Now one of the largest tyre-producing countries in the world, China has an indisputable influence on the direction of global tyre trade. The home of both fast-growing up-and-coming brands as well as a burgeoning domestic market, this tag chronicles China’s involvement with the tyre business.
Over the past couple of years Korea’s Nexen Tire has enjoyed a growth rate of more than 200 per cent in China, and the tyre maker expects this year’s growth to be no different. A reason for this positive appraisal is the numerous original equipment agreements the company has recently finalised in the People's Republic.
Richard J. Kramer, chairman and chief executive officer of Goodyear Tire & Rubber, says he is “very pleased” with the tyre maker’s “outstanding second quarter results.” Goodyear’s figures for the three months to the end of June, which were released on July 28, show a 24 per cent increase in sales to US$5.6 billion, despite a two per cent decline in unit sales. The results, Kramer added, “represent another step on the path toward our 2013 targets. They present confirmation that our strategies are right and that they are working.”
Michelin has released its first half financial results, showing stable operating income of €971 million for a 9.6 per cent operating margin, with net sales up 21 per cent. The Group says the figures are in line with its corporate “road map”, revising its full year sales volumes objectives upwards – after 12.6 per cent market growth in the first half – and reconfirming its profitability estimates. The Group suggests market growth should accelerate in line with long-term trends by the end of the year, targeting an 8 per cent growth in full-year sales volumes.
As Pirelli observed in the July 2011 edition of ‘Truck’, the tyre maker’s in-house magazine for the commercial vehicle sector, the winter of 2010-11 was one of the severest in recent memory. The UK experienced snowfalls as early as November, it noted, causing such traffic disruptions that the Automobile Association describes the period as the most active in its 100-year history – the motoring association answered 200,000 calls for assistance on November 29 alone. In December the lowest temperatures since 1890 were reached.
Telford based tyre wholesaler, Treadsetters recently expanded its product portfolio with the introduction of its own truck tyre private brand called “Torque.” This latest addition to Treadsetters’ extensive truck range is designed to complement the already established Hifly range, which is pitched as a 'value for money' tyre along with the Insa Turbo range of retreaded tyres.
German specialty chemicals company Lanxess and Chinese tyre maker Triangle Group have strengthened their long-term partnership with the signing of a halobutyl rubber supply agreement. Under the terms of the agreement, which was signed at Triangle’s headquarters in Shandong Province by Ron Commander, global head of Lanxess’s butyl rubber business unit, and Lin Bin, senior vice-president of Triangle Tyre, Lanxess will supply Triangle with halobutyl rubbers from 2012 to 2014. Financial details of the agreement have not been disclosed.
In conjunction with the Russia-Germany summit held in Hannover on July 18 and 19, Continental’s CEO Dr. Elmar Degenhart and the governor of the Kaluga region in Russia, Anatoly Artamonov, signed a memorandum of understanding on the new passenger tyre plant Continental is to build in Kaluga. The tyre maker intends to invest some 220 million euros in the Kaluga factory; construction will get underway before the end of the year and the factory is expected to be ready for production in late 2013. The Russian government has pledged to support the new site.
The Nexion Group’s Corghi brand has introduced its new tyre changer line, named Master Code. Corghi explains the name was chosen “to recall that Corghi has the tyre changer evolution in its DNA”. Master Code was presented in Bologna at Autompromotec 2011, as a worldwide preview, and the company was encouraged by the interest shown by attendees. It will next be exhibited in Paris at Equip’auto and in Las Vegas’s SEMA show, the latter being its North American debut .
In its interim report for the April to June 2011 quarter, Sweden’s Trelleborg AB reported net sales of SEK 7,583 million (£721.2 million) from continuing operation, up on the same period last year. Operating profit grew 9.8 per cent year-on-year to SEK 706 million (£67.2 million) and net profit increased 13 per cent to SEK 469 million (£44.6 million).
Following the recent establishment of a new European management team based in Birmingham and headed by Martin West, Chinese-based tyre manufacturer Sailun reports that inroads have been made in the creation and development of a specialist European truck tyre distributor network. Appointments and partnerships have already been established in Spain (Grupo Soledad), Italy (Intergomma), United Kingdom (Kirkby Tyres), Ukraine (Shina Trading), Poland (Handlopex), Latvia (Lattakko) and Sweden (Dackarna).
Tyre maker Triangle Tyre Co. Ltd is reportedly planning to invest 275 million euros in raising its production capacity to 2 million radial truck tyres a year. According to reports published by Tyres & Accessories’ German sister publication NeueReifenzeitung (reifenpresse.de), the investment is earmarked for the development of the company’s operations in Weihai, Shandong province. NeueReifenzeitung reported that the large Chinese tyre manufacturer has a total of three plants in Weihai where is also produces OTR production as well as tyres for cars, agricultural and industrial vehicles.
The first staging of Tyrexpo India 2011 in Chennai was said to have been so successful that organisers ECI International have announced the dates for the next show in 2013. Managing director Paul Farrant said: “Our original intention was to review the show for several months before reaching a decision on a follow up, but we’ve already seen enough to make the decision with confidence that the show will be back in Chennai from 9-11 July 2013.”
Six banks have reportedly agreed to support a Deutsche Bank-arranged US$225 million 3.5-year term loan for China’s GITI Tire. According to Thompson Reuters’ ifre.com website, unnamed banking sources shared the information with the publication. No details of what the loan is intended for have yet been released, but it looks likely to be a refinancing tool. GITI has not officially commented on the reports.
On July 12 Compagnie Financière Michelin, a fully-owned Michelin subsidiary, signed a new credit facility to be used for general corporate purposes. This 1.5 billion euro multi-currency revolving credit facility, signed with a group of 21 banks, is intended to replace Michelin’s 2005-2012 1.5 billion euro syndicated line. Michelin states the new facility is “in line with the Group’s debt refinancing strategy.”
Dunlop Aircraft Tyres today hosted Her Majesty’s Lord-Lieutenant of West Midlands, Paul Sabapathy CBE at its Birmingham facility, where he presented the company with the Queen’s Award for Enterprise in recognition of the company’s sales achievements in the international trade category. “It is an honour to receive this award,” said Dunlop Aircraft Tyres chairman Ian Edmondson.
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