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Chris Logan to Head Up Michelin Earthmover and Industrial

Chris Logan has been appointed to the role of commercial director for Michelin’s earthmover and industrial operations in the UK and Republic of Ireland. Logan, 44, a 21 year Michelin veteran, has held a number of positions within the company, most recently as sales manager in the replacement car tyre market. Prior to this, Logan spent four years as commercial director of Michelin’s operations in Nigeria. Other roles during his career with Michelin have included three years as a regional earthmover manager in the early 1990s, with responsibility for a territory spanning the East and South East of England.

6th March 2009/by Tyrepress Editors

Dunlop Nigeria to Cease Local Production

International News, Product News

At Dunlop Nigeria’s Annual General Meeting on December 2 the company formally announced it will end local tyre production. This announcement comes half a year after production was cut back, and operating conditions within Nigeria, including an unreliable power supply, are said to be key factors behind the decision.

3rd December 2008/by Tyrepress Editors

Kumho Appoints New Nigerian Distributor

International News

Kumho has returned to the Nigerian market following the naming of a new national distributor. Super Tyres and Motor Limited have been appointed to the role, reports Koh Bongyoon, Kumho’s international marketing manager, Africa operations. At a media briefing in Lagos, Super Tyres and Motor brand manager Aloke Sharma said the company aimed to position Kumho above competition in the premium segment.

According to Aloke, Super Tyres and Motors plans to hold at least 20 per cent market share for passenger car tyres within the first six months of Kumho tyre sales. The company is also the sole Nigerian distributor for GT Radial, Vikrant, DoubleCoin, BKT and Techking.

11th November 2008/by Tyrepress Editors

Getting ‘Tokunbo’ Off the Road in Nigeria

International News, Product News

A ban upon the importation of used tyres is already mooted for Nigeria, and one of the country’s six regional governments has announced it plans to go one step further. The Gwagwalada Area Council Unit Command of Nigeria’s Federal Road Safety Commission, said on October 13 it would prohibit the use of worn and second hand tyres, especially by commercial vehicles.

On making this decision public the unit commander, J.K Adamu, said seventy per cent of commercial vehicles plying Nigeria’s highways are still using second hand tyres. He added that the command has been making an effort in collaboration with members of the National Union of Road Transport Workers (NUTRW) in various regions, explaining the dangers in the use of second hand and worn-out tyres by drivers.

14th October 2008/by Tyrepress Editors

Nigerian Ban on Used Tyres Too Late for Local Industry

International News, Product News

Nigeria’s Customs and Excise Tariff Book for the period 2008–2012 has been presented. Amongst the many new measures being implemented in an effort to help the Africa nation’s economy is a ban on the importation of used tyres. However, in the opinion of many this measure may have come to late for the country’s domestic tyre industry.

13th October 2008/by Tyrepress Editors

A Continent of Contrasts

International News, Product News

Africa is a market that presents tyre manufacturers with both problems and opportunities. Theoretically, the potential may be there for a thriving industry and market, yet unreliable infrastructure, taxation issues and political instability are all features of the African tyre industry landscape that make operations complicated. However, despite such hurdles, the situation in some areas is improving.

In mid-July Dunlop Nigeria announced the planned closure of its factory, claiming tariff reductions on imported goods as a deciding factor. In early 2007 the Nigerian government reduced the tariff on imported truck and bus tyres from 40 per cent to 10 per cent, undermining, in Dunlop’s view, the investments it had made in expanding its radial production programme.

22nd August 2008/by Tyrepress Editors

Dunlop Sweeps Out of Nigeria

International News

Dunlop, the last tyre manufacturer with a factory in Nigeria, is set to leave the country, favouring the importation of tyres from other nations such as South Africa. The decision is said to be inspired by the persistence of power cuts, unreliable gas supply, a rise in manufacturing costs and inconsistent governmental tariffs, which allowed imported tyres to gain the upper hand in the domestic market.

The company stated that it had reached an impasse with the Nigerian government, after failing to persuade it to alter the prohibitive tariff structure. The government said that local manufacturing could not meet the market demand, though Dunlop argued that the current tariffs, coupled with energy costs and unreliability, made the improvement of production capacity impossible.

14th July 2008/by Tyrepress Editors

Nigeria Pledges to Continue Battle Against Sub-Standard Tyres

Nigeria’s Standards Organisation of Nigeria (SON) will destroy £667,000 worth of counterfeit and sub-standard tyres seized from importers smuggling them into the country from the neighbouring Benin Republic. This news was disclosed by SON director general Dr. John Akanya, who stated that the destruction of property with such a high street value was necessary due to the danger it posed to human life.

Commenting on the tyres and related goods seized by SON agents, Dr. Akanya said: “These are the handiwork of evil people who want to make money at all cost, not minding how it affects people’s life. What they do is that, for every good tyre, you have ten and that changes the balance.” The director general believes that inconsistent nature of security at Nigeria’s borders and weak legislation in neighbouring countries is the root cause of Nigeria’s growing problems with sub-standard products.

22nd January 2008/by Tyrepress Editors

Dunlop Nigeria to Borrow Funds for Modernisation

The Economic Community Of West African States (ECOWAS) Bank for Investment and Development has granted Dunlop Nigeria PLC a loan of US$8 million. The company was scheduled to sign a loan agreement at the ECOWAS Commission in the Nigerian capital city Abuja on November 23.

“The loan will enable Dunlop to partially finance the modernisation of some existing installations in its factory and procure new moulds for the manufacture of a greater range of products to meet the needs of the local market,” read a statement released by ECOWAS, a regional grouping comprised of 15 African member nations. Dunlop Nigeria will repay the loan over a five-year period.

23rd November 2007/by Tyrepress Editors

Michelin’s Future Productivity Gains Will Be ‘Huge’

Analysts are predicting huge productivity gains after Michelin announced the restructuring of its Japanese plant, involving the lay-off of 550 people (following Canada, Nigeria and France last year). More cuts are expected in the next quarters, with annual restructuring charges to involve approximately 1,500 people per annum. This is in addition to the attrition of approximately 4,000 people per annum (of which less than 50 per cent being replaced). Thus, the net reduction of the workforce will reach approx 4,000 people per annum (5,500 gross).

“This will lead to significant Labour cost savings. We expect the group’s labour cost sales ratio to reach 22 per cent by 2010 (ie closing the gap with peer group) or equivalent to an improvement of almost 200 basis points per annum. Management targets a 30 per cent productivity gain by 2010, of which only one third will come from the volume effect,” the Deutsche Bank analysts explained. While Michelin had a labour cost/sales ratio of 29 per cent last year, Pirelli’s and Continental’s labour cost/sales ratio were 21 per cent, according to Deutsche Bank.

13th June 2007/by Tyrepress Editors

Borrowed Safety

Tyres & Accessories has previously reported on the problem of unsafe used tyres offered for sale in a number of African countries and the resultant risk to life and limb, and therefore we were interested to learn of one company’s plans to offer an alternative to these hazardous items. Dunlop Nigeria and Oceanic Bank International have launched a collaborative venture which they hope will make it easier for motorists to obtain new tyres rather than relying on their used counterparts.

The collaborative effort, to be known as the Dunlop Tyre Acquisition Scheme (D-TAC) was recently launched in Nigeria and Lagos, and provides a means by which customers can purchase Dunlop tyres at a discounted rate using the bank’s credit facilities, a means of purchase that has yet to gain wide acceptance in these countries. Under the terms of the financing deal arranged by D-TAC motorists will pay just a fraction of the cost of their new Dunlop tyres up front, bringing safe tyres within the reach of many who could otherwise not afford them.

23rd May 2007/by Tyrepress Editors

Michelin Puts Up the For Sale Sign in Nigeria

International News

On March 21 Michelin invited prospective investors to submit expressions of interest in its soon to be closed factory in Nigeria. The company released a notice stating that the company “wishes to invite expressions of interest for the purchase of all or part of the Michelin factory in Port Harcourt,” and specified that applicants could be either local or international businesses capable of demonstrating a proven track record in project development, strong financial capabilities and technical expertise in their field.

The closing date for bids is March 30, and Michelin has said that suitable applicants will be invited to attend a detailed presentation of the factory and related assets.

22nd March 2007/by Tyrepress Editors

Michelin Nigeria Board Approves Severance Package

The board of directors at Michelin Nigeria Ltd have met and approved of a severance package for employees affected by the closure of the company’s Port Harcourt factory. The proposed £15 million total severance package is above the standard £10 contractual severance entitlement for employees in such circumstances, and Michelin Nigeria’s director of communications, Victoria Oso Adefala, released a statement saying the company elected to pay the additional amount in order to mitigate the hardship experienced by affected employees.

19th March 2007/by Tyrepress Editors

Reasons Behind Nigeria Pullout – Michelin

International News, Product News

Michelin has given more details of their decision to quit tyre production in Nigeria. At a press briefing the Corporate Affairs manager for Michelin Nigeria Limited, Ojo-Osagie, passed on details of the factors contributing to the decision and the measures the company plans to undertake in the coming months.

22nd January 2007/by Tyrepress Editors

Michelin to Close Nigerian Factory

International News, Product News

Michelin has announced that it is ceasing tyre production at its factory in Port Harcourt, Nigeria. The tyremaker informed the Nigerian government of its decision on January 16 and, according to Michelin, both parties have agreed to work together to find a buyer.

18th January 2007/by Tyrepress Editors