Asia
Although it retains a positive view of long-term developments, Germany’s Lanxess AG has admitted its current performance falls short of the company’s own expectations. Board of Management chairman Axel Heitmann spoke frankly upon the release of the specialty chemicals firm’s second quarter 2013 results – figures that include a 95 per cent year-on-year drop in net income.
Following on from its acquisition of Cooper Tire & Rubber, Apollo Tyres intends to focus investment where it anticipates growth – and vice-chairman and managing director Neeraj Kanwar has identified one such area as Eastern Europe.
Bridgestone’s title sponsorship of the World Golf Championships-Bridgestone Invitational has been extended through to 2018. The continuation of this arrangement, which began in 2006, was announced by Bridgestone Corporation CEO Masaaki Tsuya and Bridgestone Americas CEO and president Gary Garfield together with Commissioner Tim Finchem, who represents the International Federation of PGA Tours, during a press conference prior to the leaders teeing off for the final round of the 2013 Bridgestone Invitational. Bridgestone also extended its official marketing partner relationship with the PGA Tour through 2018 and will remain the “Official Tire of the PGA Tour and Champions Tour.”
Reporting its second quarter and first half results, Executive Board chairman Dr. Elmar Degenhart cautioned that the stronger development seen in the second quarter shouldn’t be viewed as a turnaround; rather, sales developed better due to seasonal and technical factors. The European market – where Continental makes 55 per cent of its sales – was described as unstable, and following what the company calls “modest development” in the region’s replacement tyre market in the first half of the year, Continental states its previous estimate for the segment “no longer seems possible.” It now anticipates an “increase of one per cent at best.” The company also said growth in the Asia and NAFTA regions is “also expected to diminish as the year progresses.” As a result, Continental has decreased its full-year forecast from growth of five per cent to four per cent, or “around €34 billion”.
Yokohama Rubber Corporation has appointed Koichi Tsuruno president of Yokohama Asia Co., Ltd. Tsuruno begins in this role on 1 August. He retains his position as corporate officer and president of Yokohama Tire Manufacturing (Thailand) Co., Ltd., which he commenced on 1 July.
Goodyear Tire & Rubber has announced what it says are record second quarter earnings, and even its European business showed signs of improvement. Net income more than doubled year-on-year from $85 million in Q2 2012 to $181 million, or $0.67 per share. This exceeded the average analyst estimate by $0.19, and company chairman and CEO Richard J. Kramer said the result demonstrates “the disciplined execution of our strategies by Goodyear associates around the globe as our operations become more efficient, reliable and integrated.”
Chinese tyres often rank poorly in comparative tests undertaken by European publications, unable to match the performance of premium rivals. But what sort of tyres do these premium manufacturers themselves produce for the Chinese market, and how would they fare against their European market siblings? German motoring magazine Auto Bild assigned its staff the task of finding out, and the results were interesting.
Exhibition organisation company ECI International has announced dates for the forthcoming 2014 British tyre exhibition, Brityrex International, which will run from 7 – 9 October 2014. Like the last edition of the show, the 2014 event will once again be held at the EventCity exhibition centre in Manchester.
ECI International is now a wholly-owned subsidiary of Singex-ECI International Pte Ltd following the company’s acquisition by Singex Exhibition Ventures (SEV). According to the companies, the Tyrexpo series of events (including Brityrex in the UK) will continue to be marketed as “An ECI International Event” providing all exhibitors, supporters, partners and visitors with a joint commitment to service excellence. Working closely with ECI founders, Paul Farrant and Rowena Suthers, this will include expansion into new market segments. As a result of the investment SEV reports that it will put its “full resources” to work on the organisation of future Tyrexpo events, to assist them reach their full potential.
Demand for low rolling resistance tyres, and the materials necessary for their production, has far from peaked. Evonik Industries believes demand will rise by 18 per percent a year for the coming five years, and has responded to this expected growth by increasing capacity for silica. The company plans its silica capacity to reach 30 per cent above 2010 levels by 2014, and part of this increase will come through an expansion of its Maptaphut site in Thailand.
Continental’s Nikolai Setzer recently outlined the company’s intention to invest in non-automotive areas (more on this in Tyres & Accessories’ August magazine), but his comments by no means indicate a drawing away from the automotive business. The German firm’s continued interest in this area could be seen at the groundbreaking for the new extension to its research and development centre in Singapore.
India’s RPG Enterprises, parent company of Ceat Ltd, shares that the tyre maker aims to become one of the most profitable firms within the domestic market. Comments made by Ceat managing director Anant Goenka to this effect during an interview with local motoring journal Motown India were published on RPG’s website on 25 July.
Vipal has been recognised for its activities in international markets in an awards ceremony hosted by Porto Alegre trade association ADVB. President Arlindo Paludo received the 2013 Export Award for Market Diversification on 8 July, joining other exporters from the state of Rio Grande do Sul in a variety of categories. Paludo said: “This award is one of the fruits of Vipal’s entire 40 year history. We have always bet on developing products featuring high quality and technology, and have never set environmental preservation aside. It’s a great pleasure to see important competitions like the Export Awards recognizing that.”
In its April-June interim report, Trelleborg reports a 5.6 per cent year-on-year rise in sales for its Wheel Systems business area, with net sales amounting to SEK 1,111 million (£111.4 million) during the quarter. The company states that sales of agricultural tyres were level with the year earlier period, while sales of tyres fitted on materials handling vehicle were weak during the quarter, primarily in Europe. Operating profit remained at a similar level to a year earlier, rising 3.0 per cent to SEK 137 million (£13.7). Operating margin declined from 12.6 per cent to 12.4 per cent.
Oman’s official news agency reports that the country’s Public Authority for Consumer Protection (PACP) has taken action against an establishment that regrooved end of life passenger car tyres and sold them to consumers as semi-new. In a statement, PACP chairman Dr. Said bin Khamis al-Ka'abi shared that a number of businesses, with links to “some expats”, have sold tyres unfit for use as semi-new; he referred to this as a “serious crime” that has “negative dimensions and effects on the safety of consumers.”
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.
