North America
Taiwanese tyre maker Cheng Shin Rubber is reported to be considering building its seventh plant in China. On 19 June the Taipei Times printed comments made to this effect by company vice-president Wu Hsuan-miao (吳軒妙) following Cheng Shin’s annual general meeting the previous day.
Cabot Corporation has announced a new agreement with Grupo Kuo SAB de CV to purchase its remaining 60 per cent equity in the companies’ Mexican carbon black manufacturing joint venture, Nhumo, SA de CV. Cabot will pay $105 million for Kuo’s current shareholding, of which $80 million will be paid upon closing, excluding cash acquired. Cabot says Nhumo’s position as a leading carbon black producer in Mexico will help to strengthen its global carbon black business, and help to meet what it says is a growing demand for carbon black throughout North America. Following the announcement Cabot shares increased 2.9 per cent, and the company said it expected an earnings boost of around $0.15 per share as a result of the acquisition in the 2014 financial year. Extending into the next three years, Cabot estimates that operational synergies could increase earnings per share by $0.05 to $0.10.
Michelin and Goodyear have ranked highly is separate workplace surveys carried out in the US.
Late last month a new organisation was formed to represent tyre makers in a region some refer to as the “tyre capital of North America”. The establishment of the Tire Manufacturers’ Council was announced by the South Carolina Chamber of Commerce on 29 May; it says the council’s aim is to “evaluate and propose policies relating to the manufacture of tyres in South Carolina.” Foundation members include Michelin North America, Bridgestone Americas and Continental Tire the Americas.
In its latest market figures, published 13 June, Michelin reports that Europe’s original equipment and replacement passenger car tyre markets were stable in May, with demand approximately the same as in May 2012. Year to date, original equipment and replacement market demand is down four and five per cent year-on-year respectively.
Further details of Apollo’s Cooper Tire acquisition have been published by Indian brokerage house Angel Broking. In its 13 June market outlook report, Angel Broking notes that Apollo Tyre’s acquisition of Cooper Tire & Rubber will be funded entirely through debt. Apollo, it elaborates, plans to form a new holding company in the Netherlands involving Cooper and Vredestein, which would raise US$2.1 billion in debt via bonds. The major portion of the debt will be backed by Cooper and Vredestein’s assets. The remaining debt $450 million debt will be raised at Apollo’s Mauritius subsidiary and serviced by its standalone business, says Angel Broking.
Apollo Tyres has finally confirmed speculation that the India-based manufacturer is to buy US firm Cooper Tire in a friendly takeover. According to the company the US$2.5 billion deal makes the firm the seventh largest tyre manufacturer in the world with combined revenues of US$6.6 billion. It also gives the manufacturer access to the North and South American markets currently uncovered by its global presence. Under the terms of the agreement, which has been unanimously approved by the boards of directors of both companies, Cooper stockholders will receive $35.00 per share in cash. The transaction represents a 40 per cent premium to Cooper’s 30-day volume-weighted average price, according to an announcement detailing the news. We will add further details to this developing story as we receive them. Look out for complete coverage in the July issue of Tyre & Accessories magazine and online at Tyrepress.com.
Goodyear has released its latest all-season performance tyre in North America. Initial sizes of the Eagle Sport All-Season are now available, and the tyre maker says the full line-up of 47 sizes will be on offer by the end of 2013. Goodyear says the Eagle Sport All-Season is suited for a wide range of vehicles, from the Honda Accord to the Audi A4 and Ford Mustang.
On 10 June, Exide Technologies filed for Chapter 11 bankruptcy protection in the US. This is the second time it has done so since the Millennium; in April 2002 the stored electrical solutions company also submitted a Chapter 11 application in the District of Delaware. Exide says it took this step to “facilitate the financial and operational restructuring necessary to strengthen its balance sheet and its business to position the company for future success.” It also says it intends to “become more aggressive in reducing costs, taking actions with respect to underperforming business segments and focusing on the most attractive areas for future growth.” Only the company’s operations in the United States are affected by the filing, and Exide Technologies confirms that it plans to “operate globally without interruption during the reorganisation.”
Yokohama Tire Corporation’s (YTC) new Yokohama Tire Mexico (YTMX) subsidiary officially began importing consumer, commercial and off-the-road (OTR) tyres in Mexico on 1 May. Incorporated in Silao, Guanajuato, Mexico, according to the company, YTMX is squarely positioned to give YTC long-term strategic advantages. With this in mind YTMX’s president, Gary Nash, answered questions about what those advantages are, the long-term vision for the company and the positive impact dealers can expect.
Quebec-based company Groupe Robert Bernard has inaugurated its new retreading plant. The facility, which is the largest of its kind in Canada, was built at a cost of $3 million and is the eighth retreading plant in the country to use Michelin Retread Technologies (MRT). It is the 80th MRT plant to open in North America.
Maxxis International has reported another strong year of growth for the 12 months to January 2013. Results from the last financial year show Maxxis tyre sales figures surpassing US$4.5 billion for the first time, up over $2 billion in the last five years alone. The company reports that despite an adverse global economy and substantial investment in research and development, increased manufacturing capacity, its new academy and latest testing facilities, Maxxis has still succeeded in posting net earnings of well over $1 billion.
Ever since agricultural-based biomaterials company Yulex Corporation was established, it has been supported by the University of Arizona; indeed, Yulex’s first experimental crops were planted on campus grounds and the university substantially contributed to Yulex's agronomic development successes. Yulex Corporation has now announced it will provide the University of Arizona a US$3 million, five-year grant. This grant focuses on the breeding and agronomic development of Guayule with the aim of producing biorubber for medical, consumer, and industrial applications.
Michelin’s Ballymena, Northern Ireland manufacturing facility has hosted a visit from 27 independent truck and bus tyre dealers. The Michelin Truck Professional (MTP) dealers were invited to see Michelin’s new X MultiWay 3D steer and drive tyres during their manufacture. Guy Heywood, commercial director of Michelin’s truck tyre division, told assembled dealers: “We’re competing in a fiercely competitive market, but one in which we have grown Michelin Group market share by three per cent in the last three years.
Michiel Kramer (34) was appointed manager of marketing communications and product management at Apollo Vredestein BV on 1 May 2013. He replaces Bandi Vaczi, who has been promoted to head of global marketing communications at Apollo Tyres Ltd. Kramer will lead the teams responsible for Apollo and Vredestein products and brands in Europe and North America.
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