Apollo Tyres has announced it is planning to double commercial vehicle (CV) tyre production capacity at its Vadodara plant. Apollo, which bought Dunlop International and its Regal brand at the end of 2006, has reportedly made the expansion plans following a successful response to test marketing its Regal brand truck and bus radials.
Michelin has won its first-ever Corvette original equipment fitment for the 2009 Corvette ZR1. The ZR1, which General Motors describes as the highest-performing production supercar in the company’s history, will be fitted with Michelin Pilot Sport PS2 ZP zero-pressure tyres, designed specifically for it.
“The Corvette ZR1 is a historical breakthrough OE fitment for Michelin,” said Tom Chubb, vice-president, Marketing for Michelin Automotive Industry Division. “When given the opportunity from GM, we knew we had to bring our best technology to the table and set a benchmark in the industry for performance. I am happy to say we achieved that goal by delivering the highest level of combined technologies and safety elements – without compromising road manners or performance.”
Indonesian manufacturer PT Multistrada Arah Sarana has announced plans to increase its production capacity from 17,000 units per day to 40,000 during 2008. The company’s public relations manager, Prawita Hertika, said that this move was necessary to keep pace with demand, which at present is averaging 100,000 units per day.
Prawita said that the company, which produces the Multi Strada range of tyres, will expand the capacity of its factory in Cikarang, east of Jakarta to meet increasing export demand. Should market requirements necessitate still further expansion, Prawita added, Multistrada has sufficient vacant land at its factory site to accommodate additional development.
The tyremaker at present exports 85 per cent of its production, with the UK, the Middle East and the US three of its key markets.
Former Marangoni Tread North America (MTNA) sales development manager Marge Connors has been promoted to a newly created position within the company, that of marketing and communications manager. In her new role Ms Connors will be responsible for increasing the profile of the Ringtread brand and implementing strategies that will further the success of the Ringtread dealer network.
India’s Ceat Ltd is reportedly close to closing a deal that will see 2.8 hectares of surplus land at its Mumbai factory sold off. This sale will most likely take place some time before March 2008, according to managing director Paras K. Chowdhary. He added that the proceeds from the sale would be injected into the company’s plans to expand capacity.
“We are very close to finalising the sale. We had wanted to close it by September but it has been delayed.” he said. “A large part of the expansion will be met from the sale and internal accruals.”
Bridgestone Americas Holding subsidiary Bridgestone Firestone de Mexico, S.A. de C.V. (BFMX), announced on December 3 that it will close its tyre factory in Mexico City during the second half of 2008. This is a decision the company has described as “difficult”, but one believed to be necessary as “essential expansion of the plant is not feasible.”
In a statement Bridgestone Americas reported: “Due to its location in a metropolitan area, the complexities surrounding the ownership of the underlying land, the plant’s age (the building was constructed in 1937), intense competition from low-cost producers and a shrinking overall market for the products it builds, the company stated that it has no choice but to close the Mexico City Plant.”
Matalan has partnered with Nationwide Autocentres in a new affinity scheme, negotiated through the “if” agency. The scheme offers Matalan cardholders 20 per cent off an MOT, 15 per cent of a service or 10 per cent off mechanical repairs to their vehicle. What is more, every Matalan cardholder who takes their vehicle to a Nationwide Autocentre will receive a free Powermaxx fuel cleaning package worth £20.
Tony Neill, formerly Managing Director of National Tyres and Autocare, has been promoted to the post of Chief Executive Officer. Neil has worked with National for the past 24 years in a variety of operational and senior management positions including, Operations Director, Purchasing Director and most recently as Managing Director for National’s 200+ retail operation.
Neil’s appointment follows the recent strategic business review headed by Price Waterhouse Coopers, which led to speculation of a takeover. Big names such as Kwik-Fit and Bridgestone had been linked to a possible deal. However, talk of this subject has now gone quiet and officially the company is now saying the review and the appointment “signals the start of a new strategic plan for the business going forward.”
Retreader Vipal has placed a focus upon expansion in Eastern Europe this year, and this growth has greatly aided by the company’s decision to work alongside local market partners. The company reports that in Poland it has this year worked with the company PPH TOR SP. ZOO, who it says has been one of its important partners in the retreader’s expansion in this market.
India’s RPG Enterprises is looking to boost capacities at its Phillips Carbon Black (PCBL) subsidiary. The Economic Times in India reports the company is establishing a 75,000 tonnes per annum greenfield carbon black manufacturing unit in the west Indian state of Gujarat, along with a 16 megawatt power plant. It also intends to increase capacity at its facility in the state of Kerala by 50,000 tonnes per annum to 85,000 tonnes.
RPG Enterprises vice-chairman Sanjiv Goenka told the Indian financial daily “the move is expected to catapult PCBL globally to the sixth rank in terms of the manufacturing capacity over the next two years from ninth now.” The total outlay for the proposed projects, at both greenfield and established sites, is estimated to be Rs 5,500,000,000 (£67.3 million) and will be funded by a mix of debt, equity and internal accruals, Mr. Goenka added. The greenfield facility alone will require an investment of Rs 3,500,000,000 (£42.8 million).
November 7 marks the official grand opening of the first tyre manufacturing facility outside of Japan to utilise Bridgestone’s “BIRD” technology. National, state and regional officials from the Republic of Mexico will join representatives from Bridgestone Corporation, Bridgestone Firestone North American Tire and Bridgestone Neumáticos de Monterrey (BSMR) at the company’s new plant in Monterrey, in the Mexican state of Nuevo Leon, to commemorate the occasion.
With a production capacity of about 8,000 tyres a day, the Monterrey plant has generated more than US$200 million in investment to date. As previously mentioned, the facility employs Bridgestone’s new BIRD tyre production system, which stands for “Bridgestone Innovative and Rational Development.” According to Bridgestone, BIRD is the world’s first production system for tyres that completely automates all stages of tyre manufacturing, from the initial processing of materials to final inspection of the finished product. Additionally, the manufacturer reports that the BIRD system allows for greater flexibility and responsiveness to customer needs because of its capacity to make several different types and sizes of tyre simultaneously.
Toddington, Gloucestershire-based Pro-Cut Europe, is aiming to explain its operation after exhibiting at Equip Auto 2007 in Paris between 14-20th October. Pro-Cut Europe attended the Paris exhibition to recruit distributors for the continent. Showcasing the PFM 9.19, the worlds best on-car brake lathe, Pro-Cut Europe Directors Guy Carter and David Smith informed would-be business associates about the unique selling points of the machine and the rapid growth being enjoyed by the brake lathe market.
Pro-Cut Europe have sole distribution rights for the brake lathe in Europe and with development of the UK market meeting forecast expectations, the rapidly expanding Pro-Cut Head Office has already laid the foundations to extend the companies presence in the Continent. Pro-Cut Europe developed the infrastructure for European expansion in the German market 3 years ago and have already sold just under 500 lathes.
Compass Group Ltd has announced the appointment of Raymond Attiwell to the role of senior sales manager in its Compass HD Tyres Ltd tyre wholesale division, working alongside sales director David Wragg.
Tim Chesney, Compass Group managing director, explained that this senior appointment had been made to booster the sales team in light of the recent expansion of the Group’s warehouse facilities and continued sales growth of the Company’s main GT product lines. Mr. Chesney commented “Raymond is a seasoned tyre industry professional with over 15 years of experience. He has had a senior sales role at Lassa tyres for the past 10 years and before that he was with CPK so he has the experience and in depth knowledge of the tyre industry that we require’. Raymond takes up his new position in November and says he is “delighted to be part of this dynamic sales team and I look forward to working for Compass Group and helping to build on their great successes achieved to date.”
Plans are afoot to increase Kumho Tire’s global capacity by 20 per cent in the coming year. The company’s CEO and president, Dr. Sael Chul Oh, has commented that this growth would be fulfilled in part by the Korean tyremaker’s operations in China; two of Kumho’s three established plants in the country are scheduled for expansion. A fourth facility is also currently being built in China.
In 2006 Kumho had a global capacity of 45.3 million tyres, and plans to increase this to 56.4 million by 2008 appear to have been met and surpassed ahead of schedule, with the manufacturer reported to possess a current worldwide capacity of 60 million units, through which it generates US$12 billion in annual tyre sales across 180 countries.
Bridgestone announced its third quarter results on November 1, along with combined results for the first three quarters of the year. These figures revealed a 303.7 billion (£1.28 billion) or 14 per cent increase in net sales for the first nine months of the year, with sales for Q1 to Q3 2007 recorded as 2,466.7 billion yen (£10.36 billion). Operating income increased 32 per cent during the same period, rising to 162.8 billion yen (£683 million), with net income jumping 64 per cent to 82.3 billion yen (£345.6 million).
The company received 1,993 billion yen (£8.37 billion) through the sale of tyres during the first nine months of the year, 16 per cent more than for the same period of 2006. Operating income for Bridgestone’s tyre operation was 123.1 billion yen (£516.9 million), an increase of 44 per cent over 2006. Bridgestone reports that it worked to “maximise sales momentum by introducing appealing new products worldwide, while at the same time improving and expanding strategic production sites around the world in support of those products that have been identified as strategic and important to the company’s future growth.”
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