India
A new management role, that of ‘general manager operations’, has been created at Pirelli, and Gregorio Borgo has been appointed the first incumbent. Borgo, currently head of Pirelli’s Asia-Pacific region, will report directly to company chairman and chief executive officer Marco Tronchetti Provera in his new position.
Both Apollo Tyres and JK Tyre & Industries intend to establish new plants in Asia, and the chairman of the Indonesian Tire Producers Association says both firms are looking at his country as a potential site. Aziz Pane told Indonesia’s Investor Daily “the two investors from India are interested in coming here.” He added that each tyre maker would have to invest between US$300 million and $350 million in order to achieve a suitable economy of scale. He also opined that in order not to operate at a loss, the factories will have to be operated on a three-shift day system.
Michelin’s new plant in Thiruvallur, India has been described as the world’s largest tyre factory. While we can’t confirm the veracity of this superlative, one thing that appears to be true is that the facility is preparing for an imminent production start.
Could JK Tyre & Industries be the next Indian tyre maker to broaden its geographic footprint? Speaking with The Economic Times, company chairman and managing director Dr. Raghupati Singhania said that following the integration of Mexican tyre maker Tornel into the company, JK Tyres has “encountered some interesting propositions for possible opportunities of acquisition to catapult into a global entity.”
Edward Freedman, the football branding guru who headed up merchandising at Manchester United and Tottenham Hotspur FC in the late 1980s and 1990s, has questioned the effectiveness of sponsorship from companies such as tyre manufacturers.
Michelin has been awarded ISO 9001:2008 certification for its Tyreplus and Michelin Truck Service Centre (MTSC) networks across India. With this certification, Michelin becomes the largest certified tyre service network in the country; the company presently operates 23 Tyreplus and 13 MTSC outlets within India.
Pirelli has announced its tyre compound nominations for the forthcoming grands prix in Korea, Japan and India. The P Zero White medium tyre is present for all three events – it seems likely that Monaco will remain the only grand prix of 2013 at which it was not amongst Pirelli’s allocation. Each of the other three compounds will feature once, with the two hardest compounds deployed for the seventh time this season at Japan’s Suzuka.
In the latest installment in the on-going Apollo/Cooper merger saga, a Chinese court has postponed a hearing on a case brought against the combination by Chinese manufacturing business Cooper Chengshan.
For the second year running, Cheng Shin Rubber Ind. Co. Ltd, trading as Maxxis International, has been named one of Asia's Fab 50 companies by Forbes magazine.
In explaining Maxxis' inclusion on the list, Forbes cited the company's record revenue in 2012, boosted by demand in emerging markets including Indonesia, China and India. Forbes also noted that Maxxis' net profit grew by 86 per cent last year to $530 million.
Cooper Tire & Rubber shareholders will vote on the company’s acquisition by Apollo Tyres at a meeting scheduled for 30 September. Cooper stockholders of record as of the close of business 30 August 2013 are entitled to vote at the special meeting, which will take place in the US city of Cleveland.
Taiwan’s Federal Tyre has become the latest tyre manufacturer to sign a sponsorship agreement with Manchester United FC. The three-year agreement, making Federal United’s Official Tyre Partner in Russia and Taiwan was launched at the Interauto Show in Moscow, led by Federal CEO, Jamie Ma.
Shares in Cooper Tire & Rubber fell 3.3 per cent to US$31.50 on Monday 26 August, putting the stock down 6.1 per cent in total this month. According to the Wall Street Journal, this marks a two-month low and comes off the back of investor fears that the decision India’s central banks to review large deals by Indian companies may affect the transaction. Indeed one report emanating from India suggests that Apollo Tyres’ big for Cooper Tire is about to get reviewed in particular.
It appears the strike at the Cooper Chengshan factory in China is over, and the 5,000 workers are back at their jobs and producing tyres. Details of how the strike was resolved are not yet known.
On 21 August, Apollo Tyres signed a three-year partnership with Manchester United, which sees the company named as the official tyre of the world-famous football team across both the UK and India. Details of the investment associated with the deal have not been released. What we do know is that as well as access to player appearances in both countries the company will be making the most of its association with Man U in online advertising as well as its marketing and point of sale material. In addition, in a development of its ‘go the distance’ philosophy, Apollo Tyres will create football-based play zones in local communities in the UK and India; these will feature recycled rubber and encourage healthy lifestyles among youngsters.
It was announced today that Apollo Tyres is now Manchester United’s Official Tyre Partner in the UK and India. Tyres & Accessories was present at the deal’s signing at the club’s Aon Training Complex in Carrington and will report full details; the basics are that the three-year agreement will, amongst other things, see the two parties participate in a “joint community commitment to encourage healthy lifestyles and develop sporting skills in young people.”
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