Middle East
Infinity Tyres is now recognised around the world for its growing OTR tyre range. Following extensive trials in demanding conditions across Australia, Africa and Asia, Infinity’s speciality heavy-duty mining tyres are now first choice fitments across a range of fleets operating in the most extreme environments.
At the start of 2013, Jeff Schumaker took over as managing director of Cooper Tire Europe moving to the company’s Melksham headquarters in order to take up the role. But Schumaker’s appointment wasn’t a UK debut, but rather a return to the country and to familiar faces. Schumaker’s first stint in the UK took place roughly a decade ago in 2002/2003 when he was mentored by then MD Ron Shield and worked alongside his immediate predecessor in Melksham, Julian Baldwin, who was then marketing and motorsports director. Roughly four months after Schumaker took up the reigns at Cooper Tire Europe, Tyres & Accessories visited the company’s Melksham headquarters to see what direction the company is taking following the most recent change of leadership.
The earnings posted by chemical company Lanxess in the first quarter of 2013 were lower than the company expected, and it says the weak market environment in the tyre and automotive industries is particularly responsible for this.
Although Goodyear Tire & Rubber shipped fewer tyres and generated lower sales in the first three months of 2013 than a year earlier, the bottom line for the quarter was much healthier. The only regional disappointment was, predictably, Europe – and Goodyear says it will address weakness in the European markets by implementing “additional productivity improvements”. Specific details regarding these measures have yet to be announced.
The Al Dobowi Group has been distributing Chinese manufacturer Hangzhou Zhongce’s Westlake tyre brand in certain key markets for 20. The Group’s chairman, Surender Kandhari marked the occasion by presenting Ge Gourong, CEO of Hangzhou Zhongce, with a commemorative gold dagger. The gift, a symbol of strength, is designed to reflect the 20 years of partnership and “years of future growth together”, Al Dobowi states.
Goodyear Dunlop Tires Europe has appointed Leszek Szafran as Director Retread Operations Europe Middle East and Africa (EMEA). He will take over the position from Hubert Moquet, who retires after more than 34 years’ service with the company.
For the year ended 31 December 2012, Japan’s Sumitomo Rubber Industries Ltd. recorded net sales of 710.2 billion yen (£4.9 billion), a year-on-year increase of 4.9 per cent. Operating income, at 69.7 billion yen (£481.5 million), was up 29.3 per cent on the 2011 result, while ordinary income of 67.4 billion yen (£465.1 million) represented a 34.9 per cent rise. Net income for 2012 amounted to 35.5 billion yen (£237.9 million), a 24.9 per cent year-on-year increase.
Goodyear has reported that its fourth quarter 2012 sales amounted to $5 billion, down 11 per cent from 2011. According to the company, the drop reflects $338 million in lower tyre unit volumes, $221 million in lower sales in other tyre related businesses and $85 million in foreign exchange effects. It is worth pointing out that although tyre unit volumes totalled 40 million, this is generally down 7 per cent compared with 2011. And what’s more Goodyear reported that this primarily reflects lower volumes in Europe.
Bridgestone Corporation subsidiary Bridgestone Middle East & Africa FZE has opened a new multipurpose facility in Dubai. The centre, known as ‘Bridgestone Park’, is located in the Jebel Ali Free Zone and will be used for training company employees and distributors throughout the Middle East and Africa in the areas of sales and technical support for passenger, truck and bus tyres, along with training in the technical skills required in the manufacture of Bandag brand retreads. The 21,678 square metre facility also contains a passenger tyre retail shop that is intended to serve as a model for shops in the Middle East and Africa that handle passenger tyres and car maintenance, plus a truck and bus tyre service centre. At present 20 people are employed at Bridgestone Park.
Recent reports published by financial analysts suggest Goodyear could be forced to restructure its business in the Europe Middle East and Africa (EMEA) region.
Reporting on an investor’s presentation given in Detroit, Deutsche Bank market watchers relayed that Goodyear cautioned that financial targets established two years ago – specifically US$1.6 billion segment operating income by 2013 – would be “difficult to achieve if current European market trends persist”.
Apollo Tyres Ltd has opened a global R&D centre in Enschede, the Netherlands as well as a global branding centre in London, UK. Opened just days apart, the two moves follow earlier commitments to put European activities in the driving seat for passenger car tyre development and, in company chairman Onkar S Kanwar’s words, to fuse the company’s three cultures into one team. Hints towards increased OE activity and the potential of a more international investor base are also evident.
Recently Goodyear launched its FleetOnlineSolutions Mobile Technical Evaluation (FOS Mte) for OTR tyre into the Europe, Middle East and Africa region business area. The internet-based tyre management programme allows fleet inspection reports to be filed online at the time of each visit, quickly giving the customer information on the performance of each tyre in the fleet. It also provides relevant information in actual cost terms for greater transparency.
Former Nokian Heavy Tyres marketing manager Perttu Mäkinen has been appointed by Mitas as its country manager for the Nordic region. Mäkinen will operate from the Mitas a.s. headquarters in Tampere, Finland, and his responsibilities will include sales and marketing for Mitas and Continental agricultural and other off-road tyres in Finland, Sweden and Norway.
Tyrepress.com took the opportunity of Reifen China to discuss the effect on exports of the US tariff on Chinese manufactured tyres coming to an end on 26 September. While Tyrepress.com has often focussed on the introduction of EU tyre labels – which received mixed coverage amongst exhibitors in Shanghai – the effect of its introduction should be seen in the context of the US tariff’s end. The question isn’t just how Chinese manufacturers are dealing with tyre labelling restrictions, but whether they are altering export strategies based on demand created by the expiration of the three years of 35 per cent duty faced by importers of Chinese tyres in the US too.
At Reifen China Tyrepress.com spoke with three European wholesalers at the show, representing Belgium, the Netherlands and Poland. Deldo’s Rutger Veerman emphasised the importance of its connection with Asian markets, having sold Chinese brands for 15 years. Chinese products, including Minerva and Fortuna, made up half of the wholesaler’s eight million tyre sales in 2011, while Veerman says the increasing market for higher-end vehicles in Asia has in turn increased demand for premium brand tyres in the Asian replacement market. He said the company’s presence at the show was important in talking with suppliers and customers alike, emphasising Deldo’s “message to colleagues in China to consider strategy more”, since the control offered by private Deldo labels is attractive to “lots of customers”.
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