With just over two months to go before Tyrexpo Africa 2018 opens in Johannesburg, South Africa in early April, Singapore-based organiser SingEx has confirmed the participation of several global brands in the tyre, tyre repair equipment and tyre accessories. More than 100 international companies will be exhibiting at the event, with what the organiser describes as a significant number making their debut at the exhibition.
Qingdao Doublestar broke ground on an industry 4.0 scrap rubber recycling plant in December 2017. When fully operational, the $92.7 million plant will process 200,000 tons of scrap rubber annually.
On 20 November 2017 the United States District Court for the Central District of California held Chinese tyre factories Doublestar Dong Feng Tyre Co., Ltd. (DDF) and Qingdao Doublestar Tire Industrial Co., Ltd. (QDT) in contempt for violating a 2014 Final Judgment prohibiting the manufacture and sale of tyres using a confusingly similar tread to that of Toyo’s best-selling Open Country M/T. DDF and QDT were held in contempt for selling the AMP M/T tyre, which was deemed to be too similar.
No I am not talking about the unqualifiable rumours that Doublestar made an offer of up to 250 million euros for Zenises. Rather, that in the first week of September we learnt that Doublestar’s proposed acquisition of Kumho was collapsing before the firm’s eyes after the Qingdao-Chinese tyre manufacturer asked for a double-digit discount. And it is also worth considering what all this means for the wider tyre manufacturing sector.
Apollo Tyres has denied reports published in India’s Economic Times suggesting that it is about to enter the race to acquire Kumho Tire. An Apollo spokesperson told Tyres & Accessories: “Apollo Tyres strongly denies the story headlined ‘Apollo Back in Kumho Race as Geopolitics Sours China Deal’ that appeared in the print edition of The Economic Times on 2 October, 2017.
Zenises Group CEO, Harjeev Kandhari has denied rumours emanating from the Spanish market that Chinese tyremaker Doublestar has bid as much as 250 million euros for the company. Doublestar and Zenises entered into a European joint venture in October 2016.
Doublestar’s proposed acquisition of Kumho is reportedly close to collapse after the Qingdao-Chinese tyre manufacturer asked for a double-digit discount. According to reports in the Nikkei, Kumho’s major shareholders are planning to write to Doublestar asking the firm to agree to the end of bid talks between the two parties.
Although it’s probably too early for champagne corks to pop, progress has been made in the Kumho Tire shareholding negotiations. Yonhap News Agency writes that the tyre maker’s creditors have “tentatively agreed to accept original proposals” made by Kumho Asiana, adding that this may pave the way for creditors to complete the sale of the 42.01 per cent shareholding to Qingdao Doublestar Tire.
Negotiations over the use of the Kumho brand name are drawing to a conclusion, with Park Sam-Koo and the board of Kumho Industrial Co. announcing their final offer following a meeting yesterday. This offer centres on the payment of 0.5 per cent of Kumho Tire’s sales in brand royalties for 12.5 years and a clause ensuring that Doublestar uses the Kumho name for the entire period.
Qingdao Doublestar Tire’s bid to acquire 42.01 per cent of South Korean tyre maker Kumho Tire is developing into a drama of the sort not witnessed since a stubborn Cooper Chengshan Tire helped derail Apollo Tyres’ purchase of Cooper Tire & Rubber. Business Korea writes today that 41 Kumho Tire executives, including chief executive officer Lee Han-seob, intend to resign should Kumho Tire’s creditors sell the share to Doublestar.
Global premium tyremakers continue to lead Tyres & Accessories annual ranking of the leading tyre manufacturers. Owing to the fact that all five of the top five firms have remained stable in their positions, it is difficult to view the chart very differently. Indeed, stability is the order of the day on this year’s table, with 12 of the 20 keep the same positions as last year.
Harjeev Kandhari has joined the board of directors of Doublestar Europe as vice chairman. The joint venture between Qingdao Doublestar and the Zenises Group, of which Kandhari is CEO, is responsible for the sale, marketing and distribution of all Doublestar products in the continent, including the UK and other major markets.
Qingdao Doublestar and Zenesis have made their first official comment on their operational joint venture, Doublestar Europe. Tyrepress.com reported last year that the company had been formed on 22 September 2016 between the Zenesis Group and the top five Chinese tyre manufacturer.
Moon Jae-in is South Korea’s new President, and this may be bad news for Qingdao Doublestar and its efforts to acquire a controlling share in Kumho Tire. In an article published earlier today, The Korea Times explored the possibility that Moon may prevent the Chinese tyre maker from acquiring Doublestar. According to the financial daily, analysts consider this a very real threat to the deal.
Speaking off the record, Chinese executives within Qingdao Doublestar have confirmed the company’s intentions to purchase well-known South Korean tyre manufacturer Kumho Tyre and that it is “now only Doublestar left to buy Kumho”. However, at roughly the same time, Korean newspapers have been reporting that Doublestar probably won’t have the right to use the Kumho brand name post-acquisition. With all this in mind, Tyres & Accessories summaries the story so far.
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