Commercial Vehicle Tyres
Goodyear Dunlop has announced its appointment of Michel Rzonzef as the new vice president of its EMEA Commercial Sales and Marketing Product business unit, responsible for “driving a single aligned strategy and operating plan for commercial vehicle tyres”, according to the company’s announcement.
Just under a year before its mandatory introduction, the European Commission has published its second regulation (1235/2011) paving the way for the implementation of tyre labelling requirements. Regulation 1222/2009 introduces labelling requirements detailing the display of information on fuel efficiency, wet grip and external rolling noise of tyres. According to the ETRMA, which has been involved in consultation on the legislation, the regulation aims to “increase the safety and the environmental and economic efficiency of road transport by promoting fuel-efficient and safe tyres with low noise levels.”
Hong Kong-based, Bermuda-registered company Pearl River Tyre (Holdings) Limited, who is 70 per cent shareholder in the joint venture company Guangzhou Pearl River Rubber Tyre Ltd, has been told by its controlling shareholders that negotiations with a potential buyer have been terminated.
Compulsory tyre labelling is scheduled to be introduced in South Korea in November 2012. As preparatory stage towards its implementation, on 14 November 2011 the country introduced tyre labelling on a voluntary basis. Reporting the commencement of voluntary labelling by South Korea’s Ministry of Knowledge Economy, specialty chemicals firm Lanxess notes that the ministry views tyre labelling as a major part of its overall plan towards a “greener society” and it expects nationwide energy savings of 350,000 TOE (Tons of Oil Equivalent) and greenhouse gas emission reduction by around one million tons of CO2 emissions per year.
Upon publishing its results for the nine months to September 30, Continental states its expectation of annual sales reaching at least 29.5 billion euros remains unchanged. The tyre maker and automotive supplier also believes it can still achieve an adjusted EBIT margin of around ten per cent for the full year, however Executive Board chairman Dr. Elmar Degenhart concedes this “must meanwhile be viewed an an ambitious target owing to the higher-than-expected burden we are experiencing from raw material costs.” Yet these costs, Degenhart adds, should be “roughly offset” by the “very good utilisation” of Continental’s capacities, with strong order books aiding the company’s fortunes.
Although Continental Tire the Americas only announced in May plans to expand its Mt. Vernon facility in the US state of Illinois, five and a half months later the first tyres from the project were produced, ahead of the anticipated start date. “I am very proud of our great team here in Mt. Vernon,” said vice president of manufacturing Benny Harmse. “Our team worked diligently to ensure the success of this expansion project and it was not only on time, but actually ahead of schedule. Their diligence resulted in the early production of the first tyres from this expansion. This is helping us with the important task of meeting our customers’ demands for Continental and General brand tyres.”
Work on phase two of Hankook Tire’s Rácalmás plant in Hungary is now complete. The tyre maker began its project to expand the plant in September 2009 and produced its first ‘phase two’ tyre in November 2010; now the Rácalmás factory is gearing up to produce 12 million tyres per annum and boasts a workforce of 1,900.
Prices for Continental’s passenger car and light commercial vehicle tyres in the US are scheduled to increase by up to 8.5 per cent on November 1. Continental Tire The Americas says this price rise, which applies to its Continental, General and proprietary brand tyres, is being implemented as “a response to the continuing rise in raw material cost.” Exact price increases will vary according to product line and size, and Continental adds that some in-line adjustments will occur.
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.”
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