India
Taiwanese tyre maker Cheng Shin Rubber is reported to be considering building its seventh plant in China. On 19 June the Taipei Times printed comments made to this effect by company vice-president Wu Hsuan-miao (吳軒妙) following Cheng Shin’s annual general meeting the previous day.
Shares in Cooper Tire & Rubber have fared well since news of the tyre maker’s impending acquisition was announced. When the NYSE closed on 13 June the share price stood at US$33.80, an increase of some 38 per cent on the start of the week. Future owner Apollo Tyres has not enjoyed such a positive reaction to the news, however. By midday on 14 June (Indian standard time), shares in Apollo Tyres were trading at Rs 67.75, down more than 26 per cent since the deal was made public.
Apollo Tyres executives have denied there is any link between the recent sale its Dunlop operations in Africa and its later purchase of Cooper Tire. Apollo agreed to sell most of its South African operations to Sumitomo Rubber Industries Ltd. for $60 million last month. However, speaking minutes after the company announced it had agreed to buy Ohio-based Cooper Tire for $2.5 billion, Apollo vice chairman and managing director Neeraj Kanwar told The Times of India that two moves cannot be directly linked:
Apollo Tyres has finally confirmed speculation that the India-based manufacturer is to buy US firm Cooper Tire in a friendly takeover. According to the company the US$2.5 billion deal makes the firm the seventh largest tyre manufacturer in the world with combined revenues of US$6.6 billion. It also gives the manufacturer access to the North and South American markets currently uncovered by its global presence. Under the terms of the agreement, which has been unanimously approved by the boards of directors of both companies, Cooper stockholders will receive $35.00 per share in cash. The transaction represents a 40 per cent premium to Cooper’s 30-day volume-weighted average price, according to an announcement detailing the news. We will add further details to this developing story as we receive them. Look out for complete coverage in the July issue of Tyre & Accessories magazine and online at Tyrepress.com.
At an official ceremony on 4 June, attended by around 400 guests, German specialty chemicals firm Lanxess inaugurated its new butyl rubber plant on Singapore’s Jurong Island. Built at a cost of 400 million euros, the facility is the company’s largest ever single investment and is described as being the “most modern of its kind in Asia.” The 100,000 tonne per annum plant will produce premium halobutyl rubber and regular butyl rubber.
Sebastian Vettel used two stops to saunter to his 29th career victory at the Circuit Gilles Villeneuve in Canada. Vettel started on the P Zero Red supersoft tyre to sprint ahead of a similarly shod top 10 before switching to the P Zero White medium and completing the race with a final stint on this tyre. Despite wet qualifying conditions, Pirelli also completed some testing of its tweaked rear tyres in Friday practice, and Motorsport director Paul Hembery said the manufacturer would analyse the data gathered “over the next few days” before summarising the differences in performance.
A landfill site in Kuwait is the resting place of 7 million used tyres, making it the largest of its kind in the world, according to the Daily Mail. While the Mail points out that such a site couldn’t exist in the UK owing to landfill directive, the newspaper does point out the Kuwaiti site is now actually visible from space.
Pirelli has rebuffed claims that its recent 1,000km test in Spain gave the Mercedes team, with whose 2013 vehicle and drivers the test was completed, any unfair sporting advantage over other teams. Speaking in a conference call with the press this afternoon, Motorsport director, Paul Hembery explained that the purpose of this test was to continue preliminary development for Pirelli’s potential 2014 tyres, though the manufacturer has yet to sign a deal to continue its supply. Hembery also clarified that the company has been allowed to test development tyres with available teams since March 2012, when it wrote to all the F1 teams to inform them of this position. These tests are conducted blind, meaning that only Pirelli can access the data drawn from the laps. Hembery also confirmed some details of the new tyres for use in 2013. The two new tyres are to be available for all teams to test in the Friday practice sessions in Canada, and it is anticipated that the full grid will support their introduction at Silverstone following these sessions. The tyres, Hembery said, are Pirelli technicians’ resolution to the delamination issues witnessed so far this season, and were developed in the laboratory rather than via track testing.
Pirelli will test tyres during the practice session at the Canadian grand prix, the Formula One tyre supplier has announced. While the manufacturer had previously announced its intention to supply a new tyre range in Montreal, several teams, headed by Force India, held up the switch. Pirelli is now hoping to introduce the new P Zero F1 rubber at Silverstone for the British grand prix.
Leading European aftermarket trade associations Aica, Anfia, Airp, Clepa, Egea, Feda, Federpneus, Figiefa met at the IAAM13 conference that ran as part of the AutopromotecEdu section of the recent Autopromotec exhibition. IAMM13 focused on providing companies and professionals operating in the aftersales business some foresight of trends and developments of the aftermarket sector in Europe and a number of strategic countries, such as BRIC (Brazil, Russia, India and China), threreby offering them the opportunity to find new international channels for their sales and marketing activities.
The continuing tyre debate in Formula One acquired a new facet over the long weekend, as details emerged of a 1,000km test Pirelli conducted in Barcelona after the Spanish grand prix. Red Bull and Ferrari have led official protests against the test, which is thought to have been conducted using the 2013 Mercedes car. This adds another layer of complexity to the ongoing debate over whether Pirelli will be allowed to change its 2013 specification rubber mid-season. Pirelli announced that it would make the changes to the rear tyres before the Canadian grand prix, but this intention is being held up by three teams – chiefly Force India, with Ferrari and Lotus joining the current impasse – who have refused to sign off on the replacement range. (You can follow the ongoing saga of Pirelli's 2013 F1 tyres in the links below this story.)
Nico Rosberg won his first race for Mercedes this year, ahead of Red Bull’s Sebastian Vettel, who extended his championship lead. The German was in front from start to finish, starting on the P Zero Red supersoft tyre and then switching to the P Zero Yellow soft during a safety car period. An accident on lap 45 brought out the red flag and under the current rules the drivers were allowed to change tyres during the stoppage. Rosberg completed the race on the supersoft tyre, following yet another safety car period with 15 laps to go. Pirelli had predicted a one-stop strategy, and this proved to be the case for most of the field, excluding the re-start. Monaco is generally one of the easiest races on the tyres, partially as a result of well rubberised roads and lower speeds than specialist track races.
Pirelli’s decision to make wholesale changes to its range of P Zero Formula One tyres, as well as the sole tyre supplier’s future in the series, are hanging in the balance going into this weekend’s Monaco grand prix. The tyre maker appeared ready to go ahead with a plan to supply altered tyres from June – thought to be a mix between the features of the current rubber and last year’s model – but behind-the-scenes negotiations have followed that announcement.
Apollo Tyres’ Chennai facility in southern India has won the Platinum prize in the large size category of the Federation of Indian Chambers of Commerce and Industry’s (FICCI) Quality Systems Awards for Manufacturing 2012. This highest-level award was presented to Apollo Tyres by Saurabh Chandra, secretary, Department of Industrial Policy and Promotion, Government of India.
For Apollo Tyres, the 2013 financial year ended on 31 March, and the tyre maker reports that its profit was up almost 50 per cent for the full year. Apollo’s net profit between 1 April 2012 and 31 March 2013 amounted to Rs 6.1 billion (£73.0 million), a 48.8 per cent year-on-year increase on the Rs 4.1 billion earned in the previous financial year. Net sales rose 5.3 per cent to Rs 127.9 billion (£1.5 billion) and operating profit increased 29.2 per cent to Rs 15.5 billion (£185.6 million).
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