On January 4, Toyo Tire U.S.A. announced its intention to increase truck tyre prices by up to seven per cent, effective February 1. This announcement follows the company’s December 4 statement that prices on all its consumer and commercial tyres would rise by up to six per cent as of January 1, 2010. On both occasions the increases were said to be the result of escalating raw material costs.
Starting on December 16, 2009, Volkswagen’s sports-oriented ‘R-Line’ version of its Passat CC is leaving the factory fitted with tyres featuring Continental’s ‘ContiSeal’ technology. The size 235/45 R 17 and 235/40 R 18 self-sealing ContiSportContact 3 tyres featured on the Passat R-Line are capable of closing off punctures up to five millimetres in diameter, and thus Conti believes around 85 per cent of all tyre failures can be resolved through this technology.
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In the last year more than two hundred Israel based Alliance Tire staff have been laid off, and on December 24 Israeli financial newspaper Globes reported the possibility that the same fate may now await “dozens” of white collar employees and production support staff. It would appear those employees not covered by the collective agreement signed between Alliance and Israel’s labour federation in 2008 are most likely to bear the brunt of any redundancies – the agreement forbids Alliance from firing any staff covered by the deal without first going through a pre-agreed process.
On December 22 Standard & Poor’s lowered its outlook on Titan International, citing the tyre maker’s higher debt levels. The outlook was lowered to “negative” from “stable.” All of the company’s ratings, including its junk-grade “B+” corporate credit rating, were affirmed.
In late December Pirelli signed a 50 million euro financing agreement with the European Investment Bank (EIB) that will provide the funds to increase tyre and light commercial vehicle tyre production capacity and Pirelli’s facility in Slatina, Romania. This sum will be used within the context of the 250 million euro investment the Pirelli Group previously earmarked for its operations in Romania in the three-year period between 2009 and 2011.
The US recently imposed tariffs aimed at preventing Chinese manufacturers from dumping cheap tyres in the market, and now China faces its own dumping problems of a different nature – customs officials there report seizing more than 8,500 tonnes of smuggled waste tyres sent from the US. According to the General Administration of Customs, some 366 shipping containers filled with tyres arrived in the coastal city of Guangzhou via Hong Kong between December 2008 and February 2009, where they remained until their discovery in December 2009. Three suspected smugglers were subsequently arrested.
The Kumho Asiana group has reportedly agreed to restructure Kumho Tire along with its Kumho Industrial subsidiary following the failed sale of Daewoo Engineering & Construction to two private equity firms. Had Jabez Partners and TR America purchased the company for US$2.4billion, Kumho would have found it easier to meet a $3.4 billion payment in January, but raising funds for a purchase at between KRW 20,000 and 24,000 (£10.40 and £12.50) per share proved more difficult than anticipated.
At the end of December, ETRMA published details of a set of exposure scenarios covering the use of chemicals in the rubber industry in order to support European rubber chemicals manufacturers and importers that operate within the framework REACH legislation. The latest REACH legislation took effect on 1 January 2010.
In late December Cooper Tire & Rubber announced the appointment of Brenda S. Harmon to the position of senior vice president, Global Human Resources and Communications. In her new role, Harmon is leading all human resource and employee relations activities for the company.
Cameron Steele, a long-time Yokohama Tire Corporation-sponsored off-road racer, captured his second consecutive SNORE (Southern Nevada Off-Road Enthusiasts) Unlimited Truck Class championship by winning the BMS Rage at the River season finale on December 12-13. Steele and his Desert Assassins team mate Josh Daniel both won their respective classes and finished 1-2 overall among all racers competing in the event.
Continental AG reports having already successfully completed the first “key steps” of its overall plan to improve its current financing structure and capital structure following the signing of loan agreements on December 19. The German tyre and automotive components supplier states that “important” amendments have been made to the existing loan agreements, allowing for the repayment of the 3.5 billion euro tranche due in August 2010 inter alia by a forward start facility (FSF) while also providing further flexibility. At the same time, the company has received FSF commitments in excess of the requested 2.5 billion euros, which has resulted in an over-subscription of their bank group’s request.
The team at Tyre Industry Publications, the publisher of Tyres & Accessories magazine and tyrepress.com, would like to thank you for making 2009 a successful year and wish you, your colleagues and your family a happy festive season. The office will be closed from 17 December to 4 January, 2010. We look forward to providing you with all the latest tyre business news in 2010.
Old Trafford was the site chosen for the launch of two new ranges of Exide Technologies batteries specifically designed for hybrid vehicles. The Micro-hybrid AGM and Micro-hybrid ECM were unveiled to executives from major UK automotive buying groups at the Manchester United home ground on December 10. The two line-ups, each containing three battery types, are intended to provide an original equipment specification aftermarket option for all currently available micro-hybrid vehicles.
Titan International’s December 13 offering of US$75 million aggregate principal amount Convertible Senior Subordinated Notes, due 2017, has been increased to $150 million aggregate principal amount. The offer’s terms and conditions remain as previously announced.
Titan says it intends to use the proceeds from the offering for general corporate purposes, including financing potential future acquisitions and repayment of existing debt obligations.
As of December 1, 2009 Nenad Tutunovic has taken over as marketing manager at CGS Tyres. In his new role, in which he reports directly to marketing and sales director Andrew Mabin, Prague based Tutunovic heads up the company’s international marketing team. He is also responsible for the further development of an international marketing strategy and communications plan for CGS Tyres.
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