Automotive Suppliers Face Uphill Struggle
(Akron/TR) Cutbacks, fast rising raw material costs and marketshare battles by US automakers have created a crisis among auto part and component suppliers, according to a Detroit News report today.
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.
Tag Archive for: Manufacturing
Hankook Leans Towards Slovakia
Product NewsMedia reports are continuing to circulate about exactly where in Eastern Europe Hankook will make its proposed $500 million investment. Numerous previous reports have stated that the company is interested in manufacturing in this region, and that the shortlist has narrowed to two countries (Poland and Slovakia). Now a Polish newspaper has added further information. A Rzeczpospolita report suggests that the Korean company is leaning towards Slovakia because of a governmental policy offering “flat tax” incentives to foreign investors.
Goodway Hosts Visit by Large Retreading Equipment Manufacturer
NewsMalaysian-based tread solutions company, Goodway, recently welcomed Dr Aldo Ghitturi, chairman of Italmatic Srl to its Nilai plant. The visit of one of the world’s largest retreading machine manufacturers was part of on-going efforts to foster closer business relationship between Malaysian and Italian companies. According to a Rubber Asia report, it is also part of Goodway’s vision and latest aggressive business expansion plans, which will see it form strategic alliances with reputable companies worldwide. Goodway is confident that it will soon form successful strategic partnerships that will help capture new markets in Europe. The venture is designed to raise the profile of ‘Supercool’ as a premium product in European markets.
Goodyear to Supply Tyres for Airbus Aircraft
Product NewsGoodyear has extended a multi-year contract for the supply of aviation tyres to Airbus. Specifically, the extended contract is between Airbus France and Goodyear Nederland BV, a Dutch (Tilburg) company. Goodyear will supply Flight Leader aircraft tyres for the Airbus wide-body family, the A300 and 310 models, as well as Flight Radial and Flight Leader aircraft tyres for the Airbus single-aisle family, the A318, A319, A320 and A321 models. Goodyear has not published any details of how many additional tyres it will supply.
Turkey to Privatise Telecom Company, Two Tyre Manufacturers Involved
NewsThe Turkish government is planning to privatise its national communications company, Türk Telekomünikasyon AS (Turk Telecom). Two tyre manufacturers have been linked to the prospective bidders. One of the favourites to complete the purchase is Oyak, the Turkish army pension fund, which is involved in a joint venture with Goodyear. But at the same time Telecom Italia, controlled by Pirelli, is also said to have a good chance of winning.
Bekaert Handling on a Roll
Product NewsRoll containers are proving the most efficient method of distributing goods in the supply chain, according to Bekaert Handling. In recent months the company reports that it has seen the use of roll containers rise sharply throughout a variety of different industries. The company claims that it is unique in offering a complete bespoke design capability, developing innovative solutions to storage and handling problems.
Indian Manufacturers Deflate Tyre Prices
NewsIn India tyre prices are “tumbling” in response to the government’s decision to cut excise tax by eight per cent, local news sources have reported. According to India’s Economic Times, MRF and Ceat have announced 4 – 6 per cent price cuts, while others such as Apollo, Goodyear and Birla Tyres are likely to follow the same lead. This means that typical non-radial bus and truck tyres are 1000 rupees cheaper.
VMI Launches Modular Tyre System
NewsVMI has developed a new tyre building system, designed to produce lot sizes as small as one tyre. The company behind the technology, launched at Tyre Technology 2005 in Cologne, claims it can improve quality, reduce cost and minimize floor space. The company reports that a single unit capable of making 1200 tyres a day, requires three staff and occupies significantly less floor space than the conventional equivalent.
Is there a Future for Passenger Car Tyre Retreading?
NewsThe European market doesn’t appear to hold a bright future for retreaded passenger car tyres. Just recently one of the biggest manufacturers of the tyres, Reiff Reifen + Autotechnik GmbH, withdrew from this segment. Nokian Tyres has also taken a similar decision: the Finnish tyre manufacturer has sold its passenger car retreading plant to a Swedish company even though its retreading business was recently brought together under the roof of a new “profit centre”.
Bridgestone Invests
Product NewsBridgestone has announced that it will invest 227 billion yen (£1.13 billion) in its global tyre manufacturing business between 2003 and 2007. In the announcement the company explained that is has been operating a kind of five-year investment plan, in order to meet growth in demand. According to a Deutsche Bank report, the company is to invest 88 billion yen (£438 million) in addressing the shift in demand towards high-performance tyres and tyres of large rim sizes.
To meet the increase in demand for passenger car tyres in emerging markets, Bridgestone is investing 49 billion yen (£244 million) in the expansion of its production capacity in Asia and Latin America. The company is also planning to put 50 billion yen (£249 million) towards serving the growing demand for truck and bus tyres and tyres for construction equipment. In addition the company is planning to have spent another 40 billion yen (£199 million) on raw material production expansion by the end of its investment programme.
Goodyear/Titan Rumours Turn Out to Be True
Product NewsThe Goodyear Tire & Rubber Company has announced that it has reached an agreement with Titan Tire Corporation to sell its North American agricultural tyre assets. The sale, valued by Goodyear at $100 million, will include the company’s manufacturing plant, property and equipment in Freeport, Illinois as well as a licensing deal. This part of the agreement would see Titan produce Goodyear branded agricultural products in North America. Goodyear reports that the sale will result in a revenue reduction of about $200 million per year.
Toyo Group Announces Executive Appointments
Product NewsToyo North America has appointed Shozo (Carlos) Kibata president, and Toyo Tire (USA) Corp has appointed Masaharu Yoshimoto as executive vice president, Tire Review has reported. Kibata, who will remain president of Toyo Tire (USA) Corp, will be stationed in Georgia, beginning in July, to oversee the construction and operation of the tiremaker’s new US manufacturing facility in Bartow County. The facility is expected to produce 2 million tyres annually for the North American passenger car and light truck segments. Yoshimoto joined Toyo Group in April 1972 and worked in the US for seven years. Since June 2001, he has served as president and CEO of Toyo Tyre & Rubber Australia Limited.
Manufacturers Take On the Russian Market
International News, NewsIf the 8th Moscow Tires & Rubber show is anything to go by, the Russian tyre market looks set to continue its development as a growth market. While the show was marked by growing interest from exhibitors and visitors, the market itself has produced some generally optimistic data and has seen perceptions of the manufacturers’ market approaches improve. All this suggests that the Russian market will continue to develop into a very interesting tyre market, with a strong growth potential.
Goodyear Pulls 900 Tyres from Daytona 500
Product NewsGoodyears has withdrawn 900 racing tyres from its inventory for this week’s Daytona 500, Tire Review has reported. The news follows the discovery of a “minor manufacturing problem,” which means tyres lost their treads during the practice session.
Goodyear originally pulled 300 tyres from its stock before the Budweiser Shootout event, but expanded it to 900 after discovering the problem. The company said that tread delamination had occurred in a small sample of tyres, and that the problems experienced by some raceteams were not necessarily caused by the tyres. Goodyear has already shipped samples of tyres back to its Akron research centre for testing, according to Tire Review.
MEMA Reports Steel Cost Crisis
Product NewsA new research report by the Motor & Equipment Manufacturers Association (MEMA) suggests that government intervention in the US steel market has caused a cost crisis that is hurting automotive and heavy-duty suppliers across the country, reports Tire Review. The MEMA report says that the result has been “unprecedented bankruptcies and job losses.”
The MEMA study, available online at www.mema.org, was written by economists Brian Becker and Kevin Hassett. The pair found that the steel crisis “triggered distortions in the steel market that have contributed to decreased availability, poorer quality and delayed deliveries of steel,” according to MEMA.
