Raw Materials
Over the summer, Michelin reviewed its capital expenditure programme and 2015 financial outlook. The review followed on from the Group’s interim 2012 earnings performance, which Michelin describes as “robust” and says reflected its strategic vision, competitive strengths and management.
During its press conference at the IAA Commercial Vehicles show in Hannover, Germany, Continental announced it is establishing a new truck and bus tyre retreading plant plus a facility to recycle rubber from used tyres at its Hannover headquarters. The company claims the facility will be the first of its kind worldwide and will make use of the synergies between the retreading and recycling production. An investment of “more than ten million euros” will go into the ContiLifeCycle plant project, and more than 100 new jobs will be created at Continental’s Hannover-Stöcken site.
Nokian Tyres claims membership in the exclusive ‘AA’ label club with the introduction of its new eLine summer tyre range. Sales of the eLine, a product suitable for smaller cars, will begin in spring 2013.
Tyrexpo India 2013 is aiming to act as a global trade interchange offering companies access to the booming Indian tyre market when it is held 9-11 July 2013.
According to Tyrexpo India organiser Paul Farrant of ECI International, next July’s exhibition will encourage both inward investment and export opportunities.
Rubber supplier Lanxess has announced plans to make its biggest investment in China to date with the construction of a 235 million euro, 160,000 tonne a year synthetic rubber plant. The factory, which will be situated in Changzhou, Jiangsu Province, will specialise in the production of EPDM synthetic rubber, which is used largely in the automotive and construction industries.
While no-one in the tyre industry claims to have bypassed the combined effects of the credit crunch, euro-crisis and the consequent recession(s), it is fair to say that these economic phenomena have had particularly marked effects on the commercial vehicle tyre market. First of all, as a direct result of customer demand scaling back, truck makers cut down on vehicle production, with the tyre manufacturers responsible for supplying these OEMs forced to follow suit. As fleets responded to falling demand for their services and extended the life of their tyres as far as possible (as well laying up trailers and cannibalising tyres whenever they could), what began as a demand shock in the OE side of the business developed into a replacement slump as well.
The route between Pirelli’s UK facilities in Burton-on-Trent and Carlisle is well trodden by Derby-based haulier ATL, and the company has just put three of its newest vehicle acquisitions to work on the company’s most arduous contract. The Mercedes-Benz Axor 2543 tractor units are consistently fully laden and rack up 8,600km a week carrying raw materials and finished tyres between Pirelli’s locations.
On 23 August Polish chemical manufacturer Synthos SA informed the Warsaw Stock Exchange it has signed a supply deal with Goodyear Tire & Rubber. The agreement is valid until 31 December 2012 and covers the supply of solution styrene butadiene rubber and emulsion styrene butadiene rubber. The contract is valued at approximately PLN 3.74 billion (£709 million); the price to be paid is based upon a formula that takes into account the market price of raw materials.
Balancing weight specialist Hofmann Power Weight has unleashed its new website. The site, now up and running in both English and German language variants at www.hofmann-powerweight.de, is said to provide everything that the site visitor needs to know on the subject of wheel balancing and the Hofmann brand.
According to business association the Federation of Indian Chambers of Commerce and Industry (FICCI), tyre manufacturing in India is one of the sectors most affected by what it calls ‘inverted customs duty structure’. Results of a FICCI survey show the tyre sector, along with several others, are most keenly disadvantaged by the structure of India’s import duties, which charge higher duties for imported raw materials than for imported finished products.
In recent years, the subject of the environment has assumed ever-greater importance as regulations have tightened their grip. Only two survivors from last year's final shortlist have made it through to this year's. These are Vellco Tyre Control (who won in 2011) and Bandvulc, which is the only retreader in the final five. The other finalists are newcomers (to the TAFF Awards) Murfitts Industries, DME Tyres and Sapphire Energy Recovery.
Retreaded earthmover (EM) tyres represent the most appropriate response to the demands of construction sites, mines, quarries and ports in terms of efficiency and cost effectiveness. That’s the view of retreading systems supplier Marangoni Group, which also highlights the fact that using them has a positive environmental influence. Luca Mai, executive sales manager of Marangoni Group’s Commercial & Earthmover Tyres division explained.
Soybean has long been considered good for us, and now it appears it may also be good for our tyres. Goodyear Tire & Rubber announced today that tests undertaken at its Innovation Center in the US show using soybean oil in tyres can potentially increase tread life by ten per cent; it can also reduce the company’s use of petroleum-based oil by up to seven million US gallons, or 26.5 million litres, per annum.
Recent restructuring to Apollo Tyres’ Research and Development team is aimed at creating “synergy and greater alignment to the company’s growth aspirations, and to generate speed and relevance while entering new markets,” the tyre maker states. Apollo has restructured its team across the three key regions where it operates and established a structure in which the development of commercial vehicle tyres will be directed from India and passenger car tyres from Europe. The heads of both operations will report directly to Neeraj Kanwar, vice-chairman and managing director of Apollo Tyres.
In ČGS Holding’s freshly-published 2011 annual report, the Czech Republic-based parent company of tyre maker Mitas a.s. reported its tyre division “successfully continued in its strategy to become a leading global producer of off-road tyres, significantly increased sales and launched major investment projects.”
If you would like the latest news from the Chinese tyre industry in Chinese, visit our partner site TyrepressChina.com. Or click below to continue on Tyrepress.
