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.
Apollo Tyres joint chairman Neeraj Kanwar has spoken out in support of keeping and even expanding Apollo and Cooper’s existing manufacturing sites. With the dust still settling following the news of the acquisition of Cooper by Apollo, Kanwar’s comments, which came as part of an interview with Tyres & Accessories, appear to act as a further assurance that the company has no plans to close its manufacturing locations.
Germany’s Robert Bosch GmbH and Japanese firms GS Yuasa International Ltd and Mitsubishi Corporation have agreed to work together on the next generation of high-performance lithium-ion batteries. These batteries are fundamental for future forms of mobility, including plug-in hybrid or all-electric vehicles. The companies’ stated aim is to use advanced cell management and progress in electrochemistry and materials to significantly increase energy content. This will reduce weight and space requirements, and increase the range of electric vehicles.
In late May, Brazilian tyre industry association the ANIP (Associação Nacional da Indústria de Pneumáticos) reported that the country’s tyre production only increased four per cent during the first four months of 2013, despite a year-on-year growth of 17 per cent within the automotive industry between January and April. ANIP blamed this growth congruence on increased tyre imports, prompting association president Alberto Mayer to comment that many imported tyres were not legal imports, were of a quality below that set out by national accreditation body Inmetro, and avoided the end of life tyre handling fee charged on domestically-produced tyres.
In June, Kumho Tire announced a global first – it will place radio-frequency identification (RFID) tags on all tyre products it manufactures. Kumho’s RFID programme is being rolled out as part of the ‘u-IT New Technology Verification Project’ supported by Korea’s National IT Industry Promotion Agency and a key aim of fitting RFID tags is to increase workflow efficiency; furthermore, with the expansion of its RFID-embedded tyres to all product lines, Kumho Tires expects to cut KRW10.4 billion (£5.9 million) in annual logistics, production and quality control costs.
Cabot Corporation has announced a new agreement with Grupo Kuo SAB de CV to purchase its remaining 60 per cent equity in the companies’ Mexican carbon black manufacturing joint venture, Nhumo, SA de CV. Cabot will pay $105 million for Kuo’s current shareholding, of which $80 million will be paid upon closing, excluding cash acquired. Cabot says Nhumo’s position as a leading carbon black producer in Mexico will help to strengthen its global carbon black business, and help to meet what it says is a growing demand for carbon black throughout North America. Following the announcement Cabot shares increased 2.9 per cent, and the company said it expected an earnings boost of around $0.15 per share as a result of the acquisition in the 2014 financial year. Extending into the next three years, Cabot estimates that operational synergies could increase earnings per share by $0.05 to $0.10.
The Association of European Automotive and Industrial Battery Manufacturers (EUROBAT) has elected Johann-Friedrich Dempwolff, general manager and vice-president of Industry and Governmental Relations for Johnson Controls Power Solutions EMEA, as its new president. The appointment took place last week during EUROBAT meetings in Italy. Dempwolff will serve as president for two years.
Although there are still some three months until the opening of the 11th China International Tire Expo, the show’s organiser says the number of stands booked and floorspace have already set a new record. According to Wilko Fong, managing director of Reliable International Exhibition Services, he expects more than 320 exhibitors at CITExpo 2013 to occupy 24,000 square metres of exhibition space in the three halls of the Shanghai Everbright Convention and Exhibition Center.
Late last month a new organisation was formed to represent tyre makers in a region some refer to as the “tyre capital of North America”. The establishment of the Tire Manufacturers’ Council was announced by the South Carolina Chamber of Commerce on 29 May; it says the council’s aim is to “evaluate and propose policies relating to the manufacture of tyres in South Carolina.” Foundation members include Michelin North America, Bridgestone Americas and Continental Tire the Americas.
German scientists claim to have produced lithium-ion batteries with a much longer working life than those currently on the market. The team at the Ulm-based Zentrum für Sonnenenergie- und WasserstoffForschung (Centre for Solar Energy and Hydrogen Research) Baden-Württemberg report developing a battery that retains than 85 per cent of its initial capacity after 10,000 full cycles while possessing qualities comparable to batteries produced by leading Asian manufacturers, including power density.
Business secretary Vince Cable has appointed Joe Greenwell, the former chairman of Ford, as head of the Automotive Investment Organisation (AIO). Funded with up to £3 million over the next two years, the AIO will spearhead the campaign to attract inward investment to the UK. Continuing to attract investment from overseas into the UK is one of the main themes of the automotive industrial strategy to be published shortly. The automotive sector is one of 11 key areas that the government is working collaboratively with industry on a long-term plan to deliver economic growth and prosperity.
Further details of Apollo’s Cooper Tire acquisition have been published by Indian brokerage house Angel Broking. In its 13 June market outlook report, Angel Broking notes that Apollo Tyre’s acquisition of Cooper Tire & Rubber will be funded entirely through debt. Apollo, it elaborates, plans to form a new holding company in the Netherlands involving Cooper and Vredestein, which would raise US$2.1 billion in debt via bonds. The major portion of the debt will be backed by Cooper and Vredestein’s assets. The remaining debt $450 million debt will be raised at Apollo’s Mauritius subsidiary and serviced by its standalone business, says Angel Broking.
In response to what it describes as “more than a decade of substantial annual losses in Colombia”, a situation it says “repeated investments have failed to stem”, Michelin has decided to discontinue the manufacturing operations of its local subsidiary Icollantas. The tyre maker singles out the unit’s insufficient size and other local economic factors as the reasons behind Icollantas’ lack of competitiveness.
When the rumour mill began grinding in the last quarter of 2012, Apollo did little to counter speculation that it was preparing to buy US tyre-maker Cooper Tire. With the gift of hindsight it seems the gossip was exactly right. Back then, as Tyres & Accessories as well as other observers suggested there was a strong rationale for such a move, but with no-one breaking ranks it was difficult to be more definite.
Now, following confirmation of the move, the purchase is being presented as a strategic merger. But it is also a complex manoeuvre. Apollo, founded in 1972, has an increasing reputation for fast development and particularly with regards to its Apollo and Vredestein brands, which have been able to attain OE contracts with leading carmakers and tuners. Cooper, the 11th-largest tyre company in the world by revenue, was founded in 1914 and supplies numerous brands around the world such as Cooper, Mastercraft, Starfire, Chengshan, Roadmaster and Avon, which is particularly popular in the UK.
Apollo Tyres has finally confirmed speculation that the India-based manufacturer is to buy US firm Cooper Tire in a friendly takeover. According to the company the US$2.5 billion deal makes the firm the seventh largest tyre manufacturer in the world with combined revenues of US$6.6 billion. It also gives the manufacturer access to the North and South American markets currently uncovered by its global presence. Under the terms of the agreement, which has been unanimously approved by the boards of directors of both companies, Cooper stockholders will receive $35.00 per share in cash. The transaction represents a 40 per cent premium to Cooper’s 30-day volume-weighted average price, according to an announcement detailing the news. We will add further details to this developing story as we receive them. Look out for complete coverage in the July issue of Tyre & Accessories magazine and online at Tyrepress.com.
It may sound like an epithet uttered by Mr. T’s European cousin, but VŪHL is in fact the name of a Mexican vehicle that will make its global debut at next month’s Goodwood Festival of Speed. This is of particular interest to us as Michelin has entered into a technical support arrangement with VŪHL Automotive, the company behind the VŪHL 05. Needless to say, the all-new road-legal lightweight supercar will be shod with Michelin tyres.
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