India’s government may be set to rectify the disparity between duties charged on natural rubber and imported tyres. The Press Trust of India reports that commerce secretary Dr Rahul Khullar told journalists on the sidelines of a Confederation of Indian Industry event to “give me a month's time, we are trying to sort out the problem of inverted duty structure."
The Tire Industry Association is no fan of the US tariff on Chinese produced consumer tyres. The anniversary of the Obama administration’s implementation of the “punitive” tariff is at hand, and the TIA is marking the occasion by calling for an end to the tariff or the collection of accurate data regarding it. The association points out that the United States International Trade Commission is obliged under section 421 of the Trade Act of 1974 to collect accurate, objective data on the tariff's effects.
The Independent Automotive Aftermarket Federation (IAAF) has added its to the growing number of voices questioning the need to alter MOT frequency requirements. For its part the IAAF has written what it describes as a “strongly worded letter” to Transport Minister Michael Penning expressing surprise at the government’s decision to review the MOT test.The review is scheduled for later in the year. Transport Department whip Earl Atlee told the House of Lords in July “we intend to look at the issue of MOT frequencies later this year.”
As part of what it calls a “growing commitment to the Australian market”, Kumho Tyre Australia has opened a new AU$10 million (£5.9 million) purpose built distribution centre in Western Sydney. The company states the 5,000 square metre warehouse operation, which can hold up to 100,000 tyres, will greatly enhance the company's efficiency and ability to service the growing number of Kumho retailers.
RoadSafe is urging transport minister Mike Penning, to maintain the MOT test as an annual check-up for vehicles. In 2008, the Department for Transport said the MOT failure rate was high, at 35 per cent. Between 2009 and 10, the failure rate continued its steady increase to 37 per cent. Despite this, the DfT is looking into reducing the required frequency of tests to fall in line with Europe.
In the UK, vehicles must have their first test within three years of registration, and annual tests thereafter. As a minimum, EU law requires vehicles to have their first test when they are four years old and subsequent tests every two years. Most European countries follow the EU minimum requirement and there is pressure on the UK to do the same. RoadSafe is warning that this will lead to more crashes, caused by poorly maintained vehicles.
Chinese petrochemical product manufacturer Keyuan Petrochemicals reports it entered into land use right transfer agreements with local government agencies on August 18. Following their approval, the company will instigate plans for expansion on an 111,500 square metre site adjacent to its existing plant in Ningbo, Zhejiang province. In addition to building a storage and several manufacturing facilities as originally planned, the company has now announced it also intends to establish a Styrene-Butadiene-Styrene (SBS) production plant on the site. Work will begin in the third quarter of 2010.
On August 19 it was announced that the Iowa Economic Development Board, an Iowa state government agency, has awarded CGS Tires US $924,000 from its Grow Iowa Values Fund. This amount, the board reports, will be used to support 154 of the 192 jobs to be created when the Czech Republic’s first factory in North America is built. The total project cost is $43.8 million and involves reconfiguring the former Winnebago Industries manufacturing facility in Charles City for the production of radial agricultural tyres, amongst other products.
Wheel alignment equipment supplier Pro-Align has become the latest company to join TyreSafe. Pro-Align will support the industry’s safety awareness group’s ongoing campaigns which raise awareness about the dangers associated with defective and illegal tyres. The company will also provide specialist knowledge and advice relating to wheel alignment issues.
The photo accompanying this article depicts a world renowned and respected personality. Standing next to him is the Prime Minister of Canada, who of course is also highly respected, even if his global recognition is somewhat lower than the Michelin Man’s. Prime Minister Stephen Harper posed for this photo opportunity together with Bibendum during a visit to Michelin’s Waterville plant in the province of Nova Scotia.
Ireland’s government apparently is considering increasing the tax levied upon tyres, and the association representing the country’s tyre industry has slammed it as a measure that would compromise safety and jobs. HGV Ireland reports that in a submission to Environment Minister John Gormley, the Irish Tyre Industry Association (ITIA) has stated that any tax increase would lead to hundreds of job losses as motorists would cross the border into Northern Ireland to make their tyre purchases.
Alcoa is increasing its investment in a partnership it operates with Saudi Arabian mining company Ma’aden. The cooperation is focussed on the development of “the largest, most efficient vertically integrated aluminium complex in the world,” according to the two companies.
We’re not sure about this one, however the BBC reports that a campaign soon to get underway in twelve regions throughout the UK will lead to used chewing gum seeing further life in tyres and other products. The broadcaster’s website for Hereford and Worcester states that the initiative being implemented in Hereford “aims to recycle chewing gum into car tyres, children toys and mobile phone covers.”
In the US the Virginia Tobacco Indemnification and Community Revitalization Commission is to inhale $5 million into a $14 million project to establish a tyre research facility within the state. A further $5 million is to come from General Motors and $4 million from the Virginia Polytechnic Institute and State University (Virginia Tech), and will be situated in Halifax County, in Virginia’s Southside region.
During the first quarter of the 2010 financial year, Toyo Rubber received net sales of 72,162 million yen (£528.2 million), a 15.7 per cent increase on the same period last year. This increase in sales was matched by a 13 per cent increase in global tyre sales by volume, with a total of 43,700 tonnes of tyres produced in the three months to June 30, 2010. The bulk of this, 37,500 tonnes, was destined for the Japanese market. Operating income for the quarter was 2,612 million yen (£19.1 million), compared with an operating loss of 3,054 million yen a year earlier, and net income amounted to 743 million yen (£5.4 million) compared with a net loss of 2,620 million yen in the same period of 2009.
A Memorandum of Understanding was signed on August 4 between JK Tyre and Industries and India’s Tamil Nadu Government for the establishment of a greenfield tyre factory within the state. The plant, to be established with an Rs 15 billion (£204.3 million) investment, will produce both passenger car truck and bus radials and have an annual capacity of 5.6 million tyres.
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