Singapore based alloy wheel manufacturer YHI International Limited has appointed a new CEO of its YHI Manufacturing Group. Taiwan national Thomas Lee commenced in the role on October 7, and brings to the job more than two decades’ experience: Between 1985 and 2007 Lee was employed by aluminium wheel and casting tooling producer Lioho Machine Works in the capacity of senior vice president and chief of China operations.
Production capacity is to be expanded at Cooper Tire & Rubber’s Texarkana, Arkansas facility. The company reports that, in response to growing market demand for its products, operations at the Texarkana passenger car and light commercial vehicle tyre plant will shift to a 24/7 operation as of January 1, 2010. Approximately 200 additional employees will be needed to support this increased production volume, which will be phased in over several months in 2010.
Yokohama Rubber has announced the expansion of the power steering business operated by it US affiliate YH America, Inc. In making the announcement, Yokohama states “in the changing US automotive market environment, no company can survive the power steering hose market without high product quality and cost competitiveness.” The company notes that, recognising this situation as an opportunity for improving its position in the market, YH America increased its production capacity in May by leasing a plant in South Carolina. This move should propel YH America into the top position on the US power steering hose market.
Within 24 hours of Continental AG confirming it is partnering with Modi Tyres to make bias truck tyres in India, and after a month of local speculation that the company will now buy a stake in the Indian tyre maker, financial analysts are reporting that the company “can’t afford making any acquisitions or expansion projects in emerging markets which are growing fast.”
Rather “all free cash flow generated by the rubber business should be used to reimburse the group’s high net debt of 10 billion,” Deutsche Bank analysts wrote in an investor’s note published today (23 September). Continental’s tyre business reportedly generates 500 million euros of annual free cash flow.
Cooper Tire & Rubber has embarked on a number of measures to boost its competitive edge in the North American market. As part of this the company intends to expand its Tupelo, Mississippi facility, and the groundbreaking ceremony for this project took place on September 22. According to Cooper, the US$7 million expansion work will increase the size of the 1.6 million square foot facility by an additional 32,000 square feet and include the installation of mixing equipment.
China's auto industry has shown signs of overcapacity, but automakers continues planning further expansion, Chinese state news agency Xinhua has reported that the country’s largest car makers face overproduction, but have further expansion plans anyway. China’s car production capacity is predicted to exceed 16 million units by 2012.
Leading auto companies, including SAIC Motor, FAW Group, Dongfeng Motor and Changan Auto, have each announced multi-million unit sales targets for the coming two years. Chery Auto, for example, has set an output and sales goal of 1 million units by 2012. Beijing Auto is aiming at output and sales of 1.5 million units in 2010 and 2 million in 2011.
In the auto industry stimulus plan unveiled in March, China set a target of annually producing 500,000 electric vehicles and hybrid vehicles in 2009-2011, with new-energy vehicle sales making up 5 percent of total passenger vehicle sales.
On September 12 the specialty chemical supplier Lanxess AG celebrated the 100th anniversary of synthetic rubber. The patent for the substance that would later significantly benefit the tyre world was granted exactly a century earlier to German chemist Fritz Hofmann, an employee to Lanxess predecessor company Elberfelder Farbenfabriken. To mark the occasion, Lanxess held a scientific colloquium in Cologne, Germany. More than 400 guests from 18 nations attended the event in order to learn more on the latest innovations in the field, the substance’s future possibilities and its market potential.
Hankook executives are reportedly planning to build a new tyre production facility in either India or Malaysia. The news follows the announcement that Hankook is investing 230 million euros in increasing output at its Dunaujvaros, Hungary factory to 10 million tyres a year. Speaking to the Financial Times, Hankook executive Calvin Pak explained that the company’s next phase of expansion would be in south Asia “for example in India or Malaysia.” There was even talk of a North American plant “in the longer term.” Calvin Pak reportedly explained that Hankook’s competitive advantage over European manufacturers was that it had won quality accolades but remained “more affordable thanks to less of a brand premium.”
Double Coin distributor, Kirkby Tyres Ltd, has announced that the Chinese tyre manufacturer is expanding its truck tyre range. According to Kirkby Tyres, the size expansion means the sole distributor (UK and Ireland) can now offer an “all-encompassing
truck tyre line to meet the needs of the most demanding tyre retailer or end user.”
Parts distribution specialist XPart, a wholly owned subsidiary of Caterpillar Logistics Services UK Ltd, has increased its battery range 280 per cent, offering batteries for motorcycle, commercial vehicle, leisure and marine applications. The expansion of the “competitively priced range” will also include nearly 50 percent more car batteries, and will be available to order from all XPart wholesalers and AutoService centres, with same day delivery.
Manbat, the UK's largest battery distributor, has reported significant sales growth from its top six buying group and national account contracts. Increasing sales of OE brand VARTA, along with its own brand Numax, and the expansion of the leisure sector account for majority of the gains, however without training, the picture would be far less rosy.
According to the Herald Scotland website, Ayr-based tyre retailer McConechy's Tyre Service has posted pre-tax profits of £485,685 for the year to the end of April, down on the figure of £1.2 million for the previous year.
According to Waste & Resources Action Programme (WRAP), the publication of a new Quality Protocol (QP) and certification scheme will help to drive the market for rubber crumb and shred derived from used tyres. Mervyn Jones, joint project executive and head of manufacturing at WRAP told Tyres & Accessories the Quality Protocol will assure material quality and encourage sector growth. However, the practical basis for this expansion is not clear and there are question marks over how much this will cost businesses and ultimately end users. Transport Research Laboratory will operate the tyres QP certification process.
Mervyn Jones believes this growth will be driven by the introduction of a new voluntary QP and certification scheme planned for November 2009, by the Waste Protocols project – a joint WRAP and Environment Agency initiative. The QP follows on from a publicly available specification document (PAS 107) published in 2007. Developed by WRAP and the British Standards Institute (BSI), PAS 107 helps manufacturers of tyre-derived rubber crumb and shred to ensure their products adhere to specified quality standards.
Bridgestone UK Ltd has extended its tyre supply agreement with AAH Pharmaceuticals who. Bridgestone/Truck Point have been supplying tyres and tyre service management to AAH since 2006. With 3,800 employees at 20 locations and making over 100,000 deliveries a week, AAH operates over 1,100 commercial vehicles.
Yokohama Rubber Co. is reportedly expanding the capacity of its Hanzhou Yokokahama Tire Co. passenger car tyre plant in China. Hangzhou Yokohama’s annual capacity of 3 million units a year is expected to grow to 4.1 million passenger and light truck tyres from 2011, following investment of 3 billion yen (214 million yuan). This is the fourth capacity expansion since Hanzhou Yokohama started production in 2003. Yokohama makes its ASPEC A349 low rolling resistance tyre in China and expects general car ownership to increase 10 per cent annually in the years to come.
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