Cooper Tire & Rubber Record Figures
Cooper Tire & Rubber, the US tyre and rubber manufacturer, announced sales of US$ 2.2 bn, which is an increase of 17% compared with 1998. Net income was US$ 135.5m. This figure is 6.7% up on 1998.
Known for its style, speed and performance marketing values, Pirelli & C. S.p.A. is a multinational company based in Milan, Italy, listed on the Milan Stock Exchange since 1922, with a temporary privatization period by the consortium led by the Chinese state-owned enterprise ChemChina.
Cooper Tire & Rubber, the US tyre and rubber manufacturer, announced sales of US$ 2.2 bn, which is an increase of 17% compared with 1998. Net income was US$ 135.5m. This figure is 6.7% up on 1998.
Pirelli recently invited journalists and analysts to its factory at Bicocca, Milan in order to see first hand the company’s new manufacturing process MIRS (Modular Integrated Robotized System). MIRS reduces the steps in tyre manufacturing from 14 to 3 and a tyre can be produced every three minutes. Tyres are built round a special drum, with the instructions given to the robots (the process is totally automated) through a barcode. The tyres are said to be more uniform and consistent. As well as its speed and flexibility, MIRS has the advantage of compactness and a line capable of producing 125,000 tyres a year can be sited in an area of a mere 350 square metres. Pirelli Chief Executive Marco Tronchetti Provera said that Pirelli will invest 50 million Euro over the next three years in 80 MIRS lines, increasing output by ten million tyres a year. Two of these lines will be located at Pirelli’s Burton-on-Trent factory in the UK, concentrating on SUV and 4×4 tyres. Burton stopped making tyres in 1994 and the news is a welcome change for the UK tyre manufacturing industry. It is a large factory, and there is ample scope for more MIRS lines to be added in the future, should this be Pirelli’s strategy. The figures associated with MIRS are truly impressive; investment costs are lower than for traditional factories and the minimum economic batch size has been reduced from 3,200 units to 375. The time taken to change sizes comes down from 375 minutes to 20. Workforce productivity is increased by 80% and MIRS uses less energy than a ‘normal’ plant. The manpower needed is significantly reduced too – it is estimated that 850 staff will be needed to produce the proposed ten million tyres. There is one other figure which, in these days of competition and falling prices, is even more interesting – a MIRS tyre is 25% cheaper to produce than a conventional tyre.
As reported by the Indian magazine Rubber Asia, Pirelli has sought the expertise of Citybank for a cost evaluation of the Birla Tyre company, which has a 15 per cent share of the Indian truck and automotive tyre market. The deal, if everything goes well, is likely to be struck sometime this month.
In the last few months Michelin, and to a lesser extent, Goodyear, have seen a growth in shareholders, although this has not helped to boost their share prices. The clear winner in terms of price gain was Pirelli. The shares of Continental, Bridgestone and Cooper were not in demand – surprisingly in Cooper’s case, as the company made a profit like in the year before.
According to Italian financial analysts Pirelli will use the US$ 2.15 bn received from the purchase by Cisco of their ‘Terrestrial Optical Networking Systems’ for investments in telecommunications and the Internet.
Bridgestone Corporation, the world’s largest rubber company, wants to join the electronic marketplace RubberNetwork.com as the seventh member of the group.
With the acquisition of the energy cable activities from BICC General for US$216 million Pirelli is strengthening its world-wide leadership in this particular business which will bring it up to US$ 3.4 billion in turnover. Their nearest competitors are Alcatel (sales – US$2 bn) and Sumitomo (sales – US$1.5 bn).
The six tyre manufacturers making up RubberNetwork.com have signed a memorandum of association; a further step in creating the global electronic purchasing marketplace for tyres and rubber, which is on track to be up and running by the year end. The six members are: Continental, Cooper, Goodyear, Michelin, Pirelli and Sumitomo Rubber industries. On the other hand, Bridgestone has left the project. Asked for the reason by NEUE REIFENZEITUNG magazine, Bridgestone Firestone Europe said that a closer examination indicated that the relationship between costs and savings was not as beneficial as was first expected.
Pirelli and Alcatel are the European market leaders in power cables, and together with Corning, Lucent and Draka in telecommunication cables. The market suffers from overcapacity, but Pirelli is the most active company when a factory is for sale in order to secure market share.
World renowned photographer Mario Testino visited locations in Naples for the Pirelli Calendar 2001. This year’s format will feature 12 of the world’s top models in the usual alluring poses in natural settings around the famous Italian coastal city.
American photographer Annie Leibovitz was inspired by classic Rubens and Botticelli pictures when creating the Pirelli Calendar 2000, which was recently presented in London. Leibowitz was also involved in Pirelli’s 1994 advertising compaign showing Carl Lewis in red high heels.
At a press conference in Milan, Mr. Marco Tronchetti Provera and Mr. Giovanni Ferrario reacted to speculation that Pirelli might diversify into other automotive components, as has Continental. Tyres “will continue to be an absolute core global business for Pirelli” they said, and emphasised that Pirelli would maintain its independence, while seeking alliances “wherever appropriate”.
During an analysts conference in New York, Conti boss, Dr Stephan Kessel, restated his continuing interest in a joint venture/merger with Pirelli’s Tyre Division.
The tyre factories of Brisa (Bridgestone/Sabanci), Pirelli and Goodyear are all situated within a few hundred metres from one another along a road leading out of Izmit, the town so severely hit by the earthquake. Bekaert also has a production facility nearby, Continental manufactures technical rubber products not far away, and a second Pirelli plant makes cables. It will only be a matter of days until production, only partially interrupted by the earthquake, returns to full strength while the aid campaign has gone into full swing at the same time.
Volkswagen has chosen 63 of its 10,000 suppliers to receive the ‘Corporate Supplier Award – The Leading Edge’. Among these are Contiental Teves (Automotive Systems) and Pirelli (Tyres).
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