Italian tyre wholesaler operation CDP Group Spa has grown from a start-up to being a top 10 tyre wholesaler in the country in less than three years. Founded at the beginning of 2008 the company reports that it took just two and a half years to get into sixth place in the Italian tyre wholesale rankings and – with full year 2009 turnover totalling 28 million euros – there is every sign that the growth will continue.
A desire to accelerate corporate growth has prompted Michelin to launch a 1.2 billion euro capital increase aimed at existing shareholders. Through this capital increase the French tyre maker also aims to enhance its credit rating, access to financing and financial flexibility.
Amongst Michelin’s plans in Asia is a doubling of market share in Malaysia. Yves Pouliquen, managing director of Michelin Malaysia Sdn Bhd, reports the more than 1,000 outlets selling Michelin tyres throughout the country hold a ten per cent share of the market, and the tyre maker’s goal is to “grow that to 20 per cent.” One means the company has of increasing its presence in Malaysia is via the expansion of its Tyreplus network of independent tyre retailers. A year after its initial Malaysian market debut, the national Tyreplus network contains eight outlets, and Michelin plans to increase this to 50 centres by 2013 through a project Pouliquen says will cost some RM10 million (£2 million).
Continental AG says automobile production in Europe and the US will remain stagnant next year, which is why it is stepping up expansion in Asia. The tyre and auto part maker said growth in emerging markets like China, India and Indonesia is important to its continued success.
Nanophosphate lithium ion battery and systems developer and manufacturer A123 Systems has announced the opening of what it claims to be North America’s largest lithium ion automotive battery production facility. The grand opening of the plant in Livonia, Michigan was held on September 13, and A123 Systems says that when the facility is fully operational it will expand the company’s manufacturing capabilities by up to 600MW hours per year. The Livonia factory’s opening comes just over one year after A123 Systems was awarded a US$249 million grant from the US Department of Energy (DOE) as part of the American Recovery and Reinvestment Act to help the company execute its strategy to ramp up US manufacturing capabilities to meet increasing, market-driven demand for innovative technologies.
India’s Ruia Group is reportedly “close” to purchasing a German automotive component company, and may route any agreed transaction through its listed Falcon Tyres subsidiary. Group chairman Pawan Kumar Ruia states that Falcon Tyres will raise around Rs 8 billion (£111.6 million) by way of fresh shares through a rights issue, equity convertible warrant or other means to fund its expansion programme of overseas acquisitions and capacity expansion at home.
Trelleborg Wheel Systems has launched a new 710/50 R26.5 twin radial tyre. According to the company, the new product offers enhanced flotation characteristics that protect the soil, the driver’s health, lowers noise levels and contributes to reduced overall operating costs for the farmer. The twin radial features a 15 per cent wider footprint area, additional lugs and a longer central block compared to the previous version. This means an increased land/sea ratio and 14 per cent deeper lugs.
Bridgestone has announced that it will raise the prices by between 3 and 6 per cent of its consumer, commercial and speciality tyres in Europe during October 2010. Bridgestone Europe CEO and president Makio Ohashi said that “historically high” raw materials prices had necessitated the hike, while “further increases will be necessary in the coming year”.
Chinese petrochemical product manufacturer Keyuan Petrochemicals reports it entered into land use right transfer agreements with local government agencies on August 18. Following their approval, the company will instigate plans for expansion on an 111,500 square metre site adjacent to its existing plant in Ningbo, Zhejiang province. In addition to building a storage and several manufacturing facilities as originally planned, the company has now announced it also intends to establish a Styrene-Butadiene-Styrene (SBS) production plant on the site. Work will begin in the third quarter of 2010.
Apollo Tyres reports the successful conclusion of negotiations with union representatives over the lockout at its Perambra factory in India’s Kerala state. After reaching an agreement with two of the three unions representing employees at the company’s so-called “mother” plant, Apollo has announced the end of the lockout which began on June 11.
B-Quik, Thailand’s biggest independent automotive repair organization, saw revenue grow over 30 per cent in the first 6 months of 2010, this despite the unrest in the Thai capital in the month of May. The company has opened two new stores so far this year (one on the island of Phuket and one in Bangkok) and now operates through 64 outlets. For the second half of the year another seven new stores are confirmed and three more are pending. B-Quik adjusted its revenue expectation for 2010 to exceed 2.5 billion Thai baht (£50 million, 61 million Euros). Growth is almost equally split, 15 per cent from like for like same store increase and the other 15 per cent from new stores build last year and this year. The sales growth is divided evenly over the various product groups but aircon repairs and servicing and oil/filter changes lead the growth.
JK Tyre & Industries, manufacturer of the JK Tyre, Vikrant and Tornel brands of tyre, has reported a 32 per cent increase in sales in the first quarter of the Indian financial year. In the three months to June 30, 2010, the company achieved a turnover of RS 12,729 million (£171.9 million) and an operating profit of Rs 730 million (£9.9 million). Net profit for the quarter was Rs 195.3 million (£2.6 million), down 52.1 per cent per cent year-on year.
Trelleborg Wheel Systems reports its plans to expand production at its Tivoli plant are at an advanced stage and output will begin to increase before the end of 2010. The 224,000 square metre Tivoli factory, located near the Italian capital, already employs 600 workers and has received new lines for the production of forestry applications in readiness for an increase in forestry tyre output this year and next year.
Indian manufacturer Apollo Tyres has announced it is to invest 6.6 million euros in its Enschede, Netherlands manufacturing unit to increase the plant's capacity from 5.1 million to 6 million tyres per annum. The company’s South African concerns in Durban and Ladysmith will also receive investments totalling a reported $30 million for expansion and equipment upgrades.
Hoosier Tire has announced the July 16 retirement of Don Newton, a 36 year veteran of the company. The US based race tyre manufacturer says Newton took early retirement in order to spend more time with his family, and notes that during his career at Hoosier Tire Don Newton oversaw the substantial expansion of the company’s manufacturing operations. His job responsibilities will be re-assigned to John DeSalle, who will assume the new position of vice president of Engineering and Manufacturing and to Craig Benninghoff, who will assume the new position of vice president of Operations.
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