Greenpeace is calling on the New South Wales Government to reject a proposal by Blue Circle Cement to use alternative fuels such as tyres and oils in its New Berrima plant. The cement company says the fuels will benefit the environment by reducing land-fill and emissions. However, Greenpeace spokesman Jason Collins says Blue Circle’s own environmental study has shown the dioxin emission levels will triple.
The Agribex 2004 panel has awarded a Golden Ear to Michelin for XeoBib, a new tire concept that optimizes driving in fields and on the road, thanks to the ability to roll at constant pressure. The Golden Ear is awarded for innovations, with emphasis on practicability as well as engineering excellence.
Bridgestone Corp. said yesterday it expects a group special profit of around 60.0 billion yen (445 million euro) related to plans to return 65.0 billion yen in pension assets to the government in 2005. The Japanese tyre maker said that on a parent basis it expects a special profit of around 60.0 billion yen. Since the move is planned for 2005, the size of the special profit it will book may change, the company said. Many companies in Japan have opted to return the state-financed portion of employee pension plans they managed on behalf of the government.
The head of Continental AG slammed the German government on Monday for failing to tackle an inflexible labour market and said it was being forced to expand in cheaper locations abroad. “The decisions for the next two or three years have already been made. The government and the unions can no longer do anything about it – factories will be built elsewhere”, Chief Executive Manfred Wennemer told the Süddeutsche Zeitung.
TYRE exporters in India may have cause for cheer now that the Central Government has allowed fixation of value caps for availing duty entitlement passbook (DEPB) on a per kilogram basis. This is as against the present system, where the Director-General of Foreign Trade fixes uniform value caps for each category. Thus, exporters of truck and bus tyres were eligible to claim 20 per cent DEPB on free-on-board value or the specified value cap of Rs 5,500 per pair (tyre plus tube), whichever was lower. To overcome the classification problems, the Government now fixed the value caps on a weight basis at Rs 90 per kg for all automobile tyres. There has, however, been no change to the DEPB rate, which has been pegged at 20 per cent.
Philippine rubber producers have asked the Government to raise the tariff on imported rubber products to protect the local industry. The Philippine Rubber Industries Association wants the current three and five per cent duty on products such as hoses and belts raised to 10-15 per cent and the current 10 per cent tariff on imported tyres increased to 25-30 per cent. The Philippines Tariff Commission is currently reviewing the country’s tariff structure.
The Hong Kong Special Administrative Region’s (HKSAR) government is proposing that all new tyres are registered and taxed. A spokesman said that new car buyers will be required to pay an annual tax of HK$100 (11 Euro) for the five tyres on a car. The money will be used to buy and operate machinery to turn scrap tyres into rubber bricks, used to pave roads, and once the capital outlay for the machinery is recouped, the tyre tax will be lifted. The proposal has the backing of the Hong Kong Automobile Association.
Ireland, the Emerald Isle, the land that has made green its own colour, yet there is nothing much green about the waste management infrastructure North or South of the border. Waste has not been a priority problem until recently. The local authorities, certainly in the North were at one time expecting a further delay in the implementation of the Landfill Ban on whole tyres. Their reasoning was that there quite simply were no suitable alternatives available. There were no tyre shredding facilities in Ireland.
However, the UK government has in its now traditional style not only adopted the latest legislation to arise as a result of an EU directive, but is intent on implementing the new law. That is creating a peculiar scenario in Northern Ireland where, as the deadline approaches, there is still no route to disposal, save shipping them to the UK, or perhaps to the Republic. The former is costly, and the latter may not be sustainable in the long term. With nowhere to take these tyres the gate fees are bound to increase in the run up to the ban, and as the cost of disposal rises, the attraction of players to the market will also increase. However, unlike the mainland UK, there is no widespread network of retreaders or collectors seeking to expand their business into shredding. That makes the Northern Ireland situation one of interest and we spoke to Lynn Kerr, the managing director of ADCO retreading and power behind R4 Tyre Recycling in Portadown to get the lowdown on the Northern Ireland situation.
The situation in the South is similar to that in the North in that there is no widespread tyre collection service. We are advised that what competition exists does so courtesy of a loose application of the law. As in the UK, waste carriers need to be licensed, but rather than a single license giving rights to operate nationally, the licences are issued on a county basis, so to collect in County Cork and shred in Louth, one needs to hold licenses for every county between. However, Ireland has a hidden competitor in tyre collection, something it has in common with France, the agriculture sector in the republic has some 140,000 individual farmers, of whom we are informed some 80,000 might be involved in making silage. With some 40,000 tyres each year allegedly going to silage that averages out at 500 tyres per farmer. Farmers can collect without license, apparently, and there is no monitoring of their collections as of yet. This is obviously something that needs to be controlled if tyre disposal is to be legitimised and any environmentally effective recycling is to take place. The Irish government cannot expect retailers to pay the licensed tyre trader 2 Euro per tyre when they can have their local farmer take them for 50 cents a time.
Far be it from T&A to accuse Ireland’s farmers of collusion in avoiding the law, but if those figures are correct, either the agricultural sector is dumping tyres in some hidden corner of a forgotten field, or the whole of Ireland is gradually going to be covered in tyres used for silage. Ultimately, the only thing green about the Emerald Isle would be on the mould and algae growing on their rotting surfaces.
In India, Parliamentary committee has urged the Government to reduce the amount of excise duty levied on tyres sold into the replacement market, from 24 per cent to 16 per cent. This follows a recent reduction from 32 per cent to 24 per cent. Such a reduction would save a single truck operator Rs 18,000 (361.8 Euro) a year in excise duty, says the committee. The Indian tyre industry contributes Rs 3,500 crore (703.5 million Euro) a year in taxes, the report adds.
Since T&A last visited Matador there have been a few changes in the management team. These have been brought about by the retiring of company patriarch, Stefan Rosina Snr. There can be little doubt that Stefan Rosina Snr. is not only a sound businessman, but also an astute politician; if he were otherwise he would not have been able to guide Matador into the free market as he did. The many years involved in the business have placed Mr. Rosina in a commanding position to help develop Matador’s relations both with the Slovak government, of whichever hue, and with politicians and businessmen in the new markets of Russia and the former Soviet influenced states. Although no longer at the helm of Matador, Stefan Rosina Snr, still plays a major figurehead role both as a consultant and as a powerful lobbying tool for Matador. He has been replaced as president of Matador by his son, Stefan Rosina Jnr. as President and Chairman of the Board of Directors. Mr Rosina Jnr. told T&A that the company aims to remain fully independent although working towards new projects with joint venture partners in growing markets. Mr. Rosina reported ongoing developments in Russia at Omskshina, where the JV was now producing 1.5 million tyres per annum and selling every single piece on the Russian domestic market where the Matador brand had already developed a strong following of loyal and satisfied customers. Two other joint ventures in Russia were still under development. Much there depended upon final negotiations and Due Diligence work before any official announcements could be made. However, a JV with Addis Tyre in Ethiopia was in the course of being finalised as we spoke. “This is a long term investment, we will build gently in Africa through our Ethiopian partners. We have long term plans to develop the region, create jobs and wealth and provide education. In Matador, wherever we are we see the potential to provide good employment prospects through the generations. My father worked for Matador, Miroslav (brother) and myself work for Matador and our children also have started working for Matador. We see that same opportunity for all our employees families.” The direction of the company may not have altered but the structure of the upper management has. Stefan Rosina Jnr is the President and Chairman, he is supported by Miroslav Rosina as Vice Chairman and Director of International Operations. The top layer of management is completed by Jozef Vozar, vice president for strategy and General Director Štefan Prekop.
The Vietnamese Government has taken steps to protect its domestic rubber industry by imposing an import tax on car tyres and tubes of 30 per cent and a 50 per cent tax on motorbike and bicycle tyres and tubes. These will fall to five per cent by 2006, as a condition of Vietnam’s entry into AFTA; the ASEAN Free Trade Area.
Pakistan’s largest tyre manufacturer, General Tyre & Rubber Co. of Pakistan, is to expand annual production by 30 per cent, from one million tyres to 1.3 million, with an investment of 500 million Rupees ($8.65 million). 50 per cent of General’s sales are OE (cars and trucks), 45 per cent replacement and five per cent to the Government. The company also exports tyres with a value of US$700,000, which is expected to rise to US$ 1 million this year. 31 per cent of Pakistan’s tyre demand is met by domestic producers, 53 per cent by imports and the remaining 16 per cent by smuggled truck tyres.
Charles L. (Chuck) Sinclair has been named senior vice president, global communications of The Goodyear Tire & Rubber Company, reporting to president and chief executive officer Robert J. Keegan. Sinclair will be responsible for leading Goodyear’s global team of communications professionals in the execution of a communications strategy and providing counsel to senior leadership on issues impacting the company. Sinclair replaces Robert J. O’Leary, who has been named as senior vice president, public relations, community and government affairs of Goodyear customer Sears, Roebuck and Company.
Back in our April issue, the editorial column was devoted to the subject of producer responsibility and the fact that the Government had asked the tyre industry to re-think its approach towards the subject. It soon became clear that, from the united industry answer to the first consultation paper, this time there was to be no such degree of unanimity and different sectors proposed different approaches. On the one hand were the manufacturers – or at least some of them – who favoured what they described as a “managed approach” while on the other hand, retailers and wholesalers (many of this latter group would be obligated as importers of tyres) preferred what they called the “free market approach”. The two approaches are very different and, because it was recognised by the industry that a single industry response, rather than a number of different ones, would inspire more confidence in Government, an attempt was made to get major players round a table and try to find common ground.
Michael R. Chambers, Chief Executive Officer of Tech International, has announced the appointment of Mark Noble to the position of Vice President – Strategic Planning and Business Development for the Tech Group of Companies.
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