Toyota, Nissan, and other Japanese motor manufacturers are reporting strong growth in global production for the first half of the year. This comes amid massive restructuring of the industry as European and American manufacturers take shares in Japanese businesses. However, the growth figures are tempered by across the board decreased in production in September, suggesting signs of a slowdown in the market.
To boost market position Degussa-Hüls wants to invest Euro 80 million to expand the production of precipitated silicas at its factory in Wesseling/Germany. Silicas, along with rubber silanes and rubber carbon black, are important components in reducing the rolling resistance of tyres.
Degussa-Hüls AG is doubling capacity at one of its production plants in Antwerp, Belgium for sulphur-functionalised organosilanes. These rubber silanes are used as coupling components when precipitated silicas are used as fillers to reinforce rubber. Together with rubber silanes and rubber carbon blacks, precipitated silicas are the major component in “Green Tyres” which feature reduced rolling resistance and thus help to cut fuel consumption.
In a move unconnected, according to Bridgestone/Firestone, to the recall, production is being cut at three tyre production plants in response to oversupply. Cutbacks will affect LaVergne, Tennessee, Oklahoma City, and at Decatur, Illinois. Some 450 employees are also being laid off indefinitely at the Decatur plant, centre of attention in the recall.
As part of a policy to consolidate truck tyre production under one roof, Yokohama Rubber Co Ltd has announced it will phase out production of truck and bus tyres at its Hiratsuka, Japan plant by the beginning of 2002. All radial truck and bus tyre will then be produced at the company’s larger plant in Mie, Japan and the Hiratsuka plant will concentrate on the production of non-tyre products.
Israeli company Alliance Tire is to close its Petach-Tikva plant (Tel Aviv). Production will continue in the second Alliance factory at Hadera.
Dunlop GmbH (Hanau) expects further turnover and profit increases in the 1999 tyre business. Turnover will rise by almost ten per cent over the previous year to 1.64 billion marks. The pre-tax group profit will be significantly above the 1998 level of 133 million marks. The good business development is due to consistently strong demand for Dunlop tyres both in original equipment and in replacement. High winter tyre sales figures also contribute to this development, representing approximately 20 p.c. in Dunlop’s total German production. Dunlop 1999 winter tyre sales will probably have gone up by 16 p.c. over 1998. Since 1994 Dunlop GmbH has doubled its car tyre sales. During the last few years the Hanau tyre manufacturer has made progress in the high-performance tyre segment far above the market average, and the company operates a profit-sharing scheme for its employees. Against the industry trend, the Dunlop payroll has increased by almost 21 p.c. since 1991, with the number of people working for Dunlop GmbH at the end of November 1999 reaching almost 5,000. If one leaves out the former subsidiary Dunlop TECH, which ceased to belong to the contributing members of the Dunlop GmbH group in the middle of last year, the figure is similar to that of the previous year.
Continental makes her know-how available to Iranian company Kerman Tyre and Rubber Company (Tehran) for the production of truck and car tyre radials. Later Kerman will produce its own brand under this technology plus truck and car tyre radials in an offtake agreement under the Continental brand for the Middle East and Central Asia.
At the beginning of April Marangoni, the Italian tyre manufacturer, broadened its tyre range in the high-performance sector by seven new sizes within the product programme 2000. Top of the summer tyre series is the “Zeta ESC”, a low-profile tyre with a directional tread pattern approved for speeds up to 270 km/h, which had five new 17-inch sizes added. Two more sizes were introduced to the second product line, “Heron”, making a total of 25 sizes in aspect ratios 65, 60, 55 and 50 and speed indices from H to W. On the occasion of these new introductions Marangoni invited the European trade press to Rapallo on the Italian Riviera, where questions were answered not only about the latest additions but also about the past, present and future of Marangoni Tyre S.p.A. When all is said and done, Marangoni is a kind of outsider in tyre production matters, hoping to raise the degree of international awareness and acceptance by its presentation. The production of new tyres (the Marangoni and Stunner brands) for cars, trucks and small transporters is one of the business units of Marangoni Holding, best known for its divisions Marangoni Tread (production of materials and technology for retreading) and Marangoni Pneumatici (retreaded tyres),which last year generated a turnover of 400 billion lire. The Marangoni Tyre share of the consolidated annual turnover of the group of companies is a quarter, according to Andrea Vassura, managing director and board member of Marangoni Tyre S.p.A.
Chevrolet is calling its 2001 Corvette Z06 “a production vehicle that’s ready for the racetrack.” The P265/40ZR17 (front) and P295/35ZR18 (rear) Eagle F1 Supercar tyres weigh 23.4 pounds less than the run-flat tyres. The weight savings comes from removing the run-flat reinforcements as well as using lighter weight internal components.
Employees at Motorway Retreads have accepted that the proposal to move all car tyre retreading to the EWS (Environmental Waste Solutions) group’s Durham site (Colway) is the only commercially sensible decision. Staff numbers will be reduced, primarily through voluntary redundancy. Production of truck retreads will continue at Motorway’s Knighton site and sister company Waste Tyre Solutions will operate a casing inspection hub. EWS is the parent company of the retreaders Colway and Motorway Retreads.
Goodyear is to consolidate and streamline fabric production for its engineered products (conveyor belts, hoses, air springs) at its plant at Cartersville, Georgia. Automotive and truck tyre fabric production was discontinued at the plant last year.
Vredestein BV has announced an imminent joint venture with Fung Keong Rubber Manufactory in Malaysia, for the production of bicycle tyres. Production will take place at a new local site. Ian Wilson, Managing Director, Vredestein UK informed TYRES & ACCESSORIES “The new venture with Fung Keong represents a step forward in the right direction and highlights our policy of continually exploiting lucrative market opportunities.”
The current total of 153 employees of retreader Berliner Reifenwerke (BRW) have been waiting for their salaries since March. However, they are now hoping that after a proposal of insolvency, one of the three potential investors with whom the Berlin economic authorities are negotiating, will take over the plant this month and continue production. The two BRW owners Cohnen and Krüßmann are suspected of misappropriating 46.1 million German marks which were given for investments. Meanwhile a German magazine reports a Credit Suisse (Frankfurt) account of approximately 32 million German marks. Account-holder is a Tahiti-registered company belonging to Horst Krüßmann, former Managing Director of Berliner Reifenwerke. Berlin Public Prosecutors are conducting judicial inquiries.
With a limited production of only 2,000 units in the single size 205/55 R16, Vredestein is offering a ‘Millennium Edition’ of the Sportrac with a specially-produced sidewall. It is anticipated that the tyre will become a ‘collector’s item’.
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