Former Goodyear India Chairman Dies
V. Narayanan, former chairman of Goodyear India, died September 14 at his home in Chennai. He was 91.
India
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India to “Sort Out” Rubber, Tyre Duty Inequality
NewsIndia’s government may be set to rectify the disparity between duties charged on natural rubber and imported tyres. The Press Trust of India reports that commerce secretary Dr Rahul Khullar told journalists on the sidelines of a Confederation of Indian Industry event to “give me a month's time, we are trying to sort out the problem of inverted duty structure."
Goodway and Indag Consider Partnership Options
RetreadingGoodway Rubber and Indag Rubber Ltd are considering their partnership options after signing a memorandum of understanding on 23 August. According to the document the companies are now considering “joint opportunities to…strengthen both parties’ market position in the rubber compounding and retreading industry.” The firms are expected to announce whether it is feasible for them to enter into a “strategic partnership” within six weeks of signing the memorandum.
Ruia in Talks to Purchase German Auto Parts Maker
NewsIndia’s Ruia Group is reportedly “close” to purchasing a German automotive component company, and may route any agreed transaction through its listed Falcon Tyres subsidiary. Group chairman Pawan Kumar Ruia states that Falcon Tyres will raise around Rs 8 billion (£111.6 million) by way of fresh shares through a rights issue, equity convertible warrant or other means to fund its expansion programme of overseas acquisitions and capacity expansion at home.
JK Expansion Plans Include 2-Wheeler Market Comeback
NewsSales of cars in India are booming – in August alone, sales figures rose one-third to a record high. Tyre makers are benefitting from these buoyant conditions, and to accommodate growing demand JK Tyre & Industries is planning to effectively double its passenger car radial capacity by the first quarter of the 2014 financial year. To reach this target, JK Tyre has earmarked some Rs 15 billion (£209.3 million), a large portion of which will go towards erecting the company’s greenfield plant in Sriperumbudur, near Chennai.
JK Tyre to Bump Prices by 4%
NewsIndia’s JK Tyre has told the country’s Economic Times that it will likely increase the price of its product range by a figure of up to 4 per cent. The rise would be put down to higher costs, especially natural rubber. The online report also said that JK Tyres’s prices have risen by more than 10 per cent since May.
Tariffs, Regulations on Agenda at Fourth Reifen China
NewsSince 2007 the world’s biggest tyre industry show, Reifen has had an annually-held Chinese twin event named Reifen China. 25-27 November, 2010 sees the fourth “Asian Essen Tyre Show” taking place at the Shanghai New International Expo Center in Pudong, Shanghai in a joint-organised event between the China United Rubber Corporation and Messe Essen, the latter coming off the back of another successful Reifen expo in Germany back in June (see Tyres & Accessories, July 2010). As always, Reifen China will be held in parallel with the latest Rubber Tech event and cover manufacturers, distributors, repair shops, recycling, waste disposal and retreading in relation to the Chinese and wider Asian market. A programme of technical seminars will run concurrently, with past subjects including tyre proving and testing, retreading trends and tariffs imposed on exported Chinese products.
Nizhnekamskshina Tyres OE on New Volkswagen India Model
NewsVolkswagen opened a new factory in Chakan, western India in March 2009 and, along with the Skoda Fabia, now produces Polo models there. Russian tyre manufacturer OAO Nizhnekamskshina reports that it is supplying OE tyres for the new saloon version of the Polo, known as the Vento, built at the 115,000 square metre facility. Following the shipment of a batch of tyres for testing in late July 2010, the first consignment of Kama-Euro 236 tyres was air freighted to India.
J K Tyre Announces Further Price Rise
NewsIndia’s JK Tyre & Industries looks likely to increase its tyre prices by four to five per cent before the first week of September in order to offset the rising cost of rubber. The company’s marketing director A S Mehta commented that rubber costs have put the tyre maker under increasing pressure in recent times and the proposed price increase will apply to all tyre segments. JK Tyre last increased prices in July, when a three per cent rise was implemented.
Lockout Negotiations Result in 200 More Workers for Apollo’s Perambra Plant
NewsApollo Tyres reports the successful conclusion of negotiations with union representatives over the lockout at its Perambra factory in India’s Kerala state. After reaching an agreement with two of the three unions representing employees at the company’s so-called “mother” plant, Apollo has announced the end of the lockout which began on June 11.
Indian Replacement Market Tipped to Surpass £2.75 Billion by 2012
NewsA research report released by market research firm TechSci Research predicts that total turnover for India’s replacement tyre market will surpass Rs 200,000 million (£2.75 billion) by the 2012 financial year. The replacement segment currently accounts for more than 60 per cent of the industry, the report notes, and it has become a key focus area for manufacturers due to the higher margins its offers. In the most recent financial year almost 50 million unit sales took place in India’s replacement segment, with motorcycle tyres and truck/bus tyres the two largest markets.
Superior Industries Posts $10.1M Q2 Profit
Company NewsAluminium Wheel Manufacturer Superior Industries International has announced a net income of US$10.1 million for the second quarter of 2010, a figure that includes a $4.1 million loss on the sale of the company’s joint venture in Hungary. This compares to a net loss in the second quarter of 2009 of $21.0 million.
JK Tyres Sales Up but Profits Down in Q1, 2010
NewsJK Tyre & Industries, manufacturer of the JK Tyre, Vikrant and Tornel brands of tyre, has reported a 32 per cent increase in sales in the first quarter of the Indian financial year. In the three months to June 30, 2010, the company achieved a turnover of RS 12,729 million (£171.9 million) and an operating profit of Rs 730 million (£9.9 million). Net profit for the quarter was Rs 195.3 million (£2.6 million), down 52.1 per cent per cent year-on year.
Rösler Setting Up Schelkmann Retreading in Canada
RetreadingOver the last few years the Rösler Group has focused intensely upon marketing its licensed Schelkmann retreading system internationally. Currently the sixth facility to utilise the system is being set up in the east Canadian province of New Brunswick. As company managing director Martin Rösler explained to Tyres & Accessories, construction work in Canada is progressing rapidly. Truck tyre retreader Pneu ABC Tires Inc. will commence the precure retreading of OTR tyres there by the middle of next year, with the bulk of output being delivered to Swiss mining company Xstrata, who extensively quarries resources in eastern Canada and is an existing ABC Pneu Tires customer. The project is being implemented through a 2.5 to three million euro investment.
Ruia Group Substitute Candidate for Ssangyong Takeover
Company NewsThe bid for struggling South Korean 4×4 specialist Ssangyong submitted by Indian commercial vehicle manufacturer Mahindra & Mahindra Ltd has been given the green light. Should an arrangement between Mahindra and Ssangyong’s creditors fail to be finalised, however, the Ruia Group – parent company of Dunlop India and Falcon Tyres – is reportedly next in line. A total of six parties, including Renault-Nissan, expressed interest in acquiring the debt laden Ssangyong, the smallest of South Korea’s five car makers.
