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.
In Sofia, Bulgaria’s Economy and Energy Minister Rumen Ovcharov and the Vice President of French company Montupet, Didier Crozet, are expected to sign the contract for the construction of an aluminium car parts manufacturing plant in the Industrial Park of Russe. The total investment will be 70 million Bulgarian Leva (35 million Euros) and 500 new jobs will be created in a three-year period.
The price of natural rubber is reaching a new high of US$2.16/kg; a rise of 22 per cent since January 1st and up 87 per cent since January 2005. As an example of the potential effect on tyre manufacturing, a 60kg truck tyre will contain around 24kg of natural rubber. Already this year, many tyre manufacturers have announced two lots of price increases and industry pundits expect further price rises if natural rubber prices stay at the current level.
Continental AG has just opened its new tyre plant in Brazil and said that it should be operating at full capacity within the next 18 months. “The new low-cost production capacities play a key role in our concept for the future passenger tyre business in the loss-making NAFTA region. At the same time, the capacities allow for profitable growth,” CEO Manfred Wennemer said in a statement released in Germany.
Industry figures show that, in 2004, there were 239 million tyres manufactured in China, with sales of 79 billion yuan (US$ 983 billion). Estimates for 2005’s production figures are in excess of 300 million tyres.
Hayes Lemmerz International, Inc. has announced that it has concluded an agreement with its lending group to amend its $625 million senior secured credit facility. Among other changes, the amendment favourably modifies certain financial covenants. “This amendment provides Hayes Lemmerz with additional financial flexibility as we continue to rationalise our manufacturing footprint, implement cost reduction initiatives, and capitalize on growth opportunities within our core businesses and in select geographic regions. We appreciate our lending group’s continuing support of our strategic direction and financial priorities,” said Curtis Clawson, President, CEO and Chairman of the Board.
Indian company MRF Tyres is setting up a small plant in Sri Lanka for manufacturing rubber, a top MRF official said. Speaking to reporters on the sidelines of launching ‘V’ rated tyres for luxury cars, Mr Philip Eapen, Executive Director-Marketing said experimental production has already commenced at the new facility. However, he did not provide any details about investment in the plant.
The outlook for global tyre manufacturers looks like being “a bumpy ride”, says Business Week. With the global tyre business worth an estimated US$70 billion, the major players are facing pressure from increased raw material prices and the growing burden of employee benefit costs.
Continental AG and Motorola, Inc. have jointly announced that the
companies have entered into an agreement under which Continental will acquire Motorola’s automotive electronics business for approximately US$ 1 billion in cash. The transaction includes Motorola’s controls, sensor, interior electronics and telematics businesses.
A small Airblast modular blast room has provided D&S Factors with a self-contained blast cleaning facility for preparing tractor wheels. As well as stocking new and reconditioned standard products from leading agricultural wheel OE companies, D&S also manufactures its own range of special products such as rowcrop wheels, wide flotation wheels and grassland wheels for use on golf courses, parks etc.
Due to an increasing demand for its products, D&S Factors began restructuring its manufacturing factory at Donington, near Spalding. As part of this development a great deal of thought was given to the installation of a new surface preparation facility. “We have always known that the efficient surface preparation of wheels prior to painting is vital to ensure a quality end product,” said manager, David Tasker. “We used to do our blast cleaning in a home-made room – a rubber lined shed really – using a small open nozzle blast machine.”
Performance exhaust manufacturer Milltek Sport has recently moved into a Logistics and Sales Centre at Pride Park, Derby. This move is the springboard for a new phase of expansion. Chief Executive Phil Millington commented, “This hi-tech Centre is a key factor in our further expansion programme, not only in the UK but also worldwide, since we are now exporting to some 40 countries. Our technical and manufacturing base remains at Ilkeston, where we have a highly skilled and closely-knit team and Pride Park will perfectly complement this.”
Next month’s Tyres & Accessories features our annual coverage of the wheel market. This time the magazine will provide in-depth analysis of what is going on in the undeniably influential Chinese manufacturing base balancing this with coverage from much closer to home. Pick up April’s magazine for industry leading editorial content in this segment.
Michelin North America (Canada) Inc today announced details of an initiative aimed at contributing to the economic regeneration and long-term prosperity of the Waterloo Region.
Michelin Development will be headed by John Tully, a long-time Michelin North America, Inc. executive. According to the company, Tully brings experience in community relations and customer service to the programme. He will relocate to Kitchener from Greenville, South Carolina to establish the company’s office.
(Akron/Tire Review) According to the Rubber Manufacturers Association’s (RMA) Tread Rubber Market Analysis Committee, total tread rubber shipments will increase 2.8% in 2006, up from 1.9% growth in 2005. The increase will be fueled by economic growth, a strong demand for OTR tyres and heavy truck-traffic volumes, the RMA committee reported.
(Akron/Tire Review) The fourth annual China International Tire Expo (CITExpo), which will be held 6-8 September at the Shanghai Everbright Exhibition Center in Shanghai, China, is expected to be a great success, with 200 exhibitors showcasing their latest products and technology in 8,000 square meters of exhibition space.
For the second year in a row, Tire Review serves as the exclusive US media sponsor for CITExpo. Other key media supporters include Tire Review partners Tyres & Accessories and Rubber Asia.
(Akron/Tire Review) Motor & Equipment Manufacturers Association (MEMA) has undertaken what it calls “a landmark study” to document the economic influence of automotive and heavy-duty suppliers.
The study, which is scheduled to be completed in November, will analyze the economic contribution of suppliers to the nation’s economy and will provide data on both a national level and state-by-state breakdown, MEMA said.
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