Indonesia
On 17 April Pirelli handed out its 2014 Supplier Awards to nine companies. This year the winners are made up of a strongly European contingent. According to the company the supplier awards are intended with to convey the importance which Pirelli attaches to its premium suppliers.
Not many companies operating in the OTR tyre business either locally or further afield are very happy at the moment. While the manufacturers of new tyres in particular must contend with substantial losses and respond to the weak market with discounts, retreaders – as is often the case – occasionally benefit from the situation. The global mining sector has especially suffered as a result of sinking raw material prices, a phenomenon that in turn has directly influenced the production of and consequently the demand for tyres; in contrast, the construction sector has lately shown signs of stability in Europe. Nevertheless, it is important for companies within this market segment to adapt to conditions. With this in mind, in recent months Rösler Tyre Innovators has made several important decisions.
This week a new motorcycle championship gets underway for the first time, and Bridgestone will serve as sole tyre supplier for the series. The inaugural season of the Shell Advance Asia Talent Cup begins in Qatar on 21 March, and over the coming half year it will be followed by rounds in Indonesia, China, Japan, and two rounds in Malaysia. For the first race, Bridgestone will supply its Racing Battlax R03 (front) and R04 (rear) tyres; around 1,500 of the new Racing Battlax V02 (GP3) tyres will be supplied to subsequent rounds.
The third “Indonesia International Tyre & Rubber Industries Exhibition” takes place in Jakarta from 19 to 22 March 2014, again as part of the “Auto Parts, Accessories and Equip Exhibition” (INAPA). Further industry-specific trade shows are also being held there at the same time. The show’s organiser estimates that 1,100 exhibitors and 35,000 visitors will […]
Momo Tires is planning to generate more international interest in 2014, with the news that it is participating in three different trade fairs this year. The first will be the Tyre & Rubber Indonesia, which will take place from 19 – 22 March 2014 at JIExpo Kemayoran Jakarta.
Dunlop Aircraft Tyres will exhibit its new radial tyres for regional aircraft including the Embraer E-Jet and ATR72 at the Singapore Airshow next week. The company says its products have become more popular with aircraft operators throughout Asia Pacific since it opened a new tyre distribution and retreading facility in China at the end of 2009. It is now looking to increase its market share with new radial tyres that are a lighter weight and that can offer operators improved landing life.
In December Maxam Tire, along with its distributor Stamford Tyres, the company sponsored a golf tournament in Indonesia. The event – the Sorowako Golf Tournament was held over two days at the Sorowako Golf Club and, for the sponsors, Federico Fiorini of Maxam and Erwin Chua from Stamford Tyres International attended the tournament.
OK so the fact that China is the world’s largest tyre producer, the largest car maker, has the largest population and is likely to be the largest economy soon means that it is massively premature to write off the People’s Republic. Rapid growth and the huge scale of Brazil, Russia and India means these markets are still should be the focus of much attention. However, many international businesses have already latched onto this. So if everyone is competing for what they perceive as the same low-hanging fruit other opportunities could be going missing…or at least that is the question that is being raised in banking circles.
The two-wheeler tyre market in Indonesia is set to grow at a compound annual growth rate (CAGR) of 17.98 per cent 2013-2018. That’s the view of a new report published by Research and Markets in January. According to the report’s writers one of the key factors contributing to this market growth is the strong demand for two-wheelers. The two-wheeler tyre market in Indonesia has also been witnessing growing demand for replacement tyres, which is likely to be based on the growing size of the domestic two-wheel vehicle parc.
On 17 January, the board of Hankook Tire resolved to invest KRW 380.2 billion (£215.7) in the second stage expansion of the company’s factory in Indonesia. In a statement filed with the Korea Exchange (KRX), the tyre maker said the period of investment would extend until the end of 2015 and involve an 11.8 per cent ratio to equity capital.
According to unverified news published by Indonesian business publication Kontan and repeated in English by Reuters, tyre maker PT Multistrada Arah Saran has cancelled its plan to build new plants in Egypt and Kazakhstan this year. Even Go, investor relations officer at Multistrada, said this decision was taken due to concerns about political instability and security within the Middle East region.
Giti Tire shares that in recent months it has received awards from two major OEM customers. At a ceremony held in China in late September, Chinese PCR and TBR plant Giti Tire (Fujian) Co Ltd was presented with a Fiat Chrysler 2012 APAC Perfect Quality Award, and the company’s first and largest Chinese operation, Giti Radial Tire (Anhui) Co Ltd, received a GM Supplier Quality Excellence Award.
The amount Cheng Shin Rubber will invest in its new Indonesian plant appears to be much higher than previously announced. While in a filing to the Taiwan Stock Exchange in October the Maxxis tyre brand manufacturer said it will invest NT$2.36 billion (£49.7 million) to build a plant in Indonesia in order to increase its ASEAN region presence, talk now is of investing £195 million.
One size fits all is a poor solution when it comes to clothing, and it’s also an unacceptable compromise for tyres. What’s good for one market may gain a lukewarm reception in the next. For this reason Giti Tire, like other tyre majors, designs and manufactures market-specific products. This commitment to delivering tyres tailored to regional conditions and preferences was given a significant boost this year with the establishment of new research and development centres in the US and Germany. Towards the end of October, Tyres & Accessories visited Giti Tire’s new European Research and Development Centre just north of Hannover to find out more about the new facility and the people who’ll lead it.
During the third quarter of 2013, revenues at Hankook Tire edged up 0.8 per cent to KRW 1.80 trillion billion (£1.06 billion, €1.22 billion), while operating profit of KRW 244.2 billion (£143.3 million, €165.9 million) was 5.9 per cent higher than the same time last year yet 10.4 per cent lower than in the second quarter of 2013. Operating profit to sales ratio was 13.6 per cent, up 9.9 per cent year-on-year but down 10.0 per cent quarter-on-quarter.
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