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.
Cooper Tire & Rubber Company (Findlay/Ohio) has completed the sale of its automotive business, Cooper-Standard Automotive, to an entity formed by The Cypress Group and Goldman Sachs Capital Partners for approximately $1.165 billion in cash, subject to certain post-closing adjustments. As previously announced, $30 million of the purchase price will be held by the buyer until the post-closing working capital adjustments can be finalized.
Hayes Lemmerz International, Inc. announced that its steel wheel manufacturing operation in Guarulhos, Brazil has received the 2003/2004 supplier award from Agrale, the Brazil-based truck, chassis, tractor, motorcycle and engine manufacturer. The award recognized Hayes Lemmerz as “The Best Supplier” of its commercial truck steel wheels. The recent quality awards received by this plant demonstrate that investment in upgrading the capabilities of the plant are paying off. “I am honored that Agrale has recognized our efforts to be an industry leader,” said Fred Bentley, President of the Company’s International Wheel Group. “The key to successful implementation of quality is having a team that truly practices Operational Excellence. Our team strives to provide our customers with the best products and service possible.”
German tyre major Continental AG has decided to source as many as 30,000 two-wheeler tyres and tubes per month from Metro Tyres Ltd. (MTL). Continental has also firmed up plans to source as much as 50 per cent of tubes to be manufactured by MTL for cars, tractors and light commercial vehicles, according to Indian media sources. These tyres and tubes would be sold in Germany and Europe under the brand name Continental. Meanwhile, MTL has also entered into talks with Bajaj Automobiles, Hero Honda and Yamaha for catering to the original equipment manufacturing segment.
The Goodyear Tire & Rubber Company and General Electric – specifically, GE Advanced Materials, Silicones – teamed up for breakthrough technology in new auto tyres. A unique tyre, Goodyear’s Assurance featuring TripleTred Technology, is the result of this technology.
Titan Wheel Corporation (Quincy/Illinois), a subsidiary of Titan International, Inc. (NYSE: TWI), issued a record winter bonus to its employees. The bonus amounted to an average payout of $2,500 per employee. Each employee received $200 of their bonus in Sacajawea golden dollars. This brings the total bonus for the year to approximately $5,000 per employee.
Tyre manufacturer Bridgestone Corp. has sold some 130,000 tyres printed with the Japan Industrial Standards (JIS) mark even though they were not authorized to do so, Japanese media reported. The Ministry of Economy, Trade and Industry (METI) only allows industrial products to sell with the JIS title after they pass inspections from government officials. After agreeing with the Nagoya-based Inoue Rubber Co. to jointly manufacture tyres in 2000, Bridgestone reportedly invested in Inoue’s subsidiary in Thailand, IRCT, which began producing Bridgestone tyres in Thailand in August 2001.
Dr Reinhard Meschkat has been appointed to BERU AG’s Executive Board. In his new position he will assume responsibility for production, logistics and quality control of the Ludwigsburg-based automotive supplier. Dr Meschkat, holds a doctorate in manufacturing systems engineering, and has substantial experience in several executive positions as plant manager and managing director at Faurecia Autositze GmbH, a subsidiary of the French group Faurecia S.A.
Prior to his employment at Faurecia, he had worked for Brose Fahrzeugteile as a production manager at a manufacturing plant, responsible for production planning, logistics and quality. He had also successfully implemented Kaizen principles into the production system.
Bridgestone Corporation has announced that it will invest $160 million in building a new tyre plant. The news follows initial reports from Brazilian newspaper and the Associate Press news agency that the Japanese company was planning to spend $700 million on the project. Confirming parts of the reports, the company said Bridgestone Firestone Brasil, a wholly owned subsidiary of Bridgestone Americas Holding, Inc, would build the plant in the Brazilian state of Bahia. Construction will begin in 2005, and plans call for the plant to begin production in the second half of 2006.
According to the company, Bridgestone Firestone Brazil’s new plant will produce tyres for passenger cars and light trucks. The company says the new plant will have an initial production capacity of about 8,000 tyres a day. It will utilise state of the art production technologies and is expected to create more than 500 new manufacturing jobs and 1,200 indirect jobs in the region. The projects will increase BFBR’s capacity by roughly 25 per cent the company said.
Brazilian car production reached 2,020,704 vehicles for the period between January and November, up 20.8 per cent from the first 11 months of 2003, reflecting the country’s robust recovery from a sluggish 2003, when the economy grew less than 1 per cent. The auto industry’s trade association is predicting an output of 2.2 million vehicles by the end of 2004.
Referring to the $160 million expansion plans, Jorge Gonzalez, president, Bridgestone Firestone Latin American Operations, said: “This substantial new investment is evidence of our optimism in the strength of the Brazilian economy and our belief in our Brazilian team-mates.” Earlier reports which, were later found to be inaccurate, had suggested that the company would be willing to invest an even greater amount.
Alcoa Aerospace, Automotive, and Commercial Transportation announced that is Cast Auto Wheels business units and the wheel divisions of Alcoa Wheel Forged Products will merge to create Alcoa Wheel Products, offering both cast and forged aluminum wheels to the commercial vehicle and automotive markets.
Kevin Kramer, who has 21 years of experience gained in global marketing position at Goodyear, will lead the new division. “This reorganisation further drives our focus on markets and customers and allows up to identify and implement best manufacturing practices and process technology across our business,” said Bill Christopher, Alcoa executive vice-president.
Kayaba Industry (Japan), which, according to the company, is the biggest shock absorber manufacturer in the world, has developed its market position by building a new plant in the Czech Republic. Production is due to start in April 2006. “Kayaba Manufacturing Czech“ (KMCZ), to be based in Pardubice, will employ more than 200 employees at full capacity. According to the company’s production plans, by 2007 more than two million shock absorbers will be manufactured there each year.
In December 2003, Kayaba bought the remaining shares of Spanish shock absorber manufacturer, APA. With an annual production of more than 15 million shock absorbers, the next step is further strategic expansion in Europe. The production plant in the Czech Republic, which will be based on the most modern technological criteria, will have its own capital funds, totalling 17.5 million euros. By making this further investment Kayaba says it is developing its operational basis in Europe more clearly than it has done so far.
The recently submitted annual report 2003/2004 of Kayaba shows that the company is on course for growth. Turnover totalled $2.1 billion, which represented an increase of over 10 per cent compared with the same period last year. With an annual production total of more than 55 million units, in both in the passenger cars (for large reputable car manufacturers) and for the aftermarket business, the company reportedly holds a 23 per cent world market share.
Nokian Tyres has confirmed that it has sold its factory premises in the town of Lieksa for a total of 3.6 million euros. The Finnish company sold the bicycle tyre business to Suomen Rengastehdas Oy. According to Nokian, the new owners took over the management of the plant straight away and will provide contract-manufacturing services to Nokian. All personnel, a total of 59 employees, are to keep their jobs working at the Bicycle Tyres profit centre and in heavy inner tube manufacture.
Suomen Rengastehdas Oy is a subsidiary of Suomen Kumitehdas Oy. The companies are engaged in the manufacture of bicycle tyres, rubber boots, footwear and other rubber products, and in the reprocessing of rubber. The principal owners of the companies are Mr Arto Huhtinen and Mrs Tuire Erkkilä, both previously members of Nokian Jalkineet Oy’s (Nokian Footwear) management.
In 2003 the Lieksa plant manufactured 784,000 bicycle tyres and inner tubes.
The prices increases announced by a number of leading manufacturers are good news for their share prices, say market analysts Deutsche Bank. Bridgestone/ Firestone announced a 5 per cent across the board price increase for passenger car and light truck tyres in North America, effective 1 January 2005, with heavy truck tyre prices set to increase by 7 per cent. According to the analysts, this news is particularly significant because BFS was one of two companies (along with Michelin) that did not raise prices during the last round of price hikes that were rolled out by Goodyear, Cooper Tire, Continental and others in October. This means that “most tyre companies will elect to raise prices once again in early 2005, and that price increases will mitigate higher raw material costs,” says Deutsche Bank.
The SMMT is reporting that in the first 10 months of 2004 UK new car production has dropped one per cent, while production for export has risen 3.5 per cent in the same space of time. Octobers output in isolation reveals a decrease in production levels of 11.9 per cent, according to provisional data released by the office of national statistics.
“Despite a dip in October car production, levels over the year to October show that we remain on a par with last year. UK automotive manufacturing has a bright future. SMMT’s second annual issues survey of senior executives, to be published at the SMMT Annual Dinner, will show that we have much to be proud of. With the right skills in the workforce, an increase in R&D and a cautious approach to the introduction of new regulation by government, the industry has a very positive future,” commented SMMT chief executive, Christopher Macgowan.
At the same time the SMMT reports that commercial vehicle (CV) production went up 11.3 per cent in October and 14 per cent year-to-date. CV export production levels rose by 27.5 per cent over the year to October. Rolling 12 month totals to October show that production is up 25,228 units to 210,322.
“The growth in commercial vehicle assembly remains robust. Over the most recent three months to October, production has risen 21.4 per cent, with 38.2 per cent for the export market. UK plants are keyed-in to a firm revival in demand for vans and trucks in the rest of the EC. Annual volume has now topped 210,000 units and with two months to go to complete the calendar year, it will probably nudge further ahead,” added Mr Macgowan.
If every manufacturer made modifications to new cars at an estimated cost of £75 per car, the lives of 1,700 pedestrians and cyclists could be saved across Europe, according to the RAC Foundation.
Yokohama Rubber Co has announced that, by the end of December, it will have purchased 193,327 square metres of land adjacent to Yokohama’s Thailand manufacturing plant. When the newly purchased land is added to the existing site, this means that the Thailand subsidiary will more than double in size, growing to 418,427 square meters. Upon completion of the expansion plans, Yokohama Thailand will have a larger site area than any other Yokohama rubber subsidiary.
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