The BMW factory at Spartanburg (South Carolina), in which in addition to the Roadster ever more X5 off-road vehicles are produced, will soon face production capacity problems. A higher vehicle output could also benefit American wheel suppliers such as Superior Industries or Alcoa/Reynolds.
Marangoni Tyre plans to invest US$ 200 million to build a second tyre factory in Europe with a capacity of 4.5 million car and SUV tyres a year.
A year ago, there were rumours that Yokohama was seeking an alliance with Michelin. TYRES & ACCESSORIES recently visited the company and, in addition to factory and R&D facility visits, interviewed the President of Yokohama Rubber Company, Mr. Yasuo Tominaga. Mr. Tominaga spoke of the company’s wide-ranging restructuring plan and whether a company the size of Yokohama can survive alone in a global market dominated by the big three manufacturers.
US tyre manufacturer Goodyear has announced its confidence in the Latin American market during the year 2000. The company believes it will be able to increase its Ebit-margin significantly.
Bridgestone Corporation, the world’s largest rubber company, wants to join the electronic marketplace RubberNetwork.com as the seventh member of the group.
Japanese tyre manufacturer, Bridgestone is going for more market shares, especially in the truck tyre segment. This could effect the market leader Michelin, who has about 30% of the market. Bridgestone is also increasing the prices in Brazil for the replacement market by 8% and the OE market by approximately 10%. The only option to the price increase is to walk away from a losing money business.
With three new tyres, named “4x4Contact”, “4x4SportContact” and “4x4WinterContact”, the German tyre manufacturer wants to establish its leading brand in the segment of sports utility vehicles (SUV). And this segment seems to be quite interesting: According to a Continental market analysis the number of 4×4 vehicles in Europe is expected to double by the year 2005 compared to 1995 and leading to a growing market for 4×4 tyres. Some reasons are that new fashionable/stylish compact SUVs which are faster, fuel efficient and easier to drive or larger SUVs offering a high load carrying space and/or seating capacity are stimulating the demand. As a result SUVs are increasingly becoming an alternative to standard cars. Therefore the focus of the three 4×4 tyres is for on-road use, but for the future Continental plans to launch all-terrain and off road tyres, too. Meanwhile the “4x4Contact” is the tyre for compact and medium range SUV, whereas the “4x4SportContact” has a more sporty image. Fast and high powered cars are the target for this tyre. The “4x4WinterContact” – as the name suggests – is the specialist for the colder time of the year. European production of the tyres was launched recently and later this year they will also be manufactured in USA.
Nokian Tyres’ turnover last year reached 322.6 m Euro (28% higher than 1998) and an operating profit of 42.1 Euro (1998 32.2 m Euro). Profit before tax was 35.5 m Euro (1998 29.9 m Euro) and net profit 25.7 m Euro (1998 21.6 m Euro). The company invested 85.7 m Euro (1998 72.7 m Euro), this was mainly in production (30 m Euro). There was also expansion in retail equity with the purchase of the Finnish company ISKO.
Degussa-Hüls AG is doubling capacity at one of its production plants in Antwerp, Belgium for sulphur-functionalised organosilanes. These rubber silanes are used as coupling components when precipitated silicas are used as fillers to reinforce rubber. Together with rubber silanes and rubber carbon blacks, precipitated silicas are the major component in “Green Tyres” which feature reduced rolling resistance and thus help to cut fuel consumption.
This year Deutsche Goodyear will invest a total of 50 million marks in new production facilities at its Philippsburg factory while simultaneously introducing more flexible working hours. Having obtained the agreement of the works council to a seven-day week (now 21 shifts per week instead of the former 17 shifts), productivity at the German Goodyear factory is now set to increase once more. The additional capacity thus created will be utilised chiefly to produce high-speed tyres, whose market importance in Germany has been rising steadily for several years. Central to the investment is super-modern machinery for the further improvement of product quality in the manufacturing process for high-speed tyres -–a market segment of central importance to Goodyear’s strategic development. “The production volume of five million tyres at Philippsburg will remain unchanged for the time being”, declared Leo Ruf, a member of the management, “but the share of high-speed tyres in our annual production will go up by 700,000 to approximately four million units.” The background: Since 1995 demand for technologically sophisticated tyres in high-speed categories of more than 240 km/h (speed indices W, Y and ZR) alone has grown by over 200,000 units per year in the German market. This interesting niche is estimated to double from 1.5 to at least three million units by the year 2001.
First quarter results due to be released on April 19th should be better than expected. The capacity utilisation in all Goodyear’s factories was higher than last year and the fill rate has been further improved. If Goodyear can stick to the already announced price increases in the USA (3-5%), this will mean a faster than expected recovery.
Hayes Lemmerz sales and earnings in the first quarter 2000 were at the same level as last year. A significant drop in orders for heavy truck wheels and brake components was compensated by a successful expansion of aluminium wheel capacity worldwide.
Hayes Lemmerz International, the world’s largest wheel manufacturer, plans to invest 23 million US dollars with the objective of quadrupling the annual capacity of the Mexican aluminium wheel factory in Chihuahua to 1.2 million units by the year 2001.
New Internet linked initiatives and on-line transfer of all Pirelli company processes were announced today by the company’s board of directors. The e-Pirelli project to has been assigned an investment of 2 billion lire for the period 2000-2002.
At the beginning of the 90s Goodyear had great success – especially in USA – with its aquachannel tyre “Aquatred”. Now the tyre manufacturer launches in North America the dual-aquachannel tyre Aquatred 3 with greater dry traction performance and an 80,000-mile treadlife Warranty. The all-season tyre will be introduced initially in 18 popular T-rated sizes.
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