The inauguration of Bekaert’s new steel cord facility in the Russian city of Lipetsk took place on January 20, and to mark the occasion Russian Federation President Dmitry Medvedev visited the plant. The Russian President and three Deputy Prime Ministers were accompanied by Bekaert CEO Bert De Graeve during their time at the site, which is located within the Lipetsk Special Economic Zone (SEZ), some 400 kilometres south of Moscow.
On January 8, the Venezuelan government announced the devaluation of its currency, the bolivar fuerte, and the establishment of a two-tier exchange structure. This has seen the official exchange rate against the US dollar slide from 2.15 bolivar fuerte per dollar to 4.30, except in the case of essential goods, for which the rate is 2.60. This significant currency change has impacted tyre makers active in the South American country; Goodyear Tire & Rubber reports it expects a first-quarter 2010 charge of about $150 million (62 cents a share) in connection with the devaluation.
The United Steelworkers of America says it has “complete faith” that the World Trade Organization will uphold the US government’s imposition of an added tariff to consumer tyres imported from China. The WTO has acted on an appeal from China to investigate the three-year, tiered added tariffs imposed on China-made consumer tyres last September. The tariffs – 35 per cent for the first year, 30 per cent the second, and 25 per cent for the third – came on top of an existing four per cent standard import tariff.
Some Rs 8 billion (£109.7 million) are to be invested in a new JK Tyre & Industries greenfield facility and the construction of a new research and development facility. The new plant will reportedly produce passenger car and truck and bus radials for both the domestic and export markets, however no specific information on plant capacity has yet been made. The southern Indian state of Karnataka appears to be the most likely location for the new development, a decision that may have been influenced by the regional government’s offer of incentives.
Despite the positive impact of the scrappage scheme the recession led to the lowest annual sales in the new car industry for almost fifteen years. According to data released by the SMMT, full year registrations were down 6.4 per cent to 1,994,999 units in 2009, the lowest level since 1995. New car registrations rose in December by 38.9 per cent to 150,936 units.
What’s worse is that the situation would have ben dire had it not have been for the scrappage scheme backed by both manufacturers and the government. Since its introduction, the scrappage scheme has accounted for over a fifth of all new car registrations and is estimated to represent 20.8 per cent of the December market.
A 2009 government study of winter traffic accidents in Prince Edward Island found that only six per cent of the involved vehicles was fitted with winter tyres. But that apparently isn’t enough for the province’s transportation minister, who called the study “inconclusive” and says there is no reason to mandate winter tyre use as Quebec did in 2008.
The value of Chinese tyres exported to the US is nearing a four-year low after they plunged 37.5 per cent in October to $130 million as a result of swinging 35 per cent import tariffs imposed by the US government on 26 September 2009. According to the country's General Administration of Customs, China exported 240 million new tyres in the first 10 months of 2009, 9.6 per cent less than in the same period in 2008, sources reported. The export value of the tyres plummeted 10.5 per cent year-on-year, hitting $6.2 billion, and the average price for a tyre was said to be $25.40 (down 1 per cent year-on-year).
New car registrations in Europe EU27 + EFTA) rose 26.6 per cent to 1,182,082 in November 2009, a far cry from the 25.8 per cent drop in the same month last year. Western Europe’s increase of 30.6 per cent contrasted with a 16.7 per cent drop experienced by the new EU Member States and reflects the impact of fleet renewal schemes in a number of main Western European markets. The UK market, for instance, shot up 57.6 per cent to 158,082 new registrations in November – although, admittedly, November 2008 was the month of steepest decline during the 15-month run of falling volumes between May 2008 and June 2009. Scrappage accounted for 21.6 per cent of all new car registrations during the month.
The North American International Auto Show in Detroit gets underway on January 11, and the 2010 exhibition marks the 22nd year of Michelin’s sponsorship of the show’s official facility for journalists and other media representatives. For the 2010 Detroit show the Michelin Media Center has grown to 27,500 square feet and accommodates 600 working desk spaces. Each desk features electrical and hard-wired, high-speed connections to a robust fibre-optic network for working media. In addition, the 2010 facility includes an expanded photo centre, media lounge, and additional team tables customised for the needs of new media.
A limited field study by the US Environmental Protection Agency found no cause for human health or environmental concerns with the use of tyre rubber in athletic fields and playgrounds, reports Tire Review. The EPA said it will use the information to determine possible next steps to address questions regarding the safety of tyre crumb fill in the fields. The limited field study was conducted between August and October 2008.
The US Environmental Protection Agency (EPA) announced on December 10 the results of a study of the health risks from inhalation, ingestion, and dermal contact with synthetic turf and crumb rubber from playing field and playground surfaces constructed with recycled tyre material or tyre crumb. It concluded that "concentrations of components monitored in this study were below levels of concern."
The Secretary of State for Transport, Lord Adonis, has confirmed in Parliament that the EU tyre noise regulation (Regulation EC No 661/2009) has direct legal force and consequently does not require transposition into UK law. In response to a question from Liberal Democrat peer Lord Dykes as to what steps the Government plans in order to reduce vehicle tyre noise following the recent EU decision, Lord Adonis stated that it would implement enforcement powers and penalty provisions to ensure the regulation’s requirements can be adequately enforced in the UK.
Hungary has named Hankook Tire vice president Cho Hyun-Shik its honorary consul to South Korea in recognition of the company’s contribution to the country’s economic development and growth. Hungarian vice Foreign Minister Laszlo Varkonyi appointed Cho to this position on November 30 during a visit to Seoul in conjunction with Hungarian president Laszlo Solyom's four-day state visit to South Korea.
The consultation phase regarding the planned closure of Continental’s Clairoix tyre factory that began on March 11 has come to an end. After more than eight months of talks between Continental France SNC and workers’ unions over the passenger car and light truck tyre factory’s future, or lack thereof, the bodies representing employees have, in Continental’s words, “rendered their recommendations” on both the economic rationale in support of the planned closure as well as the qualification scheme included in the social plan for the plant’s 1,120 employees.
Bridgestone Canada will receive funds from the Province of Quebec to assist in the upgrading of its Joliette facility. More than CA$40 million (£22.7 million) is to be invested in purchasing new equipment for the passenger car and light commercial vehicle tyre factory, including a government contribution of $4.8 million. The non-repayable government contribution, comments the department, is aimed at improving the plant’s productivity.
If you would like the latest news from the Chinese tyre industry in Chinese, visit our partner site TyrepressChina.com. Or click below to continue on Tyrepress.
