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Pelmar Delivering Right Mix of Product & Price

It doesn’t take an expert team of analysts to realise the tyre industry isn’t exactly awash with cash at the moment. Thus it is hardly surprising that sales of tyre building equipment have dropped off considerably. Yet one company whose business centres on the equipment used in tyre manufacture is bucking this trend – for Pelmar Engineering Ltd, a weak market equals strong sales.

The Israel based supplier of refurbished and pre-owned tyre industry machinery notes that while Pelmar is naturally successful in times of industry strength when many companies are expanding and instigating new projects, the prices it can offer enable Pelmar to also do well during periods of market contraction. This is perhaps to be expected when, as the company points out, the landed cost of pre-owned tyre building machinery is approximately a quarter of that for its new equivalent.

17th June 2009/by Tyrepress Editors

Michelin Cuts 1093 Jobs in France

Michelin is planning to reduce its French workforce by a total of 2,900 over the next three years. The job cuts, which include 1093 losses this year, equate to around 10 per cent of the tyre manufactures total domestic workforce. Michelin said it is cutting the positions in order to concentrate on the production of higher specification and higher margin truck and passenger car tyres at its Montceau and Tours plants. In addition, Michelin will negotiate 1,800 voluntary departures over the next three years. Of the 1,093 employees affected by the labour reorganisation plan, 495 positions are set to leave through early retirement. Michelin says it will then offer the remaining workers at least two other positions elsewhere. The remaining 1,800 additional job cutbacks will be spread across all operations in France.

17th June 2009/by Tyrepress Editors

Michelin to Cut 1,500 Jobs in France?

A report in the French newspaper Le Monde indicates Michelin will eliminate 1500 jobs in France. These job reductions will apparently be part of a range of measures to combat declining tyre demand the tyre major will announce on June 24.

Le Monde did not quote any sources for the information given in its June 16 article, however the newspaper did quote a union representative, Sakir Ali Mandjee, as saying “on June 9, during a group committee, we have asked whether a layoff scheme was being prepared and the management did not provide any denial.”

16th June 2009/by Tyrepress Editors

Conti Removing Jobs, Operations from Puchov Site

At present Continental reports an overcapacity of more than two million truck tyres in its European markets, a situation that has developed due to a “drastic” fall in demand during the opening months of 2009. To remedy this, the company is further reducing European truck tyre capacity by eliminating a number of jobs at and operations its Continental Matador Truck Tires facility in Puchov, Slovakia.

Continental says it has decided to remove 75 positions will be removed from Puchov by November 30 at the latest. On top of this, following a detailed analysis of the company’s machinery business, Conti will concentrate this aspect of operations to its Hannover-Stöcken plant in Germany. This measure, reports Continental, will affect around 190 Puchov based Continental Machinery employees.

15th June 2009/by Tyrepress Editors

Goodyear Gets Buyout Deal in Akron

USW workers at Goodyear Tire & Rubber Co.’s race tyre plant in Akron have accepted a buyout scheme. The company has offered buyouts to 120 workers at the plant, about 30 per cent of total employment there, citing reduced demand due to cutbacks made in various race series. USW Local 2, which covers some 440 employees in Akron, passed the offer “overwhelmingly,” according to reports. The deal also preserves some 250 jobs through 2012 at Goodyear’s tech center in the city.

However, the agreement allows Goodyear to move rubber mixing from Akron to its Dunlop plant in Buffalo within the next two years. The one-time buyout offer covers the first 120 employees who elect to take it, and gives $2,000 per year of service up to a maximum of $40,000. If fewer than 120 employees take the offer, Goodyear will have the right to layoff workers to reach that level. (Tire Review/Akron)

10th June 2009/by Tyrepress Editors

Goodyear, USW Begin Negotiations Over New Contract

Almost three years have passed since the agreement between Goodyear and the United Steelworkers of America on a new master contract ended several months of strike action, and on July 18 the contract is set to expire. Negotiations between the two parties on a new contract began on June 8 – but whether or not mutually agreeable terms can be reached without revisiting the events of 2006 remains to be seen.

The existing three-year contract covers some 10,300 workers as seven Goodyear factories in the US, and while the USW states its goal in negotiations will be to improve pay and benefits, it acknowledges that job security will overshadow other issues.

9th June 2009/by Tyrepress Editors

USW Testifies Against Chinese Imports at ITC

The United Steelworkers (USW) reports that its president, Leo W. Gerard, asked the U.S. International Trade Commission (ITC) on June 2 to give the U.S. tyre industry a “fighting chance” against consumer tyres imported from China. According to the USW, Gerard told the ITC that the union has used every tool at its disposal to save the US consumer tyre industry from total collapse, including contract concessions, wage increase deferrals and improved productivity.

“But all of these efforts aren’t worth a dime if the market is being pulled out right from under us,” Gerard said. “With a short period of relief, we can start to build a sustainable foundation for the future of the American tyre industry and its workers.”

3rd June 2009/by Tyrepress Editors

Maxxis Looking to Appoint More Industrial Tyre Distributors

Maxxis reports that its industrial range – a line-up that includes skid steer tyres purpose-designed for use in a variety of heavy duty applications, including construction, agriculture and dockside loading/ unloading – is selling well and that further distributors are required to help develop business opportunities in a number of sectors.

“Since the range was officially launched in the UK last May we have seen a good level of interest from heavy industry, especially dockside freight businesses, and are now looking to appoint additional distributors to enable us to take full advantage of the opportunities this niche marketplace presents,” states Maxxis International UK’s managing director Derek McMartin. “Our skid steer tyres are designed to tackle the most demanding jobs and are highly versatile, delivering superior traction and wear as a result of their extra strong casings, sturdy sidewalls and specially formulated rubber compound.”

3rd June 2009/by Tyrepress Editors

Tyres & Accessories June 2009

June's issue of Tyres & Accessories is now available to download and for virtual reading. This issues' features include: Retail Chains & Buying Groups, Industrial Tyres and ATV Tyres:

1st June 2009/by Tyrepress Editors

Coalition to Battle USW Over China Tyre Import Scheme

A group of six US tyre importers – including two major private branders – have joined forces to battle efforts by the United Steelworkers to limit the importation of China-made passenger tyres. The group, which calls itself the American Coalition for Free Trade in Tires, includes Hercules Tire & Rubber Co. and Del-Nat Corp., as well as importers American Omni Trading Co., Dunlap & Kyle Co. Inc., Orteck Global Supply & Distribution Co., and Foreign Tire Sales Inc.

In 2007, Foreign Tire Sales faced the recall of some 250,000 light truck tyres it imported from China’s Hangzhou Zhongce Rubber. Less than 20,000 of those tyres were recovered in the recall, which threatened to bankrupt the importer. The group has retained Washington, D.C., law firm Jochum Shore & Trossevin to represent it in the matter. (Tire Review/Akron)

28th May 2009/by Tyrepress Editors

Hoosier Lays off Staff at Manufacturing Facility

A number of workers at Hoosier Tire & Rubber’s Plymouth race tyre manufacturing plant in Indiana, USA were laid off on May 26 in response to current market conditions. According to news released by the company, the layoffs constitute a “small workforce adjustment,” however the exact number of jobs lost was not specified.

“This reduction in force is necessitated by the current economic and market conditions,” read the statement. “We believe we have taken careful steps to remain a major player in the very competitive national motor sports market place.

27th May 2009/by Tyrepress Editors

Are We Witnessing a Conti/Schaeffler U-turn?

Inside sources recently told reporters that Schaeffler Group is considering unravelling its hostile takeover of Continental AG – offering itself up for reverse takeover by Conti. The automotive parts takeover-predator now finds itself pushed into the role of prey as it struggles to manage debts of 11 billion euros. As a result of the potential corporate role reversal, Continental could find itself well and truly back in the driving seat – but will the company be able to execute this move and at the same time exercise some poetic justice?

There is no question that Schaeffler desperately needs to save money. In the first quarter of 2009, the company’s Automotive division recorded a downturn of 33 per cent compared to the previous year, which is now said to have “stabilized” at 25 per cent below last year, while its Industrial division is down around 40 per cent. However, lost sales don’t just mean reduced income. With output not expected to return to 2008 levels for another four years, the company has announced that it has to cut German labour costs by 250 million euros (the equivalent of 4500 jobs). Schaeffler has already cut 5,000 jobs in other countries, but redundancies at home make the automotive supplier very unpopular with the only people who are now realistically likely to help – the state and federal governments.

27th May 2009/by Tyrepress Editors

Bridgestone-Firestone Receives State Funds for Job Retention Project

A grant of US$1 million is to pay for repairs on roads around the company’s Bridgestone Firestone Tech Center in Akron, Ohio, the Akron Beacon Journal reports. The city of Akron will use the state provided Road Development Grant in support of the Bridgestone Firestone North American Tire LLC job retention project. According to a news release from the Ohio Department of Development, this $11.5 million project will support the retention of 1,000 jobs.

The grants, administered by the Ohio Department of Development, was approved by Ohio’s State Controlling Board.

19th May 2009/by Tyrepress Editors

Conti Reports Solution to Stöcken Factory ‘Conflict’

The conflict regarding plans to end commercial vehicle tyre production at Continental’s Hanover-Stöcken plant has been resolved, the company reports. Continental management, the IG BCE trade union and employee representatives have reached an agreement on a solution that, in Conti’s words, “makes use of all instruments the labour market provides and opens up prospects for 2010.” The agreement will see the suspension of commercial vehicle tyre production at Stöcken as of the end of 2009, a move supplemented by a number of other measures.

“The package is the result of several rounds of intensive talks that came close to being bro-ken off at a number of points. In the end, however, the two sides moved closer and, against the backdrop of a dogged and complex economic situation, faced up to their responsibility,” said Werner Bischoff of the IG BCE Executive Committee following talks on May 19.

19th May 2009/by Tyrepress Editors

Schaeffler Group to Make 250 million euros of Savings

Schaeffler Group has announced that is to implement further cost adjustments, while trying to prevent layoffs. In the first quarter of 2009, the company’s Automotive division recorded a downturn of 33 per cent compared to the previous year, which has now stabilized at a level 25 per cent below last year’s. The Schaeffler Group’s Industrial division, which accounts for 40 percent of total sales, sustained losses of 12 per cent in the first quarter. At 7.5 billion euros, current sales expectations for 2009 are significantly below 2008 levels. In a statement the company said it does not expect the markets to return to 2008 levels until 2012 or 2013.

13th May 2009/by Tyrepress Editors