India
Continental’s tyre business – the German automotive supplier’s most important division – aims to intensify its competition with the top three global players over the coming decade or so. According to an article published yesterday by German financial daily Handelsblatt, growth in international markets as part of its ‘expansion strategy 2025’ will fortify the European market leader’s position in other regions.
The first taste of Pirelli’s 2013 tyres for teams came during free practice in Brazil, with the Italian firm bringing two extra sets of prototype tyres in addition to the usual allocation. The teams used the 2013 prototype tyres, which were distinguished by orange writing on the sidewalls, in the morning session. The prototype tyres seen in Brazil have a different structure compared to the 2012 tyres, using the current hard compound, but with a quicker warm-up time as well as deliberately faster degradation.
Tyrepress.com took the opportunity of Reifen China to discuss the effect on exports of the US tariff on Chinese manufactured tyres coming to an end on 26 September. While Tyrepress.com has often focussed on the introduction of EU tyre labels – which received mixed coverage amongst exhibitors in Shanghai – the effect of its introduction should be seen in the context of the US tariff’s end. The question isn’t just how Chinese manufacturers are dealing with tyre labelling restrictions, but whether they are altering export strategies based on demand created by the expiration of the three years of 35 per cent duty faced by importers of Chinese tyres in the US too.
During an interview with an Indian publication, Apollo Tyres’ chief of India operations commented on plans to establish a Greenfield plant in the ASEAN (Association of Southeast Asian Nations) region in the near future, while a factory in Eastern Europe may follow a couple of years later. Speaking with the Financial Chronicle, Satish Sharma said a favourable volume outlook was a key motivating factor behind the company’s plans in Asia.
The sixth Reifen China show took place at the Shanghai New International Expo Centre on 14-16 November, with two neighbouring halls housing RubberTech China 2012 simultaneously on an exhibition area of 11,500 square metres in total. Representing an increased number of nations, exhibitor stands included large displays near the entrance for leading Chinese manufacturers such as Double Coin, Shandong Linglong, Techking, Hangzhou Zhongce and Cooper Chengshan, while less familiar and almost brand new names mingled with visiting stands from India (Apollo) and Europe (Deldo, Interstate and Profil) in the rest of the hall. Joint organisers Messe Essen – responsible for Germany's market-leading Reifen show – and the China United Rubber Corporation welcomed visitors on the first day; the latter's general manager Ma Junhua said that Reifen China's "six years of previous success" was "inseparable" from the support of visitors and exhibitors. Overall, 112 exhibitors from 15 nations – newly including Poland and Russia – were present at Reifen China showing tyres, wheels and garage equipment.
India’s Economic Times reports that Apollo Tyres has “put on hold its plans of going ahead with the acquisition” of Cooper Tire & Rubber Co. Tire Review writes that the newspaper, which first reported about the possible acquisition deal back in October, reported yesterday that “sources with direct knowledge” said the plan was put on ice because Apollo “did not get a favorable response to its qualified institutional placement (QIP) from the institutional investors who were worried about the end-use of the funds.”
British automotive success story Jaguar Land Rover is to produce Jaguar and Land Rover branded vehicles in China via its joint venture with Chery Automobile Company Ltd. The two companies laid the foundation stone for their new manufacturing facility in China on 18 November 2012 following formal approval from the Chinese Government for their joint venture and a licence to manufacture Jaguar Land Rover vehicles and new models for a partnership brand in China.
The sixth Reifen China show has opened at the Shanghai New International Expo Centre, with two neighbouring halls housing RubberTech China 2012 simultaneously. It is expected that the show will attract around 10,000 visitors over its three days, before wrapping up on Friday 16 November. Large stands near the entrance for leading Chinese manufacturers such as Double Coin, Shandong Linglong, Hangzhou Zongce and Cooper Chengshan greet the visitor, while less familiar and almost brand new names mingle with visiting stands from India (Apollo) and Europe (Deldo, Interstate and Profil) in the rest of the hall. Joint organisers Messe Essen – responsible for Germany's market-leading Reifen show – and the China United Rubber Corporation welcomed visitors on the first day; the latter's general manager Ma Junhua said that Reifen China's "six years of previous success" was "inseperable" from the support of visitors and exhibitors.
While many markets in Europe continue to prove challenging for Italian brake manufacturer Brembo, Germany and the USA have continued to provide the company with enough growth opportunities to keep the company's revenues ahead of those at this stage in 2011. Overall, the company registered net profit up 59.8 per cent in the first three quarters (49 million euros), with sales up 10.5 per cent (1,045 million euros). Chairman Alberto Bombassei said he remained “convinced that the ability to innovate, along with a constant focus on quality, are the foundation of company’s success, even in a crisis scenario."
Italian truck manufacturer, Perlini Equipment SpA has delivered the first 14 of its 90 ton dump trucks fitted with Eurotire rubber from its manufacturing facility in Drobeta Turnu Severin, Romania to the Brazilian port of Santos. The partnership between the two companies is part of a joint program created to promote Eurotire products and Perlini machines. One of the largest steel makers in Latin America, Usiminas will use the trucks at its iron ore mining operations.
Apollo Tyres has released its unaudited financial figures for the second quarter of the company's financial year 2012-13 (July to September). Net sales were up 18 per cent year on year at 33.7 billion Rupees (US$ 612.29 million), operating profit rose 55 per cent to Rs 3.8 bn (US$ 135.33 m) and net profit was up an impressive 96 per cent to Rs 1.5 bn (US$ 27.62 m).
Michelin has appointed Jason Cooper as UK & Republic of Ireland operational sales manager for its truck and bus division. Cooper brings more than 17 years of experience with Michelin to the role. This includes the last 18 months as sales process and training manager for Michelin, and four years in a dual role as sales process and training manager and national sales manager for the car tyre product line in Delhi, India.
Lotus driver and 2007 Drivers’ Champion, Kimi Raikkonen sealed the first victory of his Formula One comeback with Pirelli in Abu Dhabi; the 19th of his career. The Finn used a one-stop strategy, fast becoming the favoured method of negotiating a Grand Prix on Pirelli’s second season tyres, stopping on lap 31 to move from the P Zero Yellow soft to the P Zero White medium tyres. Having started fourth on the grid, he took the lead following the retirement of McLaren’s Lewis Hamilton on lap 19, holding it to the finish. Ferrari’s Fernando Alonso used an identical strategy to Raikkonen, stopping three laps earlier, reducing his gap to the lead of the Drivers’ Championship to 10 points with two races to go. He would have closed the gap even more had it not been for the current leader, Red Bull’s Sebastian Vettel, who started from the pit lane after having his qualifying times disallowed.
The deadlock between the striking workers and management of Apollo Tyres Ltd continues with both the parties not reaching a consensus over the issue of recognition of the new union at the company's plant at Waghodia, Gujurat, India, reports the online site Business Standard.
The strike, now in its tenth day, is likely to intensify further as workers have decided to go on a daily fast followed by a hunger strike. On the other hand, the company management has intimated to the labour commissioner that they are averse to the idea of recognising the union called Bhartiya Majdoor Sangh (BMS) formed at the plant.
Now the dust has settled from the first suggestions that Apollo Tyres was preparing to bid for Cooper Tire, the rumour mill has slowed considerably. There are those that are saying there is no smoke without fire when it comes to the reports published in the Indian and then global press; and there are those that believe it was all a carefully orchestrated publicity manoeuvre. Whatever the truth turns out to be, the interest surrounding this story is a reflection of the facts that the global market is ripe for consolidation and that there are a lot of ambitious tyre companies in and around the top 20 aiming to make it into the top 10.
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