Whether its raw materials, machinery, research and development or the latest manufacturing trends, this tag provides up-to-the-minute insights into the upstream part of the tyre industry.
American Tire Corp. now claims it has acquired some 520 acres of land in Washington state on which it plans to build its $500 million OTR tyre plant – a facility that earlier this year it had claimed was already under construction. In addition, ATC said it plans to “acquire another big parcel of land with the similar size to support its long-term development in the OTR tyre industry.”
Thousands of Goodyear employees at several temporarily closed US facilities are facing a lean fortnight after learning the company ‘sub-pay’ trust fund that was supposed to cover them during the closure period may contain insufficient funds. This means many workers at affected facilities must rely solely on unemployment benefits to survive.
Aluminium wheel manufacturer Superior Industries International has announced the closure of its factory in Pittsburg, Kansas. This decision was taken during its recent review of strategic initiatives to reduce costs and balance its manufacturing capacity in light of reduced demand for SUVs and light trucks.
The closure will take place on December 19 and 600 jobs will be lost as a result. Superior Industries expects to incur severance and related costs of approximately US$1.8 million in the next six months from August 2008. Asset impairment charges related to closing the facility have yet to be determined, but will be recorded in the financial quarter ending September 30. As of July 27, 2008, the net book value of manufacturing equipment at the Pittsburg location was approximately $13.2 million.
Management at Apollo Tyres, who instigated a lockout at the company’s factory in Kerala, India, are now seeking local government intervention. According to local media sources, the lockout was declared at 1am on August 16 in response to a strike by workers that began two days earlier.
“We feel it is only the labour ministry in the state that can intervene and settle the issue, because even after making an additional capital investment of Rs 150 million (£1.86 million) three months ago, production has not gone up,” an Apollo Tyres official told the Indo-Asian News Service, requesting anonymity.
Dunlop India is planning to build a ten megawatt captive power plant at its manufacturing unit at Shahgunj in West Bengal. Pawan Kumar Ruia, chairman of Dunlop parent company the Ruia Group, Pawan Kumar Ruia, announced during the company’s annual general meeting that this Rs 500 million (£6.2 million) facility would be built during the next one to one and a half years.
The group has just begun work on a six megawatt captive power plant at a manufacturing site belonging to Falcon Tyres, a company acquired at the same time as Dunlop India in 2005, and as the company’s own requirements here are only 3.5 megawatts, it will sell the surplus electricity. The Shahgunj unit’s captive need is five megawatts.
Drifting has seen a rapid growth in popularity in recent years in United Kingdom, and the 2008 European Drifting Championship attracted large numbers of competitors and fans to the Knockhill Circuit in Scotland. The racing action was reported to be top notch all weekend during the 17th and 18th of May, providing an exhilarating atmosphere for spectators. For Federal Tires, these events, in which British duo Ben Broke-Smith and Phil Morrison performed spectacularly, help the company draw closer to the growing enthusiast market for high performance tyres.
The weekend drew all manner of petrol head out of the woodwork, lured by the smell of burning rubber as it were to two days of burnouts, cruising and admiring the metal on display. Phil, from Driftworks, showed off his Skyline’s paint and body work, seizing much attention.
Tyre manufacturers have been using recycled rubber in agricultural and OTR tyres for some time, but new research shows that lower rolling resistance passenger and truck tyres could be greener still if they also used ultra fine recycled rubber powder in their compound recipes.
At the end of May, Rice University’s Marc J Epstein and business academic Tamara Bekefi published a fascinating paper entitled: “The Value of Green Tyres to Corporate Pofitability.” The paper looks at the current environmental and economic situation and points out that there is a “real possibility that the supply of virgin rubber will not be able to meet demand in the coming years.” It may not get to this point immediately – research conducted by Deutsche Bank analysts shows that, having gained a huge 40 per cent this year, natural rubber prices are now beginning to level off to their 18 month average and may follow fuel price falls – however, looking to the longer term, Epstein and Bekefi’s point still stands.
A question mark now hangs over Apollo Tyres’ future direction in Hungary following the company’s decision to withdraw its application to establish a facility in the city of Gyöngyös. Apollo planned to build a greenfield operation to house its European Manufacturing and High Technology Centre, however delays and local opposition has dampened the company’s enthusiasm for the project. This news comes barely a fortnight after Apollo admitted production at the facility would not feasibly begin before 2010 because of hold-ups in the land acquisition and regulatory clearance process.
OHSAS 18001 is the internationally recognised assessment specification for occupational health and safety management systems developed by leading trade bodies, international standards and certification bodies. The specification enables organisations to establish an occupational health and safety management system and improve performance through eliminating or minimising risk to employees. One tyre industry company that has recently obtained the globally acknowledged OHSAS 18001 for Occupational Health and Safety Management Systems certification is Malaysian retreading compound and materials supplier Goodway Rubber Industries.
The tyre industry definition of a ‘green tyre’ is taking on a new meaning. Ever since tyres have been mass produced these two words have referred to the semi-finished un-vulcanised tyre product. Now the tyre industry is taking on an increasingly ecological focus and ‘green tyre thinking’ is giving retreaders the opportunity to ‘sell’ the uniquely environmental benefits they offer over and above new tyres. With this in mind, Tyres & Accessories interviewed Patrick O’Connell, director of one of the UK’s leading independent retreading operations, and learnt that retreads are not only the greenest tyres on the market, but that they make sound business sense too.
Everyone knows that retreads are greener than new tyres, but now it seems retreaders are making a concerted effort to shout about the eco-benefits of their tyres. The first step has been commissioning new research demonstrating, once again, the environmental soundness of retreads. Numerous reports have been conducted by organisations such as WRAP (Waste & Resources Action Programme) and recently Best Foot Forward, who were commissioned by the Centre for Remanufacturing and Reuse. This independent life cycle analysis was carried out to compare the relative carbon footprints of new tyres and retreaded tyres and concluded that the manufacture and distribution of a retreaded tyre results in significantly less carbon emissions than the production of a new tyre.
Developer and manufacturer of lithium-ion batteries for hybrid and electric vehicles, Ener1, has acquired the 19.5 per cent share in joint venture company EnerDel held by former joint venture partner Delphi Corporation. This share purchase gives Ener1 100 per cent ownership in EnerDel and brings along with it exclusive ownership of essential manufacturing and intellectual property assets from Delphi. The agreement was approved by US judge Robert Drain, who is overseeing Delphi’s efforts to emerge from bankruptcy.
Caterpillar Inc has awarded Goodyear with its “Supplier Quality Excellence Process Certification” bronze certificate in recognition of the quality of its earthmover tyres. The award recognises the achievement as well as the “know how” of Goodyear with regard to the quality of their earthmover tyres and their ability to supply to the customer.
Goodyear earthmover tyres are produced in Luxembourg and distributed for use across Europe. The Luxembourg plant produces a top quality product for use as Original Equipment for Caterpillar and other leading manufacturers as well as replacement tyres for the construction industry.
A report published by Italy’s La Stampa newspaper on August 12 suggests a possibility that Pirelli’s tyre manufacturing plant in Turin may be a planned target for terrorists. An anti-terror investigation has begun in Italy after police discovered detailed architectural plans for the Turin factory. While the report does not make clear where the plans were found, reference is made to an “encampment” inside a highway tunnel that is used by local homeless people.
The 30-acre site of Apollo Tyres’ PTL Enterprise tyre manufacturing facility in Kalassery will reportedly be used for residential and commercial development following the factory’s relocation to Irapuram in the southwest India state of Kerala. The company intends to invest around Rs 400 million (£4.97 million) in the first phase of the relocation project, and in the second phase it will begin the production of cross-ply tyres at the new site. Previous reports indicate the factory will focus upon the production of specialty tyres.
Bridgestone Metalpha U.S.A., Inc. (BMU), a subsidiary of Bridgestone Americas Holding, Inc., announced on August 11 that Donna Bright has been promoted to plant manager of the BMU radial steel cord manufacturing facility in Clarksville, Tennessee. With the promotion, effective August 16, Bright becomes the first female plant manager at any Bridgestone Americas facility.
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