Raw Materials
Chester-based Allan Morris Transport, established in 1893 and one of the oldest transport companies in the UK, has switched to Bridgestone and its independent Truck Point dealer network for its tyres and tyre management services.
Pirelli & C SpA has reaffirmed its guidance for “significant improvement” in full-year results compared with 2004. The news follows strong nine-month results, which saw net profits rise 34 per cent. Revenue in the first nine months of 2005 was 2,707 million euros, an increase of 9.8 per cent compared with 2,466 million euros on 30 September 2004. EBITDA was 412 million euros (15.2 per cent of sales), an increase of 17.7 per cent from 350 million euros in the first nine months of last year.
The Bridgestone Corporation has announced that it will raise the replacement market prices of tyres, tubes and flaps sold in Japan. The move will take effect from 1 February 2006. Prices for winter tyres will be increased on 1 April 2006. Specific price increases include five per cent for passenger car and light truck tyres, seven per cent for truck and bus tyres, seven per cent for construction vehicle bias tyres, 10 per cent for construction vehicle radial tyres, and five per cent for other kinds of tyres (excluding those for motorcycles) and for tubes and flaps. Bridgestone points out that these figures are the average increases across each of the respective ranges.
(Akron/Tire Review) Hankook Tire Co saw profits increase 16 per cent in the third quarter, reaching $51 million against sales that rose 7 per cent to about $450 million. The South Korean tyremaker said the results were due to increased sales to automakers and price increases.
“Sales rose as Hankook raised prices of tyres in the US two times this year and once in Europe,” said Suh Min Chul, assistant manager of Hankook’s investor relations department. Hankook Tire, he noted, paid 11 per cent to 15 per cent more for raw materials compared to previous periods.
Bridgestone Corp has announced that it plans to build a technical centre beside its existing tyre plant in Wuxi in Jiangsu Province. The US$14 million facility, Bridgestone (China) Research & Development Co, will be responsible for testing raw materials supplied to the company’s Chinese tyre factories, according to a statement issued by the Japanese manufacturer.
The centre is expected to go into operation next July with some 20 employees and will be Bridgestone’s fourth technical centre worldwide in addition to facilities in Tokyo, Rome and Akron in the US state of Ohio.
When Bridgestone recently announced that it would increase prices in Europe it was the latest in a string of decisions by tyre manufacturers around the world. It seems that no matter where in the world a company is based, companies cannot avoid the increased price of raw materials and particularly natural rubber, synthetic rubber and steel. But T&A would like to know what you think about the recent spate of price increases issued by manufacturers around the world? Are they a necessary evil, a stealth tax on distributors or just the result of prudent financial planning on the part of the manufacturing business? To place your vote and leave your opinion click here.
Raw materials and the right machinery are integral to the tyre production process. But who delivers the best raw materials and how have the markets been affected by high oil prices and booming demand from so-called low cost countries. And how influential are prices on the finished product?
The President of Kazakhstan, Nursultan Nazarbayev, has visited InterKomShina JSC in Shymkent, South Kazakhstan. This company is engaged in the production of tyres for light vehicles and road freighters, agricultural machines and special equipment. InterKomShina claims to be the only tyre manufacturer in central asia.
Bridgestone Europe NV/SA announces that it will increase prices on all of its tyre brands and categories. It will apply to all replacement channels in all European countries. The increases are up to 5 per cent and are scheduled to take effect from 1 January 2006.
According to Guenter Unterhauser, senior vice president sales & marketing of Bridgestone Europe: “Our manufacturing divisions are facing huge increases in raw materials costs. The recent increases in oil based raw materials, as well as natural rubber and energy, puts us in the situation where we have to increase prices.”
Bridgestone Corporation officially opened Bridgestone (Shenyang) Steel Cord Co, Ltd, in Liaoning Province, China. Bridgestone invested US$94.3 million in the construction of the plant, which began producing steel cord for truck and bus radial tyres in August this year. Production capacity is projected to reach 70 tons per day by the end of 2007.
About 100 people attended the opening ceremony, including Chinese government and municipal officials such as Song Qi, deputy mayor of Shenyang. Heading the Bridgestone contingent were Masaharu Oku, the board of directors, vice president and senior officer responsible for tyre production and distribution, Hiromichi Odagiri, vice president and senior officer, chief representative of Bridgestone tyre operations in China, Kaoru Fujioka, vice president and officer in charge of steel cord, and various other plant officials.
Dunlop Tyres, Zimbabwe’s only tyre manufacturing firm could soon reopen following the intervention of Industry and International Trade Minister, Obert Mpofu. Dunlop shut down three weeks ago, sending 820 workers home after the Reserve Bank of Zimbabwe (RBZ) failed to pay the firm its foreign currency allocations under an exclusive agreement. The government is now expected to pump up to US$350,000 into Dunlop towards imports for raw materials. “It is envisaged that Dunlop will have a three-day working week until foreign currency inflows normalise,” newzimbabwe.com reported.
(Akron/Tire Review) The lingering effects of Hurricanes Katrina and Rita have forced Firestone Industrial Products to announce plans for reduced shipments of finished products, including its line of air suspension products. The unit of BFS Diversified Products formally declared “force majeure” for all of its customers effective immediately, citing slowdowns at its raw material suppliers.
Dunlop Tyres (Pvt) Limited, Zimbabwe’s sole tyre manufacturing firm, has shut down with the loss of 820 jobs, leading to concerns about road safety in the country.
Officials at the tyre manufacturer and exporter said the firm had shut down its plant last week due to shortages of foreign currency, which has resulted in the company failing to procure raw materials, newzimbabwe.com has reported.
As a consequnce of the continuing cost increase of the sector’s key raw materials and energy, Pirelli Tyre has announced an increase of its list prices, differentiated by area and segment.
The increase will be 4.5 per cent in Europe and North America for car, SUV and commercial vehicle tyres, and all Group brands; and 6 per cent worldwide for all Motorcycle Tyre brands.
There was mixed news concerning demand for tyres in the USA during September. Light vehicle tyre shipments during the month were up 2.6 per cent compared with September last year, which came as a surprise to some analysts, who were expecting sales to fall as a reaction to high fuel prices. The good news is tempered by the fact that these figures represent shipments to dealers, rather than sales to consumers.
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.
