(Akron/Tire Review) Administrative Law Judge Paul J Luckern of the US International Trade Commission (ITC) has found that the Kumho Petrochemical Co. (KPC) of Seoul, Korea is not in violation of the ITC’s unfair trade practice laws, with respect to its importation of tyre chemicals into the US.
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.
In Malaysia, Titan Chemicals Corpn. Bhd has won a contract from the Korea Kumho Petrochemical Co. Ltd. to supply butadiene; the raw material used to make synthetic rubber. The operation will begin in 2007 and the five-year contract is worth an estimated 500 million Ringgits (US$ 132.8 million)
Amerityre Corporation. Richard Steinke, president and CEO of Amerityre Corporation, today announced that Amerityre has entered into a non-binding memorandum of understanding with Ace Products, LLC, for a proposed transaction involving the licensing of certain technology and the sale of certain manufacturing equipment and inventory.
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.”
Officials have report that a fire broke out at the Continental General Tire plant in Mount Vernon, Illinois. No injuries have been reported. Fire and water damage was estimated to be more than $100,000. The fire is believed to have started when a welder working in the curing department ignited some chemicals. The resulting fireball burned through the ceiling, but was brought under control within half-an-hour. Employees were evacuated as a precaution, though plant operations resumed a short time later.
Goodyear is about to make a second attempt to sell non-core businesses with suggestions that its engineered products division will be the first one up for sale, according to ‘The Deal’ reports. The news comes after Goodyear cancelled the sale of its rubber chemicals business in July. The company had promised to pay down its debts, using the sale of some its assets to provide the necessary funding. So far the company hasn’t sold any of its significant assets.
The Deal reported that oa source close to the company suggested that the next business unit up for sale will be the engineered products business. The sale process is expected to start in January. Refusing to mention the speculation, Goodyear’s engineered products spokesman, Skip Scherer said: “To maximise shareholder value, the company evaluates from time to time its business portfolio, but we don’t speculate or comment on that process.”
It is not clear how much the business unit will cost, should it be sold, but one analyst, Morningstar Inc’s Philip Guziec, has been quoted as suggesting that between $600 million and $1.2 billion would be a likely figure.
New EU directives on vehicles are likely to add 5,000 Euros (3,340 GBP) to the price of an average car. Speaking at the Birmingham Motor Show, Roger Puttnam chairman of Ford in Britain, warned that manufacturing margins were already thin and that mounting regulatory costs would have to be passed on to the consumers. Puttnam singled out new rules on vehicle recycling, the control of chemicals and safety, all of which are to be implemented by 2008.
At 3.00 a.m. this morning a fire broke out at temporary storage facilities at Goodyear’s Philippsburg plant in South West Germany. Rapid reaction by the emergency services quickly brought the fire under control. No-one was injured during the incident but due to the volume of smoke people were asked to keep doors and windows closed. There was no reported release of toxic chemicals. Some 40,000 tyres were in storage at the time of the fire. Other areas of the plant, including the key Central European storage facility with some two million tyres were not affected by the fire. The extent of the damage and the cause have not yet been determined but distribution is not being affected by the incident.
An increase in the number of cars with old tyres identified at recent police roadside tyre checks has led the Tyre Industry Council to issue a warning to motorists of the potential dangers of running a car or van on over age tyres.
TIC tyre experts at roadside tyre checks in Hertfordshire and Wiltshire identified a number of vehicles with tyres between 10 and 12 years old and one car with tyres that were 15 years old.
Whilst this is not illegal, says the TIC, there are certain circumstances where the `ageing’ process can render a tyre unserviceable even if it is unused.
As the components within the tyre dry out with age, they can separate, causing the tyre to distort and vibrate and potentially the tyre could fail and deflate.
Motorists are able to check the age of a tyre by examining the date code on the sidewall of the tyre. If it is 10 years old or over the TIC strongly recommends that it be replaced.
The TIC that although tyre manufacturers add anti-ageing chemicals to compounds they are only active when the tyre is in use; therefore tyres fitted to spare wheels, caravans and trailers are particularly at risk of premature ageing bought on by ozone degradation and static `sitting’ for lengthy periods. Hence if an unused tyre reaches six years old it should not be placed into service.
Implement and ATV manufacturer Carlisle Tire has had its assets frozen in Trinidad. The company dismissed 400 employees from its Point Fortin plant which was closed two weeks ago after workers began protesting about what they claimed were unsafe working conditions, including exposure to harmful chemicals. Carlisle said it dismissed the workers because they had abandoned their jobs. Workers were not given severance packages. The court’s ruling allows Carlisle to spend only 4,200 US dollars in monthly operating expenses at the plant. The plant, located in a free-trade zone, manufactured 3,000 to 4,000 tires a day for export, according to court documents.
Reports in the press suggest that Goodyear may be looking to sell its chemicals business, which turns over around $1 billion a year, and has retained Credit Suisse First Boston to handle the sale. However, a Goodyear spokesman refused to confirm the story, saying that the company reviews all its operations but would not speculate on the possible future sale of any of the assets.
Three companies which supply chemicals for tyre manufacturing are being investigated for possible price fixing. Investigations are on-going in both the USA and Europe into Bayer AG, Flexsys NV and Crompton Corp. Experts estimate that sales of rubber-processing chemicals in the USA are worth around $900 million annually.
An illegal tyre dump, covering 145 acres and containing an estimated four million tyres, caught fire over the weekend near the city of Roanoke, Virginia. 50 people left their homes, but returned later when the wind changed direction. The cause of the blaze is not known. Governor Mark Warner declared a state of emergency on Sunday, which means that the county can use state resources. Such fires are usually left to burn themselves out, as water run-off could contain toxic chemicals. Officials said the fire “could burn for months”.
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