India
Two new senior appointments have been made at the Apollo Tyres’ owned companies Dunlop Zimbabwe and National Tyre Services (NTS). In a statement, Dunlop Tyres Group chief executive officer, Dr. Luis Ceneviz, said Mr. Kennedy Mandevani, who is currently Dunlop Zimbabwe managing director, will assume the position of group managing director for National Tyre Services. Mandevani’s portfolio will cover both NTS and Dunlop, said Ceneviz.
Approximately 5,000 visitors are expected to attend the Kuala Lumpur Convention Centre between March 25 and 28 for the sixth Automechanika Malaysia exhibition. The trade fair, formerly known as Automechanika Asia, is the only automotive parts and aftermarket trade fair organised in collaboration with Malaysia External Trade Development Corporation and is considered by many to be the leading automotive parts and aftermarket trade event in the ASEAN market. Exhibitors from 14 countries and regions including Australia, China, France, Germany, Hong Kong, India, Italy, Korea, Malaysia, Saudi Arabia, Singapore, Taiwan, Thailand and the United Kingdom have confirmed their attendance. A total of 150 exhibitors are expected to take part in the biennial event.
According to Indian media, Lanxess India Pvt Ltd intends to relocate its rubber chemicals facility from Thane in Maharashtra state to Jhagadia, in Gujarat state. Approximately 50 million euros will be invested into the new site, which will create 225 new jobs.
Following a 15-day production halt in December Birla Tyres is planning another temporary closure of its factory in Orissa, India, again in response to weakening sales of the company’s tyres. A senior member of staff at the factory, who wished to remain anonymous, told the Indo-Asian News Service that Birla “will shut down the plant from January 19 to January 31 because of falling demand.” He added that employees have already been notified of the decision.
JK Tyre is the latest of the large Indian manufacturers to announce a large cut in the price of its tyres, reducing them by 400 rupees. In Mumbai, The Hindu reports that company president, Arun K Bajoria stated, “JK Tyres has reduced the price of truck tyres by 400 rupees in view of lowering of rubber prices.” The cut is the second in two months, following the Cenvat-related reductions in December (see Tyrepress.com for details).
These reductions come in a marked contrast to the last two years’ consistent and sharp upwards trajectory in India’s tyre prices, which totalled a 40-45 per cent increase. The increases were tracking the rising cost of natural rubber, though – much to the chagrin of the All India Motor Transport Congress – when rubber dropped in value, commercial tyre prices remained high. The AIMTC recently spent eight days conducting a nationwide strike due in part to the continued high prices of tyres.
Indian market prices for Apollo Tyres’ products are set to drop by three to five per cent as of January 15, the company reports. The company has not made clear, however, whether these price reductions will be extended to tyres sold in export markets.
Prices have been revised in keeping with a softening of key raw material prices since September 2008, Apollo says. The company adds that since December the cost of both crude oil and natural rubber have resumed their upward trend, and the benefit of lower raw material prices is yet to be felt in the company’s bottom line. Despite this, Apollo states it has decided to take a proactive step in lowering prices for consumers.
Bienes Turgon, S.A., a Mexican holding company with interests in the automotive industry through its subsidiary Katcon, S.A., has announced the acquisition of Delphi Corporation’s global exhaust system business in its entirety. The transaction, covered by a Master Sale and Purchase Agreement and financed with an equity increase and existing cash reserves, is expected to be closed during the first half of 2009.
After five weeks of lock out conditions at the factory under lease to Apollo Tyres, plant management and union representatives appear to have made little or no progress in resolving their differences. A January 7 meeting conveyed by the labour minister of India’s Kerala state, PK Gurudasan, broke down when the two parties could not reach a consensus on the list of 12 items management views as essential for the factory’s ongoing viability. Union representatives agreed to consider just three, and said the remaining proposals would be discussed only after the lockout was lifted.
Who can resist a tale of romance, even – or, indeed, especially – when it is horribly misguided and involves stolen tyres? With the noblest of intentions in mind, namely to impress their girlfriends, six young men from well to do families in India recently embarked on a life of crime, stealing motorcycles from wealthy relatives and then selling the tyres and other spare parts.
The high regard in which Tyrexpo Asia is held by the Singapore government has been recognised by the announcement that the country’s Minister of State for Trade and Industry, Mr Lee Yi Shyan, will officially open the exhibition as Guest of Honour at the Singapore Expo Centre on Tuesday, 24th March this year.
Ministerial endorsement of the show has been warmly welcomed by organisers ECI International, with managing director Paul Farrant commenting: “We are extremely grateful to the Minister for agreeing to be our principal Guest of Honour; his involvement will add to the sense of occasion at the opening event as well as signifying the economic importance the Singapore government attaches to the expo.”
On January 13 it was announced that Continental AG has entered into an agreement with T-Systems (the enterprise customer division of Deutsche Telekom) and business process outsourcing provider Cognizant. The two companies will jointly provide application management services to the research and development operations of Continental’s tyre divisions in Hanover, Germany, beginning in 2009.
The eight-day truck driver’s strike in India has come to an end following the announcement of major governmental concessions. Following successful negotiations between the Indian government and representatives of the All-India Motors Transport Congress (AIMTC), it was agreed that the tax on tyres would be lifted along with a reduction in the price of diesel and the removal of a service tax.
Apollo Tyres and leading national automotive magazine Auto India have on January 8 held their “Apollo Tyres Auto India Best Brand Survey Awards”, recognising the merits of various Indian market two and four-wheel vehicle manufacturers. The recipients of the awards were decided upon based on questionnaires filled in and returned by approximately 1,072 Auto India and Business India readers. Award categories included, amongst others, “reliable”, “well-made product”, “good customer service and advanced technology”.
The government run business promotional organisation of India’s Tamil Nadu state is said to be in the final stages of granting Michelin in-principle clearance to establish a large project in the Chennai region. The State Industries Promotion Corporation of Tamil Nadu (SIPCOT) has set aside 290 acres of land for Michelin’s use, and the company is likely to begin construction work in February.
The unions representing workers involved in the PTL factory lockout in India are said to have bolstered their resolve following the breakdown of their second discussion with company management. According to India’s Express News Service, union leaders are accusing the Apollo Tyres supplier of changing their demands each time employees agree to the previous set.
“The workers have already agreed to the conditions put forward by the management for capacity utilisation in the wake of recession,” said Premier Tyres Employees Union president K N Raveendranath. “But, the management is behaving with certain ulterior motive and putting forward fresh set of demands every time.
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