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Pirelli First Half EBIT Predicted to be Up on Strong Tyre Result

Pirelli & C SpA’s first half EBIT profit, due to be announced on Thursday, analysts said, citing the real estate and tyre operations as key to the growth. According to the AFX news agency, EBIT is seen at 235-250 million, up from 216 million in the first half of 2006, while EBITDA will rise to 344-374 million euros, from 324 million, they said, adding that the net figure will only be announced in September. In comments specifically on the second quarter, Deutsche Bank said in a note it sees tyre operations EBITDA up 4.5 per cent. For the first half, a Milan analyst said she sees tyre activities contributing an EBIT of 201 million euros, up 3.1 per cent year-on-year, in her overall first half EBIT estimate for 250 million.

Analysts said they don’t expect the first half results to include any comment on a possible buy-back of a 39 per cent stake in Pirelli’s tyre unit that was sold to banks last year. Deutsche Bank said it favours a buy-back of the tyre unit, followed by a spin-off of the unit to Pirelli shareholders, giving them a pure tyre sector investment play, plus a holding company.

23rd July 2007/by Tyrepress Editors

Myers Industries Shareholder to Vote Against Proposed Purchase

(Akron/Tire Review) On July 23 in Akron, Ohio, Myers Industries shareholders are expected to vote on the proposed $1.07 billion purchase of Myers Industries by GS Capital Partners, a private-equity unit of Goldman Sachs.

One of Myers Industries’ shareholders, Mario Gabelli, stated in a letter filed with the Securities and Exchange Commission that he would vote against the merger proposal. Gabelli’s investment company holds more than 3.1 million shares (8.9% of outstanding shares) of Myers Industries.

In his letter, Gabelli stated that federal TPMS requirements present opportunities for the company’s automotive service business and that financial projections do not include benefits gained from a potential financial restructuring. However, Myers Industries’ board of directors reportedly supports the purchase.

9th July 2007/by Tyrepress Editors

Phillips Carbon Black plans Vietnam JV

Phillips Carbon Black Ltd reported on July 4 that it has signed an initial pact with the Vietnam National Chemical Corp to conduct a study into the feasibility of a joint venture facility in Vietnam. If such an arrangement proves viable Phillips Carbon Black say they will hold a majority stake in the new company. Company chairman Sanjiv Goenka has stated that a joint venture with Vietnam National Chemical would require an investment of around £30.6 million.

5th July 2007/by Tyrepress Editors

Workers Trade Time for Investment at Michelin Germany

Michelin has agreed to invest 250 million euros in its German factories by 2012 in exchange for its 5,600 staff extending their working week by an extra 75 minutes without any extra pay. This decision follows an agreement with the mining, chemical and energy industry trade union IG BCE.

The company’s four facilities – Karlsruhe, Homburg/Saar, Bad Kreuznach, Trier and Hallstadt – manufacture a total of 17 million tyres a year.

3rd July 2007/by Tyrepress Editors

Denso to Expand Canadian Manufacturing Facility

(Akron/Tire Review) Denso Manufacturing Canada Inc., based in Guelph, Ontario, plans to expand its 112,442 square-foot facility by approximately 215,200 square feet. The new investment will total $63.7 million, and will create approximately 300 new jobs by 2010.

Due to the expansion, the subsidiary’s capital was increased by $24.5 million in May.

Denso Manufacturing Canada will produce radiators, condensers and electric fans and will integrate these products into engine cooling modules. The company will also continue producing air conditioning units.

25th June 2007/by Tyrepress Editors

Nokian tyres Releases Convertible Bonds

On June 20 Nokian Tyres announced its intention to offer convertible bonds to the total value of 130.4 million euros. Nokian Tyres has granted financial services group Nomura International an over-allotment option to subscribe for up to 19.6 million euros of additional bonds solely to cover over-allotments, if any, to a total amount of 150 million euros. The shares to be issued upon conversion of the bonds will represent up to approximately 3.4 per cent of Nokian Tyres’ current issued share capital, assuming the over-allotment option is fully exercised.

At the company’s annual general meeting on April 3 the board of directors were given authority to carry out this operation despite existing pre-emptive subscription rights held by shareholders. The board of directors made the decision to exercise this authority for what it claims are “important financial reasons,” and intend to use the bonds to finance investments “in accordance with the company’s investment strategy”, to re-finance existing financing facilities and for general corporate purposes.

20th June 2007/by Tyrepress Editors

Performance Fibers Announces China Expansion

In order to meet ever growing radial production in the Asia region, polyester fibre manufacturer Performance Fibers has taken the decision to expand the capacity of its tyre cord fabric facility in Kaiping, China by 30 per cent. The company will install new equipment and machinery, which should be operational at full capacity by the third quarter of 2007.

This most recent investment is the latest in a series of planned expansions at the Kaiping, including a greenfield expansion completed in 2006 to expand production of the company’s patented Dimensionally Stable Polyester high performance fibre and fabrics. These expansions have more than tripled capacity since early 2004, “This latest investment shows our ongoing commitment to meeting the strong demands of the Asian tyre market that continues to experience double-digit growth,” said Greg Rogowski, president and CEO of Performance Fibers. “As we have previously announced, additional expansions are planned into the future.”

5th June 2007/by Tyrepress Editors

Apollo Investing a Further £50 Million in Healthcare

The Apollo Tyres group has outlined plans to invest a further Rs 4,000 million (£49.78 million) in significantly expanding its recently established healthcare venture, Artemis Health Sciences. These funds would be used to establish five new hospitals in India – four secondary healthcare facilities each containing 150 beds, and a speciality hospital with 220 beds – and at present the company is looking at a number of prospective cities, including locations in Jaipur, Chandigarh, Ludhiana, Vadodara, Coimbatore and Bhubaneswar. These hospitals would be set up in the next three years.

Artemis has already invested Rs 2,000 million (£24.89 million) building a 260-bed hospital in the city of Gurgaon. This facility is expected to be operational by mid-June. Additional future investment will see the number of beds at the Guragon facility, which specialises in orthopaedic, cardiovascular and oncology treatment nearly double to 500 beds.

29th May 2007/by Tyrepress Editors

Goodyear Set to Spend $125 Million at Plant

(Akron/Tire Review) News reports out of Alabama say that Goodyear plans to pour $125 million into upgrades and new equipment at its nearly 80-year-old Gadsden, Alabama, tyre plant. Reportedly the investment will come over three years. Plant manager Jim Davis told the Gadsden Times that, “The capital that we’re investing here will bring process capability and production capability that just do not reside here at this times. The investments in our plant will definitely help improve our plant’s viability and competitiveness.”

Goodyear is also getting help from the local government, said reports, with the Gadsden City Council approving $125 million in tax abatements. The Gadsden plant was one of the Goodyear plants that were given “protected status” in the recently signed master contract with the United Steelworkers, meaning it will likely remain operational through 2010.

23rd May 2007/by Tyrepress Editors

BERU Opens Extended R&D Centre

Beru, manufacturers of the Tire Safety System (TSS) tyre pressure monitoring equipment, have officially opened their extended research and development centre in Ludwigsburg, Germany. The extension, made necessary by the growing demand for the company’s sensor and ignition technology, sees the centre increase in floorspace by approximately 1,000 square metres.

The May 9 opening was presided over by Beru managing director for research & development and sales of original equipment, Dr. Rainer Podeswa. Speaking to industry, political and business representatives attending the ceremony, Dr. Podeswa said: “The extension is a visible sign of a long-term corporate policy and permanent investment in the future.”

10th May 2007/by Tyrepress Editors

Itochu Boosts Investment in Akebono Brake

(Akron/Tire Review) Itochu Automobile America Inc. and Itochu International Inc. have combined to acquire an interest in Akebono Brake Corp. Akebono said the investment will enhance “resources” and increase Akebono’s distribution. The deal was consummated on Mar. 31.

Under the transaction, the Itochu Group redeemed its 40% interest in Amak Brake LLC, one of Akebono’s North American subsidiaries, and at the same time purchased a 20% stake in Akebono Brake Corp

The transaction followed Itochu’s investment in Akebono Brake Industry Co., a publicly traded company listed on the Tokyo Stock Exchange.

13th April 2007/by Tyrepress Editors

India’s First BMW Plant Inaugurated

The first BMW factory constructed in India was officially inaugurated on March 29. Norbert Reithofer, BMW AG executive board chairman, was present at the Chennai facility for the occasion, and inspected a number of 3 Series saloons built at the factory since production began in February.

According to Reithofer, BMW expects to sell more than 1,000 cars in India during 2007 and has a medium term sales goal of 1,500 vehicles. In addition to the 3 Series the new factory will also produce the larger 5 Series, commencing in May. All cars rolling of the assembly line in Chennai are destined for the Indian market.

2nd April 2007/by Tyrepress Editors

Michelin to Increase China Investment – Update

As previously reported, a government official in China has released information indicating Michelin intends to spend US$300 million expanding its tyre production facilities in China. The company has signed a memorandum with officials from the Liaonong (northeast China) provincial government related to new truck and passenger car tyre projects.

When the two projects are implemented, the company’s existing base in Shenyang, the capital city of Liaoning, will become the world’s largest tyre production base, producing 12 billion tyres per year.

Michelin has already invested US$150 in its Shenyang plant, and the additional $300 million will be used to fund two new projects, which will cover a floor area of 300,000 square metres.

2nd April 2007/by Tyrepress Editors

India’s Apollo to Diversify

Apollo Tyres has diversified into the healthcare sector and is in the final stages of readying its new specialty hospital in Gurgaon, near the capital New Delhi. Named ‘Artemis Health Sciences’ (AHS), the Rs 2.1 billion (£24.6 million) 260 bed hospital is located on an 8.3 acre site, and plans are already in the pipeline for a further 240 beds to be added during a second phase of development.

“This is the first of similar ventures we have planned over the next seven-eight years. We will focus on cardiology, oncology and orthopaedics in these hospitals,” said AHS chief operating officer Somnath Chakarborty told local media.

26th March 2007/by Tyrepress Editors

TIA Accepting Board Nominations

The Tire Industry Association (TIA) has announced it is accepting nominations for service on the 2007-2008 Board of Directors. Nominations and self-nominations are welcomed from “any TIA member in good standing or an official representative of an industry association.”

8th March 2007/by Tyrepress Editors