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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.
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.
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.
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.
Toyo Tire and Continental Tire North America have recalled 24 and 50 truck tyres respectively from a “targeted batch.” The announcements follow Yokohama’s decision to recall 69 of its commercial tyres that were produced at the same GTY plant in Mount Vernon Illinois. The total number of recalled products now stands at 143.
Polyurethane tyre manufacturer, Amerityre, has claimed that its products out perform “comparable rubber compounds” when it comes to heat aging and Ozone resistance. The claim follows testing at an independent laboratory in accordance with ASTM test standards. Amerityre explains that it tested its products for these attributes in anticipation of NHTSA standardised testing, including an “oven-aging test” due to take effect in July 2007.
Global investment group, Investcorp, has decided to acquire American Tire Distributors Inc (ATD) from its majority shareholder, Charlesbank Capital Partners. According to the Tire Review report, no further details were released.
ATD is the largest independent tyre distributor in the US, with 70 distributions centres in 35 states. These service some 40,000 tyre dealer locations across the country.
China’s two largest tyre manufacturers have signed contracts to receive carbon black from the same supplier. China Energy will supply 1,000 and 800 tons to Hongzhou Chong Che Tire Company and Gui Zhou Guiyang Tires, respectively. Dong Hua Rubber Limited and Dong Tian Rubber and Chemicals Limited have also made contracts of 1,000 and 800 tons of carbon black, respectively. China Energy, Carbon Black Holdings, says it has received contracts amounting to 8300 tons of its speciality carbon black.
“In the past two years, we have been focusing our business on China’s fast-growing automobile industry. And it looks like this strategy is starting to pay off,” chairman and CEO, Mr Wang Guo Yuan commented adding: “Our carbon black helps the tyre makers to address the needs for improved tread wear, lowering rolling resistance, lower heat build-up. Therefore, our carbon black is being utilised for various types of tyres.”
Sumitomo Rubber Industries has said it will build a radial tyre plant in Thailand, Japan Today has reported. The new factory will be built in an industrial complex 100 kilometres south of Bangkok and will aim to produce 12,000 tyres per day two years after it begins operating in 2006, the report says. The facility will be the company’s third plant in Asia as Sumitomo Rubber already operates factories in Indonesia and China. The company reportedly made the decision to build the new plant in Thailand in response to growing global demand.
Shares in Goodyear Tire & Rubber have dropped 10 per cent after a Deutsche Bank analyst gave the company a “sell” rating. The analyst suggested that the share’s value had increased to the point that it could no longer be sustained. Although many news sources have reported the news, one business website, Motley Fool, ran an article suggesting that this was just “another reason why investors ought not consider analyst recommendations.” The story goes on to highlight how Deutsche bank has applied the range of ratings to Goodyear and not once “correctly called the stock’s performance.”
Japanese based tyre manufacturer Yokohama has officially launched its Advan brand. In an effort to unify its global image, Yokohama will now adopt one name for its premium products, instead of the regional variations that currently exist. According to Yokohama, the newly launched brand reflects the company’s “highest performance” and “highest quality” image. From now on, the Advan name will adorn all of the company’s new global high performance products. At the same time as launching this new product concept, the company also released two new Advan branded high performance products, the Advan Sport and Advan ST.
Although Yokohama only launched Advan as its “global flagship brand” recently, the name has actually been rolling around for a while, having first been introduced in 1978 as a motorsport tyre. Prior to its international re-launch, Advan was also associated with sports category products, mainly in Japan. In terms of branding, Yokohama considers itself to be something of a pioneering company. It claims to have challenged tyre manufacturers involved in motorsport activity at that time, by sponsoring a “works coloured” vehicle.
Speaking to Yokohama HPT managing director, David Seward revealed that next year Yokohama, and therefore Advan, would be involved in 26 motorsport events. In addition, the company will be running a UK dealer scheme in order to further promote its flagship brand. While attending the Advan launch in Dubai, Tyres & Accessories also learnt that Yokohama would be involved in Le Mans Endurance Series and would also be likely to take part in the Le Mans 24 hour race.
The so-called 2003 Advan Le Mans project is probably the most high profile event Yokohama has been involved in recently. In this instance the car not only ran on Advan tyres, but was plastered top-to-bottom in Advan colours and marketing paraphernalia. The car was driven by Japanese ex-Formula 1 driver, Ukyo Katayama, who was also on hand in Dubai to testify to the products’ quality. According to the Kamikaze Katayama, as he is sometimes known, any doubts he had about the quality of the tyres were proved wrong by the end of the race.
Now having publicised that it will use the new brand globally, Yokohama plans to continue with its “aggressive” two-pronged marketing strategy. That is, motorsport involvement and securing high profile OE contracts. The most recent example of this is the Bentley Continental GT. The GT is capable of speeds up to 198 mph and as such is fitted with ZR rated 20 inch versions of the new Advan Sport. In this instance the tyre features an embossed Bentley ‘B’ logo highlighting both the exclusivity of the vehicle and its associated tyres. Yokohama Rubber says it plans to continue pursuing this type of co-development opportunity and other similarly high profile associations look likely.
Yokohama plans to develop the Advan name into a “top-of-the-line” brand across all of its tyre categories including its Luxury and SUV lines. That is why the company released two new products and launched the Advan brand simultaneously. Available in 17 to 22 inch sizes, the ZR rated Advan sport, is described as a tyre that “boasts ultrahigh performance as well as driving comfort and quietness.” The ADVAN ST is a SUV tyre designed for use with high-powered SUVs. During production Yokohama tested the tyres’ high performance capabilities on the Nurburgring circuit. The company also assessed the product’s real-life high-speed proficiency on the German autobahn.
It was no coincidence that Yokohama chose to launch its new “global flagship” brand identity in Dubai, a country with growing associations to motorsport. One obvious reason for travelling to the United Arab Emirates was for the company to present the opportunity to test its latest offering on the Dubai Autodrome. The new course is competing to become a future Formula 1 venue, and therefore is certainly capable of testing the products’ high-speed resilience.
Kumho Tire, South Korea’s second-largest tyre maker, raised 373 billion won (around £193 million) in its recent IPO, according to the Reuters news agency. The total equates to the country’s largest issue in more than six months, the report added.
Kumho, which controls 42 per cent of the home tyre market, is selling 25.49 million shares at 14,650 won each, near the midpoint of an expected range between 13,250 won to 16,000 won, a source familiar with the deal said. The world’s 11th-largest tyre maker, will use the proceeds to expand its operations in China and slash debt. The dual listing in London and Seoul attracted good demand while Cooper Tire & Rubber Co. of the United States pledged to buy nearly 30 per cent of the shares offered, the report concluded.
Cooper Tire and Rubber has announced the appointment of three new managers. Dustin R Lepper has been named as manager of management education for The Cooper Learning Center, where he will facilitate training courses for the company and oversee other activities within the college of management education. Curt L Cramer has been appointed as territory sales manager, serving existing customers in the Northeast region as well as developing new business opportunities in this area of the country. Mr Cramer began his Cooper career in information technology eight years ago, and most recently served as a customer service coordinator. Clay S Lewis will become composite materials development manager, with responsibility for development of materials and compounds in the reinforcing components of tyres. Since joining Cooper as an trainee engineer in 1990, Lewis has worked as associate engineer, process engineer, tyre engineer and most recently as advanced manufacturing engineer.
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