Russia has become Nokian Tyre’s problem child. Although the country is home to two tyre plants that service export markets and contribute to the company’s margins, sales of Nokian products in Russia and the CIS have more than halved within the space of four years. In 2015 alone, the region’s turnover fell by 34 per cent.
Following weak performance in Russia and the CIS region in the third quarter of 2014, Nokian Tyres has revised its operating profit projection for the full year. The Finnish company now estimates operating profit of €300 million to €320 million for 2014, considerably lower than last year’s €385.5 million. Net sales, as per previous guidance, are also expected to fall compared with 2013.
Due to a weaker economic forecast for Russia and the CIS, Nokian Tyres has downgraded its guidance for 2014 and now says net sales and operating profit will decline this year compared with 2013. This latest forecast replaces that published on 7 February, in which Nokian Tyres said it was positioned to show growth in net sales and operating profit this year.
The joint venture agreement Pirelli subsidiary Pirelli & C. Ambiente SpA signed with Clean Diesel Technologies, Inc. (CDTi) in February has been dissolved. Eco Emission Enterprise Srl (E-Cube) was established to market and sell emissions control products for both petrol and diesel applications in Europe and the CIS countries, however the operation hasn’t performed according to expectations.
This month the Nizhnekamsk Truck Tire Factory (OOO NZGSH), which is part of OAO TATNEFT's petrochemical business, manufactured its 70 millionth tyre. Production at the Nizhnekamsk truck tyre factory began in April 1978, and the 70 millionth tyre was timed to coincide with Chemist's Day and the 80th birthday of Nikolay Alexandrovich Zelenov, the first director of the Nizhnekamsk tyre factory, and now adviser to the chairman of the company’s Board of Directors of OOO "Nizhnekamskshina". The milestone tyre was a Kamaz truck tyre.
A buyer for Sibur Holding’s tyre business may be announced before the end of this year, Bloomberg reports. New owners Leonid Mikhelson and Gennady Timchenko are apparently “close” to securing buyers for Sibur-Russian Tyres plus the company’s Sibur-Fertilizers business; their sale forms part of the owners’ new focus on specialty chemicals, Bloomberg states.
In late April Michelin celebrated the official opening of its first retreading facility in Russia. The opening of the retreading plant, located at its Davydovo new tyre factory near Moscow, has been described by Michelin as one of the most important steps in its long-term business strategy for Russia and the CIS. The tyre maker intends to invest some 10 million euros in the facility in the years up to 2015. The establishment of the retreading plant has created 50 new jobs at the Davydovo site.
Prices for all synthetic rubber grades produced by Dow Europe GmbH have increased by 250 euros per metric tonne, effective October 1st, 2008, or when contract terms allow. Products affected include styrene rubber (SBR) and polybutadiene rubber (BR) products, including cold polymerized emulsion styrene butadiene rubber (BUNA E-SBR), high-cis polybutadiene rubber (BR), low-cis polybutadiene rubber as well as solution styrene butadiene rubber (S-SBR).
Internet based tyre management company TyreCheck has announced the launch of its Work Order Management Module, which will effectively reduce the overall cost of tyres on a fleet whilst also improving the fleets’ availability. By implementing this innovative module a tyre fitter will be able to carry out an inspection on a truck’s tyres, correct pressures and replace any damaged tyres. At the same time any tyre that will need re-grooving in the near future can also be recorded. All these tasks can be carried out both swiftly and efficiently without the use of paper and the results can be immediately available online for reference.
As of April 1st, or as contract terms allow, prices for all synthetic rubber grades sold in Europe by Dow Europe GmbH will by 150 euros per tonne, the company has announced. The products included in the price rise include those from its portfolio of styrene rubber (SBR) and polybutadiene rubber (BR) products, including cold polymerized emulsion styrene butadiene rubber (BUNA E-SBR), high-cis polybutadiene rubber (BR), low-cis polybutadiene rubber as well as solution styrene butadiene rubber (S-SBR).
Rising raw material costs have prompted Michelin to announce price increases for its passenger car, light commercial vehicle, truck and farm tyres in European markets. Car and light commercial tyre prices will rise by 3.5 per cent in most markets, however in the UK and CIS countries these increases will be 7 and 6 per cent respectively – this greater change, reports Michelin, is necessary to offset the negative impact of the local currencies compared to that of the euro.
Finnish cold weather tyre specialist Nokian has told the daily newspaper Aamulehti that it plans to expand its retail business. The company has made no secret of its desire for its retail tyre chain, Vianor, to be the leading chain in its home market, however comments made by CEO Kim Gran hint at ever greater ambitions.
“One could say our final aim is to have a retail chain which covers the globe in the lands of ice and snow,” said Gran. He further indicated that the tyremaker is considering drawing on the resources of a second company in order to accomplish its plans. “It could well be that we have a partner that then utilises our retail chain to sell its own products.”
At present the Vianor chain is present in Finland, Sweden, Norway, Estonia, Latvia and Russia, and the company is working at growing in Russia and the CIS countries through a partner network.
Amtel-Vredestein N.V. has appointed Victor Tuluk as general director of Amtel-Chernozemye Tire Production Complex in Voronezh. He replaces Vyacheslav Chemerinsky.
Vyachelsav Chemerinsky, who leaves the company to pursue other interests, will remain a member of the board of directors at Amtel-Chernozemye. He is also a deputy of the Voronezh Duma. “Vyachelsav has expertly managed the arduous task of bringing our Voronoezh facility into the 21st century. We are grateful he will remain on the plant’s board,” said Amtel-Vredestein CEO, Alexei Gurin.
Sibur-Russian Tyres’ 11-month tyre shipment figures have increased by 14.6 per cent to 10.9 million tyres, Russian news sources have reported. In the first 11 months of 2003 the company shipped more than a million less (9.514 million). The value of the company’s shipments increased by a healthy 20.1 per cent from 10.342 billion rubles (£192 million) a year ago to 12.419 billion rubles (£230.3 million) a year ago.
Overall shipments stood at 13.767 million (£255.8 million). Here the deliveries to Russian and CIS companies as well as orders from the Ministry of Defence were also taken into account. In total, Sibur produced 17.9 million tyres last year. Although the majority of these are distributed through the company main distributor, Sibur Russian Tyres, approximately 3.3 million are distributed through other avenues.
Finnish company Nokian Tyres and Amtel Holding of Russia have signed a letter of intent to form a joint venture company to manufacture and market premium branded tyres in Russia and CIS countries. The JV – owned 50/50 by the two companies – will produce Nokian and Nordman branded tyres. The first Nokian tyres will be manufactured at the JV’s plant at Voronezh in 2004 and the maximum capacity of three million tyres is planned to be achieved by 2007. Investment in new manufacturing facilities will total US$ 110 million, with a first year investment of 38 million.
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