Commercial Vehicle Tyres
Old habits die hard, and for many of us our knowledge about Russia is at best sketchy. Yet much change is taking place there, and the tyre industry is not missing out on this. Europe’s major tyre makers today have, or are in the process of acquiring, a presence within the region, and Russian companies are also working to secure their share of a growing and lucrative market. Keeping track of various deals can sometimes be complicated…
Following Continental’s recent acquisition of India’s Modi Tyres Company Limited, the German company has announced plans to expand its Indian market operations. Initial plans involve increasing Continental India Limited’s cross-ply truck and bus tyre production at its Modipuram factory to over 500,000 units per annum this year and further boosting output to more than a million units in 2013. On top of this, more than 50 million euros will be invested to equip the company for passenger car and commercial vehicle radial manufacture; Continental anticipates starting production of these tyres in the second half of 2013.
Although the earthquake and tsunami in Japan earlier this year caused original equipment tyre sales to decline there, mid-2011 financial quarter results show aftermarket sector sales are continuing to improve, building on signs of recovering demand first seen – as figures recently published by the Japanese Automobile Tyre Manufacturers Association show – in 2010. The association’s report, titled “Tyre Industry of Japan 2011”, reveals growth occurred in both the original equipment and aftermarket segments last year, the first time production in Japan has increased in the last three years.
In June Hankook Tire held a groundbreaking ceremony for a new tyre plant in Indonesia. While the Korean manufacturer has already shared plans to service the North American and Middle East markets from this facility, executive vice-president Hyun Bum Cho has told Indonesian journalists that it intends to secure a 25 per cent share in the domestic market through output from the plant.
The Firenza brand has been established in the UK truck market for a number of years now and the range, which is produced by Sumo Tires, is steadily growing. Firenza commercial vehicle tyres are said to be backed by the latest production technology and include design features such as a solid shoulder area construction, a zero angle steel band that prevents irregular wear plus a tread groove to combat casing damage and stone retention.
Recently, Aeolus Tyre Co. announced a first in China –100 per cent environmentally friendly tyre production. The Jiaozuo-based company has taken steps in its manufacturing process so that all tyres produced from now on are REACH-compliant, and it claims to now produce medium truck/bus radials that boast longer tread life, greater retreadability and lower rolling resistance – as much as 24 per cent lower, according to Aeolus.
In its 2010-2011 annual report, the European Tyre & Rubber Manufacturers’ Association reports on what it calls the “dominant sentiment amongst industry leaders” – enhancing, or at the very least maintaining, the competitiveness of its member companies. Elaborating on the situation behind this sentiment, ETRMA secretary general Fazilet Cinaralp comments that “Europe is the most highly regulated area for tyre production and marketing but our global competitors are well aware that there is no market surveillance to enforce our strict rules. This undermines equality in regulatory enforcement and at worst leads to a competitive disadvantage for European producers.”
Grant Willman, who joined Continental in July 2008 as dealer support manager for the truck division’s South East region, has been promoted to the newly-created position of Retread and Brand manager within the company’s UK commercial vehicle tyres marketing team. In this role, Willman will be responsible for both developing Conti’s retread sector strategy over the coming five years. He will also take responsibility for managing the casing process to ensure, as the tyre maker says, “Continental is at the forefront of the retread market as well as developing and implementing the brand strategy for all Continental’s commercial vehicle products.”
Yokohama Tire Corporation has announced a price increase of an average of 8 per cent on all of its light and medium commercial truck tyres sold in the USA from 1 July. Rick Phillips, Yokohama director of commercial sales, said that in addition to rising raw materials costs “other factors also influenced the increase, such as the costs associated with manufacturing and transportation, which continue to escalate.”
Michelin reports the recent UK release of its latest truck tyre, the X MultiWay 3D, a product that gets its name from the three-dimensional nature of its tread sipes. These namesake sipes, incidentally, are designed to generate grip in difficult climatic conditions. Michelin says it is primarily aiming the tyre at ‘regional’ hauliers – those operating vehicles which typically spend around 60 per cent of time on local roads and 40 per cent on dual carriageways and motorways.
A ceremony marking the official opening of Continental’s first tyre factory in China was held on May 18. Shipments from the passenger car tyre plant in Hefei, Anhui province are expected to become available in the Chinese market within the next few weeks, with versions of the ContiPremiumContact 2 and ContiComfortContact 5 tailored for the Chinese market amongst the first volume products to be manufactured in Hefei. The new plant was officially opened today by CEO Dr. Elmar Degenhart, Nikolai Setzer, Executive Board member responsible for the Passenger Car and Light Truck Tires division, plant manager Tobias Kerle and representatives of local authorities.
Much sentiment about Chinese manufactured tyres emanating from the US in recent years has had a negative tone to it; from quality concerns to accusations of dumping, Chinese product has not always been welcomed with open arms. Yet it is unfair to tar all Chinese manufacturers with the same brush, and the Retread Tire Association is currently trying to get the message across that Chinese truck tyres can be a suitable alternative.
Michelin has announced the appointment of Brian Porteous, 43, who is the company’s new technical product marketing manager with a remit that includes the company’s truck, bus and coach products within the UK and Ireland. He replaces Paul Kendrick, who is retiring after 43 years with the company. Porteous will be based at Michelin’s UK headquarters in Stoke-on-Trent and will report to Martin Covington, head of Truck and Earthmover Marketing.
Bridgestone is reporting and surprising insights into what people really look for when it comes to choosing their commercial vehicle tyres gleaned from the thousands of visitors at this year’s CV Show. The Bridgestone stand, which incorporated the Rizla Suzuki MotoGP bike, also offered visitors the chance to win two hospitality tickets to the British MotoGP in exchange for a crucial piece of information – what is the single most important factor in your choice of tyre supplier?
A price adjustment taking effect on May 1, 2011 will see the price of all commercial vehicle tyres sold by Toyo Tire U.S.A. Corp. increase by up to 15 per cent, with in-line adjustments occurring. The manufacturer states this rise reflects the continued escalation in raw material costs. “Due to the steep increase in the costs of raw materials affecting our industry, we must reluctantly raise prices of our product,” said John Hagan, senior director, sales, Toyo Tire U.S.A. “We appreciate the continued support and understanding of our dealers as we remain committed to providing the highest quality products.”
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