Indonesia
Apollo Tyres has disclosed further details about its global expansion plans. Speaking with news agency Press Trust of India, vice-chairman and managing director Neeraj Kanwar referred to projects amounting to $US1 million. This investment will take place over the next half decade.
GiTi Tire and Micheldever have named Huddersfield-based Northern Tyre and Battery Service (NTBS) the first winner of the GT Radial Performance Centre (GTPC) Dealer of the Quarter. The Award, which will be presented every three months, is judged on a number of key criteria through the “Passport To Profit” programme, including an analysis of how the GT Radial brand has been promoted proactively in the local area, a commitment to work together to develop the business, innovative routes to market and tyre sales.
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.
PT Gajah Tunggal Tbk's nine month 2012 net sales grew 7.6 per cent to 9,381 billion rupiah from 8,722 billion rupiah last year. According to the company, the main impetus for this growth was “increased tyre demand in all categories in the domestic replacement…market.” However, profits were also assisted by a softening of historically high raw material costs in addition to double-digit percentage increases in domestic aftermarket sales.
Maxxis International will partner its official Malaysian distributor, Kian Hon Tyres in establishing the new Maxxis Asia Education Centre for truck and bus radial tyres in Penang, Malaysia. The companies said they plan to offer leading-edge training programmes at the new centre. Maxxis said that Kian Hon was selected for this new venture because of the “remarkable performance and aggressive expansion plans for its retreading plant”. The Maxxis Asia TBR Education Centre will be housed at Kian Hon’s new building in Nibong Tebal, and feature “state-of-the-art infrastructure and first-class equipment”, Maxxis said. The collaborative effort will constitute a total investment of US$20 million and will create between 200 and 400 new jobs.
Yesterday, Pirelli chairman and CEO Marco Tronchetti Provera and the firm’s top management were received by the President of Italy, Giorgio Napolitano, to mark the 140th anniversary of the company’s foundation in 1872.
Standard & Poor’s has upgraded Indonesian tyre maker PT Gajah Tunggal Tbk’s debt rating from ‘B’ to ‘B+’. Explaining its decision to do so, the financial services company observes that Gajah Tunggal’s competitive cost position and leading share in the Indonesian tyre market temper any weaknesses that may arise from the company’s “aggressive” capital structure, limited financial flexibility and the cyclical and cost competitive nature of the tyre industry.
Almost a year ago, MRF chairman K M Mammen told journalists the tyre maker was considering acquiring or leasing a 100,000 hectare rubber plantation in Southeast Asia. Since then, little has been heard on the subject. In recent days, however, Indian newspapers the Hindu Business Line and Business Standard have both quoted MRF executive vice-president of marketing, Koshy Varghese, as saying the company is currently investigating its options.
A statement on the International Tripartite Rubber Council’s website shows that the organisation, set up in 2001 to represent the interests of the world’s three largest natural rubber producing countries – Thailand, Indonesia and Malaysia – doesn’t intend to sit back and accept the lower prices the commodity has received of late.
Stamford Tyres Corporation and Sumitomo Rubber Industries have commented further on their plans to set up a joint venture sales company in India. Yasutaka Ii, director and senior executive officer of Sumitomo Rubber, said “India is a market with huge potential. We are delighted to continue our partnership with Stamford Tyres which has a strong distribution track record, as part of our group’s expansion into new markets. This new joint venture will allow the two companies to leverage on their expertise to address the needs in the Indian market and tap onto this market’s huge potential.”
Along with reporting its latest financial results on 1 August, Indonesian tyre maker PT Gajah Tunggal Tbk shared that in the second quarter of 2012 it completed the acquisition of some 100 hectares of land for around US$108 million. This purchase was financed with internal resources and Gajah Tunggal says acquiring this land, located in a new industrial estate in Karawang, Indonesia, serves two main purposes. Part of the land area will be used to build a tyre proving ground; groundbreaking will start in the coming months and is expected to be completed in two to three years’ time.
In addition to reporting its financial results for the quarter ending June 30, at JK Tyre & Industries’ annual general meeting the company shared its plans to acquire natural rubber plantations in Southeast Asia. Vice-chairman and managing director Raghupati Singhania told the broadsheet DNA at the 30 July meeting that the tyre maker has identified plantations of interest in Malaysia, Indonesia and Vietnam and is “now zeroing in on them.” The company intends to source 10 to 15 per cent of its natural rubber from these plantations.
Following what the organisers deemed to be the success of the first Tyre & Rubber Indonesia in 2012 (alongside INAPA 2012, IIBT 2012, Heavy Equipment Indonesia 2012 and INABIKE 2012) Tyre & Rubber Indonesia 2013 will be held from 26 – 29 March 2013 at JIExpo Kemayoran. The last show reportedly attracted 821 exhibitors from 21 countries, 21 international groups, 22,800 trade attendees from over 41 countries and occupied total area 33,000 square metres gross.
According to the Indonesia Investment Coordinating Board, or BKPM, Pirelli intends to invest US$126 million in a new tyre factory within the company. Reuters reports Chatib Basri, who was appointed chairman of the Board in June, as saying “we gave approval a few days ago for Pirelli to invest in Indonesia. They want to build a tyre factory."
Maxxis has shared details of the latest meeting of its Asian and African subsidiary companies’ representatives and distributors, who assembled in Pattaya, Thailand between 25 and 27 June. The meeting was the inaugural Maxxis Asian & African Distributor Conference, and Maxxis says it aimed to generate and share ideas to drive the tyre manufacturer’s business forward. Maxxis titled the conference, “Rev It Up – Beyond All Limits” to highlight the need for its partners to play a vital role in “creating momentum, overcoming current limits and achieving greater goals”.
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