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.
(Akron/Tire Review) Groupe Michelin has gone on the attack against alleged counterfeit tyres, calling on the European Union Trade Commission to take action against a flood of counterfeit medium truck tyres, units the manufacturer said could pose highway dangers.
(India/Rubber Asia) Simplex is a new and exciting franchise programme for overseas investors to get a head start in the profitable and challenging tyre retreading business. It comes from the stable of Goodway Rubber Industries Sdn Bhd (“Goodway”) which claims to be a market leader and one of the fastest growing rubber technology and rubber compound providers in the world.
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Yokohama Tire Corp has resolved the last phase of its patent and trade dress infringement suit relating to Wanli S-1099 tyres sold in the US. It is not clear whether or not the case will have any bearing on the European tyre business and Belgian wholesaler Deldo, the exclusive European distributor of Wanli tyres, still lists the S-1099 in its catalogue. Speaking on behalf of the company, Phillip Delcroix told Tyres & Accessories he was “not aware of any problem.”
(Akron/Tire Review) No sooner had the ink dried on the merger of Galaxy Tire & Wheel and Dynamic Tire Corp than the combined company – GPX International Tire Corp. – has sold a share of the company to private equity firm Sterling Investment Partners for a reported $41 million.
Continental AG CEO Manfred Wennemer has said he could well imagine the company making acquisitions in the US and Asia in the future. In an interview with Frankfurter Allgemeine Sonntagszeitung, Wennemer also said there are plans to strengthen the tyre-making business in China.
Shanghai International Exhibition for Auto Parts & Accessories (Auto Parts Shanghai 2005) and Shanghai International Exhibition for Auto Manufacturing (Auto Manufacturing Shanghai 2005) are being held on December 6 – 9, 2005 at the Shanghai International Exhibition Center in China.
In Auto Parts Shanghai 2005 / Auto Manufacturing 2005, 250 local and overseas auto parts manufacturers and suppliers will present their latest auto parts, accessories and technology. There are six international pavilions and over 20 seminars will be given by major auto manufacturers and professionals, running alongside the show. The latest show information can be found on www.2456.com/atop
At the opening of a new development and manufacturing facility in Wuxi, China, Franz Fehrenbach, the Chairman of the Bosch Group Board of Management, announced intentions to significantly expand activities into the region.
The number of Bosch manufacturing facilities in the People’s Republic of China has doubled to 20 in the past five years. At the end of 2004, Bosch had invested some 550 million euros in the establishment and expansion of activities. The company now plans to invest a further 650 million euros during the next two years across the country. “Bosch has a strong focus on China. We see it as a core country for our business in the entire Asia-Pacific region” explained Fehrenbach.
Degussa AG, Dusseldorf, and Rizhao Lanxing Chemical Industry Co, Ltd (Lanshan-Rizhao, Shandong Province) have agreed to establish a joint venture for the manufacture of sulphur-functional silanes for rubber applications. This agreement represents the successful conclusion of negotiations that followed a memorandum of understanding signed by the two companies in July.
Degussa will own a 50 per cent share in the new joint venture, and Lanxing 40 per cent. An unnamed financial investor will assume the remaining 10 per cent. Degussa is the worldwide leading manufacturer of silanes for rubber applications. Lanxing has operated as a well-established local manufacturer on the Chinese market since 1998. The new joint venture company will begin operating under the name Degussa Lanxing (Rizhao) Chemical Industrial Co, Ltd, following approval by the responsible bodies, and having obtained all licenses from the Chinese authorities. The company is scheduled to produce sulphur-functional silanes in liquid form and as a blend with carbon black.
Continental Automotive Systems is opening its new headquarters in Shanghai China today, and has announced plans to build a new technology centre in Yokohama, Japan creating 250 new engineer positions.
By the year 2010, the Automotive supplier intends to generate at least 50 per cent of its new sales through agreements with non-European automobile manufacturers. It wants to double sales in Asia and is therefore intensifying its presence to strengthen its
position in this growth market.
According to market research conducted by steel manufacturer Corus, the automotive industry is demanding premium quality steel at an unprecedented rate. Much of this demand comes from the Far East and Central and Eastern Europe, where tyre production is increasing at a rapid pace. In China alone, consumption of steel tyre cord has increased by 30 per cent a year since 2001. This year, the market is expected to grow to more than 300,000 tonnes. In response Corus has invested £14 million in rod mill enhancements to boost its ability to produce, handle and distribute these premium steels.
Pirelli & C SpA has reaffirmed its guidance for “significant improvement” in full-year results compared with 2004. The news follows strong nine-month results, which saw net profits rise 34 per cent. Revenue in the first nine months of 2005 was 2,707 million euros, an increase of 9.8 per cent compared with 2,466 million euros on 30 September 2004. EBITDA was 412 million euros (15.2 per cent of sales), an increase of 17.7 per cent from 350 million euros in the first nine months of last year.
London-based International Rubber Study Group (IRSG) expects the price of natural rubber to remain strong in the next 10 to 15 years, increasing by about 25 to 30 US cents per kilo annually. Secretary-general Dr Hidde Smit told the Malaysia Star that the IRSG’s price forecast for NR this year was about $1.45 per kilogram, slightly higher than US$1.40 per kilo projected for 2004.
“There is an upward pressure for NR prices to be traded higher, buoyed by the increasing rubber consumption in the tyre sector, particularly in China, as well as the switch to NR from higher cost synthetic rubber due to higher crude oil prices,” he said.
Chinese Tyre output was up 32 per cent year-on-year in the month of October to 26.664 million units. The China Petroleum and Chemical Industry Association figures also show that almost half (12.301 million) were radial tyres, up 31.2 per cent. For the January-October period, the tyre output reached 248.588 million units, up 28.4 per cent year on year, of which radial tyres accounted for 113.995 million units, up 38.6 per cent.
Alain Belda, chairman and CEO of Alcoa has announced the retirement of Richard B. Kelson, chief financial officer and EVP. Joseph C. Muscari will succeed him in the role, effective 1 January 2006.
“Rick Kelson has been an integral part of Alcoa’s success over the past three decades,” said Belda. “We are sorry to lose him, but I am pleased that he has agreed to stay on well into next year to help provide for a smooth transition.” Mr Kelson will become chairman’s counsel in January and will continue to advise the company on the transition.
Maxxis is planning to complete construction of three new technical centres in Asia and the US in the next eight months. Construction is complete on the first new centre, near Shanghai, China.
Here workers are reportedly putting the finishing touches on the six-story, 143,182-square-foot facility, which will employ 200 engineers. Plans are also underway for construction of a proving ground, expected to open in 2008.
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