raw materials Archives - Page 68 of 88 - Tyrepress

Raw Materials

Posts

Goodyear Spends on Chilean Production Expansion

Goodyear will double its production capacity at the company’s Maipú plant in Chile, following an investment of US$400 million over the next four years. Chilean business news sources quoted Goodyear’s Chilean president, Claudio Rodríguez Pemjean, stating that despite the 100 per cent proportion of raw materials imported to the factory, Goodyear plans to compensate by increasing the efficiency of the production process and updating its current technologies.

2nd July 2008/by Tyrepress Editors

Good Times At Goodway Rubber

Goodway Rubber has been enjoying some good times over the past few years and the message from Group CEO Mr. Tai Boon Wee is that the company’s business grew by 33 per cent in 2007.

Ms Alison Wong has recently been appointed Chief Operating Officer, having overseen what are described as “unprecedented sales” during her last two years as Managing Director. The current high price of oil is impacting negatively on all sectors of industry – notably transportation and logistics, but Alison Wong, quoted in the Goodway corporate magazine Khronicle, suggests that retreading is one way to ease this pressure. She says: “Retreading is cost-efficient as a reusable resource and value for money. We can turn this threat into an opportunity with our established reputation for premium quality retreads that consistently deliver high performance, durability and safety.”

30th June 2008/by Tyrepress Editors

Interest in Tyre Recycling Increasing, says Eldan

While the Reifen Essen show featured brand new tyres by the truckload, a company more interested in their end of life counterparts was Eldan Recycling. Company product manager Bjørn Larsen, speaking with T&A, said that during the show Eldan had received many visits and enquiries from people involved in the growing recycling industry. “We have received interest from Eastern European countries, such as Russia, Romania and Latvia. The market is going east. Queries have also come from customers in Turkey, and representation from Asia, from potential customers seeking turnkey systems.”

Eldan can supply tyre industry recyclers with everything from individual pieces of equipment, such as choppers, raspers, separators and granulators through to complete turnkey outfits. All equipment is built by the company in its home country of Denmark. Individual items are modular in design to facilitate a painless addition of more units further down the track should the need arise. The popularity of Eldan products is evident from the number of large outfits it counts as customers, such as German automotive parts giant ATU, who operates six tyre recycling plants with a total annual capacity of 120,000 tonnes.

30th June 2008/by Tyrepress Editors

Amtel-Vredestein, Sibur Holding Deal will Create ‘Top 10 Tyre Producer’

Amtel-Vredestein has reached an agreement with Sibur Holding that will see it acquire Sibur Russian Tyres in exchange for 159.3 million new Amtel-Vredestein shares. Amtel-Vredestein will also carry out a $150 million share placement, and Sibur Holding has already agreed to acquire $50 million worth of these shares. As a result, Sibur Holding will own 70 per cent of the new expanded tyre operation. This deal, which values Sibur Russian Tyres at approximately US$318.6 million, promises to create “one of the leading diversified tyre producers in Europe and one of the top 10 tyre producers worldwide,” states Amtel-Vredestein.

The acquisition will give Amtel-Vredestein access to a $40 million line of funding from Sibur Russian Tyres. Media reports earlier in the year suggest Amtel needs roughly $20 million a month to keep raw materials flowing into the production process during the transition. As a result, the deal is expected to be completed in the second half of 2008.

Following the initial acquisition of Sibur Russian Tyres, the terms of the agreement call for Amtel-Vredestein to conduct a $150 million private share placement at a subscription price of not less than $1.89 per share. Sibur Holding has already agreed to purchase shares to the value of $50 million. Following a successful completion of this share issue, Sibur Holding will own 70 per cent of the new, larger tyre company and no less than 60.5 per cent of Amtel-Vredestein’s enlarged share capital as a result of the acquisition and placement. Sibur Russian Tyres chief executive Vadim Gurinov will head Amtel-Vredestein following the transaction.

Furthermore, Sibur Russian Tyres has agreed to provide Amtel-Vredestein with an interim funding facility of $40 million, subject to the agreement of the second company’s shareholders. The interim funding will be provided in two tranches; $20 million will be immediately available to Amtel-Vredestein upon signing a definitive agreement, and the balance available upon Amtel-Vredestein’s shareholders passing the required resolutions at the EGM. The amount raised through the interim funding is intended to enable Amtel-Vredestein to meet its liquidity requirements until completion of the acquisition and placement.

Amtel-Vredestein notes soberly that, in light of its difficult financial position, the transactions with Sibur Holding are “considered essential to the continued viability of Amtel-Vredestein as a going concern and, without the transactions, Amtel-Vredestein’s debt restructuring cannot succeed.”

“This is a significant achievement for Amtel-Vredestein and Sibur Russian Tyres and for their shareholders as well as all stakeholders,” commented Petr Zolotarev, CEO and chairman of the Amtel-Vredestein Executive Board. “The combination of the two businesses as well as the placement will provide the enlarged group with a stronger balance sheet and essential funding to continue operating as one of the leading global tyre manufacturers, creating at the same time one of the leading companies in the Russian market. Going forward, the enlarged group will benefit from greater economies of scale, enabling it to compete more efficiently. ”

Alexander Dyukov, chairman of the Boards of Sibur Holding and Sibur Russian Tyres, commented that “The transaction will create one of the top 10 tyre producers worldwide, and is in line with Sibur Holding’s strategy to increase the value of its tyre business.” Sibur Russian Tyres CEO Vadim Gurinov added “the Russian tyre market has a very high growth rate and the enlarged group will be very well positioned to benefit from the growth, finding itself in a win-win situation. In addition to leading positions in the truck and off-the-road tyre segments, the group gains the same positions in the passenger and light trucks tyre segments and becomes an undisputable market leader in Russia and the largest tyre manufacturer in Eastern Europe. Moreover, by this combination, we are able to reach additional synergies through acquiring an up-to-date research base, high-quality tyre brands and a wide European distribution network. From my point of view, this business combination provides us with great prospects and development opportunities.”

Russia’s economy is growing strongly, comments Amtel-Vredestein, adding that the enlarged group will be better positioned to benefit from this and compete effectively with foreign competitors. Furthermore, it states, “the parties are confident there is significant scope for realising synergies by combining the operations of the two companies in areas of manufacturing, research and development, administrative cost savings and a rationalisation of the capital investment programme.”

30th June 2008/by Tyrepress Editors

Bridgestone to Raise Japan Market Tyre Prices

As of September 1 prices for Bridgestone tyres, tubes and flaps sold in the Japan replacement market will increase, the company announced on June 26. The new pricing structure applies to both summer and winter tyres. Bridgestone adds that it will also ask original equipment manufacturers for significant increases in their tyre prices.

Specific replacement market price increases include five per cent for passenger car and light truck tyres, seven per cent for truck and bus tyres, per cent for OTR tyres, between seven and ten per cent for industrial vehicle tyres, three to ten per cent for motorcycle tyres, seven per cent for other kinds of tyres, and ten per cent for tubes and flaps.

27th June 2008/by Tyrepress Editors

Avex: Number One In Storage

Based in Otrokovice in the Czech Republic, Avex claims to be the world’s number one tyre storage rack manufacturer, as well as manufacturing racks and containers for the chemical, automotive and nuclear industries.

The company was founded in 1994 and currently employs some 245 staff. The production facility covers around 10,000 square metres and 75 – 90 tons of raw materials are used daily, giving a monthly output of between 10,000 and 20,000 racks, depending on the size and complexity of the products.

26th June 2008/by Tyrepress Editors

Cooper Tire Reducing North American Production

A decline in tyre demand and projected shortages of some raw materials have led Cooper Tire & Rubber to announce on June 23 that production in its North American facilities would be reduced during the second quarter of this financial year. The lowering of production during the quarter will, says the company, cost an estimated US$12 to 14 million.

24th June 2008/by Tyrepress Editors

Aeolus Placing a Focus upon Quality

International News

Originally established by the Chinese government as an OTR manufacturer, Aeolus Tyre Co. Ltd. has, in its 43 years, become one of China’s top ten tyre producers. The company currently specialises in truck and earthmover tyres, manufactured at its 640,000 square metre factory in central China. Soon a second facility will also enter service. At the Reifen exhibition T&A spoke with company Europe Division Manager Mr. Cuiqiang Fu and vice general manager and chief engineer Mr. Yaoling Feng about the direction Aeolus is taking as a company and as a brand.

“Of greatest importance for Aeolus is an emphasis on quality, we always lay an emphasis on quality and technology,” states Mr. Feng. He notes that this focus lies at the heart of the company’s success. “The most important thing for management level at Aeolus is quality and improving the mindset of employees. All Aeolus employees know this brand and the factory would not exist without the quality of our product; all that Aeolus is today is due to that.”

24th June 2008/by Tyrepress Editors

Report: Retreads are Greener than New Tyres

An independent analysis carried out to compare the relative carbon footprints of new tyres and retreaded tyres has concluded that the process required to manufacture and distribute a retreaded tyre produces significantly less carbon emissions than that required to produce a new tyre. The report, commissioned for the Centre for Remanufacturing and Reuse (embedded within Oakdene Hollins Ltd) and carried out by carbon footprint specialists Best Foot Forward, compares the carbon footprint of a new and a retread 17.5” tyre for use by light commercial vehicles.

This study showed that the manufacture of a 17.5” new tyre produces 86.9 kg CO2 emissions compared to 60.5 kg CO2 for an equivalent retread tyre, a saving of 26.4 kg. This equates to a reduction of emissions by 30 per cent.

20th June 2008/by Tyrepress Editors

Bridgestone Australia Prices to Rise August 1

Price increases of up to 5 per cent have been announced by Bridgestone Australia Ltd. The new pricing will be implemented on August 1 and includes most Bridgestone tyres, tubes, retreads and services.

Mac Ohashi, Bridgestone Australia chairman and CEO, commented that the company had absorbed the effect of rising raw material costs for as long as possible. “We have seen very significant continued upward price pressure on raw materials such as oil, natural rubber, synthetic rubber, steel and carbon black in combination with increased energy and transportation costs.

17th June 2008/by Tyrepress Editors

Bridgestone European Prices to Increase

Bridgestone Europe NV/SA has announced price increases on all of its tyre brands and categories. The price rise will apply in all European countries, however the UK and Northern Ireland will be affected more than those countries in the euro zone. Increases here will be in the range of between 8 and 12 per cent, as opposed to between 5 and 8 per cent for most of Europe. The new prices will take effect in each market in coming few months.

“Even after we increased our prices earlier this year, the raw material prices continue to increase beyond our expectation,” commented According to Gerry Duffy, vice president Sales & Marketing of Bridgestone Europe. “The recent increase in the cost of commodities such as oil, natural rubber, iron ore and others heavily affects the costs of almost all the raw materials we consume. As its financial impact is so huge and hard to offset only by our internal efforts, we have to recover some of those costs by this price increase.”

13th June 2008/by Tyrepress Editors

Yokohama to Put Up Consumer Tyre Prices

Yokohama Tire Corporation have announced that increases in U.S. consumer prices will come into effect on 1st July 2008 due to the rising costs of energy and raw materials.

In addition, consumers can expect to see in-line adjustments announced at a later date, while commercial Light Truck, Medium Truck and OTR (off-the-road) tyre prices will not be affected.

4th June 2008/by Tyrepress Editors

ATMA Issues Anti-Dumping Plea

Indian news sources have reported that the Automotive Tyre Manufacturers Association (ATMA) have requested a government-implemented anti-dumping duty on radial truck and bus tyre imports. The request follows concerns over the 1,300 per cent increase in Indian tyre imports from China in the last five years.

According to business commentary in India, the increasing cost of raw materials in India has left domestic tyre manufacturers exposed to the challenge from cheaper Chinese imports.

4th June 2008/by Tyrepress Editors

Conti Exec Discusses Success, Future Plans

After nearly a decade of decline, Continental Tire North America finally got into the black in 2007, success driven by a new focus on products, delivery and dealer relations. At its recent Gold Dealer meeting, held during a Caribbean cruise, Continental Tire North America outlined its expansion plans for the program. Andreas Gerstenberger, executive vice president of sales and marketing for CTNA’s consumer tyre group, sat down with Tire Review to discuss the company’s turnaround and future growth plans.

Since Continental bought out General in 1987, there have been numerous management changes. Now things seem to be clicking. What do you have in place now that you didn’t have before?

“The first thing that’s important, if you want to have stability in a team, is figuring out together what your strategy is in a given market. For a long time it wasn’t completely clear within the Continental group what the position of Continental Tire/General Tire should be in the US market.

29th May 2008/by Tyrepress Editors

Bridgestone to Buy 8.7% Share in Toyo Tire

Bridgestone Corporation has agreed to buy an 8.7 per cent stake in Toyo Tire & Rubber Co., Ltd., with Toyo reciprocating by buying a 0.5 per cent share of Bridgestone. Describing the moves as “business and capital alliances,” the Japanese tyre and rubber product manufacturers explained that moves are part of an agreement designed to help both companies syngergise in procurement and production. The transfer of shares is scheduled for Oct. 16, according to the statement. There are currently no details of whether or not the two Japanese tyre and rubber product manufacturer’s deal will extend beyond the announced share swap.

Bridgestone’s statement said the alliances are a result of the “bipolarization of market into high performance products and general-purpose products, structural changes in competition due to emerging power with low-priced products, and structural change in earnings due to steep rise of raw material cost.”

16th May 2008/by Tyrepress Editors