North America
(Akron/Tire Review) Continental Tire North America (CTNA) has announced a price increase of up to 6 per cent on all of its medium truck, heavy truck and OTR tyres, effective 1 March. The increase covers all Continental, General, Semperit and private brand commercial tires produced by the company. The increase, said the company, was due to raw material and operating costs.
(Akron/Tire Review) Marangoni Tread North America said it has completed expansion at its Nashville, Tennessee, tread rubber plant, effectively doubling capacity at the facility.
(Akron/Tire Review) Ford Motor Co. has been ordered to pay a rollover accident victim $29 million. The case involved a 22-year-old Texas woman who was left partially paralyzed when a Firestone ATX on her 1999 Mazda Navajo failed and the vehicle rolled over.
(Akron/Tire Review) As expected, United Steelworkers officials in Canada and the US reacted bitterly to the news that Michelin North America (MNA) was planning to close its 44-year-old broadline tyre plant in Kitchener, Ontario,
“It is outrageous that the company has never discussed alternatives with the union and simply dropped a bomb on the whole city,” said Wayne Fraser, USW’s Ontario/Atlantic director. “It is a mean-spirited, terrible way to treat workers, their families and the whole community.”
SmarTire Systems Inc has announced that Pierce Manufacturing Inc., an Oshkosh Truck Corporation company, will include the SmarTire’s active TPMS as an option for new and existing fire-fighting vehicles. Pierce Manufacturing is North America’s leading manufacturer of fire and safety apparatus.
Michelin North America (MNA) has announced that it will close its Kitchener, Ontario, tyre plant in July with the loss 1100 jobs. Michelin cited overcapacity in its broadline products as the reason for the closure.
The news comes six months after the manufacturer closed its Poitiers, France, plant with the loss of 500 jobs and is believed to be part of a global cost-cutting programme. “We believe that Michelin will accelerate restructuring measures in coming quarters, using the opportunity of the progressive attrition of one third of their workforce (or 25,000 people) in Western Europe and North America in coming years,” Deutsche Banks analysts said in a report shortly after the news broke.
(Akron/Tire Review) As Michelin North America (MNA) prepares to pour $80 million into expanding truck tyre production at its Waterville, Nova Scotia, plant, the recent national elections in Canada threaten to derail the plan, according to reports by CBC.
As part of the expansion deal, the Liberal Party-led Nova Scotia government committed to giving MNA some $9.4 million in interest free loans. With the Conservative Party now in control, there are questions whether the loan offer will be met.
Philip J Ringo, chairman and CEO of RubberNetwork LLC, named Kumho Tire as the 10th member-owner of the global Tire and Rubber Industry Consortium. “We welcome Kumho Tire to RubberNetwork. They join nine of the Industry’s largest and most successful companies, Continental Tire, Cooper Tire & Rubber, Goodyear, Hankook, Michelin, Pirelli Tire, Sumitomo Rubber, Toyo Tire and Rubber and Yokohama Rubber Co. Ltd. in what we believe is the most successful industry consortium. The addition of Kumho is both a validation of their stature in the Industry and the wisdom of RubberNetwork’s founders in forming the Company in 2000” Ringo said.
Marco V Molinari has been appointed executive vice president, HNI Corporation. Mr Molinari will continue as President, HNI International, responsible for international business, including HNI International, HNI Asia and the announced the acquisition of Lamex. Mr Molinari is responsible for driving aggressive profitable growth outside of the United States and Canada and will report to Stan Askren, chairman, president and CEO.
Goodyear Tire & Rubber Company says it anticipates record sales of almost $20 billion (£11.27 billion) for 2005, with more than $4.9 billion for the fourth quarter. Despite this market analysts, Deutsche Bank, have downgraded their stock rating for the company to “sell.” In addition to record sales, segment operating income is expected to be up between 20 and 25 per cent from 2004.
The manufacturer says it expects fourth quarter segment operating income “to approximate the $238 million achieved in the prior year period.” After deducting $20 million in corporate and general expenses Deutsche Bank estimates consolidated EBIT will come in at “roughly $218 million, well below their $283 million estimate.”
Pensler Capital Corp, owner of Denman Tire Corp, has signed a letter of intent to purchase Continental Tire North America’s (CTNA) OTR tyre plant in Bryan, Ohio for an estimated $75 – $80 million. The Dortmund-based Roesler Group has now backed away from the deal, despite initial interest and negotiations with CTNA and the local trade union, after being outbid by Pensler Capital. The letter of intent was reportedly signed on 16 January.
“I am a little bit amused,” Roesler Group managing director, Paul Roesler Jr told Tyres & Accessories adding: “We are pleased we are no longer first in line.” In spite of his upbeat interpretation of the situation, Roesler had to concede that the other suitor simply outbid Roesler in the race to buy Continental’s Bryan facility.
(Akron/Tire Review) The Tire Industry Association (TIA) announced that John Buettner, executive director for the Indiana/Illinois Tire Dealers Association, was elected chairman of the TIA state executive directors for 2006.
(Akron/Tire Review) Just days after announcing significant cutbacks at its Charlotte, NC, tyre plant, Continental Tire North America (CTNA) said it planned a $60 million to $70 million capital improvement effort at its Mt Vernon, Illinois, passenger and truck tyre facility.
Goodyear Tire & Rubber Company will manage a supply arrangement with YRC Worldwide Inc, providing commercial tyres to some of its operating companies within YRC Regional Transportation.
(Akron/Tire Review) Continental Tire North America (CTNA) announced today that it will significantly cut production and lay off employees at its hometown Charlotte, North Carolina., passenger tyre plant. The cuts will come in two phases, said CTNA, with the first taking place on 15 March, resulting in 241 salaried and hourly jobs lost, and the second on 30 June when another 272 jobs will be cut. In total, 513 workers will be laid off, said CTNA.
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