Goodyear Dunlop Win Slovenian Award
Dick Johnson, general manager of Goodyear Dunlop Tyres UK, has been awarded the title ‘Foreign Manager of the Year for 2004’ by the Slovenian media.
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Degussa Increase Carbon Black Production
Product NewsDegussa has begun plans for a fourth production line at its carbon black plant in Qingdao, even though its third line is still under construction. The German company will significantly increase its manufacturing capacity in China with the new investment.
“After completion of our current expansion projects we will be able to produce more than 100,000 metric tons of carbon black,” said Robert Wissner, head of Degussa’s Fillers & Pigments Business Unit.
Workers Buy Euzkadi Plant Tax Free
Product NewsMexican workers have bought the Euzkadi factory that Continental Tire had planned to close. By investing the severance packages that they received when the closure was announced in December 2001 the union workers have acquired 50 per cent of the factory that will shortly be renamed Cooperativa de Trabajadores Democráticos de Occidente. The remaining 50 per cent was purchased by Llanti Systems, a former customer of the factory and its Pneustone brand. At the same time the Mexican government honoured an agreement stating that union members who invested in the joint enterprise will be exempt from income tax.
Euzkadi’s closure left 1,164 workers unemployed, after claims that the factory was financially impracticable.
The fist tyre manufactured by the new enterprise is expected to be roll of the production line by mid 2005. The new company will have a capacity of between 10,000 and 13,000 tyres per day, a level similar to that of Euzkadi plant prior to its closure.
Continental To Sell Another US Plant?
Product NewsContinental AG reportedly plans to sell its Bryan, Ohio, OTR tyre production plant, according to a German Reuters report. Other sources indicate that the company is in talks with an unknown buyer. Continental declined to make any further comment.
The Bryan plant is said to have nearly 300 employees and the capacity to produce up to 300 off-the-road tyres each day. Last October, Continental sold its worldwide agricultural division to Ceska Gumarenska Spolecnost (CGS). As part of the agreement, the Czech company continues to produce and trade Continental, Semperit, Barum and Euzkadi tyres.
Firestone Launch New Agricultural Tyre
Product NewsAccording to Firestone the European market for vineyard (and orchard) tyres is likely to grow, despite the wet weather of 2004 it claims that farmers are re-evaluating their crops and considering fruits and vegetables that may not have been viable decades ago. Hence it has introduced a new range of radial tyres for the Central European market, and UK vineyards.
Bridgestone to Build a Plant in Poland
Product NewsBridgestone will build a plant in Poland to produce rubber tracks for earthmoving equipment, the manufacturer announced today.
The plant is due to begin operating in July 2006 and will be located in the city of Zarow in the south western Polish province near Wroclaw. Production capacity is expected to reach about 26,000 tracks a year by 2007 and 12 million euros will be invested to achieve this.
Michelin Aims to Start Tyre Revolution
Product NewsThe answer is – when it is a Tweel. Michelin has been demonstrating the direction that it would like to take tyres by exhibiting one of its most recent developments at Detroit’s North American International Auto Show.
The Tweel is an airless tyre/wheel concept that consists of a band of tread attached to a set of flexible polyurethane spokes. According to Michelin executives, this design makes for a “virtually indestructible vehicle tyre” that can be tuned for handling. The same executives also concede that any practical applications could be as much as 15 years away.
Waste Not – Want not
Product NewsThe story of a successful industry initiative
The EU Landfill Directive prohibited the landfill of whole tyres from 1 July 2003 in all EU states and will ban the landfill of shredded tyres by 1 July 2006. Fortunately, however, the UK has a well-developed collection system and a diverse recycling infrastructure for old tyres when compared to many countries. Currently most of Britain’s tyres end up in some kind of beneficial re-use.
Britain’s motorists, hauliers and others collectively generate over 400,000 tonnes of waste tyres annually. Industry estimates suggest that at least three quarters of these are already re-used in some form or other. Some of the many ways in which tyres can be reused include as fuel, carpet underlay, recreational surfaces and in the form of granulates. In the truck sector retreading is a highly efficient re-use of a worn tyre. Using tyres as fuel for cement kilns is another way of re-using large quantities of tyres.
And there is considerable remaining capacity for the UK’s cement kilns to take additional tonnage. At the same time the number of new uses for old tyres continues to increase. The fact that tyres have a very high calorific value means, as a fuel, they are not dissimilar to coal. Furthermore, when burned as a co-fuel, tyres can improve the general combustion quality considerably.
For all of these reasons tyre manufacturers, with the help of the TIC’s Responsible Recycler Scheme, are confident that the UK will continue to meet the terms of this major EU directive. If there is a downside to this positive story it is that beneficial and responsible recycling comes at a price – albeit a modest one. However small though, it is a price that a few companies still seem unwilling to pay.
To promote some more robust standards in the collection and disposal of end-of-life tyres and to help eradicate the scourge of ‘fly-tipping’ and rogue operators, Tyre Industry Council launched its Responsible Recycler Scheme in late 1999 and although just five years old, this flagship initiative has come a long way in a short time. Though initially restricted to just tyre collection companies, it was quickly realised that the commonality of interests between collectors and reprocessers demanded that the Scheme’s remit be widened to include reprocessors as well.
Behind the formation of the scheme was the clear recognition that used tyre collection and re-processing were businesses which deserved recognition in their own right and which together had an important role to play in helping tyre manufacturers, retailers and indeed government itself to meet the EU Landfill Directive on used tyres. Those leading the scheme realised at an early stage that whether or not the concept of producer responsibility was introduced into the UK there was a need for collectors and re-processors alike to adopt concepts of “best practice” in response to the challenges ahead. That is why today the scheme puts great emphasis on its audit regime and believes it can demonstrate full traceability, something that is essential for maintaining a good reputation.
For the TIC, transparency, traceability and accountability are cornerstones of its scheme. Responsible retailers, fleet companies and other tyre users that work with scheme members are guaranteed that the tyres collected by the Responsible Recycler Scheme companies are disposed of in an environmentally friendly and acceptable method. Whether they are recycled or used as fuel in cement kilns, the Responsible Recycler Scheme helps its members comply with their duty of care obligations as well as protecting the environment.
As a measure of its success the scheme continues to grow and to attract international interest. From a single founder member in 1999, it now has reached a temporary ‘high’ of 22, with more applications in the pipeline. In fact such is the sense of purpose and collective professionalism that the scheme has engendered that its members elected to become a trade body in their own right, known as the Tyre Recovery Association (TRA). Apart from operating the Responsible Recycler Scheme, which is now a registered trade mark, on behalf of the Tyre Industry Council, the TRA will have the independent ability to pursue specific issues at both industry and government levels, generate performance data specific to its members businesses, as well as develop stronger international links right across Europe.
Bridgestone Reviews Europe
Product NewsBridgestone Corporation has told the Financial Times that it is reviewing its European operations with a view to increasing production in this area. “We are undertaking a study of what might be built and where,” said Bridgestone Europe’s chairman and chief executive, Minekazu Fujimura.
According to the business newspaper, Europe accounts for 12.5 per cent of Bridgestone’s global sales, which are expected to be to total more than $17 billion last year for 2004. Bridgestone is suggesting that any new manufacturing capacity will be located in Central or eastern Europe. Any future move will be made in response to the regions low labour costs and fast-growing car markets, factors that also prompted the company to double production in Poland. In addition Bridgestone is establishing a new proving ground, training and research centre near Rome, which is due to be completed in Spring 2006. Bridgestone currently runs five plants in Europe – three in Spain, one in France and one in Poland.
Mr Fujimara explained that moving to Eastern Europe also involves something of a pay-off. “Affordability is an issue for western tyre makers seeking to grow sales there – they are behind on technology but lower on prices,” said the Bridgestone executive.
Bridgestone says it believes it is “breakthrough time” for run-flat tyres. At least three major new volume-built car models will be launched this year with run-flat tyres specified as standard, said Des Collin, Bridgestone’s commercial vice-president. While the contracts for the first volume car application – the new Mini – have gone to Pirelli and Goodyear, Bridgestone has won contracts with BMW for its One Series small car. Bridgestone expects sales of its run-flats to rise by 50 per cent this year to 1.5 million Mr Collin added.
Continental to source more from Metro
Product NewsGerman tyre major Continental AG has decided to source as many as 30,000 two-wheeler tyres and tubes per month from Metro Tyres Ltd. (MTL). Continental has also firmed up plans to source as much as 50 per cent of tubes to be manufactured by MTL for cars, tractors and light commercial vehicles, according to Indian media sources. These tyres and tubes would be sold in Germany and Europe under the brand name Continental. Meanwhile, MTL has also entered into talks with Bajaj Automobiles, Hero Honda and Yamaha for catering to the original equipment manufacturing segment.
Chronos Richardson to Exhibit at Tire Technology Expo 2005
Product NewsChronos Richardson will exhibiting for the first time its new CR 600 XP process control system at Tire Technology Expo 2005 in Cologne/Germany (Feburary 22nd-24th). This is a PC based system, which uses open-system software packages in conjunction with leading brand PLCs to provide Windows based applications for the mixing room. CR 600 XP has been developed to help tyre manufacturers to efficiently control/monitor their mixing room and improve the quality of their compounding process. At Tire Technology Expo 2005 Chronos Richardson will also illustrate the success they have achieved through establishing technological partnerships with tyre manufacturers around the world, working at both local plant and corporate level in providing turnkey solutions for thousands of mixing rooms. “Our project experience covers every aspect of the mixing room from material intake through to mills and batch-off and total plant control,” says the company.
Bridgestone to Invest $700 million in Brazil
Product NewsThe Associated Press new agency is reporting that Bridgestone Corp will invest $700 million (£364 million) in the construction of a new factory in northeastern Brazil, according to Brazilian news sources.
The company plans to build the plant in the state of Bahia because of strong expansion in Brazil’s motor vehicle production industry, the daily Valor Economico newspaper said. Bridgestone’s Brazilian unit had no immediate comment on the report. The company says it plans to invest $300 million (£156 million) in the first stage of the project alone.
Bridgestone’s existing factory in a Sao Paulo suburb produces up to 30,000 tyres per day. The Valor newspaper did not reveal details of the new plant’s production capacity, although it is likely that the new plant will be used to produce passenger car tyres.
Brazilian car production reached 2,020,704 vehicles for the period between January and November, up 20.8 per cent from the first 11 months of 2003, reflecting the country’s robust recovery from a sluggish 2003, when the economy grew less than 1 per cent. The auto industry’s trade association is predicting an output of 2.2 million vehicles by the end of 2004.
New Kayaba Shock Absorber Plant in Czech Republic
Product NewsKayaba Industry (Japan), which, according to the company, is the biggest shock absorber manufacturer in the world, has developed its market position by building a new plant in the Czech Republic. Production is due to start in April 2006. “Kayaba Manufacturing Czech“ (KMCZ), to be based in Pardubice, will employ more than 200 employees at full capacity. According to the company’s production plans, by 2007 more than two million shock absorbers will be manufactured there each year.
In December 2003, Kayaba bought the remaining shares of Spanish shock absorber manufacturer, APA. With an annual production of more than 15 million shock absorbers, the next step is further strategic expansion in Europe. The production plant in the Czech Republic, which will be based on the most modern technological criteria, will have its own capital funds, totalling 17.5 million euros. By making this further investment Kayaba says it is developing its operational basis in Europe more clearly than it has done so far.
The recently submitted annual report 2003/2004 of Kayaba shows that the company is on course for growth. Turnover totalled $2.1 billion, which represented an increase of over 10 per cent compared with the same period last year. With an annual production total of more than 55 million units, in both in the passenger cars (for large reputable car manufacturers) and for the aftermarket business, the company reportedly holds a 23 per cent world market share.
Goodyear’s Increases US Conveyor Belt Production
Product NewsFlying in the face of suggestions that the US is outsourcing all of its positions abroad, Goodyear has announced that its new belt plant has increased its production capacity, while creating more jobs. In the past year the company has created more than 100 job, increasing its workforce by more than 35 per cent. The company says its expansion is a result of “growing demand from stepped up global mining activity.”
The Marysville plant is currently producing one of the largest orders in the plant’s 37-year history to be shipped to Latin America. The Goodyear Flexsteel ST3600 steel-cord conveyor belt is eight miles long and weighs 1,300 tons. When completed, the order will be shipped to one of the world’s largest open-pit mines located in the Atacama Desert of Chile, which produces copper, gold and silver.
According to Dennis Hare, business manager for Goodyear’s conveyor belt products, the overland belt will transport crushed ore four miles to the mine’s processing plant for separation of metals.
Several Hundred Jobs in Danger at Conti
Product NewsContinental AG is currently contemplating the possibility of phasing out passenger car tyre production at its primary facility in Hanover-Stöcken, chairman Manfred Wennemer told a works meeting yesterday. Now, the company will examine whether or not passenger car tyres can still be produced profitably. The problem, according to a company spokesman, is the “development of the market and of the costs.” Currently Continental is producing at full capacity, but it is difficult to say whether or not it will be in the same position in a year’s time, added the spokesman. Therefore Mr Wennemer has already informed the staff “we are reviewing the situation at the moment.” One possibility in order to improve the competitiveness of Hanover as a production base, in comparison with Otrokovice (Czech Republic) and Timisioara (Romania), would be to increase worker’s hours without increasing wages.
350 people are employed at the Hannover-Stöcken facility where 1.5 million passenger car tyres are produced each year. According to the company, the announcement only refers to passenger car tyre production – other segments will remain unaffected.
