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.
The Akron Beacon Journal (ABJ) reports that Goodyear plans to cut 15 per cent of its North American tyre production capacity and move production to low cost centre countries. The source was an internal company newsletter distributed to employees on Wednesday.
Bosal UK has become the first of Bosal’s European manufacturing group to achieve the prestigious ISO14001 environmental management system (EMS) accreditation. In order to qualify for the standard, Bosal adapted many of its operational processes to reduce the Company’s impact on the environment.
Michelin and Hankook have signed a partnership agreement, involving co-operation in R&D, manufacturing and distribution. Hankook will be licensed to produce Michelin’s PAX run-flat technology as part of the agreement. Michelin will take a 10 per cent stake in the Korean company, which, based on the share price when the deal was signed, is estimated to be worth just over US$ 33 million. Shares in Hankook rose almost five per cent on the news, nearly four times better than the market in general.
Nokian Tyres plc and Matador AS are signing a contract manufacturing agreement. This transaction will mean that Matador will produce Nokian branded speed categories S, T, and H car summer tyres at its factory in Slovakia. The tyres will be sold in Eastern European markets. The production target for 2003 is 100 thousand Nokian tyres with initial sales taking place during the first quarter of the year. Volume manufacture will increase to 300 thousand tyres by the end of 2005. Through contract manufacturing Nokian will continue to ensure its growth potential in Eastern Europe. Production capacity at the company’s factory in Finland will be freed to produce ultra high performance tyres. The agreement will be valid until the end of 2005 and after that on a one-year basis.
Along with the dawn of the 21st century, Shanghai has very quickly become the international economic trading capital of China. The city is the showcase of reform, increasingly attracting foreign investment in new business enterprises. Just outside the city centre is the industrial district of Min Hang and this is home to China’s largest tyre producer, Shanghai Tyre & Rubber Company Limited. The Shanghai Tyre & Rubber Company was incorporated on 4th July 1992. It was restructured from the two oldest tyre manufacturing plants in China, both having a history stretching back over seventy years, the Ta Chung Hua Rubber factory and the Tsen Tai Rubber factory. In the early 1930s these two tyre producers first established the brand names Double Coin and Warrior. In September 1998 a joint venture was agreed with First Tractor Group of China to produce agricultural tyres, expanding the existing capacity by nearly 50 per cent to 900,000 tyres and consolidating its access to the agricultural market. In the same year the company completed a $95 million US dollar expansion programme at the Min Hang factories. Weak domestic demand and the Asian crisis did see a downturn in profits as the decade came to an end, at the same time, selling prices were cut by ten per cent in order to compete with some foreign, and particularly South Korean, tyres. This was a setback, but no more than that. The company has shown itself to be extremely perceptive and very determined. Within the Shanghai Tyre Company today there are three principal tyre producing factories. An all steel radial truck tyre plant manufacturing the Double Coin brand, and a passenger and light truck tyre radial factory producing the Warrior brand; this plant has been a joint venture with Michelin since March 2001. Finally, a bias-ply plant manufacturing passenger, truck, a massive range of agricultural, off-road, industrial and motorcycle tyres in a total of over 350 specifications. The company is the 15th biggest tyre producer in the world, employing over 11,000 people.
India’s largest four wheeler tyre manufacturer celebrates its silver jubilee. J. K. Tyre is a division of J. K. Industries, which is itself a flagship company of the J. K. organisation; one of the largest industrial groups in India. As well as tyres, the group’s manufacturing activities include paper, cement, textiles, hybrid seeds, cosmetics, power transmission – the list is as varied as it is extensive. J. K. Tyre was established in 1977 and has established itself as India’s number one manufacturer of tyres for four wheel vehicles under the JK Tyre and Vikrant brands. In this sector, J. K. Tyre claims a domestic market share of 20.8%. In the truck and bus tyre market, which accounts for around 80% of the Indian tyre market by value, J. K. Tyre claims a market-leading 25.8% share. In 1997, J. K. Industries took a major strategic decision to acquire Vikrant Tyres Ltd., an ailing tyre manufacturer. With the input of J. K. Tyre’s expertise, systems, marketing and work practices, Vikrant achieved a remarkable turnaround, returning to profit after only ten months. Today, J. K. Tyre has four Indian production facilities, with a capacity of 5.5 million tyres. This growth is set to continue, with production over the next two or three years rising to some eight million tyres. The company also boasts India’s first, and only, all-steel truck and bus radial plant. Being a pioneer of radial technology involved J. K. Tyres in a great deal of hard work and effort to spread the word about the benefits of radials, but this has been rewarded as the J. K. Tyre brand is strongly associated with radial tyres. The company’s marketing strategy was focused on offering high performance radials with service being the brand differentiator. One aspect of this was the establishment of a chain of retail outlets, offering a one-stop sales and service centre. Going under the name “Steel Wheels”, there are more than 100 such outlets in India and J. K. Tyre claims that they have revolutionised tyre retailing in India – offering services such as wheel balancing and alignment and advice on tyre care by well-trained technical staff. Another marketing initiative is the “Dial-a-Tyre” service, which allows customers to have tyres delivered and fitted in the comfort of their own homes. This is the latest in a line of innovations, which includes India’s first T-rated tyre, the first H-rated tyre and the country’s first Dual Contact tyre, the “Aquasonic”. The company manufactures a range of tyres to suit all four-wheel applications, from cars to trucks and buses, agricultural vehicles and tractors, plus there is also a range of tyres for animal-drawn vehicles. Both radial and bias ply tyres are produced.
The chief executive of Australian joint venture Ansell-Goodyear has departed suddenly, with no reason given. Rob McEniry is regarded as the main force behind the renaissance of South Pacific Tyres, in which Ansell-Goodyear has a 50 per cent stake, consolidating to two manufacturing sites and taking out A$85 million of annual costs. SPT is moving towards profitability and an Ansell spokesman was confident that McEniry’s departure would not adversely affect the reconstruction programme.
Noburo “Tim” Kawakami, president of Bridgestone/Firestone manufacturing operations in the USA, is to retire on March 31 next year. His place will be taken by Masao Wada, currently manager of the factory at Aiken County, South Carolina, and succeeding Wada will be Mike Rose, operations manager at the facility. In keeping with events in Europe, the American subsidiary is changing its name, from Bridgestone/Firestone Americas Holding to Bridgestone Americas Holding.
Hayes Lemmerz has filed a Plan of Reorganisation with the US Bankruptcy Court. This is the first step in the company’s attempt to emerge successfully from Chapter 11 proceedings, which it hopes will happen in the first half of next year. The Plan requires approval from creditors and the Court. Among the corporate initiatives already put in place by Hayes Lemmerz are rationalisation of manufacturing and marketing and divesting non-core assets. It is understood that the plan involves Hayes Lemmerz paying creditors $425 million in notes and common stock in the reorganised company and assuming a debt of $650 million.
Visteon Corporation and SmarTire Systems Inc. have established a partnership agreement bringing to market a “best-in-class” solution in automotive tyre monitoring technology. The two companies have agreed to combine their technical capabilities in working with automobile manufacturers to design and manufacture the latest in tyre monitoring systems. The partnership merges Visteon’s vehicle integration expertise, global design and manufacturing capability with SmarTire’s patented, wireless, tyre pressure and temperature monitoring system. The demand for these systems is growing significantly from global automobile manufacturers. ”This agreement is exactly the type of agreement we need to make,” said John Kill, Visteon Vice President of Product Development. “It combines the strengths of companies to cost effectively deliver the technologies our customers want and need.” The agreement places SmarTire in partnership with a Tier 1 automotive parts supplier. “Original equipment manufacturers rely on Tier 1 suppliers to provide the products, quality and scheduled deliveries required by the automotive industry,” reports Robert Rudman, SmarTire’s President and Chief Executive Officer. “This relationship with Visteon opens the door for SmarTire to the original equipment marketplace. Together, the two companies will market high quality, low-cost SmarTire solutions to automotive manufacturers globally.” The agreement also allows Visteon manufacturing rights for certain SmarTire products and establishes provisions that will enable SmarTire and Visteon to jointly explore other opportunities such as the commercial vehicle market.
Kumho has become the first tyre manufacturer to be awarded the “Green Swan” Ecolabel for a new product. Both the company’s KWN7401 I’Zen tyre and the manufacturing process passed stringent tests set by the Nordic Ecolabelling Board. These had to demonstrate that the tyre was made with the lowest possible impact on the environment and that it operated in an environmentally friendly way during its lifetime, with low noise levels, low rolling resistance and the ability to be reused after its first life.
Bridgestone Firestone Europe is to increase its capital by 400 million euros before the year-end, which will be undertaken by Bridgestone Corporation (Japan). Bridgestone will use capital to rebuild its manufacturing resources and to reinforce its sales organisation and financial position. The production capacity for high performance tyres will be strengthened by strategic investment in passenger car tyre plants to facilitate quick changes to future products. This will include the expansion of the Poznan plant, which will increase its capacity up to 23,000 tyres per day from its current capacity of 10,000 tyres. In addition, Bridgestone will increase the truck and bus tyre output from its Bilbao plant from 3,500 to 4,600 units per day by the end of 2005.
At the risk of stereotyping, the Italians do everything with a passion. They cook with a passion, and they eat with a passion. In the UK we tend to cook to eat and we eat to live. In Italy, the cook would be insulted if the diner only ate to live. The diner would not visit the restaurant of the chef who cooked without interest, without passion. That drive, that passion is to be found almost everywhere in Italian life, in politics, in motoring, in football, and in art and architecture. There is an ethos which cannot be called a work ethic, it runs deeper than the work ethic, it is quite simply more, almost spiritual in nature. That passion can be found at Marangoni. When visiting any tyre company there is a sense of pride in the company and its products. It has to be said that, in most companies, this is a foregone conclusion because the PR representative accompanying you is present to ensure that the corporate message gets across. However, when visiting Marangoni at Anagni, south of Rome, it soon becomes obvious that the passion runs deeper than a PR exercise. Marangoni Tyre is just one part of a larger Marangoni Group with a worldwide presence. Marangoni was established in 1950 and by 1960 was manufacturing retread tyres. A history of development, attention to detail and a keen eye on the market brought Marangoni to the situation where in 1989 the Group decided to move into new tyre production at Anagni.
On December 1st, Andreas Niegsch will be appointed General Manager of Goodyear Dunlop UK, replacing Marco Molinari, who is leaving the company to pursue other interests. Molinari’s current position of Group Managing Director will be eliminated. Niegsch will report to Robin McKnight, MD of Goodyear Dunlop sales countries, western Europe. Niegsch originally joined Dunlop Germany in 1998 as manager, sales countries, western Europe and was appointed director the following year. In 2001 he assumed his current position as director of marketing and sales for Goodyear’s Eastern Europe, Middle East and Africa region. The UK manufacturing operations at Wolverhampton and Washington will report directly to the European regional manufacturing HQ in Luxembourg, as part of the current policy to centralise product sourcing to obtain maximum efficiencies.
The shares of US auto parts retailers fell sharply this week on the news that hundreds of companies, including the Big 3 car manufacturers, are facing lawsuits from plaintiffs who have been exposed to asbestos, which was once widely used in brake manufacturing. An argument is on-going whether those outlets that performed repairs should face greater liability than the manufacturers of the products.
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