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Michelin Buys Oliver Rubber for $69 million

Michelin North America, Inc. has announced that it has signed a definitive agreement to acquire Oliver Rubber Company, the Cooper Tire & Rubber Company tread rubber and retreading equipment subsidiary, for $69 million. The acquisition is subject to final due diligence as well as Federal Trade Commission and U.S. Department of Justice approval. Following the acquisition, Oliver will operate as a subsidiary of Michelin North America, Inc.

According to an official statement on the subject: “This acquisition will complement the manufacturing capability and service network of Oliver with that of the Michelin Retread Technologies (MRT) network, enabling Michelin to extend its reach in the growing commercial retreading market. In 2005 Michelin announced a major expansion of its tread manufacturing facility in Covington, Ga. and, earlier this month, the opening of a new manufacturing facility in Mexico.”

31st July 2007/by Tyrepress Editors

Kumho Plans Major Capacity Boost at New Plant

(Akron/Tire Review) South Korea’s Kumho Tire Co. already plans to expand annual capacity at its brand new Changchun plant, nearly doubling tyre build from 3.15 million to 6.3 million tyres. The expansion will take an investment of $108 million, Kumho officials said.

The plant began production on July 27, and will be the primary OE tyre supplier to Chinese carmaker First Automotive Works.

30th July 2007/by Tyrepress Editors

Impact of Rolling Resistance on Fleet Operator’s Bottom Line

As fuel prices continue to increase, resourceful fleet operators are seeking ways to offset their rising costs. One answer is to make more efficient use of fuel to lower the cost per kilometre driven, which is where tyre design has a significant influence. Although on paper tyres only appear to constitute a nominal proportion (3 per cent) of the operating costs of a 40-tonne truck in Europe, the choice of tyre directly influences both fuel costs (17 per cent) and maintenance/repair costs (9 per cent) – so ‘tyre-dependent’ operating costs in fact total 29 per cent.

For a truck tyre to contribute to the operating economy of a fleet, it must of course be maintained at the correct pressure to achieve optimum fuel consumption and ensure low casing wear for long service life. More significantly, it must possess low rolling resistance. An it is this area that has received renewed attention Continental Truck Tyres product development teams.

27th July 2007/by Tyrepress Editors

Welsh JV Liquid Nitrogen Facility Opens

TyreGenics’ new £4 million recycling facility in Wales opens today. The facility, which uses liquid nitrogen to freeze shreds of tyres to below –80C before pulverising them into tiny crumbs, is the first facility of its type in northern Europe.

The new plant is said to have a capacity of 80 tonnes per day and will employ approximately 30 people. Tyres & Accessories has travelled to Baglan, near Port Talbot, for the facility’s opening ceremony, and will provide in-depth coverage of the occasion both online and in our August magazine.

25th July 2007/by Tyrepress Editors

Sameer Seeks Government Subsidies

Kenya based Sameer Africa Ltd has asked the Kenyan government to provide subsidies to local manufacturers so they can counter rising energy costs and remain competitive. The manufacturer of Yana brand tyres has made this call following government requests to the Kenya Association of Manufacturers (KAM) to transfer some of their production to off peak times in which there is lower demand for electricity.

Sameer Africa’s chairman, Naushad Meralli, believes high energy costs are a large contributor to local manufacturers’ diminishing competitiveness. “This increased costs will diminish our ability to compete effectively domestically and in the export markets, which are also attractive to our competitors with lower power costs,” he said.

24th July 2007/by Tyrepress Editors

Sumitomo Expects Much From China

For Sumitomo Rubber Industries Ltd. –Japan’s second largest tyre manufacturer after Bridgestone – the Chinese tyre market is a market of overwhelming potential. Although the company currently only generates an annual turnover of US$112 million in China out of a market worth $4.59 billion – a share of only 2.5 per cent, China is the market possessing by far the greatest growth rates for the Kobe based manufacturer. Compared with 2005 figures, Sumitomo’s Chinese turnover has doubled. And Sumitomo’s president Tetsuji Mino doesn’t expect less for 2007; an annual turnover of $220 million is the minimum Sumitomo plans to generate this year on the Chinese tyre market. “The growth potential of Asian tyre markets is just enormous,“ Mino stated in an interview.

23rd July 2007/by Tyrepress Editors

A Well Balanced Range from Gemco

Gemco Equipment Ltd, part of Denmark’s 90-year old Stenhøj Group, is said to be the largest supplier of tyre bay equipment in the UK, and the company offers not one but two lines of tyre changers and wheel balancers – their own Dunlop brand and the highly regarded Mondolfo Ferro range from Italy, for whom Gemco acts as UK representative.

Mondolfo Ferro has been selling their equipment in overseas markets since 1965 and today the company continues its focus on product development to ensure its machines maintain a leading technological edge. In the UK Gemco markets three Mondolfo products of particular interest – the Aquila AS944 tyre changer and the MT2080 and MT2680 wheel balancers.

20th July 2007/by Tyrepress Editors

Giti Tire Breaks Ground on New Production Facility

Giti Tire has broken ground on a 10 million units-a-year tyre production facility, situated next to an existing Giti tyre production plant in Heifei, Anhui province China. The addition of the latest tyre manufacturing plant, brings the company’s total tyre production capacity to over 53 million units, confirming its position as China’s largest tyre manufacturer. The new plant will feature the latest technology and assist in achieving Giti’s ambitious goals in key markets like Europe, company representatives told Tyres & Accessories.

18th July 2007/by Tyrepress Editors

JK Tyre Aiming to Increase Turnover by More than 50%

It is hoped that JK Tyre and Industry’s Rs 11 billion (£135 million) capital expenditure and capacity increase from 9 million to 12 million units will help towards the company achieving a turnover of Rs 50 billion (£610 million) within three years, claims chief financial officer A K Kinra. Mumbai based publication DNA has reported Kinra as stating “We are aiming to grow by 20 per cent annually over the next 3-4 years. We hope to be a Rs 5,000 crore (£610 million) company by 2010.” Currently JK Tyre has an annual turnover of Rs 30 billion (£366 million).

Kinra added that the current slowdown in India’s car industry was not of concern to JK Tyre as OE contracts only make up about 10 per cent of the tyremaker’s business, with the rest coming from the replacement and export markets. “The slowdown has only a marginal impact on us. In the aftermarket space, we see a robust demand,” he said.

13th July 2007/by Tyrepress Editors

Metro Tyres to Offer Share to Conti

India’s Metro Tyres is reportedly willing to offer technical collaboration partner Continental a minority stake in its business. According to an article published in the Indian financial daily Hindu Business Line, Metro Tyres group managing director Rummy Chhabra said that a share of the company could be offered to Continental when Metro’s planned IPO – from which the company hopes to raise about Rs 1 billion (£12 million) – takes place in 18 months’ time, or possibly even beforehand.

Metro plans to increase their presence in Europe and Continental’s assistance has been invaluable to this end. Mr Chhabra said Continental was willing to help Metro enter its home European market as both companies’ products complement each other. “While we address the budget segment, Continental plays in the premium end of the market. Hence our products do not overlap each other.” The Indian tyremaker has already opened an office and warehouse in Barcelona, from where it will market its Ortem brand tyres and tubes to European markets. Mr. Chhabra said the company expects European sales to contribute up to £10 million to its total revenue during the first year.

13th July 2007/by Tyrepress Editors

Bosal Invests In Russian Plant

Global exhaust and towbar manufacturer, Bosal Group, has acquired a 244,000 square metre site at Kaluga, 180 kilometres southwest of Moscow. The largest Bosal site in the world, the Kaluga investment will feature state-of-the-art production facilities and a supplier logistics hub that will play a major role for the distribution of automotive parts in the Russian market. The Dutch-registered privately held business is one of the first OE suppliers to acquire a site at Kaluga, but OEMs including Volvo and Volkswagen have already committed to the area.

Bosal plans to construct a 153,000 square metre plant in stages, the first phase of which will see a 28,000 square metre facility completed by the end of 2008. The Kaluga site will serve as the central manufacturing and distribution hub for Bosal’s operations in Russia where it also anticipates establishing regional satellite facilities to serve OEM assembly plants.

12th July 2007/by Tyrepress Editors

Goodway Eyes Up Further Expansion

Malaysia’s Goodway Integrated Industries has expanded its rubber compound and tyre retreading business through the acquisition of a number of assets from Autoways (Malaya) and the turnaround of operations at retreader Big Wheel (Sabah), acquired by Goodway in August 2005.

The Autoways assets acquisition cost Goodway £1.13 million and will boost the company’s rubber compound and retreading capacity. Goodway says it is now considering the possibility of expanding overseas, including to the Middle East and Africa.

10th July 2007/by Tyrepress Editors

‘Source’ Reports Bridgestone India Expansion Plans

According to news published by leading Indian business daily Business Standard, Bridgestone India intends to invest Rs 2.63 billion (£32.3 million) expanding capacity at its facility in the central state of Madhya Pradesh. This expansion will reportedly include capacity for a new radial range. This would be the fully-owned subsidiary’s first major expansion since 1998, and Business Standard claims to have viewed documents indicating the company plans to increase existing capacity by between 4,000 and 6,500 tyres per day. 271 jobs will reportedly result from this expansion.

“The company has said that it has planned to complete the expansion by December 2008 to add another 1.5 lakh nos [150,000] of tyres for all vehicles per annum,” printed the Business Standard, reportedly quoting a government source. However the previously mentioned documents indicate a capacity increase of ten times this amount.

10th July 2007/by Tyrepress Editors

JK Tyre Sheds Further Light on Expansion Plans

JK Tyre has released additional details of the company’s expansion plans, and it appears far more money than previously reported will be invested in increasing production capacity. The Indian tyremaker plans to inject Rs 11 billion (£135 million) into capacity expansion during the next three years. According to India’s Economic Times, JK Tyre finance director A K Kinra has stated that both capacity for OTR tyres and for radials will be expanded in order to meet with increased demand – passenger radial capacity will be increased from its current 4.5 million units to 7 million units, and TBR capacity will be boosted from 400,000 to 1 million units per annum – and the planned expansion projects will be funded through a combination of loans and internal accruals.

Kinra added that growth in these three sectors will form the basis of JK Tyre’s future expansion, and he expects the company to achieve a revenue of Rs 50 billion (£615 million) within a three-year window. The previous financial year saw the company achieve revenues of £365 million.

9th July 2007/by Tyrepress Editors

Dunlop India Planning to Produce Aircraft Tyres

Despite the recent troubles that have plagued Dunlop India, the company is remaining positive and has announced that, as part of an initiative to revive its fortunes, the company will begin manufacturing aircraft tyres and industrial products at its Sahaguni and Ambattur factories in September. Production at both factories is currently halted, allegedly due to a shortage of working capital.

“We will start manufacturing industrial products like conveyor belts and other products used in steel and other industrial plants and these will be part of the revival programme,” reported Dunlop India vice-president Dhrubojyoti Nandi. “The production will start in September, when both the factories in Sahagunj and Ambattur resume full operation.”

6th July 2007/by Tyrepress Editors