India’s Metro Tyres is reportedly increasing its annual motorcycle tyre production capacity to 1.8 million units. According to the Press Trust of India, the company will invest Rs 500 million (₤7.2 million) in its Ludhiana, Punjab state plant, where capacity for tyres manufactured as part of a technical collaboration with Continental AG is currently 600,000 tyres per year. Expansion work is anticipated to be completed by April.
India’s Apollo Tyre has apparently dropped plans to build a new tire plant in Europe, and will instead turn its attention to expanding its Vredestein facility in the Netherlands, reports Tire Review.
The first phase of construction at the new Lanxess rubber chemical plant in Jhagadia, India has been completed. The German specialty chemicals firm reports production at the Gujarat state facility has begun following a building time of less than two years. The site will now supply India’s growing tyre and rubber industry and export markets with ‘Vulkanox’ brand antioxidants.
World carbon black demand is forecast to rise 4.3 per cent per year every year until 2013, according to research published by Bharat Books. The report suggests annual demand will reach 11.6 million metric tonnes in 2013 bolstered by a healthy global rubber market in the same period. 60 per cent of demand is said to come from tyre applications. Carbon black demand from the tyre sector is projected to increase 3.7 per cent a year through 2013 to 6.9 million metric tonnes.
Belgium steel cord manufacturer Bekaert states that capacity increases in China, India and Russia, and the planned integration of the tyre Bridgestone tyre cord plants (in Sardinia, Italy and in Huizhou, China) acquired earlier this year will lift the company’s total tyre cord capacity from its present level of 625,000 tons to an estimated 700,000 tons by the end of 2010. The bulk of this increase will occur in China, where capacity will rise from its current level of 350,000 tons to 400,000 tons.
Upon announcing the opening of the latest Bridgestone Bandag Retread Center in Thailand, Bridgestone stated it anticipates the significant growth of its retreading business in Asia, and in preparation for this expansion it will begin construction of a retread materials plant in Thailand this November. The Bandag centre officially opened by Thai Bridgestone Co., Ltd. on February 25 is located at the company’s Nong Khae factory site and will, the Japanese manufacturer reports, contribute to the development of the company’s retread and solutions business in three ways; namely, through the retreading of tyres according to the Bandag process, which began on February 1; by accelerating the retread and solutions business’s development; and by conducting training for Bridgestone Bandag shop technicians employed in company owned and franchise locations. This training will include the production of retreads using the Bandag process and instruction in Bridgestone Bandag retread and solutions business method.
Goodyear Dunlop Tyres UK has reinstated the “Guaranteed Working Week” at its Bushbury, Wolverhampton tyre retreading and compounding plant. The company reportedly met with Unions and employee representatives in the few days and says the decision will result in all full-time employees being guaranteed a full 42 hour week with immediate effect.
Goodyear Wolverhampton changed shift patterns and moved to reduced hours, dropping the Guaranteed Working Week in December 2008, during the early stages of the economic downturn. At the time this was said to be in response to severely reduced demand for car and truck tyres.
The Pelmar Group has bought some rubber mixing and industrial tyre-making equipment from Trelleborg former Hartville, Ohio factory. The list of purchased machinery includes two K7 mixing lines and solid tyre production machinery. Accoridng to Pelmar, with this acquisition the company has positioned itself as the largest supplier of pre-owned rubber machinery in the tyre and technical rubber industry after finalizing the purchase of Continental Semperit plant in Traiskirchen earlier this year.
An anticipated increase in demand within Africa and the expectation of growing OE sales in Europe have led Apollo Tyres to plan capacity increases in these two regions. The Wall Street Journal reports the company’s South African activities involve the investment of US$30 million this year at its two Dunlop facilities there in order to boost passenger car radial capacity from 10,000 units per day to 12,500, while truck and bus tyre capacity is to be lifted from the current daily level of 800 units to between 1,200 and 1,500 tyres.
TNA reports that Groupe Michelin may be planning to boost tyre production in Thailand, but such expansion will be based on prevailing political issues in that country. Michelin Southeast Asia and Oceania managing director Frederic Vincent told TNA that Michelin sees Thailand as Asia’s most important production base for exports worldwide and planned to increase its production capacity to accommodate economic recovery in Thailand. At the same time, the managing director said the company will “monitor the political situation closely as the group did not want to witness any uncertainties.” (Tire Review)
It appears tyre manufacturers in India do not see eye to eye with the country’s vehicle manufacturers on the subject of anti-dumping duties. These tariffs, introduced in January and applied to imports of radial tyres from China, have been criticised by major automakers such as Tata Motors and Ashok Leyland, who say plans to expand have been affected by a shortfall in commercial vehicle radial capacity within India.
Bridgestone Europe has introduced two new truck steer-axle tyres, R249 EVO and R297 EVO, which it says will meet stricter European emission levels. The move anticipates an increased front-axle load for trucks due to the addition of new ‘clean’ technologies, notably SCR (Selective Catalytic Reduction) and EGR (Exhaust Gas Recirculation), in compliance with Euro V and VI emission regulations.
Hankook Tire’s management are confident they can raise confidence in its ability to their products’ global average selling price by between seven and eight per cent in 2010. According to an investors note published by Deutsche Bank, additional price hikes are possible, with Hankook’s management said to be targeting an 11 per cent increase.
According to the financial analysts, Hankook’s confidence of being able to successfully implement the prices increases is based on the fact that “demand in key markets remain supportive expecting.” In real terms this means managers expect year-on-year sales volume growth of around 14 per cent this year with 100 per cent utilization.
Indag Rubber Ltd is India’s longest-established manufacturer of pre-cure tread rubber. The company has been engaged in the production of tread rubber and other retreading materials such as bonding gum, vulcanising solution and curing envelopes since 1982, and manufactures its pre-cure tread under the ‘Zoma’ brand name. Indag also produces un-vulcanised rubber strip gum, universal spray cement and envelopes.
After attaining its highest global sales to date in 2009, Tire Review believes Hankook Tire America Corporation has reason to expect more success in 2010. Its report quotes Soo Il Lee, the company’s president, who reflected on last year’s growth and shared Hankook’s goals for the coming year with attendees at the tyre-maker’s dealer meeting, held earlier this week in St Thomas, US Virgin Islands.
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