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Hamburg Distribution Centre Offers Vipal Further Opportunities

When Brazilian based retreading materials supplier Borrachas Vipal boosted its European market presence in 2005 with the opening of its first distribution centre, the company’s goal was to be one of the largest suppliers of tyre retreading and repair material on the continent, a brand recognised for the quality of its products. Vipal Europe believes this goal has been, three years later, well and truly reached, and confirmation of the company’s ever-stronger position in Europe can be witnessed through the establishment of a third distribution centre in the region.

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Columbian Opens Carbon Black Plant in Brazil

An inauguration celebration has been held for Columbian Chemicals’ latest carbon black manufacturing facility. Work on the new plant, located in Camaçari Pole, a chemical complex in Brazil’s Bahia state, began in September 2005, and the company notes this operation at Camaçari Pole incorporates the latest environmental and energy conservation technologies. The US$75 million facility has a production capability of 75,000 tonnes, which can be expanded as the market develops; two tyre factories using the end product operate in the region, one belonging to Bridgestone/Firestone and the other to Continental.

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Yokohama to Manufacture Tyres in Brazil, Russia

To meet growing demand in Russia and Brazil, Yokohama Rubber intends to begin manufacturing passenger car tyres in these two countries, with production commencing as early as 2010. Tyre supply in both markets is currently met with tyres manufactured in Japan and the Philippines, however a company spokesman reports that the combination of strong business prospects and the opportunity to avoid high import tariffs has led to the decision to set up local operations.

“It makes more sense to produce tyres there and sell them directly in the region,” he said. “We’ll keep shipping value-added products from Japan. The spokesman added that the facilities in Brazil and Russia will “start small and expand if and when sales increase.”

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Brazilian and Indonesian Companies Join TRIB

Pneuback Industria E Commercio De Pneus Ltda. from Brazil and PT Ossiana Sakti Ekamaju from Indonesia have joined the Tire Retread & Repair Information Bureau (TRIB). “TRIB now has nearly 500 members in 50 countries and we expect to see continued growth,” said Harvey Brodsky, TRIB managing director.

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Conti to End Argentina Licensing Partnership

At the end of July Continental’s existing tyre production arrangement in Argentina comes to an end, and the company has plans to replace this current licensing deal with a direct subsidiary. Tyres sold in this market will henceforth be sourced from elsewhere.

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  1. Standing Out From the Crowd
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Vipal Opens New Warehouse in Hamburg

Less than three weeks before the Essen show, Brazilian retreading material supplier, Borrachas Vipal demonstrated just how much the company developed its export business. The news was that the company that had long been market leader in Brazil had chosen Mexico as the site for its first non-domestic production plant. At the time Vipal’s International Business Director, Maria Locatelli, explained that Mexico was chosen because it is an “entrance door” to the US. However, during an interview with Tyres & Accessories at the recent Reifen exhibition, Maria Locatelli explained that increased production in Mexico would also benefit European customers, both economically and due to shorter delivery times.

The main strategy behind the investment is to make use of Mexico’s North American Free Trade Agreement (NAFTA) ties. However, the company also intends to capitalise on the production cost benefits available in the petrochemical producing country, with a view to passing a saving onto consumers in export markets like Europe. “This is not the main target, but there will be possibilities to supply [Europe],” said Maria Locatelli.

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Goodyear Shares Slump

Following Goodyear’s announcements yesterday concerning the company’s closure of its Melbourne plant and its plans to invest further in Brazil and China and to refurbish four of its American facilities, NYSE shares in the organisation fell by a steep 11.2 per cent. The drop sees the company’s stocks fall to their lowest value since December 2006.

Reports suggest that the dip has been caused by a variety of factors compounded by the manufacturer’s strategic announcements. The decline in the market for replacement tyres, especially within the heavy vehicle sector, and perpetually rising fuel and raw material costs have led both to Goodyear’s aggressive – and developing-market regarding – approach and the company’s slump in the stock market.

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Goodyear to Boost Chinese, Brazilian Investment

American news sources have reported that following its closure of a tyre plant in Australia, Goodyear intends to refurbish four plants in the USA, while making further investments in China and Brazil.

Chief Executive Officer Robert Keegan is quoted as saying “We anticipate capital investments totalling between $1 billion and $1.3 billion per year from 2008 to 2010.” While the US manufacturing plants due for refurbishment were not yet specified, it is reported that the company will look to invest around $700 million over five years in an effort to modernise the facilities.

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Michelin Figures Reveal Varying Fortunes

Michelin reports healthy OE sales of radial truck tyres throughout Europe in May and for the 2008 year to date. Sales for the month were 11.2 per cent greater than those of a year earlier. Sales were significantly weaker in the replacement market, were a decline of 12.5 per cent on May 2007 was reported, and in both the OE and replacement segments of the European market. During the month unit sales for these dropped 4.9 and 4.3 per cent respectively. Sales of OE passenger car tyres for the period between January and the end of May, contrary to the month’s figures, were up 3.1 per cent, while the replacement sales dropped 1.9 per cent. Truck tyre OE sales increased 14.3 per cent in Europe between January and May, while sales in the replacement market was down 4.6 per cent on the five-month period of 2007.

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  4. European Tyre Volumes Remain Weak
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Continental Produces 500 millionth Floating Brake Calliper

On July 19 Continental celebrated the production of the world’s 500 millionth floating calliper at its facility in Rheinböllen, Germany. Commenting on the occasion, Heinz Zingel, executive vice president of the Company’s Hydraulic Brake Systems Business Unit, which belongs to the Chassis & Safety Division, said “Each year, the Hydraulic Brake Systems Business Unit produces more than 33 million floating callipers at sites in Germany, the United Kingdom, Spain, Portugal, the Slovak Republic, the USA, Brazil, China, Japan and Taiwan. Annual production is some ten million at Rheinböllen alone, making it the world’s leading production site for Continental brake callipers.”

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Gori: Pirelli Must Expand in China, Russia & Brazil

Pirelli Tyre must consolidate its presence in mature markets and expand in high-growth areas such as China, Russia and Brazil, stated CEO Francesco Gori in an interview with Italian newspaper Milanzo Finanza. When asked why he did not include India as a focus country, Gori said sales in this market are impacted by the absence of a modern highway network: “India is not yet at the level of Brazil, China, and Russia.”

Mr. Gori said raw material prices have risen more than expected and that in such difficult market conditions, meeting targets is a challenge. He added that a listing of Pirelli Tyre is not on the agenda, and will not be considered in the near future.

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Federal Travels to Brazil Event

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Federal Tire took its Federal and Hero brands to the recent Salao De Accessorios Brazil, a major tyre and automotive trade and consumer show in South America. Federal said it was the first time it had presented both brands at an industry trade show. Federal was at Salao De Accessorios Brazil to meet with potential customers throughout Latin America.

Federal’s booth at the show featured a motorsports theme, and included displays of its Federal 595 RS sport racing tyre, 595 EVO street tyre, Hero Milanza HZ1 ultra-high performance tyre and Atlanta AR01 passenger tyre.

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Pirelli Invests $65 million in Egypt Tyre Plant

The Pirelli Group is to increase truck and bus tyre production capacity in Egypt by 50 per cent through the investment of $65 million dollars in its Alexandria TBR plant. The announcement was made by the Chairman of Pirelli & C. SpA, Marco Tronchetti Provera, to Egyptian Trade and Industry Minister, Mohamed Rashid, on the occasion of the Italian-Egyptian inter-governmental meeting taking place in Rome. The new investment will allow the factory in Alexandria to increase its annual production to 1 million pieces and become the largest site for manufacturing radial tyres for industrial vehicles in the MEA (Middle East and Africa) area.

According to an official statement on the matter, the growth of production capacity will be focused on “the most advanced product and process technologies able to express maximum performance both in terms of the needs of emerging markets and with respect to the requirements of the main customers in Continental Europe.”

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Vipal Launches VRT1 Tread

Increasingly influential Brazil-based retreading material producer, Borrachas Vipal, has launched a new medium to long-haul tread. The new Vipal-branded pattern has a tread width of 205 millimeters and a tread depth of 15 millimetres. According to Vipal, the new tread improves traction and protects casing integrity.

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Continental to Sponsor 2010 World Cup

Continental Tyres has announced that it is to sponsor the 2010 FIFA World Cup in South Africa. According to the company, which also partnered the 2006 World Cup and is sponsoring this year’s European championship, the latest move is a continuation of its long-term marketing strategy based on football sponsorship, to deliver “huge global TV audiences.” Continental also has the option to extend its sponsorship to the 2014 FIFA World Cup in Brazil.

Continental has acquired the rights to promote the sponsorship of the 2010 FIFA World Cup worldwide and will link this to product communication. In addition, Continental has once again received a sizeable ticket allocation and premium hospitality, which has become an important cornerstone of its strategy.

“This sponsorship deal continues the marketing strategy we have been following since 1995 for all Continental tyre products and maintains our focus on football as a central communication platform for increasing brand awareness in our core markets over the next three years,” explains Continental Tyres UK advertising and sponsorship manager Tim Bailey.

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