Imports
Analysts believe that China’s tyre industry will face a severe test in the second half of this year. According to the China Rubber Industry Association (CRIA) statistics, in the first six months of 2011 member companies’ tyre production totalled 128 million units, of which 107 million were radial tyres. This represents year-on-year growth of 1.6 […]
The World Trade Organization (WTO) has upheld the US government’s decision to impose 35 per cent import tariffs on Chinese produced passenger car tyres in September 2009. Two years later these have been lowered to 25 per cent, as initially planned. However, the Chinese authorities maintain that the original ruling has seriously harmed Chinese producers and the decision to uphold it will “intensify their difficulties.”
Persistence may soon pay off for South Africa’s tyre manufacturers. In early September the Supreme Court in the city of Bloemfontein will hold the final hearing on an appeal regarding the dumping of Chinese tyres in South Africa. If the decision goes its way, the local industry will be given the means of resisting something said to be injuring its viability.
While winter conditions in many of our neighbouring European countries are much more severe than here in the UK, Hankook representatives point out that some of these boast lower accident rates. Why? A major factor in this is down to tyre choice. Hankook therefore believes it is essential that “we educate our customers on winter tyres and contribute towards a reduction in motoring accidents during winter.”
Nokian Tyres styles itself as “the only tyre manufacturer in the world that focuses on products and services that facilitate safe transportation in Nordic conditions”, and its 2011 range reflects the company's expertise in the area, developed in variable Central European conditions. The manufacturer says its WR D3 and WR A3 tyres are “designed for different vehicles and drivers but for any winter weather”. The company calls its tyres “environmentally friendly premium products” that feature nanotechnology and canola oil, which helps to improve their reliability in the winter conditions of Central Europe. Nordic Tyres (UK) usually imports Nokian Industrial, Forestry and Agriculture, though increased demand in the last UK winter led to its decision to stock passenger car winter patterns. The UK distributor says it suggests “early contact… in order to meet expected demand before winter really bites”.
Following a September 15 change in the regulations covering automotive spare parts in Qatar, the importation of used tyres and certain new tyres into the Gulf state is now forbidden. Under the new rules, issued by the country’s Ministry of Environment, Ministry of Business and Trade and Ministry of Interior, no new tyres will be permitted to enter the country unless accompanied by a Gulf Conformity Certificate. Tyres must also carry a 180km/h speed rating in order to be eligible for importation. Balloon tyres intended for use on passenger vehicles are also no longer able to be imported unless accompanied by a certificate of conformity, with the type of tyre engraved in red on the sidewall.
The United Steelworkers union has expressed its disappointment in the notification of redundancy given to workers at Goodyear’s Union City factory. In a press statement, USW International president Leo W. Gerard said “we are very angered by the company’s announcement yesterday to close its Union City, Tennessee facility. The harm being done over the years by our government’s inaction and manufacturers’ ongoing deindustrialisation of the economy is relentless. Unfortunately, nothing we can say minimises the impact this decision has on the lives of our members who work there, their families and the community. But we will continue to fight to help them in this tragic situation.”
Data released during Automechanika Middle East shows that the overall volume of aftermarket trade that passes through Dubai is heading back to historically record levels following the recession. According to the Dubai Ports and Customs import, export and re-export figures, Dubai experienced its market peak and then decline a year later than in Europe.
Following a successful Tyrexpo Asia earlier this year, Zafco, the Dubai based tyre distributor of tyres, batteries and lubricants, opted for a second high profile exhibition stand at Automechanika Middle East. Tyres & Accessories was on-hand in Dubai to find out more.
The European Commission has cleared the proposed acquisition of US-based Columbian Chemicals by Indigold Carbon, which is controlled by the Indian Aditya Birla Group, both worldwide producers of carbon black. Even though the Commission concluded that the merger would create one of the three largest companies in the carbon black sector, approval was granted under the EU Merger Regulation as it is believed European customers will “continue to enjoy healthy competition.”
By 2015, Michelin aims to supply 100 per cent of its truck and bus tyre market in India from its plant currently under construction near Chennai. The facility, being built on a 300-acre site in Thervoy Kandigai, is scheduled to enter production next year with an initial annual capacity of 300,000 truck and bus tyres.
Apollo Tyres South Africa, formerly known as Dunlop Tyres South Africa, has invested in a specialist budgeting solution from Synergy Business Intelligence. Urekha Venketas, associate manager business Analysis at Apollo Tyres South Africa explained why the company sought such a system and her comments also give a flavour of the now Indian-owned firm’s approach: “In a global business, of which the South African operations are a part…means being able to very closely track performance in a highly unpredictable market.”
Good news for all Tyres & Accessories/tyrepress.com subscribers. With just a subscription and a click on the more link below you can now access the latest issue of the magazine in virtual paper format. The April issue contains features on the wheel business, the effect of raw material costs on the tyre industry and a review of some new additions to the diagnostics market.
India based investment information and credit rating agency ICRA Limited has issued a report warning that the profitability of tyre makers there will decline over the coming 12 to 15 months despite a “robust” demand for tyres. The agency notes the Indian tyre industry staged a strong recovery in the 2009-10 financial year with a turnover of around Rs 250,000 million (£3.4 billion); this performance was supported by a sharp upturn in demand and relatively stable rubber prices. “However, benefits accruing from a low-cost structure were short-lived, as natural rubber prices surged since December 2009, thereby making a severe impact on margins, despite industry-wide price revisions by tyre manufacturers.”
After months and months of price increases from tyre manufacturers, owing to the fact that demand for raw materials such as natural rubber has gone through the roof, it is now clear that the same pressures are affecting those purchase automotive parts too. Asking the question, what is driving current price increases? Dave Cheetham, exhaust maker Klarius Group’s chief financial officer, has warned that further price rises are inevitable in the aftermarket auto parts supply chain as well.
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