After several years of working in close association with engineers from one of the world’s largest tyre manufacturing factories, Chronos Richardson has secured a major order from the CIS. Valued at more than 2.5 million euros, the contract is for silica-based tyre compounding systems for the Nizhnekamskshina factory in Tartarstan.
Cooper Tire & Rubber’s debt rating was downgraded to junk yesterday by Standard & Poor, which cited “pressure” on the company’s earnings, reports an American news source.
The rating reflects “poor near-term earnings and cash-flow prospects,” said S&P in a statement. The downgrade to high-risk, high-yield junk affects about $720 million in debt.
Columbian Chemicals Co received approval from the Phelps Dodge Corp Board of directors to proceed with plans to build a greenfield carbon black manufacturing facility in the Camacari Pole, a chemical complex in the Bahia state of Brazil. Construction of the facility is anticipated to begin in early 2006 with production commencing the first quarter of 2007.
Indian newspaper, The Hindu Business Line, has awarded tyre manufacturer, MRF, its ‘Buy’ rating. “Though the recent trend of subdued growth in earnings may continue for a while, the long-term prospects are encouraging,” the newspaper reported.
“The performance of MRF and other tyre producers has taken a knock owing to the sharp rise in the price of key raw materials such as rubber and carbon black. The pick-up in demand in domestic and export markets has mitigated the damage to the bottom line,” the report added.
Federal Tire will introduce a 3-5 per cent price increase across its full line of tyres beginning in October. “Rocketing” natural rubber, carbon black and other petroleum products in combination with higher transportation costs are all said to have contributed to the price increase. In an official statement announcing the price increases, Federal also pointed out that the present price increase does not fully reflect the company’s additional costs. Instead the company says it is “doing its best to absorb as much of it as possible.”
Cabot Corporation has announced that it will build a new specialty carbon black unit at its plant in the Tianjin Economic and Technological Development Area (TEDA) in China. Cabot Performance Products (Tianjin), a joint venture with Shanghai Coking Chemical Company, will invest nearly $30 million in building the special unit that is set to have a capacity of approximately 20,000 tonnes. The unit is scheduled to begin production in the second half of 2006.
Dusseldorf based, Degussa AG has announced that it will increase the capacity of its carbon black plant in Paulinia, Brazil, to 100,000 tonnes per year. The company first announced this project in September 2004. Now that the management board has approved the plans, the way is clear for work to start immediately.
China’s two largest tyre manufacturers have signed contracts to receive carbon black from the same supplier. China Energy will supply 1,000 and 800 tons to Hongzhou Chong Che Tire Company and Gui Zhou Guiyang Tires, respectively. Dong Hua Rubber Limited and Dong Tian Rubber and Chemicals Limited have also made contracts of 1,000 and 800 tons of carbon black, respectively. China Energy, Carbon Black Holdings, says it has received contracts amounting to 8300 tons of its speciality carbon black.
“In the past two years, we have been focusing our business on China’s fast-growing automobile industry. And it looks like this strategy is starting to pay off,” chairman and CEO, Mr Wang Guo Yuan commented adding: “Our carbon black helps the tyre makers to address the needs for improved tread wear, lowering rolling resistance, lower heat build-up. Therefore, our carbon black is being utilised for various types of tyres.”
Tokai Carbon and Mitsubishi Chemical Corp have agreed to revoke their agreement to form an Alliance of carbon black businesses. The companies will also withdraw their application for examination by the Fair Trade Commission. The commission had suggested that “the alliance might substantially restrict competition in the Japanese domestic market that is presently short-supplied.”
“We anticipate harsher competition in the carbon black industry in Asia including Japan where aggressive capacity expansions are being made in expectation of rapid growth in the automobile industry, the main consumer of carbon black … We will expand and reinforce our business bases mainly in rapidly growing Thailand and China, as well as accelerate development into high added-value products and new market areas under the basic policy of ‘Powerful R&D,’” the company said in a statement. The stated that it would remain open to the possibility of future alliances.
Degussa 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.
Chronos 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.
The Goodyear Tire & Rubber Company and General Electric – specifically, GE Advanced Materials, Silicones – teamed up for breakthrough technology in new auto tyres. A unique tyre, Goodyear’s Assurance featuring TripleTred Technology, is the result of this technology.
Cabot Corporation has announced it will build a carbon black plant with joint venture partner Shanghai Coking and Chemical Company to build a carbon black plant in Tianjin, China. The first production unit is scheduled to begin production in early 2006, with a capacity of 50,000 tonnes. The company plans to expand the plant’s production capacity later the same year.
“We are pleased with this expansion of our partnership with Shanghai Coking and Chemical Company and to be working with the Tianjin Economic and Technological Development Area to build a world class carbon black facility. We have confidence that this expanded capacity will position us well to supply the growing China market,” said William J Brady, executive vice president and general manager, Carbon Black.
Bridgestone has officially opened a new carbon black plant in Thailand. According to the company, the facility will operate as Bridgestone Carbon Black (Thailand) Co, Ltd, a wholly owned member of the Bridgestone Group.
Mitsubishi Chemical Corporation and Tokai Carbon Co., Ltd. are discussing the details of a possible joint venture.
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