Hayes Lemmerz to Formalise Russian JV
Hayes Lemmerz International Inc plans to transform its technical alliance for the licenced manufacture of passenger car steel wheels in Russia into a formal joint venture over the next couple of years.
Tag Archive for: Alliance
Bandag Positive Despite 2006 Complications
Product NewsBandag EMEA has released a press statement in which they describe their outlook for 2007 as ‘optimistic’. Despite what the company describes as a difficult year for the business unit, with setbacks including the loss of their major fleet customer GE TIP, Bandag believes this year will be one of opportunities, with the growth of their dealer base in 2006, which reached 5.8 per cent, continuing this year.
Ceat OE Supplier for Global Automobiles PVT Ltd
Product NewsCEAT Ltd. has wrested the rights to become the official OE Supplier for Global Automobiles PVT Ltd. In keeping with the requirements of the Indian Market, Global Automobiles PVT Ltd plans to enter the market with three variants of their two-wheeler product, that is, 100cc, 125cc, 150cc motorcycles.
A joint venture to set up this two-wheeler project at Chinsura in Hooghly district was signed between the city-based Global Automobiles Pvt Ltd, a wholly owned subsidiary of the Xenitis Group and Guangzhou Motors Company of China in November 2005.
Pirelli Forges Links with Vacu-Lug
Product NewsPirelli UK Tyres Ltd is joining forces with Vacu-Lug, the UK’s largest independent retread manufacturer, in a strategic alliance that stands to strengthen the position of both companies.
Future Looking Brighter
Product NewsWith 2006 proving to be a tough year for the North American tyre industry, Continental AG Chief Executive Manfred Wennemer believes that things look set to improve in 2007.
Speaking to media at the North American International Auto Show, he pointed towards declining raw material costs, a potential upswing in replacement demand and reduced operating costs as signs of better times. “I am convinced 2007 will be a good tyre year” said Wennemer. “We do see there is some demand for the market that was not satisfied in 2006.”
More Details of Navistar – Double Coin Deal
Product News(Akron/Tire Review) Citing the effects of a global shortage on commercial truck tires, Navistar has opted to add China-made Double Coin radial truck tires to its OE mix. Navistar signed a deal with China Manufacturers Alliance to put Double Coin radials on “several platforms” of its Class 4-8 International vehicles and IC Corp. buses.
The move marks the first time that a China-produced truck tire has earned an OE position with a major North American truck producer.
Exec Director quits Balkrishna, Plans to Purchase Alliance
Product NewsFormer Balkrishna Industries Ltd executive director Yogeshkumar (Yogesh) Mahansaria and his brother Ashokkumar have reportedly quit the fast-growing Indian tyre producer, citing “family differences” as the reason. Yogesh has now teamed up with US equity firm Warburg Pincus to Acquire Israel’s Alliance Tire for US$45 million.
Alliance has been in negotiations with the two buyers, and the transaction is expected to be completed before June. The Alliance purchase forms part of a new venture that Yogesh Mahansaria has been quoted as saying he intends to float in the near future.
Herman Trend Alert: Manufacturers Being Squeezed
News(Akron/Tire Review) In the United States and elsewhere, structural (non-wage) costs for manufacturers, as a percentage of the total costs, are continuing to rise. According to a study released in September by the U.S. National Association of Manufacturers (NAM), The Manufacturing Institute and the Manufacturers Alliance/MAPI, structural costs increased from 22.4% to 31.7% of the total costs, compared to similar costs for similar companies in nine trading partner countries in 2003. “(This) sharp rise in these non-wage costs represents a significant and long-term problem for our nation’s manufacturers and America’s economy,” said John Engler, president of the NAM.
Lexani Names Two Exclusive Distributors
Product News(Akron/Tire Review) Lexani has selected two exclusive US regional distributors for its Lexani high performance tyre line. Terry’s Tire Town, based in Alliance, Ohio, will offer the line in Ohio, Maryland and Virginia, while Wheel City Wholesalers, based in Eagan, Minn., will cover Minnesota, North Dakota, South Dakota and Wisconsin. “The Lexani name on a line of tyres fits in perfectly with our target market,” said Chad Murphy, president of Wheel City Wholesalers. “It is also the only brand of performance tires we have an exclusive on in our territory. The Lexani tyre line is one we expect our dealers to be able to sell profitably as a high quality premium brand.”
Warburg Pincus to Buy Control of Alliance Tire
Product NewsAlliance Tire Co. ltd. has announced that international private equity fund Warburg Pincus is interested in acquiring the 80 per cent controlling interest in the company from Fishman Holdings at a value of $348 million. Warburg Pincus has invested $20 billion in 525 companies.
Alliance Major Shareholder Agrees to Sell Up
Product NewsAlliance Tire Co. ltd. has announced that Eliezer Fishman has signed a memorandum of understanding (MOU) to sell his direct and indirect holdings in the company to a group of investors at a price reflecting a company value of $48 million, 20 per cent above its market capitalisation. In the MOU Fishman promises not to negotiate with third parties for 10 weeks. During this period the buyers will conduct due diligence and complete negotiations for buying the shares.
Need Forklift Tyres?
Product NewsKirkby Tyres reports that it has been involved in the supply of forklift truck tyres for around 40 years. The company is sole UK agent for Double Coin radial products and Armour Crossply industrial tyres, which are normally sold complete with a tube and flap.
Arnco Gets Deal With ACTN Member Dealers
Product News(Akron/Tire Review) Tire-fill maker Arnco will provide its polyurethane flatproofing material to the American Commercial Tire Network (ACTN), a buying group representing a group of commercial tyre dealers. Founded in 1999, ACTN is an alliance of 17 independent commercial tyre dealers located in 41 states and with more than 75 retread plants and 320 service locations.
Alliance Tire Wins $4 million Caterpillar Contract
Product NewsAlliance Tire Co. ltd. has signed a supply contract with Caterpillar Inc., the world’s largest manufacturer of heavy engineering equipment. Alliance Tire expects the contract to generate $4 million revenue through December 2007. According to Alliance, the relationship could create other business opportunities for the company and help it penetrate new markets.
Macquarie Bank Buys Inflation Company for US$470 million
Product NewsA consortium led by the Macquarie Capital Alliance Group (MCAG), which is part of the Macquarie Bank Group, has acquired the world’s largest operator of tyre inflation vending equipment, ASI Holding Corp, for $US420 million. According to local news reports, MCAG will invest up to $109 million, which is up to 61 per cent of the total equity requirement of $179 million.
