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Strong Retreading Potential in Chinese Tyre Market

Enormous domestic tyre production capacity, a scarcity of domestic rubber supply and increased output prices could be pointing to strong opportunities in China’s tyre retreading business. Zhou Linyan, president of China Tyre Retreading, Repairing and Recycling Association (CTRA), recently told reporters that China produced 556 million tyres in 2007. And while many of these are destined for export markets, Chinese motorists are expected to discard 200 million end-of-life tyres in 2010.

Other CTRA statistics show that the number of end-of-life (ELT) tyres generated by the People’s Republic have sky-rocketed in recent years – from 32 million in 2000 to 150 million in 2007. Meanwhile, the raw weight of ELTs increased from 12 thousand tons to 3.1 million tons in the same period. While the association predicts China will generate 200 million waste tyres by 2010, the amount of retreading taking place has not yet caught up with the growth in new tyre production and the new tyre to retread rate lies somewhere between 4 and 7 per cent of recovered tyres.

16th December 2008/by Tyrepress Editors

Continental “Welcomes” EU Tyre Label Standardisation

Continental has released a statement welcoming the proposal by the European Commission to introduce an energy efficiency labelling scheme for tyres (see ‘European Commission Proposes Tyre Labelling Scheme’ on Tyrepress.com). The manufacturer approves of the plan to provide motorists with standardised information about tyres’ braking performance, rolling resistance and rolling noise. However, the firm also warned that leading European manufacturers have reservations about the system, namely about “inadequate implementation to the disadvantage of the consumer.”

This concern is a response to a study by the Fraunhofer Institute in Germany, which in 2001 showed that self-certification measures are often abused due to a lack of inspection mechanisms and sanctions. Over 50 per cent of the electrical appliances checked in 320 German stores were incorrectly labelled or not labelled at all. “That simply may not happen with passenger tyres, considering how important they are for safety,” stressed executive board vice chairman of Continental, Dr Alan Hippe, the man responsible for the Passenger and Light Truck Tyre division.

25th November 2008/by Tyrepress Editors

Rubbery Figures

According to the International Rubber Study Group, the European Union is currently the third largest regional consumer of natural and synthetic rubber. In 2007, Europe’s consumption of natural rubber reached 1.373 million tonnes, 14 per cent of global natural rubber consumption. The Singapore based organisation notes that European consumption increased 1.7 per cent since 2005, a much smaller increase that the 10.9 per cent growth in global consumption. For synthetic rubber, the IRSG reports the EU consumption in 2007 to be 2.616 million tonnes, a 20 per cent share of global consumption.

21st November 2008/by Tyrepress Editors

Hankook Tire Nominated Member of ETRMA

Hankook Tire reports that it has been officially nominated concordantly as a corporate member by the Board of Directors of the European Tyre & Rubber Manufacturers’ Association (ETRMA), representing the interests of the European tyre and rubber goods industry. The company will become an official direct member of ETRMA as of 1 January 2009. Currently, ETRMA has 11 tyre corporate – direct members; Hankook Tire will be the 12th.

18th November 2008/by Tyrepress Editors

European Commission Proposes Tyre Labelling Scheme

The European Commission has proposed a draft directive to introduce a tyre labelling scheme aimed at encouraging sales of more energy efficient (low rolling resistance) tyres. The proposed scheme will feature the introduction of a point of sale labelling system scheduled to take effect by the end of 2012.

The commission’s EU Transport & Energy Directorate General draft proposal also highlights the fact that there are wide performance variances when it comes to wet grip and external rolling noise. “Lack of reliable and comparable information on tyres’ performance makes it difficult however for consumers to take these elements into account in their purchasing decision, in particular when the time comes to replace a used set of tyres,” the commission said in a memo dated 13 November 2008.

14th November 2008/by Tyrepress Editors

European End of Life Tyre Recovery Now Above 91%

The ETRMA has confirmed that, last year, the European recovery rate for end of life tyres exceeded 91 per cent, a rate more than 4 per cent higher than the previous year. This positive trend means that Europe is now one of the most advanced regions in the world in the recycling and recovery of tyres, ahead of, for example, Japan, which has a recovery rate of 89 per cent and Canada, at 80 per cent. And while the UK recovery rate, at 95 per cent, is above the European average, it still lags behind the 11 European countries that have achieved a recovery rate of 100 per cent.

31st October 2008/by Tyrepress Editors

ETRMA Launches Pan-European Safety Campaign

ETRMA has launched a European-wide safe driving campaign, centring on an online quiz. The initiative comes as part of the 2nd European Road Safety Day organized in Paris on 13 October 2008 and reflects the industry’s commitment to the European Road Safety Charter, During the month of October, drivers and in fact any road users will be asked the question: “Are you driving safely?” Currently the quiz is available in English only. However, in the future it will be translated into a number of additional languages. ETRMA will offer the possibility of participating in the e-quiz directly from its booth in Paris on 13 October 2008. The ETRMA e-quiz went live on 6 October at: http://www.metapoint.be/etrma-quiz.

9th October 2008/by Tyrepress Editors

Pirelli’s Gori Re-Elected as ETRMA President

Pirelli Tyre chief executive, Dr Francesco Gori, was today re-elected as European Tyre & Rubber Manufacturers’ Association (ETRMA) president. The ETRMA board’s decision to re-elect Dr Gori means he will server a further three-year term from 2009 to 2011. Patrick Lepercq (Michelin) was elected as vice-president for the same period.

Dr Francesco Gori became CEO and managing director of Pirelli Tyre in 2006. He joined the group in 1978 and became general manager of the Tyre Sector in 2001. Patrick Lepercq joined Michelin in 1980. Since 2002, he has been corporate vice-president Public Affairs.

7th October 2008/by Tyrepress Editors

Exclusive Brands Account for 11% UK Car Tyre Market

News, Product News, UK News

GfK data exclusively seen by Tyres & Accessories shows that sales of exclusive brands account for 10.4 per cent of the 2007 UK car tyre replacement market. Based on the results of GfK’s ongoing research, this means 2.62 million of these tyres were sold in the market last year. GfK defines exclusive brands from the retail perspective, meaning tyres that are only available from one clear retail network such as Kwik-Fit’s Arrowspeed brand or ATS’s Riken.

7th August 2008/by Andrew

The Rise of the Eco-Tyre

Anyone who attended the Essen show will have noticed how dramatically the marketing messages propagated at the show appear to have ‘evolved’ from seemingly polar positions.

Asking certain companies what their policy was in relation to aromatic oils and low rolling resistance tyres four years ago resulted in quizzical looks and stifled smiles. There may have been a few companies ahead of the game on this issue, but in general it was all about size, speed and profile. Now this remains undeniably influential, but the ‘product narrative’ has changed completely. Today’s tyres save fuel and last longer than ever, apparently.

As global consumer markets feel the pinch from the credit crunch, one can’t help wondering how long it will take the Chinese manufacturers to catch up with ‘green’ eco-technology. However, there remain both distributors and manufacturers alike that are sceptical as to the sales value of the green message. Do consumers really buy tyres because they may save them fuel?

Pirelli Tyre CEO and European Tyre & Rubber Manufacturers’ Association (ETRMA) president, Francesco Gori, spoke on a related subject during the opening ceremony. In his speech Dr Gori was “perfectly frank” in his references to planned EU directives that will require tyre manufacturers to improve wet grip performance, material authorisation and road noise properties. By way of a warning, he pointed out the consequences these regulations could have on European producers, particularly in comparison with their Asian competitors. Despite the looming threat of legislation and the cost pressure caused by rising raw material prices, the consensus from Reifen visitors is optimistic – 20.2 per cent are even expecting a strong upward trend in the economic growth of the tyre sector, this compares with 12.2 per cent who predicted this in 2006.

As far as the exhibition itself was concerned, with 20 per cent more exhibitors than last time and 17,600 visitors, Reifen Essen has obviously received the green light from the tyre trade. In fact, according to data released by Reifen show organiser Messe Essen, the 25th Reifen exhibition was actually a record breaker. 576 exhibitors (up 21 per cent on 2006) showed their tyre, wheel and chassis technology-related products and services. Visitor numbers totalled 17,600 compared with 17,100 in 2006.

Messe Essen reports that the show was also more international that ever, with 57.4 per cent (2006: 45%) of visitors originating from outside Germany. “That is an excellent value; it highlights the position of Reifen as the leading international fair in the sector,” Dr. Joachim Henneke, Chairman and CEO of Messe Essen commented. International visitors primarily came from other European countries (78.9%) and from the Asian region (11.1%).

Visitors from “the tyre trade” accounted for 34.4 per cent of show traffic, while another 26.8 per cent reportedly worked in the tyre service side of things. 51.1 per cent of visitors described themselves as amongst the top decision-takers in their companies (2006: 44.7%). Seemingly as a result, 42.1 per cent of the visitors placed orders during the show and 42.5 per cent stated that they wanted to conclude contracts after the fair. Nearly all the exhibitors (97.5%) said they had reached their intended target audience.

Keith Jarman, President of AME International, was one particularly positive exhibitor: “Our international business would not be where it is now if this fair had not existed. In spite of the worldwide economic difficulties, the tyre industry is doing fine from a global perspective. Because of the dollar exchange rate, it is absolutely sensible to be here.”

Jean-Claude de Thibault de Boesinghe, Sales & Marketing Manager for EMEA of Bandag AG, echoed this sentiment: “Reifen has gone very well for. We always concentrate all our activities on this fair and meet our dealers from Europe, the Middle East and Africa here. On a large, open booth, we have shown the newest products and technological innovations. The first day was already very busy and the second even better.”

8th July 2008/by Tyrepress Editors

Tyre Industry Response to REACH Legislation

Due to be phased in over the next 10 years, the European Union’s chemical usage legislation REACH – dealing with the Registration, Evaluation, Authorisation and Restriction of Chemical substances – holds implications for many at all levels of the tyre industry. Most specifically, the legislation’s requirement of businesses to register chemicals they produce or use has obvious repercussions for raw material suppliers and manufacturers. Recognising this, the European Tyre & Rubber Manufacturers’ Association (ETRMA) – which represents the EU’s 11 top tyre manufacturers, namely Bridgestone, Continental, Cooper Tires, Goodyear Dunlop, Marangoni, Michelin, Mitas, Nokian, Pirelli, Trelleborg Wheel Systems and Vredestein – discussed the progress of researchers over the past 16 months at the international Tyre Industry CEO Meeting in Tokyo on 12 June alongside representatives of the US, Korean and Japanese industries.

18th June 2008/by Tyrepress Editors

Michelin: Tyre Markets Recovered in April

Sales in the European tyre replacement markets recovered in April, according to Michelin and industry analysts. European truck tyre replacement sales are reported to have grown 10 per cent; while Michelin’s numbers suggest that European passenger tyre replacement sales grew 4 per cent in April (compared with a -1 per cent year-to-date figure). Total OE sales are said to have grown by “a high double digit figure.” Responding to the report, Deutsche Bank analysts put the perceived recovery down to “the Easter weekend effect.” However, Tyres & Accessories’ research shows that the current sales situation may not be so rosy overall.

Taken in isolation, April was a very good sale month in France (which no doubt meant strong sales for market leader Michelin). This may explain why their calculation puts the European market up 4 per cent, but it conflicts with the ETRMA Europool data T&A has seen.

28th May 2008/by Tyrepress Editors

Francesco Gori To Speak At Reifen Opening Press Conference

Francesco Gori, President of the Umbrella Association of the European Tyre and Rubber Manufacturers ETRMA, will be a speaker at the opening press conference for the Reifen 2008 international trade fair at Messe Essen. In his statement, the Director-General of Pirelli’s tyre business will comment, amongst other subjects, on the planned more stringent EU provisions for tyre manufacturers and on the challenges which will thus result for European manufacturers in comparison with Asian tyre producers.

15th May 2008/by Tyrepress Editors

Gori: EC Standards may Agitate Problem of Low Quality Imports

Pirelli chief executive Francesco Gori, in his capacity as president of the ETRMA, has voiced concern that planned European Commission standards will hinder European tyre manufacturers in their competition with Asian rivals. In an April 23 interview reported by Reuters, Gori commented that Asian manufacturers who produce low-cost tyres can easily circumvent the standards, and the costs involved in conforming to them, as the volumes in which such tyres are arriving in European ports makes it difficult to effectively monitor product quality.

“There are not enough resources to control this invasion of products that do not conform to European standards,” said Gori. “It’s very complicated to find a solution.” While Gori does not object to the standards’ aims of improving tyre safety and environmental footprint, his objection lies in the fact that only products made in Europe must conform. “You can use cheaper materials if you make tyres that do not meet the standards. We would want that even the tyres that are imported in Europe met the same standards.”

According to Gori, Asian manufacturers hold between 10 and 20 per cent of Europe’s tyre market, and this figure is increasing by a double-digit figure annually. He added that 20 per cent of replacement tyre sales in Europe were in the budget segment where Asian made products are the strongest.

Should the proposed standards fail to deliver safeguards against tyres that do not conform, Gori said that approaching authorities in major European national markets to discuss potential means of deterring the sale of these tyres was a possible option. He spoke of strong penalties being dished out on offenders as an example to others, and raising consumer awareness of tyre safety and quality.

25th April 2008/by Tyrepress Editors

Position Paper: Proposed Tyre Noise Reduction Goals ‘Not Feasible’

A position paper produced by the ETRMA and recently obtained by the news agency Reuters indicates that the industry association retains its viewpoint on road noise reduction levels outlined last year. On October 18, 2007 the organisation sent a letter to the European Commissioner for Enterprise, Günther Verheugen, proposing voluntary reduction levels while cautioning that the reductions set out by the European Commission may lead to a compromising of road safety. The document obtained by Reuters appears to include similar content, and is said to call some of the Commission’s noise reduction goals “not feasible.”

11th April 2008/by Tyrepress Editors