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.
Three companies which supply chemicals for tyre manufacturing are being investigated for possible price fixing. Investigations are on-going in both the USA and Europe into Bayer AG, Flexsys NV and Crompton Corp. Experts estimate that sales of rubber-processing chemicals in the USA are worth around $900 million annually.
Goodyear Great Britain has sold its Wolverhampton manufacturing site to Birmingham-based St. Modwen Developments Limited and entered into a 10-year, extendable lease-back agreement which will enable production to continue. Financial details were not revealed. Wolverhampton was Goodyear’s first factory outside North America, opened in 1927. Production has fallen due to lack of competitiveness and clerical jobs have been relocated to the new HQ at Tyrefort in Birmingham. The sale/lease arrangement allows production to continue and for Goodyear to release value from the 88.6 acre site.
TRW Automotive has opened a new 15,000 square metre state of the art braking friction manufacturing facility dedicated to the aftermarket. The 15 million Euro investment at Olvega, in Spain’s Castilla-Leon region, has been opened in to meet demand for TRW’s breakthrough heavy metal free Lucas brake pads. TRW now has nine dedicated European aftermarket manufacturing sites in addition to 23 OE braking, steering and suspension plants, supporting the company’s ambition to have the best original equipment based chassis systems programme in the aftermarket. Currently, production at Olvega is running at almost two million pad sets a year; at full capacity, the site will produce in excess of five million pad sets annually. The plant employs 200 workers.
Bridgestone Firestone Americas Holding Inc. has appointed Mark Emkes (49) as chairman, president and chief executive of Bridgestone Firestone North America, effective from Monday. Mr. Emkes has been with the company for 26 years and most recently headed up Bridgestone Firestone’s business in Latin America. He succeeds Isao Togashi, who has returned to Japan as head of global manufacturing for the Bridgestone Corporation.
Last year Michelin achieved total sales of $13.4 billion, putting the company ahead of Bridgestone ($13 billion) and Goodyear ($12.5 billion). However, in unit terms, Goodyear considers itself the largest manufacturer with an output of 219 million tyres.
Last month the American vehicle market recorded good sales figures, still influenced largely by the offer of zero per cent financing. However, it is better to offer zero per cent deals and keep manufacturing capacity high rather than risk losing market share, say the analysts at M. M. Warburg, who have set a target figure for DaimlerChrysler shares of 62 Euros.
South African Tiger Wheels has benefited from a weak Rand pushing attributable earnings up by 63.3 per cent for the year to June. Revenue was up by 22 per cent and earnings by 49 per cent. According to the company the average euro-to-rand rate of R8.95 had most benefited the German-based division, ATS which became one of the main drivers for the growth in revenue. The company reported an improvement in production at its Babelegi plant in South Africa, increased production from the new Polish facility and the first phase of a new US wheel manufacturing facility at Auburn, Alabama was now under way. The US expansion has come about to meet the demand for wheel rims from DaimlerChrysler.
Indian manufacturer Ceat Ltd has caused a stir by agreeing to outsource some 10,000 tyres per month from Pirelli. Recently Indian companies have sought to find cheaper alternative products by buying from other, lower cost markets but this move goes against the trend with Ceat importing higher cost, higher quality products from a world leading brand. The reasons are said to be to fill the gap left by the collapse of the Ceat – Goodyear JV to produce radials and to try and give the company a foothold in the growing radial tyre market without setting up another manufacturing operation in India. It may also offer a low risk opportunity to test the Indian market’s capacity for high quality, high cost premium brand products. The outcome of the exercise may alter the nature of the Indian tyre market according to some commentators.
Pirelli’s new North American HQ and first US MIRS tyre factory were officially opened this weekend in Rome, Georgia. The ribbon was cut by Roy E. Barnes, Governor of Georgia and Pirelli North American President and CEO Gaetano Mannino. Various other local dignitaries attended the ceremony. The complex will employ 300 in three years time, 250 of which will be involved in production. Initially there will be three MIRS modules, but Pirelli says that this number “will substantially increase” by 2003. Pirelli also says that it expects to announce new OE contracts for MIRS tyres with more than one North American car manufacturer.
Nokian Tyres has released its figures for the second quarter. Looking at the figures for the first six months, both turnover and operating profit were up on 1H 2001. Turnover rose 12.6 per cent to 193.3 million Euros (1H 2001 171.6 m Euros) and operating profit was 8.7 m Euros (6.7 m). Net profit was 1 m Euros (-0.8 m Euros). The good figures were the result of price increases, improved product mix and lower material costs. Most product groups showed increased sales, with the exception of retreading materials, and the Vianor retail chain lost 2.5 m Euros.
The Wall Street Journal Europe has published a list of Europe’s top 500 companies, ranked on value of sales last year. Tyre manufacturing is represented by three companies. These are Michelin (number 118) with sales of 15.77 billion Euro, Continental (158 – sales 11.23 bn Euro) and Pirelli (217 – sales 7.50 bn Euro). To put this in perspective, the number one-ranked European company was BP, which had sales of 197.8 bn Euro.
The Toyota Motor Corporation is negotiating with Yokohama Rubber Company Limited and Toyo Tire & Rubber Company Limited with the intention of producing tyres, using a new manufacturing process that the car maker has totally funded.
The European Bank For Reconstruction And Development will provide 20 million dollars in funds to Michelin Russian Tyre Manufacturing, giving it a 49 per cent shareholding in the plant at Davydovo. Production at the new facility is expected to reach 2.1 million units by 2005.
Dunlop Tyres International (formerly Dunlop Africa) has sold off its international products division to Specialised Belting. The price was not revealed. The international products division includes conveyor belt and hose manufacturing and the sale, according to Dunlop CEO Mike Hankinson, follows Dunlop’s decision to concentrate on the core business of tyre manufacturing
Superior Industries International has reported that net income for the first quarter of 2002 has exceeded analyst expectations with revenue and shipments reaching record highs. For the first quarter 2002 net income increased by 7.6 per cent or 0.65 dollars per diluted share. Shipments of aluminium wheels increased by 16 per cent bringing revenue for the first quarter to 186,532,000 dollars, a record for the company and a 12.3 per cent increase on the same quarter for 2001. The results include the write off on non-recurring start up costs of 1.653 million dollars in respect of the launch of the new aluminium suspension parts operation. The joint venture wheel manufacturing operation in Hungary also posts profitable results.
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