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Hundreds of Jobs in Danger at SRT’s Ekaterinburg Factory

International News

The website RusBusinessNews reports that Sibur-Russian Tyres will end the manufacture of non-military products at its Ekaterinburg Urals Tyre Plant Ltd. factory, resulting in the redundancy of two-thirds of its workforce. Demand for the cross-ply tyres produced by the factory is steadily falling, and despite considering investing in modernisation, Sibur-Russia opted not to do so has the equipment and construction work involved would have taken more than a decade to repay. The only product made by the Urals Tyre Plant still in demand is a roller for tanks.

24th September 2009/by Tyrepress Editors

Walkout Planned at Nokian Tyres Facility

Workers at the Nokian Tyres factory in the company’s Finnish hometown are scheduled to stage a one-day walkout on September 23. According to Petri Sorvali, chief shop steward at the factory, the walkout will be held in protest against the company's restructuring programme.

22nd September 2009/by Tyrepress Editors

TIA ‘Deeply Disappointed’ in Tariff Decision

The Tire Industry Association said it is “deeply disappointed” in the Obama Administration’s decision to place added tariffs on imported China-made passenger tyres. The association, which made no prior public statements regarding the situation, issued a statement yesterday calling the decision “politically motivated.”

15th September 2009/by Tyrepress Editors

US Imposes 35% Tyre Tariff, China Plays Chicken

Company News, International News, Legislation, News

President Barack Obama’s decision to apply a 35 per cent import duty on all passenger car and light truck tyres from China for a period of three years may have been intended to “remedy market disruption caused by a surge in [Chinese] tyre imports” into the US, but it has also provoked a sharp response from the Chinese ministry of commerce and played havoc with the share prices of Far Eastern tyre manufacturers. China’s state media said the US import duties would cost 100,000 jobs and $1 billion (£600 million).

Announcing the decision (on Friday 11 September 2009), the White House explained that the 35 per cent ad valorem levy would be placed in addition to the existing 4 per cent import duty on imports of Chinese-product passenger car and light truck tyres. The duty will reduce to 30 per cent ad valorem in the second year, and 25 per cent ad valorem the third year. The US International Trade Commission had recommended a 55 per cent tariff in the first year, 45 per cent in the second year and 35 per cent in the third year.

14th September 2009/by Tyrepress Editors

Cooper Tire to Cut Melksham Workforce by 20%

Cooper Tire & Rubber Company has announced manufacturing “realignment” plans that will see the company’s Melksham plant reduce its workforce by 20 per cent. According to a statement, the decision to realign production at the Melksham facility is a result of the company’s focus on its “strategic objective to create a sustainable and competitive cost position.” Company managers say the move is designed to enhance the company’s long-term performance, “while helping to mitigate the effects of the current economic downturn and the increases in its cost base.”

This means over the next year, the company will transfer some US tyre production to Melksham and other Melksham production to its Chinese production plants. It is this part of the realignment that will result in the reduction of the current work schedule. It appears that the bulk of the changes are taking place in the passenger car tyre manufacturing departments. A company spokes person told Tyres & Accessories/tyrepress.com that Cooper Tires does not know exactly which products will be affected, but will be communicating more information on this in due course. However, motorcycle and motorsport products are apparently not included in the changes and will continue to be manufactured in Melksham.

14th September 2009/by Tyrepress Editors

Klarius "Dragons'" Recruitment "Den" Offers Trials to Graduates

One of Europe’s largest automotive aftermarket manufacturers, Klarius has held a recruitment day inspired by the BBC television series, ‘Dragon’s Den’, in which promising graduates are given the opportunity to “pitch” themselves directly to the company’s board of directors. The day offered a variety of UK and European trial positions – which could potentially become permanent – for the successful candidates.

9th September 2009/by Tyrepress Editors

Hankook Tire Invests 230 million euros in Hungary Factory

Hankook Tire is to invest 230 million euros in its Hungary tyre production plant over the next 2 years in a bid to double production output from 5 to 10 million tyres a year by 2011. The latest injection of funds means the company has invested 550 million euros in the project. An official statement from the company said the latest move to ramp up production in Europe was a reflection of increasing demand there. Hankook’s decision to build a manufacturing facility in Hungary has been key to reducing customer delivery times from one month previously to just five days for the Europe-made Hankook tyres. However, the move also positions Hankook for increasing amounts of OE business, with the company openly bidding for the attention of “Audi-level” customers. Last year the company’s Hungary site began supplying OE customers in Europe, first Hyundai’s Czech factory (with tyres destined for the i30-compact car) then to Volkswagen Nutzfahrzeuge in Germany for the popular VW T5.

9th September 2009/by Tyrepress Editors

Bridgestone to Increase India Plant Production 40%

Bridgestone Corp. is reportedly going to increase production at its Pithampur, Indore Madhya Pradesh factory by 40 per cent. WheelsUnplugged.com reported that Bridgestone has invested 2.59 billion rupees (£32.32 million; 37 million; US$53.48 million) in the project, which will create an additional 300 jobs. Bridgestone India started its operations in 1996, by March 1998, it had set up its manufacturing facility in Kheda, Madhya Pradesh.

8th September 2009/by Tyrepress Editors

Tyre Mountain to Topple

The Eastern Daily Press describes it as "infamous", but despite its local notoriety days may be numbered for the tyre mountain on the Tattersett Business Park, near Fakenham. The newspaper reports that work is "underway" towards a planning application for the creation of a £1 million re-cycling facility.

28th August 2009/by Tyrepress Editors

Firestone Tyre Takes Top Honours in Emergency Services Test

Emergency, rescue and police vehicles often participate in jobs where lives are at stake. Therefore they require a tyre that delivers top performance while offering durability and dependability. In the US, specialist magazine Police Fleet Manager rated a number of tyres for their suitability, and Bridgestone Americas Tire Operations (BATO) reports that its Firestone Firehawk GT Pursuit was shown to be "the best tyre for this demanding job." The Firehawk GT Pursuit was rated top overall tyre and secured top position in wet-oriented performance.

21st August 2009/by Tyrepress Editors

Continental to Manufacture "Softy" Tyres in Sri Lanka

In early August Continental’s tyre operations in Germany, Continental Reifen Deutschland GmbH, entered into a strategic alliance with another German manufacturer of super elastic tyres, Gumasol-Werke Dr. Mayer GmbH. As part of the deal, in future Gumasol’s "Softy" range of products will be manufactured in Continental’s factory in Sri Lanka, where Conti already produces super elastic tyres for the Asian and American markets.

18th August 2009/by Tyrepress Editors

Bekaert Closes US Bead Wire Plant

The tyre manufacturing downturn in North America has claimed another victim. Bekaert has announced the closure of its Clarksdale, Mississippi bead wire plant. According to plant manager Gary Downey, the quantity tyre imports entering the US, and their affect on North American tyre production, has played a role in the decision to close the plant and eliminate 76 jobs. Production from Clarksdale will be integrated into Bekaert's Rome, Georgia, and Shelbyville, Kentucky facilities in the coming months.

18th August 2009/by Tyrepress Editors

Forged Qualifications of Tyre “Professionals” Uncovered

Fancy a promising career in the tyre world without the hassle of buckling down at your studies? Don’t fret, where there’s a will, there’s a way. But before you decide to embark on a “fake it till you make it” approach to your newly chosen profession, consider the tale of two hopeful tyre industry specialists in India.

6th August 2009/by Tyrepress Editors

Schaeffler, Employees Reach Agreement on Cost Cutting Measures

Company management and employee representatives at Schaeffler KG’s facility in Schweinfurt, Germany have reached an understanding on a package of staff cost cutting measures. According to Schaeffler, this
measure has been taken due to weaker demand creating the necessity to make adjustments amounting to a total of 50 million euros. The savings will be generated through naturally occuring labour turnover, voluntary redundancy and part time work for older employees, plus a shortening of working hours and an extension of government subsidised short-time work. Apprentices at the site will be retained.

28th July 2009/by Tyrepress Editors

USW Wants USTR Appearance

The United Steelworkers (USW) union wants make its case for restricting Chinese tyre imports and has requested an appearance before the US Trade Representative (USTR) public hearing scheduled 7 August. The USW advocates strong enforcement of a US trade law. Last month, a majority vote of the ITC reportedly found that “tariff relief was needed to urgently reduce tire imports,” say the steelworkers. However, trade associations including the TIA have questioned the effectiveness of such measures.

USW President Leo W. Gerard said: “Our nation’s job loss numbers at tyre factories dramatically understate the impact China’s flooding imports have caused in the communities where our represented workers live. The consequences of lost tyre production jobs have extended to many thousands of other jobs in supporting industries and suppliers that have also been lost.”

28th July 2009/by Tyrepress Editors