(Akron/Tire Review) Continental Tire North America Inc. (CTNA) may cut additional jobs at its Charlotte, NC, tyre plant or shut down the facility, according to Alan Hippe, chief financial officer for Continental AG. Hippe told The Charlotte Observer that the Charlotte plant is CTNA’s most expensive manufacturing facility. Health care and pensions are primarily responsible for the high costs, he told the newspaper.
(Akron/Tire Review) Goodyear Tire & Rubber Co said it will invest $18 million in the company’s Indian operations next year. The investment, according to Goodyear, will be used to upgrade technology and increase production capacity for passenger tyres.
(Akron/Tire Review) Toyo Tires International has begun “prototype tyre production” at its Toyo Tire North America (TTNA) plant in White, Georgia. The first test tyres rolled off the line on 10 October, just a year after ground was broken for the highly automated plant. Toyo officials said that upon completion of product quality checks and performance tests, TTNA will launch commercial production in early 2006. The plant will have an initial capacity of 2 million passenger and light truck/SUV tyres per year.
Continental is to increase its production capacity in so-called low cost European countries by 3-4 million units each year, analysts have reported. Given the fact that labour costs in Western Europe are five times higher compared to Central and Eastern Europe the Deutsche Bank analysts calculate a competitive advantage of five euros per tyre.
The sales of PT Gajah Tunggal Tbk are likely to increase 20 per cent compared with last year’s figure of 3.8 trillion Indonesian rupiah (£214 million), the company has reported. Gajah Tunggal director, Catharina Widjaja, said the growth was due to increased domestic demand and additional sales to Michelin & Cie. The company, which is 10 per cent owned by Michelin is under contract to supply the French manufacturer with 5 million tyres per annum until 2010.
Bridgestone Corp has announced huge expansion plans, which could see the manufacturer spend as much as 200 billion yen (£990 million) every year between now and 2008.
Bloomberg has reported that Bridgestone is pre-empting a stagnation in the domestic Japanese market by increasing investment in new factories and upgrading equipment. The company is aiming for sales of 3 trillion yen (approximately £15 billion) by 2008, with a profit margin of 5 per cent, company president Shigeo Watanabe told a Tokyo press conference. “We are aiming to capture about 20 per cent of the global market share for tyres” by 2008, from the current share of “between 18 per cent and 19 per cent,” he said.
Goodyear Engineered Products has added production capacity at its Marysville, Ohio, conveyor belt plant.
For the second time in two years, the global manufacturer has added production capacity for heavy-duty steel- and fabric-reinforced conveyor belts.
(Akron/Tire Review) The merger of Galaxy Tire & Wheel Inc. and Dynamic Tire Corp. has been completed, resulting in the creation of GPX International Tire Corp. The Boston-based Galaxy Tire and Toronto-based Dynamic Tire announced their merger plans this past June.
Combined as GPX, the companies will post some $300 million in sales for 2005, officials said, and will have operations in North America, Europe and Asia. GPX officials said that the new firm will market Galaxy and Primex brands as its “flagship” tyre brands.
BKT is set to embark on ambitious expansion plans designed to increase the company’s tyre production capacity by 66 per cent. The Indian company currently runs three tyre factories located at Waluj (Western India), Bhiwadi (Northern India) and Chopanki (Northern India). In terms of tyre numbers this means BKT will more than double radial tractor tyre capacity to 250,000 tyres a year. Total capacity for heavy earthmover tyres will be raised from 10,000 to 50,000 tyres per annum.
Tyre manufacturer, Balkrishna Industries Ltd says it will invest 3 billion rupees (£39 million) on expansion plans. The board of directors has reportedly approved the plans which include increasing tyre manufacturing capacities at Bhiwadi, Waluj and Chopanki plants to 100,00 tonnes per annum against 60,000 presently.
Tyres & Accessories has teamed up with Continental Tyres to run an exclusive world cup competition. In its capacity as Official Partner of the 2006 FIFA World Cup, Continental is offering one reader the chance to win two all expenses paid tickets to next year’s tournament. A further 10 runners up will receive a goodie bag packed with World Cup merchandise, including match footballs. For more information log onto www.conti-online.co.uk or see the October issue of T&A.
Goodyear has said it will cut costs by $750 million to $1 billion in the next three years, taking cash charges of $150 million to $250 million for the restructuring. The company’s share price rose 3 per cent in response. “Our clear goal is to be competitively advantaged in the tyre industry by 2008,” chief executive Robert Keegan said at an investors meeting. “We realise the rising materials, health care costs and inherent cyclicality of sectors in the industry will continue to challenge us.”
Nokian Tyres is considering building a new plant in Lesna near Valasske Mezirici in the Czech Repbublic. The new plant will have the capacity to produce 8 million tyres per year, according to the AFX news agency report. The report cited documents submitted to the EIA (Environmental Impact Assessment) process, which described Lesna as “one of the possibilities for the location of this plant in the region of central Europe.”
Should Nokian Tyres decide to build the plant, the CIA agency reported construction would begin during the fourth quarter, with production expected in December 2007. This report added that the company plans its first test operation of the plant in January 2008, a launch of the first half of production in December 2009, and then full production in December 2012. The plant will likely employ 937 people, CIA added.
Continental AG is to spend RM200 million (£30 million/44 million euros) on expanding its Malaysian units’ Petaling Jaya, Selangor, and Alor Star, Kedah, factories. According to reports, the plan is for these facilities to double output. Furthermore, Continental Sime Tyre Sdn Bhd chief executive officer Dieter Saar said the company plans to export 30 to 40 per cent of its output beyond 2006, up from less than 15 per cent now.
Sales of exclusive brands are on the up, Belgian wholesale Deldo has reported. According to the company, its Eurowin, Wanli and Sunny brands make all the difference when it comes to winter sales. This year Deldo says it has increased its capacity of Nexen-produced brand Eurowin up to 550,000 tyres. Furthermore the company claims to have sold approximately half a million already, with over 60 per cent being delivered in the last three months. As far as the South China Tire Company-produced Wanli and Sunny brands are concerned, Deldo reports that stocks of Wanli have already sold out, with only five per cent of its Sunny tyres left.
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