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Self-Inflation Device Scoops 2009 Tire Technology Awards

The Self Inflating Tire (SIT), developed by Coda Development, has walked away with the Tire Technology of the Year award at the Tire Technology Awards for Innovation and Excellence 2009, presented at Tire Technology Expo in Hamburg, Germany on February 18. Coda Development’s SIT system is primarily designed to aid fuel economy and safety. As well as benefiting drivers through the elimination of pressure checks and the need to manually inflate tyres, it helps to address the serious drawbacks of incorrect tyre pressure.

20th February 2009/by Tyrepress Editors

Deutsche Bank Report Lowers Goodyear Estimates

Noting the “larger than expected” production cuts in Goodyear’s 2008 fourth quarter and a “sharp decline” in the manufacturer’s profitable South America and Asia regions, Deutsche Bank analysts have adjusted its estimates for the company’s 4Q 2008 and 1Q 2009 results. In a report released this week (commencing 9 February), Deutsche lowered its estimates to -$1.30 from -$0.86 for 4Q 2008 and to -$1.86 from -$1.50 for 1Q 2009.

Deutsche’s statement said that as well as the production cuts, Q4 had seen raw materials rise further than was previously expected. In addition it continues, “Some of the downside appears to be derived from a sharp decline in Latin America and Asia, two regions that have produced a disproportionate share of GT’s [Goodyear’s] profitability in the past.”

11th February 2009/by Tyrepress Editors

Work in Progress – Sibur/Amtel Debt Deal in the Offing

The path towards an arrangement between OJSC Sibur Holding and Amtel-Vredestein has been littered with complications, yet as of early 2009 it appears that the persistence of the parties involved has paid off. On January 28, Sibur Russian Tyres (SRT) announced the planned issue of 7.6 billion securities bonds, valued at 12.69 billion roubles (£246,47 million), each convertible into a single ordinary SRT share. This bond issue, commented SRT deputy general director Igor Karavayev, provides a tool for the possible redemption of Amtel-Vredestein’s Russian business debt with creditor banks; under this scheme, the creditor banks could acquire up to 45 per cent of SRT’s shares. According to SRT, arrangements with creditors should be finalised some time in February.

3rd February 2009/by Tyrepress Editors

China Sunsine Supplying Global Tyre Majors

China Sunsine Chemical Holdings is one of China’s largest rubber accelerator producers. At present the company possesses a total annual production capacity of 50,000 tons of rubber accelerators per annum, plus a further 10,000 tons of insoluble sulphur and 10,000 tons of anti-oxidant. These chemicals are sold to the leading global tyre manufacturers, including Bridgestone, Michelin, Goodyear, Continental, Pirelli, Sumitomo Rubber, Yokohama, Hankook, Cooper and Kumho. In China, the company supplies – amongst others – Giti Tire, Aeolus Tyre, Shanghai Tyre, Hangzhou Zhongce Rubber and Chengshan Corporation. Worldwide, China Sunsine boasts more than 400 customers in over 30 countries.

30th January 2009/by Tyrepress Editors

Apollo Tyres Owned Zimbabwean Fast Fit, Retreader Restructures

Zimbabwe’s National Tyre Services (NTS) is in the process of finalising a strategic restructuring exercise to rationalise its operations. Dunlop Group (Dunlop Zimbabwe, owned by Apollo Tyres, is a major shareholder in NTS) managing director Kennedy Mandevani, recently appointed to oversee operations at the distributor and retreader, said the exercise would also increase the company’s operational efficiencies.

“Given the trading environment, the exercise brings NTS and Dunlop Zimbabwe closer to each other in order to deliver increased synergistic benefits to all stakeholders,” Mandevani said. “The right-sizing and restructuring will see a more flexible and customer focused entity poised to take advantage of current and future opportunities.” Mr. Mandevani added that NTS has maintained a strong presence in key geographical locations in order to maintain its market share.

27th January 2009/by Tyrepress Editors

JK Tyre Posts Fourth Quarter Loss

Despite increased sales in 2008, JK Tyre’s fourth quarter results reveal a net loss for the quarter and reduced profits through the entire financial year. The company reports net sales of Rs 40,524.8 million (£591.4 million) during the 12 months to December 31, 2008, up 43.9 per cent on the 2007 yearly result. During the fourth quarter net sales were Rs 7,798.2 million (£113.8 million), a more muted 6.9 per cent increase on the fourth quarter of the previous year.

23rd January 2009/by Tyrepress Editors

Michelin Sells Share in Sapphire Energy Recovery

Michelin Tyre plc has announced the sale of its share in the Sapphire Energy Recover joint venture. The company, established in 2001 by Michelin together with cement and aggregate producer Lafarge, is now solely owned by Lafarge.

The decision to move Sapphire to sole ownership was made, says Michelin, once the business had successfully achieved its objective of developing a healthy and viable end-of-life process for used tyres. Sapphire provides the items to the cement industry as a waste-derived fuel, and the tyre maker adds that a sustainable market that benefits both tyre manufacturers and cement producers has now been created.

21st January 2009/by Tyrepress Editors

Extended Fleet Replacement Cycles a Major Opportunity for Kwik Fit

One result of the recession is that fleet operators are prolonging the time they hold onto their vehicles. This is not such great news for used car dealers that previously snapped up the steady stream of three year old ex-fleet vehicles entering the market, but Kwik-Fit says lengthening fleet replacement cycles are providing it with a major business opportunity – tyre consumption rises and an increasing volume of MoTs and service and repair work is required as vehicles move into their fourth year of operation. Yet simultaneously, one of the biggest challenges facing Kwik-Fit Fleet and fleet decision-makers is cost management and the recent, unprecedented increases in the price of tyres.

13th January 2009/by Tyrepress Editors

Dunlop Zimbabwe Sales Rise Following Granting of Forex Permit

According to a company official, sales at Dunlop Zimbabwe Limited have significantly improved since the company received a license entitling it to sell its products in foreign currency. The license was granted to Dunlop Zimbabwe by the Reserve Bank of Zimbabwe in late November 2008.

Without releasing specific figures, company managing director Kennedy Mandevani said that sales have been steadily increasing. “The FOLIWARS (Foreign Exchange Licensed Warehouses and Retail Shops) sales are gradually picking up and will make a positive difference to our sales mix,” he said. “Dunlop is intensifying its marketing campaign so that more of our customers are made aware of this facility.”

6th January 2009/by Tyrepress Editors

Cooper’s Albany Closure Savings Higher Than Expected – DB

Analysts at Deutsche Bank admitted on December 18 that the magnitude of cost savings from the closure of Cooper Tire’s Albany factory is higher than the bank initially expected. Cooper stands to save between US$75 million and $80 million per annum after costs linked to the closure are taken into account, however Deutsche Bank doesn’t expect Cooper Tire to achieve the full run rate of cost savings until the fourth financial quarter, as timing of employee departures and transition/inefficiency costs related to the plant shutdown, such as employee wages and benefits, mask the majority of the variable cost savings.

19th December 2008/by Tyrepress Editors

November’s Market Worse Than October’s, Says Michelin Data

The report published by Morgan Stanley Research Europe says it all: “If investors thought tyre data was poor in October, it just got worse…” What this memorable sentence refers to is data released by Michelin on December 18, which shows the supposedly more resilient passenger car tyre replacement market to be down in Europe 10.3 per cent in November, and in North America by a hefty 20.2 per cent. OE sales in the segment dropped a spectacular 33.5 per cent in Europe and 31.2 per cent in North America.

18th December 2008/by Tyrepress Editors

Bridgestone Opens Synthetic Rubber Plant in China

On December 8 Bridgestone (Huizhou) Synthetic Rubber Co., Ltd. (BSRC), a wholly-owned subsidiary of Bridgestone Corporation, officially opened a facility dedicated to the production of synthetic rubber in China. The new plant, located in Huizhou, Guangdong Province, produces styrene-butadiene rubber (SBR) and has a projected production capacity of approximately 50,000 tons.

According to a publication produced by the Japan Automobile Tyre Manufacturers Association (JATMA), synthetic rubber generally accounts for approximately 20 per cent of a tyre’s overall weight. The SBR produced at the new facility will mainly be used for the part of the tread in contact with the road, and has characteristics that contribute to ensuring vehicle stability when travelling at high speeds without reducing rubber strength.

9th December 2008/by Tyrepress Editors

Tyrexpo Asia Can Help Beat Credit Crunch, Says ECI

Seeing the positive in the current global economic doom and gloom, the organiser of next March’s Tyrexpo Asia says the exhibition is ready to act as an international tyre forum that will serve to help businesses weather the credit-crunch by introducing cash-conscious buyers to volume-chasing suppliers and manufacturers.

With tyre and equipment businesses under pressure around the world from falling automotive sales and low consumer confidence, ECI International believes the stage is set for the exhibition to deliver much-needed vitality and innovation into the global market. “Every business is looking at its costs and margins, so the opportunity to meet new suppliers and distributors who can help achieve efficiencies has never been more important,” said ECI’s Paul Farrant.

1st December 2008/by Tyrepress Editors

G8 International FZE – Trading Partners

We have been hearing a lot about the G8 group of countries recently, but this article is concerned with another G8 – G8 International FZE, a trading company established in the Sharjah free trade zone of the UAE.

Originally, the purpose of G8 was to procure various raw materials for the automobile tyre and tube industry in India and other parts of the world, but the scope of the business has expanded somewhat. As well as offering a range of synthetic and natural rubber, sourced mainly from Russia and India, G8’s products include five types of carbon black, chemicals used in tyre manufacturing, such as zinc oxide, sulphur and stearic acid among others and a range of tube valves. G8 also trades in metals, minerals (rock phosphate), fertilisers and commodities such as sugar.

1st December 2008/by Tyrepress Editors

Dunlop Zimbabwe Permitted to Sell in Forex

The Reserve Bank of Zimbabwe has granted Dunlop Zimbabwe the licence required for companies in the country to sell products using foreign currencies, according to the Chronicle newspaper.

The paper quotes the firm’s Southern regional manager Dumisani Ndlovu, who stated, “the inspection was done by the RBZ on 25 November to check whether the ultra violet money detection machine was in place, the invoicing, security, computer network and warehousing. The team was satisfied and Dunlop was given permission to sell in forex.” He concluded that the licence would allow the manufacturer to import more raw materials, which would make an increase in production capacity possible, “thereby improving the company’s viability and safeguarding the company’s employment base. In addition, the more we sell in forex, the more forex that is made available to the RBZ to finance crucial national programmes in the country,” he stated.

28th November 2008/by Tyrepress Editors