy – and even the hour of some specialist wholesalers: when before had vehicle producers been forced to go to dealers asking for tyres? However, the attack of the smaller tyre competitors was stopped, as the better service of the larger companies asserted itself, and the customer also helped things to return to the status quo. Unlike with car tyres, many buyers order their new tractor fitted with a certain brand of tyre. Because few farmers ask for Titan, Vredestein or Stomil, Pirelli, Goodyear and Michelin/Kléber regained their shares and the market returned to normal, once they had built up enough capacity to satisfy the oe business. Within recent years, market settlement also occurred because the number of independent tyre producers (but not the brands) has dwindled. Specialist producer Taurus (Hungary) and Stomil (Poland) became part of the Michelin group; Barum is a Continental brand. Others were looking for alliances and so the Romanian brand Danubiana (Tofan Grup) was on the wish list of Goodyear, because the US tyre concern found out that it lacked a brand at the economy level. (Later Goodyear managers considered Sava could fit the bill.) The US brand Titan has had a lot of problems in its North American home market and had to sell some niche segments. Israel’s Alliance closed one of two factories, Vredestein suffers under the high prices for raw-materials, Finland’s Nokian even gave the order to Michelin’s Poland plant (Stomil) to produce agricultural tyres because it did not seem sensible to produce this kind of tyre in the Finnish factory. Consolidation in the segment of agricultural tyres has not yet come to an end.

30th November 2001/by Tyrepress Editors

Agricultural Tyres From Uniroyal

Uniroyal is well-known for passenger and truck tyres. Now the brand, part of the Continental group, is trading under the name Uniroyal Agro in the agricultural tyre segment also. The exclusive distributor in Germany is Meyer Lissendorf, and negotiations are on-going regarding distribution in other European countries.

30th November 2001/by Tyrepress Editors

New Engagement In Agricultural Tyres By Continental Group

Over the last 20 years, agricultural tyre business has not been very important for the Continental group, and at times, the whole segment was in question. Later they got over this with off-take-agreements, when Eastern European companies were allowed to produce tyres with the logo of the prancing horse, in order to maintain market representation. Has this all gone by now? It seems so, because since they have been producing agricultural tyres in Otrokovice’s new plant where some new machines have been installed, price and quality go together again, hence Werner Flebbe’s (55) managers in Hanover feel to be able to cope with the world-wide competition. However, Otrokovice is just a production site from where the agricultural tyre section can order, but it is an important one. Today, Continental certainly is the group’s first choice, offering the widest assortment and being distributed most efficiently. But already, the Barum brand, with its impressive variety, is being called a “volume brand”, and incidentally, in the radial tractor tyres segment, including the 75 series, it bears a remarkable resemblance to the Continental Contact. While Conti tyres are being sold throughout the whole trade, it was Flebbe’s idea to distribute Barum tyres in Germany only through some core dealers. Six big dealers (Wennekamp, Vergölst, Ihle/Günzburg, Schwarz, Semex and Brock/Weilerswist) have been given the exclusive right to promote Barum tyres, which means that they can sell to both trade and consumer. However, Hanover went a step further: The Uniroyal brand, which could have been placed very easily on the German market, has been offered exclusively. In an interview Thorsten Bublitz, responsible for marketing and sales of Conti’s agricultural tyres, assured, that by now Meyer Lissendorf has nearly all important sizes available, and it is planned to offer the complete range, with 68 sizes altogether, in September.

30th November 2001/by Tyrepress Editors