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A New Breed?

It has both the M+S mark and the Snowflake, but its rolling resistance is said to be comparable with a summer tyre. It reportedly has the slush grip of a premium winter tyre, but weighs 700 grams less and is quieter. No it’s not a riddle, I am of course referring to the new Optimo 4S, a tyre that manufacturer Hankook is promoting as the first in the next generation of all-season tyres.

Hankook’s decision to place the Optimo 4S centre stage on the company’s large Essen show stand (situated right opposite the entrance to Hall 3) is particularly resonant in light of the difficulties the winter/cold weather tyre market has been facing in supposedly safe ‘winter’ markets like Germany. From the talk going round Essen it was clear around 7 million of last winter’s unsold cold weather tyres were still floating around the German market in May. Could that be why Hankook decided to promote the all-season tyre, its hybrid silica compound and its built in ice/snow/slush/rain performance properties?

19th June 2008/by Tyrepress Editors

PCL Inflating Its Market Presence in 2008

Sheffield based PCL Air Technology brought a wide range of its products to Reifen 2008, including its latest nitrogen inflation unit, the Accura Mobile. “It was introduced into the US last year,” commented company director and divisional general manager Simon Shorter. “Nitrogen inflation has become a big market there and the Accura Mobile is proving successful. Now it is also available in the UK.”

The Accura Mobile is a compact and robustly designed nitrogen inflation cart that can be operated either with a standard bottle or direct from a nitrogen generator. It permits operators to present the pressure for a standard inflation top up, or an N2 function for a purge and fill cycle. The unit can inflate up to six tyres simultaneously, and four hoses are supplied as standard. Power for the Accura Mobile comes via a rechargeable NiMH battery, and the unit can also operate directly from mains power.

18th June 2008/by Tyrepress Editors

BBS to Acquire Certain Hayes Lemmerz Assets in Europe and US

German developer and producer of lightweight wheels for premium segment vehicles, BBS International GmbH, a division of Punch International nv, has announced the acquisition of the Hoboken, Belgium subsidiary of Hayes Lemmerz International, Inc. Under the terms of the agreement announced on June 16, BBS has acquired all of the outstanding shares of Hayes Lemmerz Belgie B.V.B.A., including its factory based in Hoboken, near Antwerp. The Hoboken factory produces cast aluminium wheels for passenger cars and currently employs approximately 315 people.

In addition, Punch Property International nv, the Punch group’s property investment company, has entered into a definitive agreement with Hayes Lemmerz International – Georgia, Inc. to purchase the real estate and certain equipment associated with the Hayes Lemmerz subsidiary located in Gainesville, Georgia, USA. This acquisition is expected to be completed following Hayes Lemmerz’ cessation of production at the Gainesville factory. On May 12, Hayes Lemmerz announced it would close the factory by the end of December 2008. The Gainesville factory is situated less than 15 miles from the BBS factory in Braselton, and BBS will use the facility to support its non-OEM activities in the USA.

16th June 2008/by Tyrepress Editors

Guillon takes over as Michelin Personnel Manager

Jean-Michel Guillon, who was head of sales for Michelin Germany prior to taking up a position with Michelin North America in late 2001, assumes as of July 1, 2008 Group-wide responsibility for human resource management from Jean Moreau, who is retiring. Guillon is one of the Michelin Group’s ten most senior managers.

11th June 2008/by Tyrepress Editors

Broadening the Base of the Business

International News, Product News

Starco GB Ltd has appointed Chris Wilson (who joins from Summit Tyres) to spearhead a new industrial tyre aftermarket sales team. Wilson brings with him almost four decades of experience in the sector, which includes work at the sharp end of running a mobile fitting business. As a result of this – and the recent addition of the GlobeStar forklift tyre range – Starco’s management hopes to develop a real focus on the forklift end of the industrial to complement its growing OEM supply operation.

Up till now, Starco GB Ltd has remained relatively quiet about the ins and outs of the company’s generally OE-focused strategy. However, now that the business has made the strategic decision to move more into the aftermarket (while also continuing to develop its business to OEMs), the Europe-wide specialist tyre distributor invited Tyres & Accessories into Starco GB’s headquarters in Rugeley, Staffordshire.

T&A met managing director, Bob Cooper and account manager, Chris Royle, who explained that up till now roughly 90 per cent of Starco’s current business is OE related. When Bob Cooper joined the company 12 years ago sales amounted to somewhere in the region of £1.5 million a year. According to Bob Cooper, sales this year will be approaching £20 million, a clear demonstration that the OE-facing part of the business has served Starco well. In the future Starco GB is aiming to generate “very significant growth in the industrial tyre aftermarket” in addition to this, perhaps as much as doubling sales generated in this side of the business. Bob Cooper was keen to stress that the company has no plans to reduce its OE-focus. On the contrary, the strategy is to grow this part of the business too.

With offices right across Europe (plus one as far east as Kazakhstan and another in the US), you can’t help wondering if the decision to increase aftermarket focus is part of a pan-European move? In short the answer is both yes and no.

Some of the businesses Denmark-based Starco operates around Europe (take the company’s German branch for example) run on quite different strategies to the UK operation. In Germany the OE/replacement breakdown is the mirror image of what it is over here – roughly 90 per cent aftermarket sales and 10 per cent OE supply. So while Bob Cooper points out that there is an overarching drive to broaden the group’s base in general terms, the company is not in any hurry to change what is already working well.

Starco takes on GlobeStar forklift range

In addition to its existing range of Kenda pneumatic tyres and its own brand offering, Starco recently took on the GlobeStar solid forklift tyre range. With all the leading forklift tyre manufacturers feeling the pinch of increased raw material costs, and most now asking for raw material surcharges the cost/performance balance is as important to customers as ever. Not surprisingly the GlobeStar range is said to excel in this respect, offering good performance for a competitive price. At the economy end of the market, Starco have also brought in the Performer line for those seeking industrial tyres at a lower price entry point.

The new industrial aftermarket team, led by Chris Wilson, is comprised of three sales staff with backing from all the other departments of their business. At any given time, Starco’s Rugeley warehouse holds roughly £3 million of stock. Up to a third of this can be described as industrial, including brands such as TVS, Gommasol and Marangoni. The rest of the stock comprises of ATV, wheelbarrow, turf, high speed trailer, small materials handling and other specialist wheels and tyres.

Starco GB has also invested in high speed automated tyre fitting machinery, which allows the company to send more 12 to 16-inch tyre and wheel assemblies to OE customers than it ever could with man-power alone. The company has also invested in the construction of temperature controlled curing rooms in order for the company to expand the tyre-fill service it offers it’s customers.

Planning for the expansion of the industrial aftermarket side of the business began three years ago and the company has been operating in the wider industrial segment for around eight years now. So, if Starco’s acquisition of a new brand and “very significant” investment in stock is anything to go by, it is clear that the company is preparing for the long-term.

10th June 2008/by Tyrepress Editors

Continental Supplies Euro 2008 Team Buses

Continental AG, an official sponsor of UEFA Euro 2008 and exclusive tyre partner, has equipped all 16 team buses with HSR 1 premium bus tyres on all axles. Continental did something similar during the 2006 FIFA World Cup 2006 in Germany, when the team buses also ran on Continental tyres.

In addition, almost the entire Continental summer tyre line is used on more than 60 official UEFA vehicles. These include: ContiEcoContact 3, ContiPremiumContact 2, ContiSportContact 2 and ContiSportContact 3, as well as the ContiCrossContact UHP and the Conti4x4Contact for SUVs as well as the VancoContact 2 for vans. Additionally, all Continental shuttle buses are being equipped with the special edition bus tyre HSL 1, which was already issued during the FIFA World Cup 2006, with stylized soccer balls and a Continental colour logo on the side panel.

10th June 2008/by Tyrepress Editors

Pirelli Wins Motoring Euro Press Plaudits in Summer Tests

Pirelli have obtained eight overall victories and two top-three placements in 11 tests conducted by European motoring authorities and the specialist press.

The Cinturato P4, designed for medium displacement and city cars (with its ecocompatibility and safety-conscious characteristics) and the P Zero, the high technology tyre developed for the most sporting cars, have been singled out for the highest praise in their categories.

In Germany, the P Zero won four overall victories in four tests conducted by Auto Zeitung, Sport Auto, Sport Auto Tuning Spezial and Power Car, which unanimously voted it the top tyre in the reference segment.

10th June 2008/by Tyrepress Editors

Michelin to Premiere X Energy SaverGreen Range at IAA Show

With the world premiere launch of the latest Renault Magnum comes the unveiling of Michelin’s new X Energy SaverGreen tyre range. This new and exclusive offering, says Michelin, has been incorporated into Renault’s Optifuel Solutions range of products and services, and has been specifically designed to support the long haul national and international use Magnum truck.

Michelin became involved in Renault Trucks’ programme at a very early stage, and thus the French tyre major believes it has been able to make a significant contribution to the Magnum’s overall energy efficiency. The reduced fuel consumption achieved through use of X Energy SaverGreen tyres can deliver vital savings in a market where fuel prices currently account for up to a third of a haulier’s costs, and as a bonus, adds Michelin, CO2 emissions are also reduced.

9th June 2008/by Tyrepress Editors

Conti Report No Contact Over Truck Tyres

Continental has responded to claims from German news sources that Italian rival Pirelli are interested in buying the German manufacturer’s truck tyre business, stating that they have yet to be contacted. A spokeswoman for Continental said that “There are no sales talks whatsoever”.

The speculation follows reports in Germany’s leading commercial economy newspaper Handelsblatt that Pirelli’s Chairman, Marco Tronchetti Provera, has declared definitively the company’s interest in truck tyres. Coupled with the attention devoted to Continental’s truck tyre business by the German company’s management in April this year, conjecture continues to develop as to the fate of the department.

4th June 2008/by Tyrepress Editors

Zeus Solves Horsch Tyre Fill Quandry

Zeus Tyre Filling Systems, headquartered in Dortmund Germany, claims to have solved the long standing problem of flats and punctures on pneumatic agricultural equipment, by replacing the tyre contents with Zeus’ PolyFill a 2-Part poly-urethane (PU) tyre filling compound. According to the company, PolyFill is made up of a particular kind of two-part PU Material, which not only prevents punctures and air pressure losses, but also delivers greatly improved tyre life and performance.

One recent application saw PolyFill used on some Horsch ‘Multiple – Seed Drilling, Sowing & Back Filling’ agricultural equipment – a particularly important application, where this type of equipment is used in remote locations and/or on multi-day/weekly sowing operations. In addition to putting a stop to the kind of flats and punctures that cause farmers and contracters to fall behind and even lose work, Zeus claims its product is kinder to soil offering better compaction properties during back filling.

3rd June 2008/by Tyrepress Editors

Pirelli Interested in Continental Truck Tyre Unit

Pirelli is said to be interested in buying the truck tyre division of Germany’s Continental AG, German news sources have reported. “We are looking at all attractive targets. Truck tyres are definitely interesting for us,” Pirelli Chairman Marco Tronchetti Provera told the Handelsblatt newspaper.

Continental’s management recently scrutinised the truck tyre department’s first-quarter figures after its pre-tax earnings (EBIT) margin of 3.8 per cent came in below the company’ target of 10 per cent for all divisions by 2010. The announcement lends credence to suggestions that Pirelli is aiming to expand its tyre business through acquisitions.

3rd June 2008/by Tyrepress Editors

Conti On Track to Appoint New CFO by Autumn

A replacement for outgoing Continental AG chief financial officer Alan Hippe is still expected to be appointed by autumn. Conti supervisory board head Hubertus von Grünberg confirmed the company’s plans when speaking with the Germany Handelsblatt financial newspaper, and added that CEO Manfred Wennemer and the supervisory board now need to reach a decision on candidates already interviewed.

With Hippe taking over Continental’s passenger car tyre and ContiTech divisions, von Grünberg said the company would prefer the next CFO to be drawn from within industry ranks, but it is also in talks with bankers and is considering internal candidates.

2nd June 2008/by Tyrepress Editors

Brenno Benaglia Appointed New BIPAVER President

BIPAVER, the European federation of tyre retreaders’ associations, has named Brenno Benaglia as its new President. The decision was made on 23 May during the Reifen 2008 exhibition in Essen, Germany. During the meeting, a number of changes were made to the Board of the Federation, in line with the organisation’s constitution.

Brenno Benaglia, represents both AIRP (Italy) and the Marangoni Group and replaces Peter Hülzer of BRV (Germany), who becomes one of the Federation’s two Vice-Presidents. Also appointed Vice-President was Jan Driessen, Chairman of the Retreading Sector in VACO (Netherlands).

Retiring from the board was Richard O’Connell, representing the RMA (UK). BIPAVER Secretary Ruud Spuijbroek thanked O’Connell for his services as President between 2006 and 2007 and as a Vice-President during the past year as well as for his valuable contribution to the Federation’s Technical Committee.

During the General Assembly BIPAVER members approved a change in the Federation’s Constitution, which will allow Federation officers to serve two years in office as opposed to one year, as was previously specified in the constitution. This means that Brenno Benaglia will now serve as BIPAVER President from 2008-2010.

In his acceptance speech Brenno Benaglia commented: “Retreading is going through a complex period and BIPAVER now needs to carry on what it’s doing through strong co-operation with those new tyre producers, who are committed to producing retreadable casings. BIPAVER is an open and independent association and the ideas we have developed over the past year will be framework for our future work together.”

29th May 2008/by Tyrepress Editors

Michelin: Tyre Markets Recovered in April

Sales in the European tyre replacement markets recovered in April, according to Michelin and industry analysts. European truck tyre replacement sales are reported to have grown 10 per cent; while Michelin’s numbers suggest that European passenger tyre replacement sales grew 4 per cent in April (compared with a -1 per cent year-to-date figure). Total OE sales are said to have grown by “a high double digit figure.” Responding to the report, Deutsche Bank analysts put the perceived recovery down to “the Easter weekend effect.” However, Tyres & Accessories’ research shows that the current sales situation may not be so rosy overall.

Taken in isolation, April was a very good sale month in France (which no doubt meant strong sales for market leader Michelin). This may explain why their calculation puts the European market up 4 per cent, but it conflicts with the ETRMA Europool data T&A has seen.

28th May 2008/by Tyrepress Editors

Marangoni Reports Strength in Russian Market

Ellerbrock, the German subsidiary of the Marangoni Retreading Systems Group, has reportedly taken leadership in the Russian truck retread market after a decade of growth. Marangoni report that at least half of Russia’s retreaders are directly supplied with Marangoni/Ellerbrock products.

The size of the market is about 48 million car tyres (including OE) and about 7 million truck tyres (including OE). Over the past three years, truck sales have doubled in a country with over 700,000 kilometres of roads and 30,000 kilometres of expressways and highways. Marangoni says that unofficial but reliable estimates indicate a truck retread market of about 150,000 to 200,000 tyres, of which one third are retreaded locally and two thirds are imported, mostly from Central and Western Europe. Official figures for 2007 indicate 7.3 million units in the European truck retread market, which means that the Russian market accounts for about 2.4 per cent of the overall western, central, and eastern European market.

27th May 2008/by Tyrepress Editors