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Region with potential for the Goodyear Group

Jarro F. Kaplan, a Goodyear employee since 1986, is already in his second year as President Eastern Europe and is responsible for the region that includes Eastern Europe, South Africa, and the Middle East as well as some other countries in Asia. Before that he was General Manager Deutsche Goodyear in Cologne for two years and earlier in his career he held General Manager positions in the UK and Turkey. The region he is now responsible for is – measured by turnover – relatively small, but is becoming increasingly important due to the fact that the group is running highly competitive factories in Poland, Slovenia and Turkey. The income of the workers in those countries is not comparable with that of countries in Western Europe and will not become so for the next decade.

The biggest factory within the production network of the Goodyear Group in the whole of Europe is the Polish factory in Debica. The production is focused on passenger car tyres, mostly S/T rated. The Debica brand dominates, but many Fulda tyres are also produced there. And the Goodyear brand? “Not yet” says Kaplan. Debica has a production capacity of 40,000 tyres a day and there are already concrete plans drawn up to expand this. Plus it should not be forgotten that the Debica factory also produces some agricultural tyres as well as commercial tyres.

South Africa also belongs to Kaplan’s “Empire”. Goodyear has a big factory there and also its own equity with about 150 outlets, plus it is building and expanding a franchise-system.

Starting from South Africa, Goodyear is interested in doing more business in countries like Botswana, Sierra Leone, Kenya and some other countries. The company’s own equity in South Africa is doing a good job delivering tyres in the shortest possible time to customers. But it is absolutely clear that in the long run Goodyear must have its own people in those countries on which the company can rely; it can no longer leave everything in the hands of distributors. Kaplan: “You need to have your own people on the ground.”

Kaplan is travelling much more. For example to Dubai; from here Goodyear is defending its interests in countries like Israel as well as Palestine, in Iraq, Iran and so on. He travels to the north of Africa as well as to Pakistan. Pakistan belongs to his region. He who knows world politics can imagine that it might be impossible to bring India and Pakistan together under the one umbrella of Goodyear Asia.

To summarise: The Eastern Region is active in 95 different countries, with 52 different languages, which forces all managers to be sensitive and to respect the varied cultures.

9th October 2003/by Tyrepress Editors

Bridgestone to expand production of truck and bus tyres

Bridgestone Corporation has announced that it will increase production capacity of truck and bus radials at three plants in Japan, and will double the planned capacity at a plant currently under construction in Thailand. The reason is to cater for continuing growth in global demand for truck and bus tyres.

Production at the three Japanese plants at Amagi, Tochigi and Tokyo will increase to 1,300 tyres per day, thanks to an investment of two billion Yen (US$16.86 million), with expansion work expected to be complete by the end of 2004.

In Thailand, subsidiary company Bridgestone Tire Manufacturing (Thailand) Co. Ltd., has doubled the capacity originally planned for the plant it is building in Chonburi. Construction work began in February this year and the plant will begin production in the second half of 2004, with a daily production of 2,500 tyres. The latest expansion plans will see this increase to 5,000 tyres a day by the end of 2006, and they will cost seven billion Yen ($59 m), bringing the total investment in Chonburi to 24 billion Yen ($202.3 m).

These projects are part of Bridgestone’s on-going, global plans for expanding production capacity in radials for trucks, buses and passenger cars. Car tyre investment will address the shift in demand towards larger sizes and high-performance tyres in the mature markets of North America, Europe and Japan. At the same time, it will cater for growing demand for standard tyres in Asia, the Middle East and Africa.

The Bridgestone group has earmarked around 90 billion Yen for its capital spending programmes by the end of 2006.

4th September 2003/by Tyrepress Editors

Q2 Net Loss For Goodyear, But Sales Rise

Goodyear’s second quarter (Q2) figures reveal that the company lost $73.6 million, compared to a net income in Q2 last year of $28.9 m. Sales were up nearly 8 per cent at $3.8 billion (3.5 bn), but volumes were down half a million units to 52.8 million pieces. Chairman and CEO Robert J. Keegan described the results as „disappointing“, but said he was encouraged by the „numerous positive trends„ (notably operations outside North America) and he was „optimistic“ about the turnaround plans.

1st August 2003/by Tyrepress Editors

SRI Plans Price Increase

Sumitomo Rubber Industries has announced its intention to increase prices from three to five per cent in the second half of the year. These increases will apply to Sumitomo brand passenger, light truck, truck and bus tyres in Asia, Middle East, Latin America and Africa and they will vary according to country and product line. The increase is necessary, says SRI, because of increasing raw material costs and follows a similar price increase introduced in January this year.

9th May 2003/by Tyrepress Editors

Bridgestone raises prices in Asia

Bridgestone Corp. has begun raising tyre prices by between 3 and 5 per cent in Asia, Oceania, the Middle East and Africa to cover rising costs of raw materials. The increases will cover Bridgestone and Firestone radial and bias passenger, light truck, truck and bus tyres. Prices in the Japanese market will not be affected. Bridgestone has been implementing the price increases in stages since March 1 to compensate for the rising costs of raw materials, including natural rubber, synthetic rubber, carbon black and some chemical additives.

2nd May 2003/by Tyrepress Editors

First Quarter Loss For Goodyear

Goodyear Tire & Rubber has posted a first quarter 2003 net loss of $163.3 million, compared to a 1Q loss last year of $63.2 million. Turnover for the period was up 7.1 per cent to $3.5 billion ($3.3 bn 1Q 2002), due largely to currency translation and the loss before taxes was $135 million ($85.6 m). International tyre sales were generally good, but the tyre business in North America continued to struggle. President and CEO Robert Keegan was optimistic, however, saying that Goodyear was “aggressively cutting costs to make the business competitive.” He added: “We have much work left to do, but our turnaround is on track”.

2nd May 2003/by Tyrepress Editors

Yokohama To Boost Philippines Production Capacity

Yokohama Tire Philippines Inc. (YTP), a car tyre manufacturing and marketing subsidiary of Yokohama Rubber, is to upgrade its facilities to boost production by 25 per cent by the end of the year. The upgrade, which will cost around two billion Yen (15.1 million Euros), will boost annual capacity from two million tyres to 2.5 million. Most of the increase will be in 16 inch and larger sizes and, by the year end, it is anticipated that these sizes will account for 30 per cent of production. YTP began produc tion in 1998 and has been profitable since year one. 90 per cent of production is exported to Europe, the Middle East and ASEAN countries.

2nd May 2003/by Tyrepress Editors

Bridgestone Profits Doubled In 2002

Japanese tyre giant Bridgestone Corporation has reported a strong rise in net profit for the year ended December 31, 2002, and predicts a gain for 2003 as well, even though it warns that business conditions are getting tougher. Bridgestone’s group net profit more than doubled to US$378 million, from US$145 million, on brisk overseas sales. Group sales climbed 5.3 per cent to US$18,700 million, with pre-tax profit jumping 99 per cent to US$1,233 million. For the year to December 2003, the company said it expects group net profit to come to US$584 million, the same mark it initially set for 2002. It forecasts pre-tax profit to shrink to US$1,042 million and sales to slip to US$18,682 million. Bridgestone is boosting its capital spending in 2003 by more than 60 per cent to US$1.6 billion. The company’s president, Shigeo Watanabe, said the investment is aimed at boosting output capacity in Thailand and Poland, as well as upgrading each plant in Japan.

25th February 2003/by Tyrepress Editors

Brodsky Group Withdraws from Alliance

After lengthy negotiations The Harvey Brodsky Group has decided to withdraw its offer to purchase 51% of the stock of Alliance Tire, Israel.

4th February 2003/by Tyrepress Editors

Kaplan Praises Sava Performance In Interview

In an interview with a Slovenian newspaper Jarro Kaplan, president of Goodyear’s Eastern Europe, Africa and Middle East region, paid tribute to the part played by Sava Tire in Goodyear’s global business activities. Since Goodyear took an 80 per cent stake in Sava in 1998, the Slovenian company has grown in international importance, exporting more than 90 per cent of its production to 70 countries, with plans to enter the US market soon. Kaplan described the Sava workforce as “well educated, highly productive and internationally oriented.” A five-year investment program in Sava was completed a year ahead of schedule and, says Kaplan, Goodyear is seriously considering further production expansion. In addition to the Sava brand, the factory produces Goodyear, Dunlop, Fulda and Debica brand tyres and is Goodyear’s only European factory to produce 17.5 inch truck tyres.

6th December 2002/by Tyrepress Editors

New Plant For Bridgestone

Bridgestone Corp, Japan’s largest tyremaker, said on Tuesday it would spend 17 billion yen to build a third tyre plant in Thailand to meet growing demand for truck and bus tyres, particularly in Asia. The development, first notified in December 2000 by T&A, could also take Bridgestone to the number one position in the global tyre market. Bridgestone said in a statement that the new plant, located in Chonburi, 60 km south of Bangkok, would produce and export tyres to the Americas, Europe, the Middle East, Africa, and other Southeast Asian countries. “The new plant is a move to provide a multilateral, global response to the growing worldwide demand for truck and bus tyres,” said a spokesman for Bridgestone.

27th November 2002/by Tyrepress Editors

Andreas Niegsch Replaces Marco Molinari At Goodyear Dunlop UK

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.

27th November 2002/by Tyrepress Editors

Goodyear 3Q Results: Net Income Triples

Goodyear has published its results for the third quarter. Net income more than tripled to $33.7 million (3Q 2001: $9.3 m), while worldwide sales were down slightly at $3.5 bn ($3.7 bn). Currency movements had an estimated $4 m negative effect on sales and $10 m on earnings. For the first nine months, Goodyear posted a loss of $0.6 million, compared with a loss of $29.6 m for the same period last year. Sales were down too, at $10.3 bn ($10.7 bn), while tyre volumes slipped 2.5 per cent to 160.7 million units. Sam Gibara said that economic conditions in key markets and rising raw material costs are a concern, but Goodyear will continue to concentrate on reducing working capital.

31st October 2002/by Tyrepress Editors

Good First Half Results For Michelin – “Challenging” Next Six Months Forecast

Michelin has released its first half figures. Compared with 1H 2001, turnover is up 1.4 per cent to 7.8 billion Euros and operating profits up 16 per cent to 569.6 million Euros. Net profits were down 31.2 per cent to 254.1 million Euros, but the figures for 1H 2001 included a sale of Peugeot shares; when these are factored out of the equation, net profits for 1H 2002 rose 279 per cent. Much of the credit for the results goes to Michelin’s restructuring programme and debt has been reduced by one billion Euros, with operating margins improving one point to 7.3 per cent of net sales. Raw material costs declined by 6 per cent over the period. Looking ahead, Finance Director Michel Rollier described the second half of the year as “challenging and uncertain”, particularly the economic crises in South America. Michelin’s shares rose nearly 4 per cent on publication of the results.

31st July 2002/by Tyrepress Editors

Sava Introduces New High Performance Tyre Intensa

Slovenian tyre manufacturer Sava, since 1998 owned 60 per cent by Goodyear, presented their new high performance tyre “Intensa” for middle and upper class vehicles to the press and an international group of 360 retailers, from 21 nations, in Planica at the end of March. The directional tyre, which will replace its predecessor “Rapidex”, has been developed in co-operation with the Luxembourg R&D-department of Goodyear and will appear in 27 different sizes from 185/65 R 14 86H up to low profile dimension 235/40 ZR 17 90 W.The new tyre is made at a production plant that is regarded as one of the best and most powerful within the Goodyear organisation. In the past year the 1,400 employees manufactured seven million tyres – however just 57 per cent of these had the brand name Sava on their sidewall. The other 43 per cent were other group brands – Goodyear, Dunlop, Fulda, Debica and, until the end of 2001, some sizes of Kelly. All these brands are produced in parallel at the plant located in Kranj. The turnover of Sava could be increased 13 per cent up to 210.7 million US-Dollar under the leadership of Richard A. Johnson, former European finance boss of Goodyear. This year Sava aims to reach a result of 7.3 million units and a turnover of more than 233 million US-Dollar. Today, it is almost exclusively passenger car and light truck tyres that are manufactured in the production facility. The production of truck tyres has been shifted towards other plants in Poland and Turkey in recent years. Further foreign markets for the brand, which is well known in Central and Eastern Europe, include Western Europe, but especially South America, Middle East and Asia. Further highlights in the event programme were the guided tour through the factory in Kranj as well as a visit to the World-Cup final in ski-flying which is traditionally held in Planica.

17th April 2002/by Tyrepress Editors