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CTNA to Cease Tyre Production in May

Continental Tire North America will stop tyre production at its Charlotte plant in July, earlier than its previously announced date of September, because of “worsening business conditions,” local news sources have reported

Under this plan, the company will lay off more than 700 workers between this Friday and July. Previously, Continental had said it would cut 172 workers Friday, 50 in June and 478 in September. The company plans to shift production to its non-union plant in Mount Vernon, Illinois, and to its factories in Mexico and Brazil.

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Related news:

  1. Titan and Continental in Asset Acquisition Talks
  2. CTNA to Close Former Mayfield Tyre Plant
  3. Union Ratifies Continental’s Severance Agreement
  4. CTNA on the Move in 2009
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“A World of Tyres” at the Marangoni Village

The Marangoni Group will this year share one impressive stand at the Reifen exhibition. This initiative will be called the “Marangoni Village” and will feature all the latest news, products, technology and services offered in the Marangoni Group’s areas of business: For Car Tyres, the Marangoni high and ultra high performance car tyre ranges, together with specialist winter and SUV products, will be on show.

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Related news:

  1. Putting the UK Market in the Picture
  2. Marangoni Village Returns to Essen
  3. Marangoni Village Returns to Essen
  4. Marangoni System a ‘Reliable Alternative’ to Delocalisation
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Vipal Preaches Benefits of Tyre Retreading

Brazilian company Borrachas Vipal S.A., a leading worldwide manufacturer of tyre retreading and repair products, will be participating at Reifen 2006—and will be showcasing its complete line of products, particularly its exclusive retreading and repair lines.

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Related news:

  1. Marangoni System a ‘Reliable Alternative’ to Delocalisation
  2. Michelin to Establish New PCR Plant in Mexico
  3. Bridgestone to Increase Aircraft Tyre Capacity
  4. Diamond Jubilee for Alcoa
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Pirelli and Maserati Agreement Renewed

Pirelli has extended its initial three-year collaboration agreement with Maserati for a further two years. So far the accord has helped both parties achieve success on and off the racetrack. From a motorsport perspective this means constructors and team titles in the 2005 FIA-GT championship with the Maserati MC12 on P Zero Racing tyres, the numerous victories of the Modena two-seaters entered by a number of teams in international and national championships including the Italian GT series title and the great success among both participants and spectators of the Trofeo Maserati, the fourth of which began in early April at Monza.

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Related news:

  1. Trackday Tyre Tips from Service & Sport
  2. Pirelli Confirms 2005 Motorsport Involvement
  3. Pirelli to Sponsor ANCRO and MSA Gravel Rally
  4. Dunlop, Ferrari to Attempt Le Mans Series Hat-trick
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Analysts: Brazil Plant Will Help Conti Save 100 million

Following the news that Continental’s Bahia, Brazil plant is officially open, analysts have reported that the company’s decision to increase production in “low-cost” countries could save between 100 and 110 million US dollars. According to Deutsche Bank, this calculation is based on average per worker production of 6000 tyres/annum against “10 times lower” labour costs compared with the US. The report also suggested that the additional transportation/logistics costs incurred are equivalent two US dollars per unit.

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Related news:

  1. Analysts Believe Charlotte Plant Closure Inevitable
  2. Continental Opens Brazilian Factory
  3. Continental Boosts Profits in 2006
  4. Nokian Using Russian Capacity in Difficult Market Conditions
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Continental Opens Brazilian Factory

Continental AG has just opened its new tyre plant in Brazil and said that it should be operating at full capacity within the next 18 months. “The new low-cost production capacities play a key role in our concept for the future passenger tyre business in the loss-making NAFTA region. At the same time, the capacities allow for profitable growth,” CEO Manfred Wennemer said in a statement released in Germany.

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Related news:

  1. Continental To Invest In Brazil, Malaysia
  2. EIB Lend a Hand to Conti Brazil
  3. Bridgestone Ranked as Top Foreign Investor in Poland
  4. CTNA Announces $78 Million in New Investments for Mt. Vernon Plant
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Pirelli Opens New Truck Tyre Plant in Brazil

(Akron/Tire Review) Pirelli SpA’s new $50 million truck tyre plant in Gravatai, Brazil, has been officially opened. Located inside Pirelli’s motorcycle tyre development and production facility, the new plant covers 573,000 square metres and will produce some 12,000 tonnes of tyres per year at full capacity. Some 80 per cent of the new plant’s truck tyre production will be for the Brazilian market, and the other 20 per cent will be exported primarily to other Latin America countries, according to Pirelli.

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Related news:

  1. New Pirelli Plant in Brazil
  2. European Autos Conference Feedback
  3. Pirelli To Build Specialist Cable Plant in Brazil
  4. Lanxess Acquisition of Majority of Brazil’s Petroflex Completed
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“Marangoni Village” At Reifen 2006

Italian Industrial Group, Marangoni, will promote its activities in Essen this year on a 500 square metre stand concept, which the company calls “Marangoni Village.” Marangoni recently took steps to streamline its organisation. The company continues to produce passenger car tyres in a factory near Rome. As far as the retreading business is concerned, many experts see Marangoni as the leading company in respect to technological developments and innovation. The group runs factories in Italy, Germany (Ellerbrock), USA and Brazil. Last year group turnover exceeded 300 million euros.

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Related news:

  1. Marangoni Launches Ringbuilder 3000
  2. New Marangoni Facility
  3. Marangoni System a ‘Reliable Alternative’ to Delocalisation
  4. TRIB Welcomes Nine New Members
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CTNA Plans to End Charlotte Production

Continental Tire North America (CTNA) says it will suspend production at its Charlotte, North Carolina tyre plant in mid-September. CTNA has already threatened to cut production in half at the plant, laying off some 513 workers in total over two separate reductions, the first scheduled to take place 15 March and the other in June.

“Due to skyrocketing costs for energy, raw materials and health care, CTNA cannot continue to operate the Charlotte plant with our current manufacturing cost structure,” said Alan Hippe, CTNA’s president and CEO. “Because we have so far been unsuccessful in restructuring our labour agreement with the union to significantly reduce manufacturing costs, CTNA must take immediate steps to reduce its costs.”

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Related news:

  1. Vipal Preaches Benefits of Tyre Retreading
  2. Marangoni System a ‘Reliable Alternative’ to Delocalisation
  3. Yokohama Tire Increasing OTR and Truck Tyre Prices
  4. Bridgestone Opens Carbon Black Plant in Mexico
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Bridgestone Summer Tyres Top German Tyre Tests

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Bridgestone tyres have topped a number of comparative tests in some of Germany’s leading automotive publications. The Bridgestone Potenza RE050A was one of just two models to receive the top ‘highly recommendable’ rating in its category from ‘ADAC Motorwelt’. The respected journal of Germany’s automobile association compared a line-up of 17 225/45 R17 Y/W tyres running on a Mercedes C-Class 230 – with dry handling evaluated at the Nürburgring; and wet performance, comfort, noise and rolling resistance measured at the Contidrom complex near Hamburg.

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Related news:

  1. NTDA Names 2007 TAFF Award Winners
  2. Pirelli P6 & Cinturato P4 Fare Well in UK, European Tests
  3. Conti Reports Strong Results in European Tyre Tests
  4. Pirelli’s Presence in US OE Growing
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Roadstone Hits the Market

Korean manufacturer Nexen Tire has strengthened its UK presence by launching its Roadstone brand on the market. This will be exclusively distributed across the UK by award winning wholesaler BITS. Roadstone has been available in the Republic of Ireland through Phillip White tyres since November. The news that Nexen’s Roadstone brand was coming to the UK follows that company’s decision to open a London office at the end of 2005. Tyres & Accessories interviewed Nexen managing director, David Sul, Frankfurt office manager, Anthony Han and new London office manager Bong Lee at BITS’ head office in Bristol.

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Related news:

  1. Nexen to Build Chinese Plant
  2. Vipal: Aiming for the Top Three
  3. Watts Becomes Certified Toyota Supplier
  4. Deldo – the Winter Tyre ‘Specialist’
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Standing Out From the Crowd

Fate SAICI is something of an anomaly in South America. While the tyre markets in every other country in South America are led by the regional wings of multinational corporations, Fate is Argentina’s largest tyre producer ahead of Bridgestone Firestone Argentina and Pirelli Neumaticos. Tyres & Accessories asked Fate’s Walter Hack what it is that sets the company apart and learnt of some developments within the company’s product portfolio.

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Related news:

  1. Pirelli Asserts Itself as Latin America’s Number One
  2. Conti to End Argentina Licensing Partnership
  3. Vipal and Fate Sign US$200 million Tyre Factory Memorandum of Understanding
  4. Fate distributing Cooper tyres in Argentina – production, research collaboration may follow
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Watts Industrial Tyres Expands Brazilian Output

Gloucestershire, UK-based, Watts Industrial Tyres has expanded its production facility in Brazil, together with its joint venture partner, Souza Pinto Ind.& Com. De Artefatos De Borrahca Ltda.

Watts and Souza Pinto commenced manufacturing of a limited range of resilient solid tyres in late 2001, and have expanded the facilities product range over the last four years. The initial strategy in setting up the facility was to service the rapidly growing Brazilian market, as well as taking advantage of the opportunities presented by the Mercosur markets. The Brazilian Watts factory and central warehouse is based in Lorena, on the main Rodovia Presidente Dutra highway between Sao Paolo and Rio de Janeiro, and has grown from a 1,300 square metre facility to its new current size of 4,400 square metres.

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Related news:

  1. Watts Becomes Certified Toyota Supplier
  2. Japanese Tyre Machinery Manufacturer Forms Indian JV
  3. Trelleborg launches the TM Blue sustainability concept
  4. Interstate invites customers to drive in Arctic circle challenge
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Continental AG Publishes Record Sales and Earnings

Continental AG’s consolidated sales rose by 9.8 per cent to 13.82 billion euros (prior year: 12.59 billion) in 2005. The company’s operating result (EBIT) increased at an even higher rate of 30.2 per cent to 1.5 billion euros (prior year: 1.15 billion). The return on sales amounted to 10.9 per cent (prior year: 9.2 per cent). “When adjusted for scope of consolidation and one-time effects, EBIT in 2005 rose by 165.1 million euros over the previous year,” explained Dr Alan Hippe, executive board member responsible for finances.

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Related news:

  1. Continental Asks for 35 per cent Pay Cut
  2. Conti Has 3 Billion Euros to Invest, CFO Says
  3. Continental Boosts Profits in 2006
  4. Continental Tire to raise prices
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Titan CEO Get Political

(Akron/Tire Review – Quincy Herald-Whig) Morry Taylor, who created a stir when he ran for president in 1996, is shaking things up again. This time, the president and CEO of Quincy-based Titan International took out a full-page ad 2 February in USA Today calling on Americans to demand common-sense solutions to some of the problems facing this country.

The top of the ad reads in bold print: “Americans are you stupid? I don’t think we are, but politicians, bureaucrats and the intelligent elite think so.” Taylor used the ad as a platform to express his views on a variety of issues he feels are being mishandled by the nation’s leadership.

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Related news:

  1. Record US Tyre Shipments
  2. Titan CEO Says He’ll Buy Plant With or Without Union
  3. Kumho Delays US Facility
  4. Michelin Will Take Role in Industry Consolidation
/by

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