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Latest News From Berliner Reifenwerke GmbH

Until today, the German Berliner Reifenwerke GmbH has been an example of the incompetence of authorities, banks and others. NEUE REIFENZEITUNG has already reported developments in detail, up to the appointment of the official receiver. Part of around 80 million Deutschmarks, which were originally supposed to build up Berliner Reifenwerke, have either been thrown away or squandered in order to support the lifestyles of some company leaders, and of which the creditors are unlikely to see a penny again. But things are not so bad, because the investment bank “Berliner Investitionsbank” has already managed other flops. The truly sad thing is that loyal employees of many years’ standing have been dismissed, and they are now without jobs or prospects. The fact that Berliner Reifenwerke – today called Berliner Runderneuerungswerke –, is still alive, can be attributed to both the official receiver and the RuLa shareholders’ delegates. Berliner Runderneuerungs GmbH was founded by RuLa and, because time is short, the plant is being leased from the official receiver, but for the moment this factory will stay in mothballs. Although the huge pressure of time has been relieved, conclusive decisions are needed for the medium-term, as the whole plant cannot be leased for a long term if the contractual partner is an official receiver. Soon, investors will run off.

30th November 2001/by Tyrepress Editors

Wheel Specialist Brock Has Its Own Production In Bosnia

The Brock-Group is known across Germany as an alloy wheel marketing company. Successfully marketing an assortment covering everything from commonplace to extravagant wheels, the group has gained the reputation of a quality supplier. Although it wasn’t carefully planned for future business, it cannot be purely accident that the group has owned a wheel factory in Bosnia for two years now. Meanwhile, nearly 100 machines are working in the factory 24 hours a day, 7 days a week, 50 weeks a year, with an annual production capacity of some 500,000 wheels. However, this figure alone does not say very much; equipment and machinery, as far as it has been replaced, is state-of-the-art, and it is obvious that within only a few months this factory will be run exclusively by new and modern machinery. E.T.R.T.O, KBA, TÜV, SF 1 JWL and Jaso standards are fulfilled in order to guarantee quality. The qualification procedure of the factory will take place this August. In the interview with NEUE REIFENZEITUNG, Claudia and Elisabeth Brock point out that in the future the Brock-Group will go on putting emphasis on the upper level, i.e. the high-tech level. The assortment consists of very nice and very costly wheels, which are in demand all over Europe and the marketing of which is very interesting for manufacturers and for both wholesalers and retailers. High class segments consisting of aesthetically designed wheels and many special sizes form the mainstay of the Brock-Group, well-known by the names Brock Car Fashion and Rad Center Derkum.

30th November 2001/by Tyrepress Editors

Appeal Puts Goodyear Back In Court

China Tire Holdings Ltd and Orion Tire Corp’s Lawsuit against Goodyear has been sent back to the federal court by the 9th Circuit Court of Appeals. This revives a long-standing battle over China’s grant of a joint venture plant to Goodyear. The claimants say that Goodyear unlawfully persuaded a state-owned factory to abandon a contract with China Tire. China Tire alleges that Goodyear gave gifts, including jewellery, scholarships and travel to Chinese officials. The case though may face early dismissal if China Tire do not present adequate new pleadings.

30th November 2001/by Tyrepress Editors

500 Jobs Set To Go At Wolverhampton

In common with other manufacturers in the UK, Goodyear has been suffering cost and productivity problems at its plant, which is not competitive in global markets. In October last year, Goodyear Wolverhampton took the step of issuing an HR1 notice to the Department of Trade & Industry, which in effect gave the workforce a number of possible solutions to the problem and a 90-day deadline to arrive at an answer. Since the issuing of the notice, discussions have been on-going between management and unions to try to thrash out a mutually-acceptable solution. Eventually, such a solution was agreed, which involved workers moving from a four-shift to a five-shift system, and which was recommended to the workforce by the unions. However, this recommendation was ignored and, in a ballot of the Wolverhampton workforce, the proposal was rejected. The reaction of Goodyear’s management to this was immediately to announce that it had “no other option other than to instigate actions that will make some 500 associates redundant from the Wolverhampton plant. Later it was announced that “only” 240 jobs are to be lost at Goodyear’s Wolverhampton factory. This is on top of 215 redundancies earlier in January, but the total figure of 455 is less than was originally expected after cost-cutting proposals from management were rejected by the workforce, despite being recommended by the unions. A Goodyear spokesman is reported as saying that the job losses could save the plant from closure.

30th November 2001/by Tyrepress Editors

Rollercoaster Ride Continues For Bridgestone Shares

It is hard to keep pace with the price of Bridgestone shares as they yo-yo up and down. Following a fall when the company announced the closure of the Decatur factory, the shares have risen by 0.77 per cent, outperforming the Stock Market. Japanese analysts believe that the factory closure and associated cost savings are a positive step.

30th November 2001/by Tyrepress Editors

New Distribution Warehouse For Michelin

Michelin is to invest 12m Euro in a new tyre warehouse at its Alava plant in Spain. The 30,000 square metre warehouse will employ 40 staff and will be for the exclusive distribution of the production from the Alava factory. The warehouse should be operational in 2002.

30th November 2001/by Tyrepress Editors

Cost-Cutting Proposals Rejected By Michelin Workers?

A report in the local paper, the Burnley Express, quoting an anonymous worker, says that workers at the Michelin tyre plant in the town have rejected cost-cutting proposals put forward by management. These proposals are said to include a 25 per cent reduction in shift allowance and some workers moving from a four day week to three days. However, a union spokesman said that proposals have been neither accepted nor rejected and unions and management will meet on 29 January to discuss the situation. Around 450 workers would be affected at Burnley, where truck and bus tyres are made.

30th November 2001/by Tyrepress Editors

Juan Carlos Visits BS/FS Plant In Burgos

King Juan Carlos recently visited Bridgestone/Firestone plant in Burgos, one of the group’s three tyre plants in Spain. The reason for the visit was the 100th birthday of Firestone this year. In 1990 Burgos was the group’s first European tyre factory to start producing Bridgestone-branded tyres, at that time Firestone’s new parent company.

7th December 2000/by Tyrepress Editors

Closure Of Bridgestone US Factory “Cannot Be Ruled Out”

Quoted in the Asian Wall Street Journal, Bridgestone President Yoichiro Kaizaki said that the company’s factory in Decatur could be temporarily closed, should improvements need to be made. Mr. Kaizaki also said that permanent closure of the plant could not be ruled out.

7th December 2000/by Tyrepress Editors

BMW US Factory Expands

The BMW factory at Spartanburg (South Carolina), in which in addition to the Roadster ever more X5 off-road vehicles are produced, will soon face production capacity problems. A higher vehicle output could also benefit American wheel suppliers such as Superior Industries or Alcoa/Reynolds.

7th December 2000/by Tyrepress Editors

Further Investment In The Aiken Factory From Bridgestone/Firestone

Bridgestone/Firestone is to invest another US$ 24 million to expand the mixing capacity of its Aiken factory. This plant was built with an investment of US$ 435 million and was opened in November 1999. The factory produces nearly 20,000 SUV tyres daily and employs around 800 people, or ‘team members’.

7th December 2000/by Tyrepress Editors

Traiskirchen Factory Designated MMP Plant

Dr. Hans-Joachim Nikolin, Chairman of the Semperit supervisory board and board member of Continental AG, confirmed during a supervisory board meeting of Semperit Reifen Ges.m.b.H. in Traiskirchen in mid-December that the Semperit factory at Traiskirchen will play an essential strategic part in the introduction of a new manufacturing process. Continental has developed a European strategy for the Modular Manufacturing Process (MMP), envisaging three MMP factories, each responsible for the supply of one large European region. The Traiskirchen factory has been chosen to supply the South and East European markets. The decision about a second MMP location to supply Western Europe is said to be imminent, whereas a suitable supply plant for the North European region has not yet been found. The production plan for the year 2000 gives 1.5 million car tyres made by the standard and one million by the MMP process, a total number of 2.5 million units as originally planned. However, since the manufacturing process of MMP tyres is less complicated than the standard production process, a reduction in the workforce is inevitable and cannot be compensated for by the planned increased output of 825,000 commercial vehicle tyres in the year 2000. The MMP tyre is produced in modules allowing the cost-effective production of smaller lots, and a fast reaction to the requirements of the market. MMP is therefore primarily designed as a means of reacting fast to developments in the replacement markets, and only in exceptional cases would it be considered for original equipment. This production process does away with the necessity to make a large variety of products at the standard factories, thus freeing them for large-series production.

7th December 2000/by Tyrepress Editors

MMP-Factory In Timisoara Opens

It was the biggest day in Timisoara since the revolution, and it will perhaps set off another – this time in the tyre industry. The new tyre production facility was opened 20th October by Continental president, Dr Kessel, and Romanian Prime Minister, Mugur Isarescu, the latter facing the possibility of losing office in the coming election. Amongst the 400 attending the opening were representatives from Continental’s key suppliers and selected customers, as well as German and Romanian journalists. When the factory has reached its final stage it will produce 8 million car tyres a year, employing about 1,000 people. The article in November’s TYRES & ACCESSORIES shows that the factory tour revealed little new; we were shown assorted Japanese vulcanising equipment and ancillary machinery, but the state-of-the-art tyre construction machines were still under wraps. The iron curtain may have fallen, but for now there is a rubber curtain round the new technology at Timosoara.

7th December 2000/by Tyrepress Editors

Michelin Cuts 473 Jobs At Stoke

Michelin is to lose 473 jobs from its workforce of 2,700 at its factory in Stoke-on-Trent in the UK, mostly among those producing passenger car tyres. This is part of Michelin’s overall European strategy to improve efficiency. Michelin sees a long-term future for Stoke and this year will invest £11 million in updating the factory, which was opened in 1927.

7th December 2000/by Tyrepress Editors

Land Rover Sale Finally Agreed

The sale of Land Rover to Ford by BMW – a deal which was in doubt recently – has been finalised. BMW agreed to Ford’s stipulation that one third of the asking price of 3 bn Euros will not be paid until the year 2005.

7th December 2000/by Tyrepress Editors