BERU increases revenues by more than 16%
In the 2003/04 financial year (ending March 31, 2004), BERU Aktiengesellschaft (Ludwigsburg) increased its sales revenues by 16.4% from €304.5 million to €354.5 million.
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Conti and DaimlerChrysler Close Deal on Truck Tire Deliveries
Product NewsContinental AG (Hanover, Germany) and Daimler-Chrysler AG (Stuttgart, Germany) have signed an agreement on the original equipment delivery of commercial vehicle tires in the 2005 to 2007 time span. With the scope of the deliveries contracted, Continental becomes a volume-production commercial-vehicle-tire supplier to DaimlerChrysler. The agreement contains an option for 2008. Continental will equip the light to heavy trucks in the Atego, Axor, Actros and Econic model ranges with17.5″ to 24″ tires.
Silverstone Tyres To Be Introduced Into China
Product NewsMalaysian industrial giant the Lion Group, which owns Silverstone Tyre among its many other interests, is to introduce the brand into China. The group has a factory in China and already produces tyres under the Dong Feng brand name. The introduction of Silverstone marks a policy of expansion in China, with the Lion Group planning to invest US$ 1.5 billion over the next decade. As well as the tyre plant, Lion’s Chinese interests include 37 department stores, three motorcycle plants, a car manufacturing plant and 12 breweries. The Chinese operations account for almost 45 per cent of Lion’s annual turnover and 40 per cent of net earnings.
Goodyear Plans Ecuador Expansion
Product NewsGoodyear has said that it plans to increase sales in Ecuador this year by a third; from US$9 million to $12 million. The company plans to sell more than 200,000 tyres and increase the number of service centres in the country from 23 to 37 by the end of the year. The US plans to negotiate a free trade agreement with Ecuador, which Goodyear says would provide incentives for local tyre manufacturers to increase efficiency and competitiveness.
Continental Looks Forward To EU Expansion
Product NewsContinental believes that the company is well-positioned to benefit from the eastward expansion of the EU in May, having pursued a policy of strategic investment in eastern Europe for the past decade. The company has invested upwards of half a billion Euro in the area and now has manufacturing facilities for tyres or automotive components/systems in the Czech Republic, the Slovak Republic, Hungary and Romania (due to join the EU in 2007), employing over 11,000 staff. Continental’s interest in eastern Europe is not restricted to the production advantages, as it views the new member states as potential growth markets for truck and winter tyres as economic growth for 2004 and 2005 in the area is forecast to be four per cent.
Honeywell ups polyester capacity in China
Product NewsHoneywell has announced that it will double its dimensionally stable polyester production in Kaiping, China, to meet growing demand for its products and services in the Asian marketplace. The added capacity will produce the latest generations of Honeywell’s DSP® fibres for tyre reinforcement and other end uses. “This is another example of our commitment to the global tyre industry and our customers worldwide,” said Greg Rogowski, General Manager, Performance Fibers. “As the only polyester fibre supplier with manufacturing facilities in Asia, Europe and North America, we continue to make investments in technology to meet the needs of our customers, wherever they are located.” The plant expansion is expected to be complete by late 2004.
New Bridgestone logistics centre outside Paris
Product NewsProLogis, a leading global provider of distribution facilities and services, today announced that it has signed a build-to-suit lease agreement with Bridgestone, one of the world’s largest tire manufacturers. Bridgestone will lease 245,611 square feet (22,818 m2) of distribution space at ProLogis Park Evry located on the outskirts of Paris.
Cooper Tire Increases Investment
Product NewsCooper Tire and Rubber has announced increased capital equipment investments in three of their four US tyre manufacturing facilities. This increase provides additional production capacity of more than 2.4 million units. The 32.1 million US dollar investment will include the purchase of new tyre building machinery and presses and add 116 additional manufacturing employees.
Kumho builds second plant in China
Product NewsKumho Tire Co. Inc. is building a second tyre plant in China, next to an existing plant in Nanjing, that will double annual production capacity in China to 10 million units by 2008. The 130 million US dollar project will provide Nanjing Kumho Tire Co. Ltd. with additional capacity aiming to increase its share of the passenger radial market in China to 25 per cent, according to Kumho. In conjunction with the expansion project, Nanjing Kumho is setting up distribution hubs in northern China. The project is separate from a new plant Kumho opened recently in Pyeongtaek, South Korea, using proprietary automated technology.
GM plans further Chinese expansion
Product NewsGM is to extend its factory at Shanghai to increase capacity from 500,000 units to 760,000 by 2006. No cost has been revealed, but press estimates are around $241 million. Another GM joint venture, manufacturing light trucks, is also set to more than double capacity by 2006, to 336,000 units.
Yokohama to extend Chinese factory
Product NewsYokohama has announced that it is to spend US$26 million to double capacity at its Chinese factory to 1.4 million tyres a year by the end of 2004. Originally the timetable for the expansion was the end of 2006, but increased demand has prompted Yokohama to bring the plan forward.
Fire at Bridgestone factory to have long-term effects
Product NewsEarly in September, a major fire broke out in Bridgestone’s Tochigi factory in Kuroiso City, 150 km north of Tokyo. The factory is located in a residential area and more than 5,000 local residents were evacuated, spending the night at public facilities as firefighters battled to control the blaze. Some members of the public suffered minor eye and throat irritation, but there were no reports of serious casualties.
At its height, 128 fire engines, over 1,000 firefighters and a firefighting helicopter were involved in tackling the blaze and, 24 hours after the fire began, it was under control, though still not totally extinguished. The Tochigi complex opened in 1971 and covers 510,000 square metres. 850 workers are employed at the plant, all of who were evacuated safely, and products include tyres for passenger cars, trucks and monorails. Around 6,700 tons of tyres a month were produced at the factory, or some 13 per cent of Bridgestone’s Japanese production.
One estimate was that, of 250,000 tyres stored near the plant, 150,000 had been destroyed, as well as extensive damage to the production facility itself. Even before the fire was completely extinguished, industry pundits and investors were debating the possible knock-on effects for the Japanese manufacturer. Mitsubishi was reported as saying that it expected stocks of Bridgestone tyres to be depleted after 16th September, at which date it would seek to source tyres from other manufacturers. On the other hand, Toyota said that it did not expect the fire to disrupt operations and the company would “get tyres from other production sites”.
Bridgestone has eight other tyre plants in Japan and the company said that overtime and weekend work would be necessary at these and other factories in southeast Asia. This may be easier said than done, as recently Bridgestone said it wanted to increase production capacity at plants in Japan (including Tochigi) and elsewhere in the world. These factories were said to be already running at full capacity and Bridgestone had earmarked $773 million to fund this expansion.
Franchised Dealer moves to exploit end of Block Exemption
Product NewsReg Vardy, the car dealer, is planning on opening a range of branded repair shops, not attached to its showrooms. The company will be spending 10 million pounds and will focus on cities where it already has a strong presence. Each repair shop will cost in excess of 1 million pounds but the company expects that the expansion will allow the Group to increase its market share. The new regulations will allow authorised repairers to shop around for cheaper parts for the first time, buying parts directly from third party suppliers.
Superior Industries Warning On 3Q Figures
Product NewsSuperior Industries International has warned that operating results for the third quarter will be below previous estimates. While turnover is satisfactory, SII has experienced “significant one-time expenses relating to multiple expansion programs and record number of new product launches. The company is confident that its programme of capacity expansion, modernisation and cost reductions will bear fruit, but short term expenses are higher than anticipated. Wheel shipments will be around 3 per cent down on 3Q last year, said President and COO Steve Borick.
Bridgestone Announces Expansion Of Truck And Bus Tyre Production
Product NewsBridgestone Corporation has announced an expansion in truck and bus radial production at three plants in Japan and one in Thailand. In Japan, two billion Yen (US$16.86 m) will be spent to increase capacity to 1,300 tyres a day. The factory at Chonburi, Thailand, will begin production in the second half of next year, at a rate of 2,500 tyres daily, which will double by 2006. Total investment in the plant will reach 24 billion Yen ($202.3 m).
