Indian Tyre Market
Tyre dealers across India are urging the government to lower the import duty on tyres to five per cent from the existing 20 per cent. The request aims to “checkmate the activities of the domestic tyre majors,” reports Team India.
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Tyre dealers across India are urging the government to lower the import duty on tyres to five per cent from the existing 20 per cent. The request aims to “checkmate the activities of the domestic tyre majors,” reports Team India.
Toyo North America has appointed Shozo (Carlos) Kibata president, and Toyo Tire (USA) Corp has appointed Masaharu Yoshimoto as executive vice president, Tire Review has reported. Kibata, who will remain president of Toyo Tire (USA) Corp, will be stationed in Georgia, beginning in July, to oversee the construction and operation of the tiremaker’s new US manufacturing facility in Bartow County. The facility is expected to produce 2 million tyres annually for the North American passenger car and light truck segments. Yoshimoto joined Toyo Group in April 1972 and worked in the US for seven years. Since June 2001, he has served as president and CEO of Toyo Tyre & Rubber Australia Limited.
Analysts were not surprised by Bridgestone’s recently posted operating profit increase of 7.9 per cent, according to a Deutsche Bank report. At the same time as posting its 2004 full year results, the company predicted a downturn in operating profit of 14 per cent in 2005. The analysts’ verdict? Cautious as usual.
“The numbers did not surprise, as usual beating the company targets. They were driven by higher volumes in Europe and the US and an improved product mix,” the report says. The Deutsche Bank representatives continued by commenting that Bridgestone’s projected full year profit dip has accounted for higher raw material costs, but not the effect of passing these on to costumers. According to the analysts Bridgestone’s conservative estimates reflect a desire to reinforce its negotiating position with synthetic rubber and chemical material suppliers; underscore how tough the earnings environment is in order to make a stronger case for its own price increases; and gives extra leverage for unresolved labour contract issues with North American unions.
“If Nick says it’s good then it must be,” says Mark Gregory, national franchise manager for Punctureseal, when asked about the company’s tyre sealant. Nick Sanders, the person he refers to is a renowned adventure/endurance biker who is well known in biking circles for his world moto challenge, where he circumnavigates the globe on his Yamaha R1. Nick advocates the brand by both using it on his own tyres and recommending it to all that travel alongside him.
Gummiwerk Kraiburg is continuing to develop its international market position. This is why the Austrian corporation will invest in a new rubber mixing facility in China which will be built without any local partners. From 2006 onwards the company will produce “rubber for non-tyre applications,” Thorsten Schmidt, vice president Gummiwerk Kraiburg Austria, explains. The greenfield project will cost about 6 million euros and the new company will be a 100 per cent Kraiburg subsidiary. Now that Kraiburg has acquired the necessary real estate in the Shanghai area, construction work is about to begin.
Goodyear Tire & Rubber Co has announced that it’s offering US customers a $50 guarantee on tyres equipped with its self-sealing DuraSeal commercial tyre technology. The tyre company says it will pay out $25 for a tyre’s first retread if punctures up to a quarter of an inch in diameter in the tread area do not seal. Sidewall punctures will not be covered. DuraSeal technology initially will be available in Goodyear’s new Unisteel G287 MSA and G288 MSA mixed-service tyres. The company believes the technology will be popular in logging, landfill, construction, road building and other related applications.
A changing market environment and growing consumer demand in Russia has encouraged Matador to target the increasing opportunities offered by the market. The Slovakian tyre manufacturer is preparing for the future by initiating a new brand strategy and further investments into its Russian joint venture in Omsk. 2005 is an appropriate year for Matador to contemplate future development of its tyre business, as it will celebrate two important anniversaries during the coming months. In May the company will celebrate its 10th year at the Russian factory Omskshina, followed by its 100th anniversary in the autumn.
Duro brand tyre maker Hwa Fong Rubber Industrial has received an order from Sumitomo Rubber for 750,000 ATV tyres annually, according to reports out of Taiwan. Hwa Fong Rubber Industrial’s plant in Thailand will reportedly produce the tyres, writes Tire Review.
Hwa Fong Chairman Steven Chang said the order is a “major achievement” for the company’s ATV tyre business. Deliveries are set to begin in April. Chang said the order is so large that Hwa Fong is investing $13 million to $16 million to add capacity at the Thailand plant.
Sumitomo Rubber has released strong 2004 results, at the same time as announcing both the appointment of Tetsuji Mino as president.
Net sales were recorded at 3.41 billion euros. Operating income rested at 329.9 million euros, of which 238.4 million euros (equating to 72.3 per cent) came from tyres. This showed a decrease compared to 2003 where 82.6 per cent of operating income came from tyres. Net income was 138.9 million euros from 94.9 million in 2003 and net sales were 2.59 billion euros, or 76 per cent of overall sales.
Yokohama Rubber Co. established Yokohama Tire Korea Co. Ltd., a wholly owned sales subsidiary, which will now handle all marketing and sales efforts in South Korea, Tire Review has reported. Previously, a local distributor represented Yokohama in that country. The subsidiary, established in mid-January, will begin operations this month, according to Yokohama Rubber Co. Yokohama said it hopes to reach $10 million in sales in South Korea within three years.
RubberNetwork LLC, a tyre and rubber industry consortium owned by nine of the largest global tyre and rubber industry companies, has announced its year-end results.
The company reported cumulative savings of over $230 million (£121 million) since its inception. The company also noted that during 2004 it connected over 140 direct material suppliers to RubberNetwork members through RubberNetwork’s supply chain supplier network in Japan, Europe, and North America.
Cooper Tire & Rubber has reported a 5 per cent year-over-year increase in net sales, a fourth quarter record for the company’s tyre operations. At the same time the board of directors authorised the repurchase of up to $200 million of the company’s publicly traded notes. This will be done through open market transactions, a tender offer or a combination of the two. Total net sales for the company’s continuing operations increased to $541 million in the quarter ended 31 December 2004, compared to $515 million in the same period of 2003. Income from continuing operations dipped significantly in the quarter to $3 million (4 cents per share) from $8 million (10 cents per share) in the fourth quarter of 2003.
Brazillian retread product manufacturer, Vipal, holds 43 per cent of the world’s second largest market and is represented in 90 countries. Now the company is aiming to expand its global business. After a successful SEMA show, the company stepped into the Mexican market with the inauguration of the Vipal distribution centre in Mexico and the launch of the Vipal Authorized Dealer Network. The company also launched its new Vipamold VRA tread design for use on drive and trailer tyres.
The US Rubber Manufacturers Association (RMA) and General Products Group will discuss the political and business trends affecting the industry, at its annual meeting which is being held between 26 and 28 February. The RMA/GPG annual meeting will be held at the Sheraton Wild Horse Pass Resort in Phoenix, Arizona.
Dusseldorf based, Degussa AG has announced that it will increase the capacity of its carbon black plant in Paulinia, Brazil, to 100,000 tonnes per year. The company first announced this project in September 2004. Now that the management board has approved the plans, the way is clear for work to start immediately.
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