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A “Near Death Experience” – Simex Europe

Simex Europe has been in existence since 1988, gradually increasing the size of its Monza range of car tyres and steadily increasing sales volumes. Then, in August last year, disaster struck when the Montinex group went into Administrative Receivership, as the group was Simex’s biggest customer, accounting for 60% of its turnover. With most of its eggs in one basket, it was, according to MD Raof Daud, a “near death experience” for the company. Simex fought back by going into car tyre distribution and growing its dealer network, and the come-back has been long and hard, with the company poised to be back in the black for the first time since the crisis. An exciting time for a new man to come in to take charge – Mr. A. K. Lee has recently taken over as General Manager, as Raof Daud has moved to another company within the Sime Darby group after nine years as MD of Simex.

30th November 2001/by Tyrepress Editors

New Distribution Warehouse For Michelin

Michelin is to invest 12m Euro in a new tyre warehouse at its Alava plant in Spain. The 30,000 square metre warehouse will employ 40 staff and will be for the exclusive distribution of the production from the Alava factory. The warehouse should be operational in 2002.

30th November 2001/by Tyrepress Editors

The Development Of Internationalisation – Kraiburg 2010

In the retreading business the name of Gummiwerk Kraiburg Austria, located in Geretsberg, is well known as one of the leading material suppliers for hot and cold retreading, as well as for supplying complete retreading equipment. In two further plants (Waldkraiburg and Tittmoning) a huge number of technical compounds for the automotive industry, compounds made from thermoplastic elastomers and recycling products are being manufactured. Since the middle of 1998 a fundamental restructuring process has been initiated. Under the name “Kraiburg 2010”, a new group structure that will prepare the company for the new challenges of the market in the 21st century, was introduced to the public a year ago. The strategic programme included investments of more than 15 million US-dollars in the tyre retreading materials sector. Direction and presentation of the company will undergo a complete revision. “Internationalisation”, the entering of new markets, was one of the key words of the programme. Reason enough to ask what has happened at Kraiburg the last twelve months: the company has established two new distribution organisations in Spain and Turkey. Furthermore, the European distribution structure has been divided into “profit centres”. With the “profit centre south” a new organisational entity has been created that is responsible for the markets in Turkey, Greece, Bulgaria, Romania, Hungary and Slovenia.

30th November 2001/by Tyrepress Editors

100,000 Tyre Inflation Brochures In The USA

Bridgestone/Firestone and the Tire Retread Information Bureau (TRIB) are co-sponsoring the distribution of over 100,000 tire inflation brochures at the Commercial Vehicle Safety Alliance (CVSA) “Roadcheck 2001” program to be held throughout north America June 5-7, 2001. The four page brochure titled “What are the high costs of low air pressure” is entirely non-commercial and originally appeared in Bridgestone’s tire topic magazine, Real Answers. The brochures will be distributed by highway patrol officers at weight stations in all fifty states and U.S. territories, and all Canadian provinces and territories, as part of CVSA’s program to heighten truckers’ awareness of the importance of maintaining proper air pressure.

30th November 2001/by Tyrepress Editors

Car Servicing As An Opportunity For Tyre Retailers

The disastrous sales of winter tyres in Germany at the end of last year have shown at least one thing: hope has no place in the calculations of business administration, and whoever has not yet understood that will have no future in this business. All the hand wringing of the tyre retailers does not help in this situation. Considering declining gross yields and the many new distribution channels for tyres, tyre retailers are forced to diversify and widen their service offers in order to compensate for loss of profit. One example of how this can be achieved is car servicing, which brings in gross yields between 40 and 50 per cent on average. A lot of business members have long ago realised this fact and extended their range of service offers. So car servicing is no longer a question of “if” but of “how”. The differences between the service offers and the quality of tyre retailers engaged in car servicing are huge. They range from the traditional Fast-Fit-Sector, covering the classical elements (exhausts, brakes and shock absorbers) to the fully equipped and professional working car repair station, offering every kind of car servicing. In this issue of NEUE REIFENZEITUNG the present level of involvement of German tyre retailers in the car servicing business will be explained and described, including some examples.

30th November 2001/by Tyrepress Editors

Original Founder Buys Finelist Brands

Chris Swan has bought the Autela and Edmunds Walker brands of Finelist, the car parts group which went into administrative receivership last year. Swan was the founder of Finelist in 1991, leaving the company in March 2000. The two brands will complement Bulldog Express, Swan’s new parts venture formed earlier this year, and together they claim to be the third largest player in UK automotive parts distribution market, which is estimated to be worth four billion Pounds.

30th November 2001/by Tyrepress Editors

Multiple Causes Of Accidents Cited By Bridgestone/Firestone

Bridgestone/Firestone has issued the results of its four month investigation into the accidents in the USA involving certain Firestone tyres. A number of causes were identified, including unspecified manufacturing problems at Decatur, tyre design in the shoulder area, driver abuse (travelling too fast and at the wrong pressure) and the weight of the Ford Explorer vehicle, particularly an alleged uneven weight distribution on the back axle. Ford denies that the margin for error between the load capacity of the tyres and the weight of a fully-laden Explorer is too slim.

30th November 2001/by Tyrepress Editors

Romanian Acquisition For Michelin

Nomura International, which holds a “substantial” equity stake in Romanian tyre manufacturer Tofan, has announced the sale of parts of the company to Michelin. The French company has bought the Victoria car tyre plant, the Silvania truck tyre factory, a retreading unit, a number of warehouses and the Tofan-owned distribution network. The purchase price was not revealed but a number of tyre manufacturers are said to have been interested. Tofan will continue to manufacture agricultural and implement (brand name: Danubiana) tyres and this business will be expanded, says Nomura, which remains a significant shareholder.

30th November 2001/by Tyrepress Editors

Vice President Materials Management For Goodyear

Mark D. Ponton (50) has been appointed vice president of materials management for Goodyear in the USA. The post entails looking after Goodyear’s initiatives in warehousing and distribution in North America.

30th November 2001/by Tyrepress Editors

“Sportec M-1” To Replace Metzeler’s “ME Z3”

With the arrival of the “Sportec M-1”, Metzeler has launched its latest motorcycle tyre which is planned to replace the “ME Z3”. The international press was invited to Biarritz, France, to take a close look at the new tyre designed to meet the niche between the race oriented “Racing” tyre and the touring targeted “ME Z4”. The “M-1” is dedicated to the customer with a sportier riding style. The “Sportec M-1” will be available from the beginning of October in five front wheel dimensions and six real wheel sizes. With a 0° steel-belted carcass and the multi-curvature tyre contour allied to the so-called MAW system (Metzeler Advanced Winding), or with the new compound and tread design, Metzeler has done a great deal to guarantee more enjoyment and safety for motorcyclists using the new “Sportec M-1”. Metzeler say that prices for the new tyre will “match the market requirements”, we can only guess what distribution manager Holger Schwedt means by that. Obviously Metzeler want to offer the “Sportec M-1” below the price of its predecessor, the “ME Z3″, in order to minimise the advantage to its competitor, Bridgestone, who – if you look at market shares – came very close to the German market leader in recent years. ” We are no longer seeking to simply retain a stable market share, we wish to fight for more,” explained Schwedt.

30th November 2001/by Tyrepress Editors

EU Distribution Centre Of Hankook Officially Opened

Hankook Tires has recently completed the construction of its new European Distribution Centre at Rotterdam, enabling the tyre manufacturer to improve its service to customers throughout Europe. The EDC – a 10 million Euro investment – was officially opened on 7th March.

30th November 2001/by Tyrepress Editors

Michelin Germany: Record Investments but Reduction in Profits

In the 1999 business year Michelin Reifenwerke KGaA (workforce: 6,747) increased its turnover by 3.2 p.c. or approximately 100 million DM to 3.215 billion DM (1998: 3.115 billion DM). The largest part of total turnover was generated in the German market, where it rose by another 6.3 p.c. compared with the previous year to approximately 60 p.c. of total turnover. As a member of the international manufacturing combine, however, the German factory also supplies the distribution organisations of its European sister. In this Michelin Germany also showed a slight improvement. Total tyre production – measured in tonnes – rose by 2.6 p.c. Sales were up by 4.6 p.c. Michelin sold 8.8 p.c. more light truck and nine per cent more truck tyres in 1999. In winter car tyres in particular the company recorded significant sales growth over the previous year, partly due to the launch of the new products Michelin Alpin and Michelin Pilot Alpin. “Our target for 1999 was the modernisation and enlargement of production capacity to improve our competitiveness”, said Dr. Klaus Neb as spokesman for the management. In the course of last year the company invested a total of about 128 million DM in its five German factories and plans to make another significant investment this year in modernising and increasing capacity, especially in the truck tyre factories. Neb is convinced that these high investments will pay off. “Although economic development will differ from country to country, we expect further growth in Europe for the year 2000.” Read more in NEUE REIFENZEITUNG 5/2000.

7th December 2000/by Tyrepress Editors

Figures Rise For Pirelli Germany

Pirelli Germany’s year end figures show an increase of 33 p.c. compared to the previous year. The consolidated turnover was 626.3 million Euro; slightly higher level than last year. The earnings of the ordinary company activities amount to 21.7 million Euro. The strongest subsidiary, “Pirelli Reifenwerke”, grew five p.c. to 442.2 million Euro. The deliveries in the original equipment market increased 34 p.c and sales of passenger car and commercial vehicle tyres increased 4.8 p.c. to 9.1 million tyres.

7th December 2000/by Tyrepress Editors

New Arrangements For Bergougnan Distribution

After having acquired Monarch (USA), Bergougnan (Belgium) and Vorwerk (Germany, now Rotatec) the new parent company Trelleborg Wheel Systems has re-arranged the distribution in several countries. After changes in France and Italy now the German partner Wenzel-Industrie has exclusive distribution rights for the Bergougnan brand, which, up to May, it shared with Industriereifenkontor Lüdtke.

7th December 2000/by Tyrepress Editors

Six Percent More For Continental Tyres

Continental Commercial tyre prices increased by seven percent in August. Effective 1st November, prices for passenger car tyres (summer and winter) and light truck tyres are to rise six percent. Higher costs for raw materials, oil and chemicals, as well as more expensive energy and distribution costs, are the reasons for this decision. The company cannot continue to absorb rising costs without passing them on. The retailer’s situation is comparable. “Our decision provides an opportunity for the retailers to improve the gross profit in their own field”, Jescow von Puttkamer told NEUE REIFENZEITUNG.

7th December 2000/by Tyrepress Editors