Following RoadSafe’s launch of a campaign supporting more frequent tyre changing, the influential fleet business has cautiously welcomed the initiative, while warning of soaring costs. Research has shown that wet stopping distances can vary up to 10 metres between 1.6 and 3 millimetre tread depths.
Russian tyre manufacturer Sibur is to become state-owned company. After a long period of confusion about a possible merger between the gas monopolist Gazprom (that owns almost 100 per cent of Sibur’s shares) with the state-owned oil company Rosneft, the Russian government now has decided to take over the majority of Gazprom’s shares itself, according to Russian media reports. Currently the Russian government owns about 38 per cent of Gazprom but will increase this share up to more than 50 per cent by the end of June, when Gazprom’s annual shareholder meeting takes place. Sibur operates four tyre factories in Russia where it produced more than 15 million tyres in 2004.
Pirelli energy and cable systems has announced that its Comergy subsidiary has won a 25 million euro contract to supply the SP PowerAssets, a subsidiary of Singapore Power. The contract will see the company supply and install 400kV PPL oil filled power cables, auxiliary cables and accessories in order to reinforce the county’s power transmission network within the country. Pirelli’s Eastleigh and Bishopstoke, UK plants will manufacture the 400kV power cables and accessories, whilst Pirelli plants in Turkey and Indonesia will supply the auxiliary cables.
”We are delighted to have secured a second 400kV contract with SP PowerAssets in the extremely competitive Asian marketplace for power cables,” Valerio Battista, managing director of Pirelli Energy Cables and Systems commented. “The award of this second contract is important recognition of our capability of supplying competitively priced solutions for high voltage networks. It also demonstrates the client’s trust in our ability to deliver such projects on time and within budget.”
As a result of its collaboration with VW, Beru is developing a new “biodiesel sensor.” Development of the sensor is necessary in order to solve a technical problem that arises during the alternative combustion of mineral DF (diesel fuel) and RME (rape seed oil methyl ester, also known as biodiesel) in the same engine. The more stringent emission limits of the Euro IV and Euro V standards can only be met when engine management is precisely tuned to fuel consumption.
Winter tyres and the UK market are a standing joke. Nobody buys winter tyres in the UK. At least that is the perception. However, when we talk to people in the tyre trade, be they retailers, wholesalers or manufacturers they all understand that winter tyres are not just about driving on snow or ice for the three days a year when our roads are clogged with the white stuff. They are largely aware that winter tyres are about dealing with temperature conditions that adversely affect the performance of summer tyres. That below seven degrees Celcius the winter tyre starts to outperform the summer tyre in terms of safety. Yet, the general response on winter tyres is that nobody wants them in the UK.
Why might that be? Could it be that three days of snow on the roads each year doesn’t warrant the expenditure? Could it be that the tyres are being marketed in completely the wrong way? Could it simply be that people, in general, hate spending money on their car? Could it possibly be that the tyre retailers simply don’t like having to work to sell product? Think how difficult many find it to sell pairs of shock absorbers, or indeed anything but the basic tyres and exhausts.
So, why do we need winter tyres in the first place? In layman’s terms a summer tyre is manufactured with the function of keeping the tyre in contact with the road surface in both wet and dry conditions. It’s compound has a designed in level of adhesion. Its chemical make up creates an interaction between the tyre and the roadway. However, the compound utilises an oil in the mixing process that allows the various components in the compound to blend and mix and work together as one. This polymeric oil can, and does migrate in time leading to the deterioration of the tyre. In practice it migrates inwards in cold climates towards the lining of the tyre. Thus degrading the tyre tread, hardening it and making it less effective in its interaction with the road surface. The point at which it does this is around seven to eight degrees Celcius. So, the efficiency of summer tyres in the wet or dry in winter is diminished. Even without snow and ice, a winter tyre becomes a safer option in colder weather.
Bandag, Incorporated acquired an 87.5% majority interest in Speedco, Inc. from its founders and Shell Oil Products US. Bandag, a world leader in truck retread tires and tire management services, will operate Speedco as an independent business unit. Speedco, headquartered in Cayuga, IN, provides quickservice truck lubrication nationwide through 26 company-owned and six licensed on-highway locations.
The European Commission has adopted a proposal to restrict the use of certain carcinogenic extender oils in the production of tyres. The measures should also help to ensure that a single market for tyres is maintained. Extender oils are used in the manufacture of tyres as softeners and can contain high levels of polycyclic aromatic hydrocarbons (PAHs), which can damage human health. The Commission proposes a maximum limit of 10 ppm for PAHs in extender oils used in the manufacture of tyres. Both the oil industry and the tyre industry have agreed to phase out the production and use of PAH-rich extender oils over a transition period of several years. The Commission will now work on the adoption of test methods to allow the identification of tyres that do not conform with the requirements of this Directive.
CCR Logistics Systems AG, a German provider of waste-management systems, won a contract from PSA Peugeot-Citroen, Europe’s second-biggest carmaker, to set up and operate a recycling program for the company’s U.K. dealers. CCR Logistics didn’t say how much the contract was worth. The Munich-based company’s contract includes collecting oil, batteries, tires, florescent lighting and other waste from the dealerships.
Global Insight, Inc has announced its forecast findings on the newly-emerging Iraq light vehicle market. According to the Global Insight study, basic light vehicle demand during 2005-2007 should stabilise at estimated 200,000 units, after an immediate post-war surge to 250,000-300,000 units. Since the end of the Iraqi war, used car exports to Iraq have risen very sharply, trending towards the lowest priced cars available from the neighbouring regions of the UAE, Kuwait and Jordan. Between May and September of this year, it is estimated that 100,000 used cars have been shipped to Iraq, with Kuwait alone reportedly shipping 18,000 used cars to Iraq during this same period. Oil wealth, a free trade environment, external spending and financial support all augur for an Iraq potentially wealthier than some of its neighbours. Global Insight’s macro economic forecast shows GDP rising from 1,000 US dollars per capita in 2003 to close to 3,000 US dollars by 2009. The new car market will be seen to grow as the Iraqi economy makes these gains.
Nokian has developed a new winter tyre, the Hakkapeliitta 4, which features a tread compound that incorporates environmentally-friendly rape seed oil. The tyre has 14 rows of studs and great attention was paid to these. Tests show that a square stud shape was more durable, provided better grip (8 per cent better than the previous tyre) and was less likely to work loose, as well as being less damaging to roads. The tyre is aimed at the Nordic and Russian markets.
Michelin is expected to announce a small drop in sales to 15.54 billion Euro from 15.75 billion Euro. Analysts say this is likely to be due to the weak dollar. They also suggest that Michelin will increase prices to meet growing costs of oil-based raw materials. An announcement from Michelin is expected later today after the close of the stock market. Michelin’s full results are expected in two week’s time. The company’s share prices were pressured last Friday when Standard and Poor’s put the group on negative credit watch over unfunded pension liabilities. However they were given a 4.6 lift on Tuesday by good news from the auto sector suggesting a revival was under way.
Concerns over liquidity, increases in oil prices and declining market shares are making analysts cautious over Goodyear’s attempts to turn the group around. Analyst Lache, from DB Global Equities New York, is expecting Goodyear to come up with an aggressive restructuring plan in March, involving moving production to lower cost areas with subsequent plant closures and giving up loss-making OE contracts. Investors may regard such plans with a pinch of salt, as Goodyear has spent $640 m so far in unsuccessful restructuring efforts. Lache estimates that Goodyear will have to reduce costs by up to another $850 m in order to be competitive
Nokian has launched the Hakkapeliitta 4, a new studded, winter tyre, for the Nordic and Russian markets. The tyre incorporates new stud technology, called Nokian Eco Stud System 4, which has a patent pending. In addition, the tread compound incorporates rape seed oil, which Nokian says improves grip properties.
Titan Technologies (Albuquerque/USA) has announced that its ability to generate electricity by using the gas and carbon black byproducts generated by its tyre recycling process has sparked considerable interest from tyre shredding operations across North America. Titan had been researching the use of its plants to generate electrical power. Titan addressing costs and developing scrubbers to eliminate emissions from combustion of the oil, gas and carbon black produced by the process. Once these costs have been determined, Titan will develop an electrical generation business pro forma for different locations. At this time, Titan believes that a TRTM plant is an economically viable electrical generation system. Ronald L. Wilder, Titan’s president, added, “All cities and countries have major waste tyre problems and most, if not all, will need additional electrical generation. There can be special benefits if additional power comes from recyclable waste tyres”. Titan’s current claim is that the BTU output of a Titan Technologies tyre recycling plant processing 100 tons of scrap tyres per day is almost 3 billion BTU/day in excess of the energy required to operate the recycling plant. This excess will generate approximately 20 mega watts of continuous electrical power.
Shares at Goodyear and Cooper are falling. At Goodyear especially, internal factors are not being helped by rising oil prices, which increase costs and affect the spending power of consumers. This has led to weaker-than-expected demand for new cars. Wall Street analysts, such as Deutsche Bank Research, are warning of possible inflationary pressure, but they do not want to sound too pessimistic.
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