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Duracord Enters Receivership

Tyre cord maker Duracord (Europe) has collapsed with the loss of 70 jobs, the Manchester Evening News has reported. Durachord of Castleton, Rochdale, was previously known as Dunlop Textiles. The company’s directors called in administrators last week and the company has now gone into receivership. Phil Roberts, Rochdale branch secretary of the GMB union, said Duracord’s employees would have to apply to the government for their wages, holiday money and redundancy pay, which could be a lengthy process.

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Wholesale Changes at Stapletons

For the last 18 months Stapletons has kept pretty quiet about its plans for the UK market and consequently rumours have abounded about the strength of the company’s position. Now, chief executive officer, Kenji Murai has broken silence, announcing efficiency cuts and $25 million of investment designed to set “Stapletons apart from its competitors…into 2006 and beyond.”

On the 11 October Stapletons announced that it plans to close its Dereham tyre distribution centre (TDC), cut around 50 jobs and introduce new stock distribution methods at its Bristol, Coatbridge and Warrington TDCs. Delving deeper, Tyres & Accessories learnt that the cutbacks are the first step in programme that will see the company’s Japanese backers invest a minimum of $25 million over the next three to five years.

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Dunlop Tyres Zimbabwe Shuts Down

Dunlop Tyres (Pvt) Limited, Zimbabwe’s sole tyre manufacturing firm, has shut down with the loss of 820 jobs, leading to concerns about road safety in the country.

Officials at the tyre manufacturer and exporter said the firm had shut down its plant last week due to shortages of foreign currency, which has resulted in the company failing to procure raw materials, newzimbabwe.com has reported.

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CTNA, Union Agree to Mayfield Severance Plan

(Akron/Tire Review) The United Steelworkers (USW) and Continental Tire North America (CTNA) reached an agreement for CTNA to provide “enhanced severance benefits” to hourly workers who lost their jobs when the tiremaker suspended production at its Mayfield, Ky., tire plant last year. The tentative agreement was finalized 15 September, and the ratification vote was held 30 September.

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Michelin Supports Hungarian SMEs

Michelin has started an Economical Development Fund with the aim of helping small and medium sizes enterprises (SMEs) and creating more jobs. The company itself is providing 250 new places in Nyíregyháza through a 60 million euro investment, said regional director Joel Pouget. The factory in Nyíregyháza, which produces tractor tyres for the European market, will expand to include car tyre production from September. The company, as part of its Michelin Development Project, will sponsor SMEs within a 50-kilometer distance from its sites. They will also provide support in terms of loans of up to 1 million euros a year, the Budapest Business Journal reported.

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Continental Tire Nears Union Agreement

Continental Tire North America Inc has reached a tentative agreement with union representatives on a severance package for hourly employees laid off last year at the company’s Mayfield, Kentucky, plant. Details of the agreement have not been disclosed, pending a ratification vote by laid-off workers represented by the United Steelworkers of America, the Charlotte Business Journal Reported.

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Dunlop Invests £27 million on Factory Expansion

Dunlop Nigeria Plc, has invested an estimated sum of 6.5 billion naira (roughly £27 million) on radialising its plant technology with a view to further boosting the production of tyres for heavy duty vehicles. According to company, the Super Steel Radial Plant will be commissioned by Nigerian President, Olusegun Obasanjo, and will be capable of producing 300,000 heavy duty tyres annually. Furthermore, the expansion is expected to create 200 additional jobs.

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Goodyear Blimps Raise Hurricane Relief Efforts

Goodyear is to use its fleet of airships to encourage donations in support of the Hurricane Katrina relief efforts. The only airships with electronic day and night signs, the blimps will use their signs to promote fund-raising efforts from the American public.

Chuck Sinclair, senior vice president of global communications for Goodyear commented: “We talked about the possibility of flying signs over the affected areas, however it was agreed that the best way to offer immediate support is through an awareness campaign to alert the public where donations can be made. We recognise the relief efforts will go on for months, and we pledge our resources in support of these efforts as a way to keep the American public focused on the needs.”

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Roesler Still Looking at CTNA OTR Plant

(Akron/Tire Review) Various reports indicate that the Roesler Group is still negotiating to buy Continental Tire North America’s (CTNA) OTR tyre plant in Bryan, Ohio.

Roesler officials and representatives from the United Steelworkers (USW) have been meeting, but no progress has been reported. Meanwhile, industry watchers in Europe remain curious about the deal, suggesting that Roesler’s relative size – the company posted sales of just $10 million last year, according to reports – may be of concern to the union, which is fighting to protect jobs. However, some observers suggest that the negotiated price for the factory actually favours Roesler.

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Titan CEO Says He’ll Buy Plant With or Without Union

(Akron/Tire Review – Freeport Journal-Standard) Following months of virtual silence about the future of Freeport’s Goodyear Tire & Rubber Co. plant, among the region’s last major source of good-paying industrial jobs, the CEO of Titan International Corporation Wednesday drew a rhetorical line in the sand, saying that while he wants to negotiate in good faith with the local United Steelworkers of America, Titan is in no mood for protracted talks or costly demands.

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BFNAT Workers Set to Strike Friday

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(Akron/Tire Review) A 16 July report in the Nashville Tennessean said that workers at Bridgestone/Firestone North American Tire’s (BFNAT) medium truck tyre plant in Warren County, Tennessee, would indeed go out on strike at midnight 22 July.

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Michelin Sells US Steel Cord Operations

(Akron/Tire Review) Michelin North America (MNA) has sold its steel cord plant in Scottsburg, Indiana., to Hyosung America Inc. a subsidiary of Hyosung Corp. Terms were not disclosed, but the deal includes a 10-year, $650 million supply contract in which MNA will purchase finished steel cord for tires from Hyosung America.

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Azerbaijan Tyre Plant For Sale

96.98 per cent of the shares in the Azershin tyre factory in Azerbaijan are for sale. Commissioned in 1959, the Azershin plant is located in Baku, Azerbaijan and covers an area of 17.9 hectares. The plant produces 1.5 million tyres per year. The enterprise, with the charter capital of 8.9 billion manats ($1.87 million), employs 69 people and has 894,314 shares with a value of 10,000 manats each. Azershin has arrears amounting to 26.5 billion manats ($5.6 million).

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Canadian Autoparts Toyota to Increase Wheel Capacity 17 per cent

Canadian Autoparts Toyota Inc, which makes aluminium wheels for Toyota Motor Corp, is expanding its operations in British Columbia with a $39-million investment. The expansion will increase wheel capacity at the Delta site by almost 17 per cent to 1.68 million units annually, starting July 2007. The 19,000-square-metre plant produces 22 wheel models for Toyota’s vehicles and employs about 230 people, a number that is set to increase to increase to 260.

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Alcoa Restructures Passenger Car Rim Business

Alcoa is planning to develop a range of forged aluminium passenger car rims, which will be produced alongside the company’s forged truck products. The wheels will be produced at Alcoa’s Samara, Russia, plant and will also be made available for sale in the European market. At the same time the company is set to embark on a restructuring programme designed to improve efficiency, shedding five per cent of its total international workforce. This means up to 800 jobs in the company’s wheel business could be lost. The wheel restructuring programme is expected to cost the company between $65 and $70 million – roughly half of this will be down to severance costs.

Alcoa acquired the casted wheel business as part of the large purchase of competitor Reynolds in 1999. This acquisition saw the company take over factories in Italy (Ferrara), Venezuela and North America. However, Alcoa never really seemed happy with its casted aluminium passenger car rim strategy.

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