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Lanxess Names Uwe Boltersdorf as Singapore Facility Manager

Specialty chemicals company Lanxess Butyl Pte. Ltd. has appointed Dr. Uwe Boltersdorf the site manager of its new butyl rubber plant in Singapore. Starting January 2009, Boltersdorf is responsible for project management of all third-party contracts, and supervision of all permits and internal guidelines. He will also oversee the hiring of new employees, implementation of business processes and setting up of the financial structure of the new site. Previously, Boltersdorf served as Board assistant to Dr. Axel Claus Heitmann, chairman of the Board of Management, Lanxess AG.

20th January 2009/by Tyrepress Editors

Maxxis Provides 2009 Short Track UK Control Tyre

For its 2009 series Short Track UK has opted to make Maxxis the control tyre supplier. The series has chosen to follow the lead of other top motorcycle racing series like Moto GP and World Superbikes in choosing to run with a single tyre supplier. Maxxis believes that “the move to a control tyre will ensure no advantage is gained by riders using different tyres for different conditions, resulting in closer, more spectacular action.” The move will also lead to a reduced financial burden for the series to bear.

Maxxis tyre distributor Triple A Racing has agreed with the promoter of the British Short Track Championship that competitors in the main Short Track class will use the 19 inch Maxxis DTR-1 flat track tyre, which will be made available in both soft and medium compounds. The eight-round series opens in Kings Lynn on 3 May.

19th January 2009/by Tyrepress Editors

Continental to Increase Share Capital by 1 Billion Euros

Continental AG executives are reportedly planning to increase the company’s share capital by around 1 billion euros. Alan Hippe, Conti CFO and head of the group’s tyre and non-tyre products division told Reuters that the move was designed to secure the company’s financial position: “In view of the difficulty to predict how things will develop over the course of this year, it’s completely logical to think about strengthening your equity capital…”

Hartmut Meine, a member of Continental’s supervisory board told the news agency that the automotive supplier is already in preliminary talks with potential subscribers, which could include “industrial companies, family-held groups or financial investors.” Reuters reported that Continental shares fell up to a fifth following news of the capital increase plan. At the time of going to press, Continental’s share price was around 20.90 euros. The fact that the current share price is so low may mean that Continental will use the maximum third of its existing equity to raise the funds, Reuters reported.

15th January 2009/by Tyrepress Editors

Germany Supports New Car Market With Car Scrappage Scheme

German Chancellor Angela Merkel yesterday (13 January) announced a 50 billion euro package of measures designed to give the country’s economy a financial stimulus. One key measure sees the German government offer motorists 2500 euros to trade in over 9 year-old cars for new or 1 year-old vehicles. With 40 per cent of the German car parc (46 million vehicles) fitting into this category, Deutsche Bank analysts suggested that the measure could have a significant impact on automotive demand. This, in turn, is likely to impact replacement tyre sales.

“If 2 per cent (the estimated participation in the French scrappage scheme) were to take up these incentives, it implies a 12 per cent gross impact on demand (vis-à-vis 08 levels)…Given the substantially increased age of the parc, our current estimate of 2.8 million vehicle sales in 2009 (versus 3.1 million in 2008) might well prove too pessimistic,” the analysts commented. Deutsche Bank’s predictions are based on the assumption that the proposed measures get implemented quickly. This means a swift approval from Germany’s second house, the Bundesrat.

14th January 2009/by Tyrepress Editors

Indonesian Tyre Production to be Flat in 2009, Says Industry Expert

Indonesia’s passenger car tyre production may prove to be weaker than initially expected in 2009, warns a senior representative from the country’s tyre industry. According to Aziz Pane, chairman of the Indonesian Tyre Producers Association, production may remain unchanged from 2008’s output of 41 million units.

“Initially, we expected car tyre production to hit 45 million units, but after the financial crisis demand is slowing,” he said. Pane added, however, that a recovery is anticipated before the end of 2009. Approximately 80 per cent of Indonesia’s passenger car tyre production is exported, therefore global automotive industry fluctuations are strongly felt by manufacturers.

13th January 2009/by Tyrepress Editors

Pirelli to Open Romanian Facility in Spring

Romanian news sources have reported today that the country’s Financiarul has announced that Pirelli will open its new diesel engine filter manufacturing facility in the southern county of Gorj in March. The financial organisation stated on its website that Gorj County Council chairman Ion Calinoiu met SC Pirelli alongside Ambiente Eco Technology director Paolo Benea to tackle common issues related to the official opening of the factory within the Bumbesti-Jiu Industrial Park. The website quotes Benea announcing that the factory will be opened at the end of March.

Back in October 2006, Tyrepress.com reported that Pirelli Romania head, Guglielmo Fiocchi, said that, “Next year we could start the construction of a new plant for production of filters for diesel engines in Gorj.”

12th January 2009/by Tyrepress Editors

Analysts Expect “Very Bad” 4Q Figures from Michelin

Financial analysts have cut their 2008 operating income estimate for Michelin from 1.15 billion to 1.05 billion (-37 per cent compared with 2007). Deutsche Bank’s reduced estimate comes off the back of sharp falls in tyre demand in mature markets.

According to the analysts, mature markets (such as Europe and North America) represent 70 per cent of Michelin’s volumes. “We estimate tyre demand fell sharply in the fourth quarter (-15 per cent) both in OE and in replacement – in passenger as well as truck markets. We believe this weak demand, coupled with a destocking effect, led to a high 25 per cent production cut in the fourth quarter,” the analysts commented, explaining that the magnitude of this volume drop is not sustainable:

9th January 2009/by Tyrepress Editors

Customer Strikes it Lucky at Shaw Tyres

Shaw Tyres in Oldham, part of Bridgestone’s First Stop network of tyre dealerships, has given one lucky customer, John Rowley, a financial boost this new year as a result of a free prize draw held in store. Rowley who has been a loyal Shaw Tyres customer for the last 10 years, won £250 of Argos vouchers after he bought Bridgestone tyres for his Volkswagen Passat and was entered into the free draw. Steve Leach, managing director at Shaw Tyres which is celebrating 25 years of the family-run business, commented: “It’s fantastic that one of our regular customers won the prize. Over the last 25 years of successful trading, we have built up a regular customer base who return to Shaw for the service and expertise we can offer them. Congratulations and happy spending John!”

8th January 2009/by Tyrepress Editors

Tyre Manufacturer Races on Regardless

Special hand-finished racing tyres manufactured in Birmingham by Dunlop are continuing to be popular, despite the difficult financial environment and the knock-on effect this has had on motorsport. According to the tyre manufacturer more people race on Dunlop tyres than any other brand in the UK and the company’s continue to be shipped around the globe as they have done since 1888.

Fort Dunlop produced over 200,000 specialist high technology tyres in 2008 and is set to build on this in 2009. Dunlop race tyres are used in many race championships for cars and motorcycles including the prestigious Le Mans 24 hour race and the famous Isle of Man TT races.

8th January 2009/by Tyrepress Editors

Schaeffler Concludes Takeover of Continental AG

The Schaeffler Group has completed its planned takeover of Continental AG, paying 75 euros per share to the depositary banks of those who tendered their shares to Schaeffler. As a result of all the recent share trading, Schaeffler Group holds 49.90 per cent of the voting stock of Continental AG and is therefore the company’s largest shareholder. At the peak of the complicated transaction Schaeffler Group held up to 90 per cent of Conti stock, although Schaeffler has now transferred the additional shares tendered to financial institutions. The European Commission gave clearance for Schaeffler to go ahead with its plans to buy into Continental AG on 19 December 2008.

“The conclusion of the takeover clears the way for integrating the companies quickly and in a pragmatic manner. Against the backdrop of the financial crisis and the market changes in the automotive industry, both companies are facing great challenges and have no time to lose. Constructive cooperation and concentration on factual issues and business matters is all important now. This is also what our staff and customers expect from us”, explained Dr. Juergen M. Geissinger, Schaeffler Group president and CEO.

In the company’s completion statement Dr Geissinger again failed to define Continental AG’s highly profitable tyre and rubber businesses as “strengths.” While he did remark that the combined companies will bring together “Schaeffler’s strengths in mechanical, mechatronic and precision components for engines, transmissions and chassis and Continental’s strengths in electronics and software systems for engines, chassis and vehicle interiors” the fact that he did not mention tyres or rubber products means there are still question marks over the future of these parts of the business.

8th January 2009/by Tyrepress Editors

Michelin Postpones Challenge Bibendum 2009

Michelin reports that, due to the depth of the current economic crisis, it has decided to postpone the Challenge Bibendum scheduled to take place in Brazil during April 2009 until the following year. The tyre major expresses its regret in doing so, however it adds the decision was made after taking into account the increasing financial constraints experienced by several of Challenge Bibendum’s traditional partners. Many of these partners would have been unable to participate to the extent they have in the past, Michelin comments.

7th January 2009/by Tyrepress Editors

Bridgestone Operating Profit Anticipated to Drop 15%

According to Japan’s Nikkei financial daily, Bridgestone expects its operating profit to decrease by 15 per cent to 100 billion yen (£742.7 million) in the 2009 calendar year. The Japanese tyre major anticipates sales will fall about 10 per cent from their 2008 level, to around 2.85 trillion yen (£21.2 billion), reported the newspaper.

On December 22 the company reported an expected 2008 operating profit of 118 billion yen (£876.4 million), significantly down on the 249.96 billion achieved in 2007.

6th January 2009/by Tyrepress Editors

Apollo Tyres Mission 2018 Scholarships Announced

Apollo has announced that 15 new tennis-playing youngsters will join the 21 children selected last year at the FIST Academy in Bangalore, taking the total number of Apollo Tyres tennis scholarships to 36. Mission 2018 represents the tyre manufacturer’s financial commitment to helping India gain a Grand Slam winner by the titular year.

Speaking on behalf of Apollo Tyres, Avik Chattopadhyay, head of Corporate Marketing and project leader for Apollo Tyres Mission 2018 said, “It’s been an amazing journey this year. We had six, seven and eight year olds participating in the selection camps from across the country. We also had participation from an NRI from Tanzania and few of them coming all the way from places like Imphal and Jorhat. This batch will further enrich the programme and Mission 2018’s prospect of bringing Grand Slam glory to India.” He added, “We have selected this time a tiny six-year-old girl from Ahmedabad who first picked up a tennis racquet when she was a little over one year old! This clearly shows the kind of passion for sport we have in India.”

6th January 2009/by Tyrepress Editors

Michelin Wants Stoke Manufacturing to Continue Despite Downturn

Michelin’s eight decade manufacturing presence in Stoke-on-Trent is likely to be maintained despite a downturn in sales during the second half of 2008. This drop in business, reflected by the facility’s first ever prolonged Christmas period closure, may lead to job losses in 2009 – however the company retains a positive outlook for its future.

5th January 2009/by Tyrepress Editors

Amtel-Vredestein Announces Submission of FY2007 Annual Report

Amtel-Vredestein N.V. has announced the submission of its unaudited annual accounts and annual report for the 2007 financial year to the Netherlands Chamber of Commerce in accordance with article 2:394 of the Dutch Civil Code. The annual accounts have not been adopted by the company’s general meeting and have not been audited by Amtel-Vredestein’s auditor. The financial year 2007 unaudited annual accounts and annual report, says the company, have been merely made public to fulfil the obligations of article 2:394 of the Dutch Civil Code. Amtel-Vredestein adds in a statement that, in this respect, it should also be noted that the Dutch Ministry of Economics has denied the company’s request for an exemption from the obligation to draw up, present and adopt its audited financial statements for the financial year that ended on 31 December 2007.

5th January 2009/by Tyrepress Editors