After standing idle for more than a year, on December 2 Dunlop India’s Sahaganj factory in West Bengal resumed production. The facility had been closed since November 2008 and been the subject of first a lockout and then electricity connection issues, yet preliminary work to resume production has now began in preparation for an initial production of 40 tonnes of OTR tyres per day.
According to Mumbai based private equity advisory and investment banking services provider Firstcall India, the top and bottom line at Apollo Tyres is expected to grow at a compound annual growth rate of 15 per cent and 29 per cent in the financial years from 2008 to 2011. This is one of the reasons Firstcall is currently recommending a ‘buy’ on Apollo shares, with a price target of Rs 64 (£0.83) as against the November 25 market price of Rs 52.05.
Indian news sources are reporting that Dunlop India is to resume production at its plant in Sahaganj from 2 December. A company press release stated that workers have been informed via a notice hung at the factory’s entrance. Its reopening had been delayed at first by the West Bengal State Electricity Distribution Company following its first suspension on 30 November, 2008. Electricity supply to the factory was delayed by deliberations over credit terms. Power was restored on 9 November following the acquisition of a bank guarantee. The plant’s medium-term closure was precipitated by the refusal of a number of workers to accept a temporary shutdown.
Britannia Tyres, part of Bridgestone’s First Stop tyre service network, has refurbished the reception of its Coventry Centre. Following significant investment, the company says that the reception area gives customers a modern, comfortable environment. The group’s Nuneaton, Hinckley and Derby centres have just taken the top three places in First Stop’s Elite Business Development Programme, designed to help First Stop dealers deliver the highest possible levels of service. Centres are rated by mystery shoppers, monthly mystery phone calls and a detailed audit from a Business Development Manager.
The Goodyear Dunlop factory in the US town of Tonawanda (New York State) is anticipating an increased workload following the closure of the company’s Spartanburg, South Carolina plant. According to Goodyear, a portion of the work now carried out in Spartanburg will be transferred to Tonawanda following the South Carolina facility’s closure at the end of the year, however Tonawanda plant spokeswoman Diane Zwirecki said specific details, including whether the factory will benefit from an expanded workforce, are still being finalised.
Dunlop India’s Sahagunj factory may actually resume production following a settlement over electricity payments between the Ruia Group company and the West Bengal State Electricity Distribution Company. Ruia Group management has agreed to provide a bank guarantee to the power supply, who in return will resume supply. Should Dunlop India be able to successfully follow through with the funds, approximately 900 workers will return to their jobs a month after production at the company’s Ambattur factory recommenced.
Apollo Tyres’ new Rs 20 billion (£257 million) facility in India’s Chennai state is expected to be operational from the start of December, and the company states the plant should attain a peak daily capacity of 14,000 tyres by the middle of next year. Of this total, commented the company on November 8, 8,000 will be passenger car radials and 6,000 truck and bus radials.
Federal has introduced the 595RPM; the company's first ever asymmetric tyre engineered particularly for passionate driving enthusiasts and aimed at drivers of sports sedans, providing new levels of performance and luxury. Development of the 595RPM utilised computer simulations in a range of conditions to optimise a rounded tread profile for a quiet and pleasant ride.
Four drainage grooves provide improved stability, while maintaining a consistent footprint in wet. The asymmetrical tread pattern enhanced within the inner and outer shoulder areas ensures a smooth pace, with efficient water displacement to reduce the risk of aquaplaning and decrease rolling noise without affecting controllability.
Scorpion has released its latest exhaust design, a cat-back system for the Audi S3 2.0t Quattro model introduced in 2007. While the S3 is already fast car in its original guise, Scorpion believes that the addition of its latest system will noticeably improve mid-range grunt and throttle response, plus give the car the sound that punters want.
Nokian tyres has unveiled its brand new housing complex built for workers at its factory in Vsevolozhsk, Russia. Known as ‘Hakkapeliitta Village’, the 167 apartments are located some ten kilometres from the plant and cover a total area of 10,300 square metres. The company has invested more than ten million euros into the project in the aim of attracting and retaining qualified staff at the facility; a Nokian press release explains that in exchange for a commitment to remain at the plant for at least seven years, employees can purchase an apartment within the complex for substantially less than the average market price.
Bridgestone Australia says it welcomes an October 27 announcement by South Australian Premier Mike Rann offering State and Federal Government assistance for employees affected by the closure of the company’s Salisbury factory. The state Premier outlined the package during discussions with senior Bridgestone executives, and according to Bridgestone Australia senior executive director Andrew Moffatt the assistance offered will “complement” the company’s stated commitment to its employees.
Hankook Tire intends to build a new factory – its sixth overseas plant – somewhere in Southeast Asia. South Korea’s Yonhap news reports company CEO Suh Seung-hwa as stating on October 23 that Hankook may spend between US$250 million and $300 million building the new facility, which is expected to have an annual capacity of ten million units.
Top Gear is taking its live show around the world, with events planned in Birmingham, London, Dublin, Amsterdam, Cape Town, Johannesburg, Sydney, Auckland and Hong Kong. And when Clarkson, May, Hammond and Stig hit the road, they will be taking Dunlop with them: The tyre maker has announced its selection as official tyre partner for the Top Gear Live World Tour.
Goodyear has openly stated its desire to sell the company’s Luxembourg steel cord factory. As it disclosed to the “Luxemburger Wort” newspaper, talks with “four potential buyers” are underway, including with Belgium’s Bekaert, global top supplier of steel cord. The newspaper adds that the wire plant’s sale could be interpreted to be part of “Goodyear’s new management policy, one it wants in future to focus as far as possible concentrate upon the core business of tyre production, a change in strategy that Goodyear’s employees were recently informed about through an internal notice.” A company spokesperson told the newspaper that no contracts have been made and no offer as yet given. A buyer has also not yet been selected.
Commercial production of agricultural tyres at Alliance Tire’s factory in Tirunelveli, India is anticipated to begin before the end of 2009 following the recent commencement of start-up test production. The first products from the US$100 million plant are expected to be cross-ply off-road tyres, and the start of manufacture in India is anticipated to allow Alliance to increase radial production in Israel.
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