Asia
Continental AG says automobile production in Europe and the US will remain stagnant next year, which is why it is stepping up expansion in Asia. The tyre and auto part maker said growth in emerging markets like China, India and Indonesia is important to its continued success.
Kumho Tire is betting that its new advertising campaign will help improve its image among consumers in South Korea. Thus far, the company said, the new softer, non-product focused ads have received positive reaction from consumers and the market.
Netherlands-based OTR tyre producer Magna Group has entered the Australian earthmoving tyre market with the arrival of Magna Tyres Australia in partnership with ADG Global Supply Pty Ltd. What is clear is that Magna Tyres is set to provide the market with a new alternative to the big three tyre makers. And this is a significant change because this market reportedly has not seen any new competitors in decades. The official Australian launch was held today (15 September 2010) in Perth, with numerous tyres on display and the opportunity to meet the founders of the Magna Group from The Netherlands. The launch of Magna’s OTR and industrial tyre range is accompanied by the construction of a new website – www.magnatyres.com.au.
Germany’s Lanxess AG reports it is evaluating viability of building a new neodymium polybutadiene rubber facility in Asia. The company has already taken steps to increase its capacity for producing the substance, an essential ingredient in the manufacture of high performance tyres, at its plants in Germany, Brazil and the US. The decision to expand capacity at existing plants was made in order to meet demand in the “green tyre” market, which Lanxess notes has an annual global growth rate of about 9.0 per cent, making it the industry’s fastest growing segment. A study into the feasibility of a 100,000 to 150,000 tonne per annum Nd-PBR plant in Asia is currently underway, and Lanxess says a final decision on the project will be made within the next six months.
In China, Cooper Tire has been continuing a series of measures designed to integrate the company into the communities in which it operates. One such programme is Cooper’s ‘Happy Soccer Class’ which recently saw Alex Koi, general manager of Cooper Tire China operations, lead his team of employees to Tanjiaqiao Central Primary School in Huangshan, also known as the Yellow Mountain, Anhui province. Since January 2010, Cooper Tire working closely with famous soccer commentator Huang Jianxiang, officially launched the Cooper Tires charity soccer with the theme of ‘The wheel of Joy – happy soccer class’. This campaign aims to teach soccer skills to the children.
Revenues at Indonesian tyre maker PT Gajah Tunggal Tbk are expected to grow by 20 per cent next year. An article recently printed by Bisnis Indonesia reports Gajah Tunggal director Catharina Widjaja as saying capacity will be expanded to meet growing demand; four-wheeler radial capacity will grow 5,000 units a day to 45,000, while motorcycle tyre capacity will be increased from 75,000 units a day to 90,000.
Continued growth in global demand for radial passenger car and light commercial vehicle tyres has convinced Bridgestone of the need to further expand capacity at its Nong Khae factory in Thailand. Capacity at the plant, which has supplied the domestic and key overseas markets including Asia, North America and Europe since entering production in 1995, has already benefitted from one capacity expansion project. In January 2008, work began on increasing daily capacity by approximately 6,000 units. This project is scheduled to be completed by 2011; now the tyre maker’s Thai Bridgestone Co., Ltd. subsidiary will invest approximately 21.3 billion yen (£164.9 million) to boost daily production capacity by 13,500 units to 50,000 units by the end of 2014.
On September 2, Kumho Tires celebrated its 50th anniversary in South Korea with the launch of a new product, the Majesty Solus. Some 200 guests attended a ceremony at the Shilla Hotel in Seoul to mark both the milestone and the new tyre’s release.
Bridgestone and its subsidiary Bridgestone Asia Pacific Pte. Ltd have donated over £41,000 to the flood relief efforts in Pakistan. The company has sold tyres in the country for 50 years, though it has no sales office there.
Maxxis International, which is owned by Cheng Shin Rubber has announced that it is to build a new production facility in Xiamen on China’s south east coast, where it already operates two successful factories. The announcement follows the news that the company will build a new plant in Chong Qing, south west China within a similar timeframe.
Retreading tool and rasp manufacturer B&J Rocket Sales AG has reported that its sales are back on the up after the recession. Speaking to Tyres & Accessories, managing director Andreas Mueller explained that during the first 7 months of 2010 sales showed “a strong upward movement” compared to the previous year. This probably isn’t too surprising considering the fact that like other players in the sector sales plummeted due to the economic recession. But in B&J Rocket’s case the effects of the recession were amplified by the fact that 2008, says Mueller, was the exact opposite of 2009 – it was a record year.
Rubber prices have reached their highest level in more than three months, in part due to concern that rainfall in key producing countries will reduce supply of the commodity. Heavy rain is expected across Thailand, the world’s number one producer, and a La Nina weather event may persist in Southeast Asia until at least the end of this year.
The amount Hankook Tire invests in Indonesia could be as much as US$1.2 billion. Gita Wirjawan, chairman of the Indonesia Investment Coordinating Board, has been quoted by Indonesian media as saying Hankook has “informed us that they will likely choose Indonesia.” According to the Jakarta based newspaper Bisnis Indonesia, work on the 15 million tyres per annum capacity plant will begin at the end of the year.
Giti Tire USA certainly made a lasting impression with its very first product demonstration event in North America – blistering track speeds on a blistering hot day in Arizona, reports Tire Review. The company unveiled its new Champiro HPY ultra-high performance line at Firebird International Raceway, where air temperatures hovered around 106˚F and track asphalt temps were measured at 160˚F-plus. And based on the response of dealers and media attending the event and putting the new radial through its paces, the Champiro HPY lived up to its billing. Even after three lengthy road course driving sessions, the HPYs on a collection of BMW and Mercedes models showed no ill effects and none of edge feathering one would expect under such extreme conditions.
Upon releasing chemical manufacturer Lanxess AG’s financial results for the second quarter of 2010, the company’s Board of Management chairman Axel Heitmann commented on the ten best-selling Lanxess products: “This list features eight rubber products from the Butyl Rubber and Performance Butadiene Rubbers business units for the manufacture of tyres,” he stated.
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