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.
(Akron/Tire Review) The fourth annual China International Tire Expo (CITExpo) drew to a close 8 September, and was deemed a “record breaking success.” Held at the Shanghai Everbright Convention and Exhibition Center, the three-day event saw some 200 exhibitors showcase their latest products and technology in a 10,000-square-meter exhibition area.
Seven months after officially starting the project construction workers building Cooper/Kenda’s joint venture manufacturing plant have almost finished. The 800,000-square-foot manufacturing facility is situated in an industrial park in Kunshan, a suburb west of Shanghai. This first phase of the project is expected to be completed by December.
Romania and Eastern Europe in general are now commonly seen as attractive “manufacturing” countries, but how are they seen in terms of sales and distribution? Alexis Burlacot, marketing manager with the truck tyre unit of Michelin Europe, told Romanian newspapers that consumption within these markets is growing 10 – 15 per cent each year.
Ceat Ltd, one of India’s leading tyre manufacturers, has launched the ‘Ceat Mile XL’ truck tyre onto Indian roads. General manager marketing, Rajiv Jain told reporters that the Mile XL is designed to produce 15 per cent more mileage than other similar tyres. “With the transportation scenario in the country undergoing drastic changes, Mile XL will cater to the need of carrying additional weight and performing at higher speed, even while providing higher mileage,” he said. On an average, Ceat manufactures 1.8 million tyres per annum in its manufacturing facilities at Mumbai and Nasik, and had a market share of 18 per cent in truck tyre industry, Jain told local news sources.
Cooper Tire & Rubber Co’s has announced plans to gain $170 million by the end of 2008 through cost cuts and profit improvements, according to an official filing. Cooper said it will reduce annual spending by $70 million and boost profit by $100 million with “better pricing and a change in our manufacturing strategy.” The plans also include operating three of the company’s US tyre plants around the clock while staffing a fourth with temporary workers during peak periods to help return the biggest share of its business to profitability.
Toyo and its exclusive Qatar distributor, AlMuftah Trading, have plans to open two more sales outlets (at Wakrah and Al Khor, Qatar) next year. AlMuftah Trading has been Toyo’s exclusive Qatar distributor since 1968. It already has four outlets in Doha now dealing with Toyo tyres at Airport Road, Salwa and Industrial Area (two).
Following earlier reports of Goodyear Tire & Rubber Company agreeing to sell its global tyre fabric operations to Hyosung Corporation, the company has released an official statement giving details of the transaction. Goodyear and its affiliates will receive $80 million for their tyre fabric manufacturing plants and assets, which include operations in Decatur, Alabama; Utica, New York; Americana, Brazil; and Colmar-Berg, Luxembourg, subject to post-closing adjustments. The facilities, which employ about 1,000 people, produce and treat fabric that is used in Goodyear’s tyres.
Toyo and its exclusive Qatar distributor, AlMuftah Trading, have revealed an ambitious expansion programme, aimed at meeting the requirements of the state’s rapidly growing automotive market. Toyo already has a “good share” of the local tyre market and AlMuftah Trading is expanding its distribution network in Qatar by opening two more sales outlets – at Wakrah and Al Khor – next year to boost business. AlMuftah Trading has been Toyo’s exclusive Qatar distributor since 1968. It has four outlets in Doha now dealing with Toyo tyres.
Marangoni Pneumatici has been active in the industrial tyres sector for 20 years with percentage growth figures around the double-digit mark for each of those years. Now in order to fulfil growing demand for its products, Marangoni is evaluating the possible expansion of its total production capacity through a project in “a competitive labour cost country.” Marangoni’s existing industrial tyre capacity offers a range of products including resilient solid tyres, press on bands tyres and pneumatic tyres. The current manufacturing site is ISO 9001 certified.
If the current raw material price trend continues, it could help improve margins at tyre manufacturers. Natural rubber, which accounts for about a quarter of tyre raw material costs, is down over 20 per cent from the all-time high it hit earlier this year.
ABB, a leading power and automation technology group, said on 23 August, it has signed an agreement with Cooper Tire & Rubber Company to manage maintenance operations at its Albany, Georgia plant. “This service agreement is one of various strategic initiatives within Cooper Tire to improve manufacturing efficiency, product and customer mix, and market share,” said Scott Jamieson, vice president of manufacturing for Cooper Tire. “By entrusting plant maintenance operations to an established partner such as ABB, we can better focus on our core competence of manufacturing and marketing high-quality tyres at competitive costs.”
(Akron/Tire Review) Goodyear Tire & Rubber Co. today unveiled a new fuel efficiency technology that the company said can deliver up to 4 per cent better truck fuel economy. Goodyear’s Fuel Max Technology was launched in a new line that includes steer, drive, trailer tyres and retreaded tyres for line haul operations.
Weld Wheel Industries, a Kansas City maker of high-performance automotive wheels, has filed for Chapter 11 bankruptcy protection. A Kansas City Star report said the 21-year-old family-owned business lost $1.1 million in the first six months of this year on net sales of $21.8 million. The bankruptcy petition said the company has total assets of $31.6 million. Weld Wheels has signed an asset-sale agreement with American Racing Equipment Inc. in southern California. American Racing will pay $17 million and assume various debt and lease obligations, according to local news sources.
Amerityre Corporation has entered into a manufacturing license agreement with Qingdao Qizhou Rubber Co., Ltd., Qingdao, China. The agreement grants the Chinese company a license to initially manufacture polyurethane elastomer retreads for three large-size tyres for mining applications, using Amerityre’s innovative retreading process, in exchange for a $400,000 license fee payable over the next two years.
Talks between Pirelli and the Transport and General Workers Union (T&G) have resulted in Pirelli tabling an “improved” pay deal. Although exact details of the pay offer have not been disclosed T&G representatives told Tyres & Accessories that it was enough for the union to “suspend” industrial action. According to T&G, the details will be released once the union members have been notified of the new offer. A ballot will be conducted in the first week of September.
“The proposals we will now put to our members are a significant improvement on the company’s previous ‘final’ offer,” said T&G national organiser for manufacturing Peter Booth. “The offer fully justifies the strong stance taken by our members in support of their pay claim, and I believe it an acceptable conclusion to this claim.”
Pirelli originally offered workers a 1.1 per cent pay rise back in April. This was followed by the 2.2 per cent offer which provoked the union’s strike ballot. The latest offer, which was negotiated with the assistance the conciliation service ACAS, seems sure to be in excess of this. Pirelli representatives were unavailable for comment.
A union spokesperson refused to comment on the union’s perspective of the long-term future of the Carlisle plant until after the ballot.
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