India’s Monotona Tyres Ltd has become a subsidiary of fellow Ruia Group company Falcon Tyres Ltd. This arrangement allows Monotona to take advantage of the technical assistance agreement Falcon has operated with Japan’s Sumitomo Rubber Industries since 2007 and will lead to its products being marketed in the Indian replacement market under the Dunlop brand name.
During the opening quarter of the 2010 financial year, Kumho Tires posted sales of KRW 586.4 billion (₤343.8 million), representing 27.7 per cent quarter on quarter and 18 per cent year-on-year growth. Operating profit during the three months to March 31, 2010 amounted to KRW 21.3 billion (₤12.5 million) and net income KRW 20.9 billion (₤12.3 million). The tyre maker comments that these gains result from an improved plant operation rate and greater export sales. Export volume during the quarter was up 40 per cent year-on-year, an occurrence Kumho attributes the general recovery of North America’s car and tyre markets – one of its key sales territories.
Falken Tire Corporation chairman and CEO Yasushi (Tank) Tanaka has been promoted to executive officer of Sumitomo Rubber Industries, Falken’s parent company, reports Tire Review. Tanaka will continue to head Falken’s North America business. Tanaka joined SRI in 1976, and has spent the majority of his career in the export and OE departments of SRI and SRI Tire Trading Ltd.
Nankang Rubber Tire Corp., Ltd has increased production prices across its entire range of passenger, 4×4, SUV, van and snow tyres effect 20 April. Nankang said the price increases are due to the escalation of raw materials and energy-related expenses. “We appreciate the support and understanding of our customers. It was a very difficult decision to raise prices, and we need relative income to maintain same service to our valued customers,” said Eric Shih, Nankang Tire manager of export department. According to the company, Nankang last raised prices in November 2009.
Like most companies Trax JH, Europe’s second largest wheel balancing weight manufacturer, experienced a drop in sales during 2009. However, that hasn’t stopped the company, which exports 70 per cent of its production output to carmakers and aftermarket distributors around the world. During the last 12 months the company maintained investment in production, and if the rumours Tyres & Accessories has heard are true, has some more announcements to make at June’s Essen show. Following a slight pickup in sales during the first quarter of 2010, the Newtown-based company hopes to achieve further OE and aftermarket growth in the rest of 2010, with addition export growth across all markets moving forward.
Full year net profits of 905.33 billion rupiah (£64.67 million) have been reported by PT Gajah Tunggal Tbk. The Indonesian tyre maker reports it “managed to overcome a difficult first half of 2009” to post full-year sales of 7,936 billion rupiah (£566.86 million), only slightly down from the 7,963 billion achieved in 2008. Overall sales volumes were down in 2008, the company says, primarily due to volume decreases in export markets. The reported net profit, however, represents a marked contrast to a net loss of 624.79 billion (£44.63 million) a year earlier. Gajah Tunggal claims “strong operational performance was the main driver” of this turn around from loss to profit, although a large translational foreign exchange gain related to the company’s US dollar denominated bonds also contributed to the gain in net income. Furthermore, Gajah Tunggal’s associated company, PT Polychem Indonesia Tbk., added 16 billion rupiah (£1.14 million) to earnings from a loss of 76 billion rupiah the year before.
The first phase of construction at the new Lanxess rubber chemical plant in Jhagadia, India has been completed. The German specialty chemicals firm reports production at the Gujarat state facility has begun following a building time of less than two years. The site will now supply India’s growing tyre and rubber industry and export markets with ‘Vulkanox’ brand antioxidants.
Michelin has appointed a new factory manager to lead operations at its Ballymena plant. Wilton Crawford takes over from Graham Whitehurst and started his new post on 18 January 2010. With over 20 years of experience at Michelin – with a vast majority of that time spent at five different Michelin locations in the US – Crawford represents an international appointment and is looking forward to the challenges ahead.
Meanwhile, Graham Whitehurst (who worked at the Ballymena site for over 12 years, the last five as plant manager) will now co-ordinated the company’s ‘Michelin Manufacturing Way’ programme, based in Clermont-Ferrand, France.
EW Swiers and Grainger, the York-based tyre recycler has invested £62,845 in recycling equipment including a pre-shredder. The company made the investment last October after it was awarded £25,000 of funding from Resource Efficiency Yorkshire (REY), which is now known as CO2 Sense Yorkshire and European Regional Development fund (ERDF).
In order to best meet growing demand for its tyres in the Middle East region, Indian manufacturer CEAT has established a new Dubai office. The operation is to be headed up by Pawan Rana.
Some Rs 8 billion (£109.7 million) are to be invested in a new JK Tyre & Industries greenfield facility and the construction of a new research and development facility. The new plant will reportedly produce passenger car and truck and bus radials for both the domestic and export markets, however no specific information on plant capacity has yet been made. The southern Indian state of Karnataka appears to be the most likely location for the new development, a decision that may have been influenced by the regional government’s offer of incentives.
The value of Chinese tyres exported to the US is nearing a four-year low after they plunged 37.5 per cent in October to $130 million as a result of swinging 35 per cent import tariffs imposed by the US government on 26 September 2009. According to the country's General Administration of Customs, China exported 240 million new tyres in the first 10 months of 2009, 9.6 per cent less than in the same period in 2008, sources reported. The export value of the tyres plummeted 10.5 per cent year-on-year, hitting $6.2 billion, and the average price for a tyre was said to be $25.40 (down 1 per cent year-on-year).
Egypt is planning to establish a new passenger car tyre factory at a cost of 600 million Egyptian pounds. The state news agency MENA reports the plant will be built in El-Amerya, west of Alexandria, and will be ready to start production in two years. According to MENA, the factory’s annual capacity will be one and a half million units.
Reports indicate Cooper Tire & Rubber wishes to increase the share of its global sales generated in China from 25 to 30 per cent in the next three years. "That's our minimum target,” said Allen Tsaur, general manager for Cooper Tire's Asia operations during an interview with Reuters. “The Chinese domestic market is explosive and the pie is expanding. We have to grow fast to keep up the pace.”
Two more international companies have joined TRIB, reports Tire Review. Nino Llantas S.A. is a large, well-established retreader with many locations throughout Honduras, joined the association. The company was founded in 1974. International tyre import/export form Resources International Network Inc., based locally in Florida but with headquarters in Germany, also joined. “We continue to add members as more and more companies in the new tyre and retread industries throughout the world realise that TRIB is the only international retread industry association representing new tyre manufacturers, retreaders, tyre dealers, suppliers to the retread industry and tyre repair companies,” said Harvey Brodsky, TRIB’s managing director.
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