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Infinity Partners Visit Dubai

With an increasing number of distributors joining the Infinity partners scheme, the brand is reportedly gaining “steady momentum” in the competitive price passenger car and truck sectors. According to company representatives, partners have been appointed in 25 countries across Europe during the past 12 months.

At the end of April, parent company – The Al Dobowi Group in conjunction with its European subsidiary – Goldspark Trading Ltd, organised a special three-day dealership event in Dubai entitled ‘Infinity Partners Day’. The appointed Infinity distributors in Europe, the UK and Ireland were invited to be the guests of Al Dobowi’s Chairman, Surender Singh Kandhari and his family for a combination of business and pleasure in the United Arab Emirates staying at the very impressive luxury hotel complex – Al Murooj Rotana Hotel in Dubai.

8th July 2008/by Tyrepress Editors

The Rise of the Eco-Tyre

Anyone who attended the Essen show will have noticed how dramatically the marketing messages propagated at the show appear to have ‘evolved’ from seemingly polar positions.

Asking certain companies what their policy was in relation to aromatic oils and low rolling resistance tyres four years ago resulted in quizzical looks and stifled smiles. There may have been a few companies ahead of the game on this issue, but in general it was all about size, speed and profile. Now this remains undeniably influential, but the ‘product narrative’ has changed completely. Today’s tyres save fuel and last longer than ever, apparently.

As global consumer markets feel the pinch from the credit crunch, one can’t help wondering how long it will take the Chinese manufacturers to catch up with ‘green’ eco-technology. However, there remain both distributors and manufacturers alike that are sceptical as to the sales value of the green message. Do consumers really buy tyres because they may save them fuel?

Pirelli Tyre CEO and European Tyre & Rubber Manufacturers’ Association (ETRMA) president, Francesco Gori, spoke on a related subject during the opening ceremony. In his speech Dr Gori was “perfectly frank” in his references to planned EU directives that will require tyre manufacturers to improve wet grip performance, material authorisation and road noise properties. By way of a warning, he pointed out the consequences these regulations could have on European producers, particularly in comparison with their Asian competitors. Despite the looming threat of legislation and the cost pressure caused by rising raw material prices, the consensus from Reifen visitors is optimistic – 20.2 per cent are even expecting a strong upward trend in the economic growth of the tyre sector, this compares with 12.2 per cent who predicted this in 2006.

As far as the exhibition itself was concerned, with 20 per cent more exhibitors than last time and 17,600 visitors, Reifen Essen has obviously received the green light from the tyre trade. In fact, according to data released by Reifen show organiser Messe Essen, the 25th Reifen exhibition was actually a record breaker. 576 exhibitors (up 21 per cent on 2006) showed their tyre, wheel and chassis technology-related products and services. Visitor numbers totalled 17,600 compared with 17,100 in 2006.

Messe Essen reports that the show was also more international that ever, with 57.4 per cent (2006: 45%) of visitors originating from outside Germany. “That is an excellent value; it highlights the position of Reifen as the leading international fair in the sector,” Dr. Joachim Henneke, Chairman and CEO of Messe Essen commented. International visitors primarily came from other European countries (78.9%) and from the Asian region (11.1%).

Visitors from “the tyre trade” accounted for 34.4 per cent of show traffic, while another 26.8 per cent reportedly worked in the tyre service side of things. 51.1 per cent of visitors described themselves as amongst the top decision-takers in their companies (2006: 44.7%). Seemingly as a result, 42.1 per cent of the visitors placed orders during the show and 42.5 per cent stated that they wanted to conclude contracts after the fair. Nearly all the exhibitors (97.5%) said they had reached their intended target audience.

Keith Jarman, President of AME International, was one particularly positive exhibitor: “Our international business would not be where it is now if this fair had not existed. In spite of the worldwide economic difficulties, the tyre industry is doing fine from a global perspective. Because of the dollar exchange rate, it is absolutely sensible to be here.”

Jean-Claude de Thibault de Boesinghe, Sales & Marketing Manager for EMEA of Bandag AG, echoed this sentiment: “Reifen has gone very well for. We always concentrate all our activities on this fair and meet our dealers from Europe, the Middle East and Africa here. On a large, open booth, we have shown the newest products and technological innovations. The first day was already very busy and the second even better.”

8th July 2008/by Tyrepress Editors

Becoming a Global Force

Canada-based worldwide wholesale operation, Hercules International, had long considered how to develop its ‘global’ position. Then, at the end of 2007, Corporate Business Development Officer, Joe Recchia announced plans to maintain a presence in all the major tyre trading routes by opening offices in Latin America, South East Asia, the Middle East, China and Europe. Then Hercules was aiming to grow “from international to global player in 2008.” Seven months later, those offices are all either running or near opening. Tyres & Accessories spoke to Joe Recchia and Hercules vice president sales and marketing Josh Simpson and found out how the plans are progressing.

Hercules International took the decision to move from an international to global business in 2007. Throughout the process the company’s intention has always been twofold: to develop the position of its key Hercules brand in the global marketplace; and to support rather than compete with local customers. From Recchia’s point of the view, the driving force behind the global move is to be present in each area with people who know that specific market in order to develop appropriate product lines and therefore better serve customers.

From T&A’s perspective the biggest news is that Hercules’ plans are progressing rapidly in Europe. The wholesaler has already made the necessary arrangements (through a third-party logistic company) to run a warehousing operation in Rotterdam. This move is being described as a relatively temporary action and is therefore expected to last around three years, as the company’s is continuing towards its long-term goal of acquiring a “strategically placed presence in the European market.” Recchia wouldn’t be drawn into giving further details on what that might mean, but the company is definitely considering acquisition options. In addition, the company will be ready to open a new office in Barcelona in the next 60 days.

But its not just about getting people on the ground. It’s also about product development. According to marketing vice president, Josh Simpson, one of the reasons the Hercules team attended May’s Essen Show was in order to identify which particular product offerings are suitable to which markets – with a view to adapting the Hercules range as required. “It is clear to us that the EU sets the standard [in terms of product development and design] and the US follows within a certain period of time,” Simpson commented.

Currently European business only represents around 10 per cent of Hercules’ overall sales, but it clear that executives want to increase this in ways that support its model of offering geographical exclusivity to customers who buy the Hercules brand. Hercules International is also continually reviewing which markets have particularly strong wholesale influence and would therefore make a good European base. Simpson was reluctant to give specific details about exactly what this might mean in terms of acquisitions. He did, however, agree that the Germany and the UK are both examples of wholesale-strong markets.

The first ‘global’ office to get underway was Hercules Latin America earlier in 2007. Founded by virtue of the company’s acquisition of TDI, the Latin America regional office is based in Miami, USA, but seeks to take advantage of its strong geographical position in relation to both the Latin American and Caribbean markets. This warehouse is now fully manned, with an additional seven representatives generating sales on the road.

Next up were offices in the Middle East, South East Asia and Europe. The Singapore office, which covers the Far Eastern markets with the exception of China, is already up and running. More recently Hercules gave Anirudh Rathore responsibility for the new Dubai office. According to Recchia, he has been training in the Ontario, Canada head office for the last months and is now fully prepared for his new assignment. Rathore is due to enter the marketplace in July.

And finally, for now, there is the Qingdao, China office that T&A reported on earlier this year. This operation is poised to expand into the company’s global distribution centre shortly – company representatives out there are already staffing the new warehouse, while they finalise the location.

Production pressures

Hercules International describes itself as a wholesaler to wholesaler business. However, with the amount of tyres the company produces across its various private brand labels and across a number of different factories – you may as well call them a tyre manufacturer. And with the responsibility of producing come the pressures – which are particularly sever at the moment. Everyone has heard about China’s decision to up VAT rates on tyre production and the recent difficulties associated with securing shipping, but were you aware of the effects of the Olympic games on production capacity? When you add in the fact that demand for steel, oil and rubber and fillers is all “far outstripping supply”, you can see that it is not as easy as it once was to get tyres in China.

As a result, Hercules’ plans for to enter China in a bigger way via the OE route are currently said to be on ice. Hercules representatives first mentioned the OE concept at the end of 2007, were the programme was expected to be well underway by the middle of 2008. However, the Olympics, increasing raw material price pressures and the lack of supply on some product fronts mean these plans are well and truly on-hold for the time being.

Hercules dealing with challenges on the home from, as the whole North American market faces relatively a tough time. However, despite these pressures, company represents are confident of Hercules’s ability to ride the storm. “Hercules remains stable with growth… and [we] predict further incremental growth,” vice president for marketing, Josh Simpson commented. Looking forward, the company is on-track for an even more optimistic outcome: “We are looking at programmes that will double the size of the business in the next three to five years,” Joe Recchia commented.

There are no plans to bring in any more additional brands to the Hercules stable, which currently includes brands such as Hercules, Ironman and Merit, so this means the company’s ambitious targets rest heavily on the success of the success Hercules marketing programme and the geographic exclusivity the company offers with it.

30th June 2008/by Tyrepress Editors

Belshina to Increase Output by 7%

A more efficient use of production capacity should see tyre output increase by 7 per cent this year at Belshina. The Belarus based company is reported to be planning an upgrade of its existing processing lines and the introduction of a new tyre assembly system. Its output of OTR tyres is also set to expand following the commissioning of an OTR radial assembly system supplied by the VMI Group. The system can accommodate tyres between sizes 17.5 R25 and 24.0 R35, although it will be principally used for manufacturing 21.0 R35 and 24.0 R35 size tyres suitable for rigid dumper applications. Belshina will reportedly increase output to just under 28,500 units per year, with 37 new sizes and types introduced by 2010.

20th June 2008/by Tyrepress Editors

New Goodyear Dunlop Europe Truck Tyres Marketing Director

Boris Stevanovic has been appointed Goodyear Dunlop Tires Europe BV marketing director for truck tyres, and in this role will be responsible for the company’s operations in this sector within Europe. He takes over from Pietro Saletta, who moves to Italy and begins as the company’s European director of Consumer Tires.

18th June 2008/by Tyrepress Editors

Pirelli Invests $65 million in Egypt Tyre Plant

The Pirelli Group is to increase truck and bus tyre production capacity in Egypt by 50 per cent through the investment of $65 million dollars in its Alexandria TBR plant. The announcement was made by the Chairman of Pirelli & C. SpA, Marco Tronchetti Provera, to Egyptian Trade and Industry Minister, Mohamed Rashid, on the occasion of the Italian-Egyptian inter-governmental meeting taking place in Rome. The new investment will allow the factory in Alexandria to increase its annual production to 1 million pieces and become the largest site for manufacturing radial tyres for industrial vehicles in the MEA (Middle East and Africa) area.

According to an official statement on the matter, the growth of production capacity will be focused on “the most advanced product and process technologies able to express maximum performance both in terms of the needs of emerging markets and with respect to the requirements of the main customers in Continental Europe.”

4th June 2008/by Tyrepress Editors

Infinity Distributors Mix Business and Pleasure at ‘Partners Day’

The Infinity brand is one that steadily continues to gain momentum in Europe as a popular choice for competitively priced quality in the passenger car and truck sectors. The number of distributors that have been appointed in 25 countries throughout the region is growing and, towards the end of April parent company – The Al Dobowi Group in conjunction with their European associate – Goldspark Trading Limited, organised a special three-day dealership event for both new and existing distributors.

At the ‘Infinity Partners Day’ Infinity distributors from Europe, the UK and Ireland were invited to be the guests of Al Dobowi’s Chairman, Mr Surender Singh Kandhari and his family for a combination of business and recreation in the United Arab Emirates. Attendees came from all corners of Europe and included Bond International (UK), Kings Road Tyres (UK), Daly Tyres (Ireland) Kings Road Tyres (Ireland), Reifen Ruhdorfer (Austria), Fort Pneus (France), Intergomma (Italy), Distyre (Spain), Guitires (Spain), Heuver Banden (Netherlands), Euro-Tyre (Netherlands), AKH (Hungary) and Latex (Poland.)

30th May 2008/by Tyrepress Editors

Toru Tsuda New Bridgestone Europe President

On 22 May Bridgestone Corporation announced a string of senior management changes that mean Toru Tsuda has become the new Chairman, President and CEO of Bridgestone Europe NV/SA. Mr Tsuda is currently Vice President and Senior Officer Responsible for Products Development Tire Products Development.

Current Bridgestone Europe chairman, president and CEO, Takashi Urano, will become vice president and senior officer responsible for International Tire Business Operations. This role means Mr Urano will also be director Middle East, Africa, Russia, Asia, Oceania and China Operations Division; and concurrently general manager, Middle East, Africa and Russia Operations.

The management changes in full are as follows:

27th May 2008/by Tyrepress Editors

Further Price Rises for Sumitomo Group Tyres Announced

SRI Tire Trading, the tyre exporting company belonging to the Sumitomo Rubber Group, is to increase the export prices of its Dunlop, Falken and Sumitomo brand passenger car, light truck, truck and bus and motorcycle tyres in Europe, North and South America, Asia and the Pacific, Africa and the Middle East. Increases will be implemented gradually from July onwards, and will range between 5 and 15 per cent, depending on tyre type, size and market. The company, however, reports that most increases will be in the vicinity of 5 to 10 per cent.

The increases are due to, SRI adds, surging raw material prices, including those for rubber and crude oil. The company says the level of these increases since last year is now to great for it to absorb internally, and thus it must introduce this, its second price increase this year – a 3 to 7 per cent price rise was also announced in the first half of the year.

14th May 2008/by Tyrepress Editors

Dunlop SP Sport Maxx TT – A Touch Different

Dunlop’s latest addition to its uhp range is the SP Sport Maxx TT, the successor to the award-winning SP Sport Maxx and which incorporates a host of new features and advanced technologies.
The first of these is the addition of DuPont Kevlar Engineered Elastomer (EE) to apex of the tyre. Kevlar is a fibre that is five times stronger than steel, yet light in weight and its addition to the tyre apex compound creates a stiffer sidewall, which becomes more resistant to torsion, tension and heat and guarantees increased stability during cornering, as well as enhanced road feedback and more precision driving.
The compound is further enhanced by the use of motor sport-derived compound and fillers with particle sizes smaller than 100 nanometers – with one nanometer being one millionth of a millimetre. This ensures better bonding between the filler and rubber matrix, thus increasing the total surface, which in turn ensures that the tyre offers better performance in both adhesion and wear. The concrete benefits are numerous: improved wet and dry grip and braking, as well as longer mileage.

2nd May 2008/by Tyrepress Editors

Hankook Sales Reach $1 Billion in Q1 2008

Hankook has reported year on year sales growth of 18.4 per cent during the first quarter of 2008, delivering the company its first-ever quarterly sales exceeding US$1 billion. The company attained sales of KRW997.3 billion ($1.041 billion). Sales figures for the three-month period included an impressive upsurge in worldwide UHP sector sales of more than 40 per cent and sales to OE manufacturers growing by 15.7 per cent.

Sales to Europe grew by 25.5 per cent year-on-year, boosted by a massive 183 increase in year-on-year sales to the Russian market. Sales to North America also recorded an 18.1 per cent year-on-year increase. In addition, sales to Latin America, Asia-Pacific, Africa and the Middle East increased year-on-year by 22.5 per cent.

1st May 2008/by Tyrepress Editors

From Racetrack to Motorway

As the official tyre supplier of the HiQ MSA British Touring Car Championship, Dunlop is confident it knows what it takes to create a truly high performance tyre. The technology required to create such tyres is not only used on racetracks across the UK; it also resides in the tyres used by millions every day.

There was a time when the motto ‘race on Sunday, buy on Monday’ meant exactly that – sixty years ago a motorist could more or less purchase any car or component seen out on the track the previous weekend. These days competition cars are somewhat farther removed from their road going counterparts, but Dunlop says that in spite of this it strives to keep the race on Sunday, buy on Monday spirit alive as it believes on-track rubber developments can benefit every driver.

Most of the time BTCC drivers compete on treadless slick tyres, so one may be tempted to ask how such an item can help the development of a road tyre. The answer is straightforward – a tyre without tread is, by necessity, more dependent upon its compound to deliver the correct amount of grip. Tyre longevity, or lack of, also becomes more pronounced. Sensors allow data from the tyres to be read, and when fed into a computer Dunlop’s road engineers can study how the rubber behaves when pushed to its maximum.

22nd April 2008/by Tyrepress Editors

Towell Auto Centre Opens 16th Bridgestone Outlet in Oman

Towell Auto Centre LLC, exclusive Bridgestone distributor in Oman, has made further inroads into the national market with the opening of a new Bridgestone ‘Tyre Care Plus’ (TCP) facility in Barkha on April 2. The new centrally located outlet is Towell Auto’s 16th TCP outlet in Oman, and Towell believes the outlet represents an ideal model for a stand-alone tyre retail centre.

In attendance at the opening ceremony were Mr. Shoichi Sakuma, president of Bridgestone Middle East & Africa FZE, along with senior officials from Bridgestone and Towell Auto Centre. Mr. Sakuma along with Mr. Riyadh Ali Sultan, general manager of Towell Auto Centre, inaugurated the new TCP unit before a tour of the centre’s facilities and services was given.

3rd April 2008/by Tyrepress Editors

Dunlop Promotes New Grandtrek Touring A/S Tyre

Dunlop has announced the introduction of the all-season SUV tyre Grandtrek Touring A/S. The new tyre for modern Sport Utility Vehicles (SUV) has been developed to include Dunlop’s Touch Technology for balanced, all-season, all-condition performance and strong road feedback. According to the manufacturer, the launch of Grandtrek Touring supports the continued growth in popularity of SUVs.

With its all-season technology, Grandtrek Touring encompasses a range of properties that are designed to ensure top performance. The tyre features a unique polymer blend tread compound for driving in all weather conditions. The Grandtrek Touring’s tapered shoulder grooves, are said to provide “innovative stiffness distribution,” while the asymmetric tread design reportedly combines with the shoulder grooves to optimize the tyre’s all-weather capabilities. The reinforced, stiffer sidewall controls the important displacement of energy that is usual from large vehicles when cornering.

3rd March 2008/by Tyrepress Editors

Goodyear Poland Expansion to Create 400 New Jobs

As reported on February 26, Goodyear has requested that Poland’s TC Debica, in which it holds the major shareholding, triple its production of commercial vehicle tyres from 1,700 to 5,000 units a day. This increase output is needed, says Goodyear, to meet European demand for high quality truck tyres.

Goodyear has had a majority ownership interest in TC Debica, Poland’s largest tyremaker, since 1995, and the Polish company’s management board will decide whether to go ahead with making the necessary investment to expand production there. Goodyear estimates the expansion will require an investment of more than US$200 million. Such an investment, which would likely involve assistance from Polish national and regional authorities, would create 350 to 400 new jobs at TC Debica.

27th February 2008/by Tyrepress Editors