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.
Double Coin Holdings’ US-based subsidiary, the China Manufacturers Alliance (CMA), has appointed Ken Coltrane vice-president of its consumer tyre business. Coltrane brings almost two decades of tyre industry experience to his new role; most of his tyre industry career was spent at Del-Nat Tire Corporation, where he held positions in export, purchasing, and also served as the company’s vice-president of marketing.
The manufacturer of TerraClean – a product designed to clean internal engine components by removing harmful carbon deposits without the need to dismantle the engine – is to hold its first conference for its growing network of service centres. Randstad says its new television advertising campaign, to be aired across a number of digital and satellite TV channels, will be previewed at the conference. TerraClean claims to increase the miles per gallon of vehicles by between four and 15 per cent, reduce emissions, extend component life and improve petrol and diesel vehicle performance. The product has won an endorsement from TV motoring specialist and star of The Discovery Channel’s ‘Wheeler Dealers’, Edd China.
Bridgestone Corporation says it has acquired the land where its Shenyang, China truck and bus tyre plant will be relocated to. In accordance with Shenyang City development policies, which were revised following the urbanisation of the area surrounding the Bridgestone (Shenyang) Tire Co., Ltd plant, production will be moved to the Shenyang Chemical Industry Park. The new site will encompass approximately 395,000 square metres and relocation will involve a total investment of US$99.9 million.
Aftermarket show Autopromotec has announced details of 2013’s International Automotive Aftermarket Meeting (IAAM13) on 23 May 2013. Previously known as the EAAS (European Automotive Aftermarket Symposium), the conference aims to provide companies and professionals involved in the after-sales sector with an insider's perspective on the trends and developments within the aftermarket industry in Europe, as well as further afield. It will focus on new international channels for sales and marketing activities, both within Europe and selected strategic countries, such as those of the BRIC group (Brazil, Russia, India and China).
Financial analysts has spoken of Cooper’s confidence in its continuing business outlook following presentations to investors at a Detroit roadshow.
Explaining their renewed confidence, the analysts put this down to “notably improved” product mix, cost competitiveness and recent pricing activity. As far as the import question of how Cooper will fair post import tariff, the Deutsche Bank analysts highlighted that since the tariff was implemented, “the cost of producing tyres in China has increased faster than other regions (the cost gap was 30 per cent at the time of tariff implementation but has declined to a 10-15 per cent).
There are reports from the North American International Auto Show, (Detroit, Jan 14 – 27) that Volkswagen will decide this year whether to introduce a new budget brand aimed at developing markets.
If the company decides to go ahead, it would almost certainly start in China, where VW recorded a near-25 per cent increase in sales to a total of 2.15 million in 2012. But India and other new markets such as Mexico could also be targets for a low-cost VW brand.
Retreaders – whether small or large, industrial scale operations – can use the best processes, machinery and materials, but if the used casing isn’t good, then the finished retread won’t be any good either. The failure of a retreaded tyre when fitted to a customer’s vehicle is a worst case scenario for retreaders. Therefore, experts such as Stefan Dengler recommend that efforts be made to ensure high-end and comprehensive casing entry control. Visually inspecting casings is of course beneficial, however the SDS Systemtechnik managing director notes that even the most experienced casing inspector cannot see within a tyre. The most important technical aid in this area is shearography, something that every retreader can and should invest in.
Tyre manufacturer Hankook has unveiled plans for the construction of the company’s new central R&D facility in Korea. The centre, covering the total area of around 100,000 m², will be located at Daedeok Innopolis, South Korea’s premier research complex located in Daejeon, about 150 km south of Seoul. The construction of the new facility is projected to be completed by the end of 2015.
Following approval by the antitrust authorities, Bosch completed its acquisition of SPX Service Solutions, a US automotive diagnostics specialist at the beginning of December 2012. The agreement to purchase the company was signed the preceding January. SPX Service Solutions develops, manufactures, and sells service equipment, repair-shop accessories, and software for the global automotive market. Based in Canton, MI (USA), SPX Service Solutions generated sales of some US$920 million (some 660 million euros) in 2011. The diagnostics specialist employs 2,800 associates in 17 countries, and has manufacturing sites in the US, Germany, France, and China. The purchase price was $1.15 billion (885 million euros).
Continental has opened the first fully-automated tyre testing facility in the world at Contidrom, near Hanover. In addition to the ability to perform braking tests without drivers, helping to test consistently for longer hours, Conti has built a 300x30m air conditioned hall to house the Automated Indoor Braking Analyzer (AIBA), reducing the influence of atmospheric conditions on test results. The manufacturer will also be able to control the friction coefficient, as the hall enables the company to switch the 75m surfaces used as a braking area, in addition to using a low temperature hall for testing on ice. The main hall is also fitted with a sprinkler system for wet testing. Conti estimates that the AIBA will perform around 100,000 braking procedures, on passenger car, van, and 4×4 summer and winter tyres, when fully operational.
Thailand, currently the world’s largest rubber producer with an output of 3 million tonnes/year, is seeking to attract investment from international tyre producers in an effort to promote its domestic market and simultaneously contain its rubber export volume. Deputy Agriculture Minister Yutthapong Charasathian invited tyre makers to come and construction manufacturing plants in the South East Asian country, saying the Thai government has already sounded out “leading tyre manufacturers in the US, China and Japan” to expand tyre manufacturing operations in the country.
German publication “AutoBild” reports it has uncovered the first case of sham tyre labelling. Shortly before Christmas, AutoBild posted news that “the first falsification has found its way from China to Europe.” According to AutoBild, a range of tyres produced by a particular Chinese manufacturer feature a label bearing a wet braking pictogram that differs from the one approved for use with the EU tyre label. Other aspects of the label that was used, including size, colour and form, are also unrepresentative of the label approved under EU regulations.
Trelleborg Wheel Systems has agreed to to acquire Maine Industrial Tire, a US-based solid tyres manufacturer. Maine Industrial Tire’s headquarters is in Massachusetts, US, while its production facilities are located in Pennsylvania, U.S., and Xingtai (Hebei), China. Annual sales amount to approximately 600 million Swedish Krone and approximately 650 people are employed in the company. The acquisition is expected to be completed by the end of 2012.
At its Capital Markets Day earlier this month, Swedish firm Trelleborg outlined a new organisational structure. As of 1 January 2013, the Trelleborg Group will be divided into five business areas; Trelleborg Coated Systems, Trelleborg Industrial Solutions, Trelleborg Offshore & Construction, Trelleborg Sealing Solutions and Trelleborg Wheel Systems. The company says the new arrangement makes for a “more focused” organisational structure.
Maxxis reports that it “remains at the forefront of ATV tyre development” with its range of utility, ATV and specialist sports quad tyres, renowned for delivering superb all-round performance across a variety of applications. And, of course, all these are useful in farming and agricultural applications. With all this in mind, it probably won’t come as a surprise that Maxxis is an accredited OE supplier to all the top ATV manufacturers, including Yamaha, Honda, Kawasaki, KTM, Polaris and Suzuki.
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