North America
Michael J. Polovick has joined The Smithers Group based in Akron as vice president of human resources, a newly created position, responsible for overseeing HR activities at all of the Group’s member companies worldwide. Polovick brings more than 30 years’ experience as an HR professional.
In the first nine months of 2008 Bekaert achieved consolidated sales of 2.047 billion euros and combined sales of 3.119 billion euros, an increase of 28.8 per cent and 24.0 per cent respectively. Bekaert reports that organic growth accounted for a growth in consolidated sales of 24.7 per cent, largely driven by the passed on raw material price rises, and the net movement in acquisitions and divestments in Vicson (Venezuela) and in Proalco (Colombia) accounted for 7.9 per cent. Exchange rate fluctuations tempered the growth by 3.8 per cent.
About 240 workers at the Michelin North America tyre factory in Ardmore, Oklahoma will be laid off for around two months, starting mid-November. According to Michelin public relations manager Lynn Mann, the work force reduction is a temporary measure, one brought about due to the country’s economic downturn and a weaker demand for passenger car and light truck tyres.
Third quarter sales grew 24 per cent year on year at Hankook Tire, the company’s latest figures reveal. However, as has been the case with so many companies in this second half of 2008, increased sales have not translated into a better bottom line.
As of December 1, Michelin North America is increasing prices on Michelin and Kléber brand agricultural and compact line tires and tubes sold in the United States and Canada. The company reports that prices will go up by an average of 11 per cent.
In order to improve the ability of its own branded agricultural tyres, Michelin North America announced on October 31 that it will, as of next year, no longer offer the BFGoodrich Power Radial 80 tyre. The company says it will convert the factory capacity currently utilised in its production to the manufacture of Michelin-brand agricultural tyres.
It appears that the current auto industry woes are by no means restricted to North America and Europe. In India, the Hindu Business Line reports that major manufacturers of medium and heavy commercial vehicles have reduced their OE tyre offtake projections by about 40 to 50 per cent during the current financial quarter.
In light of slowing world markets, as highlighted by the company’s latest quarterly financial figures, Continental is cutting back production at a number of its facilities. Amongst the measures to be introduced to this effect are a shortening of the working week, a prolonged end of year shutdown period, and a reduction in the number of temporary employees on the company’s payroll.
“Continental is well prepared for the difficult challenges ahead,” said Executive Board chairman Dr. Karl-Thomas Neumann. “Nonetheless, we have initiated additional programmes to cut costs. For instance, in the Automotive Group we will reduce the number of temporary workers, greatly lengthen the plant holiday shutdown period at the end of the year by using the existing work time accounts, and, depending on the location and the order situation, deviate downwards from the five-day-week until further notice. Furthermore, we are putting investments that are not urgent on hold,”
Automotive emission control and ride control products manufacturer Tenneco Inc. is to restructure its global operations. In an announcement made on October 29, the company said it would further reduce structural costs and capacity in response to the worsening industry downturn. Approximately 1,100 jobs will be axed as a result of the restructuring and five facilities closed. In total Tenneco expects to generate around US$64 million in annual savings once all changes are fully implemented.
Despite announcing the need to idle workers at its Finland factory to adjust production, the latest financial figures for Nokian Tyres shows a company doing well in 2008. Results for the quarter ending September 30 show net sales, operating profit and net profit have increased both during the three-month period and during 2008 as a whole.
Titan has reported all time third-quarter sales, profit and income results upon releasing its latest financial results. Sales for third quarter 2008 were $255.5 million, an increase of $60 million, or 31 per cent, as compared to $195.5 million in the third quarter of last year. Gross profit, at $37.4 million for the quarter, showed an improvement of over $19 million, or 105 per cent, from the $18.3 million recorded in last year’s third quarter. Income from operations was $21.3 million for the third quarter of 2008, rising $18.5 million, or 688 per cent, compared to $2.7 million in the previous year’s third quarter. Net income was $10.3 million for the quarter, an improvement of $11 million, compared to last year’s third quarter loss of $900,000.
Pirelli Tire LLC’s Rome, Georgia facility has been recertified to ISO/TS 16949:2002 and UNI EN 9001:2000 standards. UNI EN 9001 quality system requirements form the foundation for quality management systems while ISO/TS 16949:2002 requirements are specifically geared towards the supply chain. The two standards are coupled together for use in the automotive supply chain.
“Achieving ISO/ TS 16949:2002 registration is a fundamental part of doing good business and essential to supply our original equipment (OE) and replacement tyre customers,” said Andrew Kearton, vice-president of manufacturing and OE sales at Pirelli Tire North America. “This recertification demonstrates our commitment to maintain our established quality levels, and importantly, to continuously improve activities throughout all functions of Pirelli Tire LLC.”
Last year Toyo, said to be the world’s 11th largest tyre manufacturer, produced 30 million tyres. This figure is anticipated to rise in coming years – the company plans to produce 35 million pieces by 2010 and 50 million by 2015. Should Toyo reach this level, the tyremaker will be at the level of Yokohama, currently ranked number seven globally. The Japanese manufacturer produced a total of 49.95 million tyres in 2007.
Michelin North America will significantly cut production at four of its U.S. plants as the company reacts to downturns in the replacement and OE markets. The reductions will impact MNA’s passenger and light truck/SUV tire plants in Tuscaloosa, Ala., Ft. Wayne, Ind., and Opeilka, Ala. Some 40 per cent of the workforce at those plants will be on temporary layoff, MNA said, an estimated 1,500 people. The cutback will last up to eight weeks, MNA said.
The company said eligible employees will receive state unemployment benefits during the slowdown period, and supplemental income per the company’s contract with the USW. At press time, the reductions will not affect MNA’s other U.S. or Canada plants, though there have been reports of some production slowdowns at other facilities.
As demand slows, other tyre makers have take action to reduce production. Bridgestone Americas and Goodyear both have reduced output. Cooper announced last week that it was examining its U.S. production with an eye toward closing at least one plant. Kumho has delayed construction of its planned U.S. plant in Macon, Ga. (Tire Review/Akron)
After a quarter of century at Michelin North America, one of the company’s top researchers has launched his own high-tech start up company. Drawing upon experience gained during his time with the tyre maker, former director of external research Ralph Hulseman plans to build a company around a technology that allows the moulding of microstructures and nanostructures into curved surfaces.
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