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.
GPX Tire has moved into a new 143,000 square foot warehouse in Fairbanks Industrial Park just outside of downtown Houston, Texas (9700 W. Wingfoot Drive). According to the company, the larger facility allows GPX to meet the growing demand for GPX tyres in the region.
(Akron/Tire Review) In line with its business plan focused on global distribution, Stamford Tyres Corp. of Singapore has recently expanded into China, India, South America and the US. In March, Stamford announced that its 50 per cent owned joint venture company, Tyre Pacific (HK) Ltd, has incorporated a 100 per cent owned subsidiary company, Orizz (Shanghai) Ltd in Shanghai, China.
Bulk transport logistics specialist Hoyer is in the process of switching its tyre procurement to Michelin contracts in a number of major European countries, following the success of its Michelin-fitment policy in the UK. Hoyer UK Ltd has been fitting Michelin tyres across its 1,200-strong tanker fleet since 1997, managed through ATS Euromaster. The success of this arrangement has seen the adoption of a ‘pence per kilometre’ (PPK) contract in the Republic of Ireland, supported by Haughton & Son Tyres Ltd. It has also seen similar contracts set-up for Hoyer Group fleets in Belgium, Finland, Germany, Holland and Luxembourg.
Hercules Tire International, based in Kitchener, Ontario, Canada, is the largest independent tyre exporter in North America, with warehouses in Canada, the USA and China. The company’s export lines cover a vast range of different brands, prices and grades of tyre, from passenger car and light truck tyres to very large off-the-road and speciality tyres. Hercules’ own brands include Hercules, Merit, Electra and Ironman – all of which are manufactured in the USA and China.
The role of introducing Pirelli’s “Truck Tyres in Revolution” slogan fell to UK managing director, Dominic Sandivasci. “When you think of Pirelli, truck tyres is not the first image that comes to mind. That’s about to change,” he explained. Why now? “Because we’re ready,” comes the reply. According to Sandivasci the company known as the “Giorgio Armani of the tyre industry” is now poised to attack the truck replacement market and go for growth. In short the Italian manufacturer is looking for “ways of working that go beyond existing partnerships.” And this basically means rejuvenating its position in the truck tyre market. One way the company is seeking to achieve this is by transferring the success of its Pirelli driver scheme into the truck arena, while another is the launching a new online tyre management system – B2Fleet.
(Akron/Tire Review) On the same morning that its chairman, president and CEO resigned, Cooper Tire & Rubber Co. released its first half and second quarter 2006 financial results. For the first half, the company posted sales of $1.2 billion, up 19 per cent over the same period last year. But Cooper posted a net loss of $26 million for the half. Second quarter sales of $625 million were up 22 per cent year-to-year, and were driven largely by Cooper’s business in China, the company said. Cooper acquired Cooper Chengshan (Shandong) Passenger Tire Co. and Cooper Chengshan (Shandong) Tire Co. in February.
Cooper Tire & Rubber Company chairman, president and CEO, Tom Dattilo has resigned to pursue another position elsewhere. The board of directors has announced that Byron O. Pond is to serve as interim CEO while the company searches for a replacement. In the last year Cooper’s share price has fallen around $11 and the company has reported a string of unimpressive quarterly reports. First half 2006 results showing a 19 per cent sales increase and $26 million of losses were published in parallel with the news of Dattilo’s resignation.
The A1GP World Cup of Motorsport will race on the streets of Manchester, this summer as part of Sky Festival. In a UK-first, six elite A1GP cars and drivers will complete a 1.5 kilometre course, through the centre of Manchester from 2-3pm on Sunday 13 August – the third and final day of the three day free festival. A1 Teams Australia, China, Great Britain, Ireland, Lebanon, and Malaysia will all run on the road course. A1GP uses Cooper control tyres.
Dubai-based Varga Trading co LLC has received ISO 9001:2000 accreditation. The 29-year-old company is said to have applied for the accreditation as part of its plans to be become a large scale tyre ditstributor.
The Yokohama Rubber Co., Ltd., has announced it will continue to supply ‘Advan’ control tyres for the 2007 FIA World Touring Car Championship (WTCC). Yokohama began supplying tyres to the WTCC for the current 2006 season.
Kumho Tire is to voluntarily recall 78,321 light truck tyres sold in the North American market due to blisters on sidewalls. The tyres to be recalled are nine types of product under the Venture HT 824 and Venture AT KL78 series. They were manufactured in Kumho Tire’s factory in Nanjing, China, exclusively for the U.S. and Canadian markets.
In a move that could remove the threat of cheap tyres imported from China, the government proposes to make quality certification compulsory for tyres manufactured and sold in India, says the Indian website of Business Standard. This would mean that only tyres that conform to the standard specified by the Bureau of Indian Standards can be sold and foreign tyres cannot be sold through local outlets.
According to a report in the Shanghai Daily, the Bridgestone Corporation is looking towards the booming Chinese auto market to help maintain a 30 per cent growth in sales in China this year. “Chinese sales were up more than 30 per cent in 2005, and we expect the same increase this year,” said Hiromichi Odagiri, chief executive for Bridgestone China. “We have run quite well in the first half.”
(Akron/Tire Review) According to China’s Ministry of Commerce, exports of auto parts last year – including tyres – reached $8.9 billion, up almost 23 per cent from 2004. Exports, according to the Ministry of Commerce, account for 82 per cent of China’s total volume of auto products. Foreign-founded and joint venture companies account for 56 per cent of the auto part exports, said the ministry.
(Akron/Tire Review) Kumho Tire Co. has officially begun production at its new tyre plant in Tianjin, China, near Beijing. The $210 million plant will have the capacity to produce some 5,25 million tyres per year. Some 50 per cent of the production from the plant will be exported, according to Kumho, while the other half will serve the Chinese automotive and replacement tyre markets.
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