Tyres can’t function without this critical raw material. Whether its natural or synthetic rubber you are interested in, articles bearing this tag feature this indispensable polymer.
The Yokohama Rubber Co., Ltd., announced that it established a Yokohama Design Center (YDC) inside the head office building of the Minato-ku, Tokyo-based company. The YDC is intensively equipped with advanced information technologies, workshop functions and audiovisual equipment so that it can contribute to the improvement of passenger-tyre appearance and the reduction of product development lead-time at the company.
The Goodyear Tire & Rubber Company and General Electric – specifically, GE Advanced Materials, Silicones – teamed up for breakthrough technology in new auto tyres. A unique tyre, Goodyear’s Assurance featuring TripleTred Technology, is the result of this technology.
Tyre manufacturer Bridgestone Corp. has sold some 130,000 tyres printed with the Japan Industrial Standards (JIS) mark even though they were not authorized to do so, Japanese media reported. The Ministry of Economy, Trade and Industry (METI) only allows industrial products to sell with the JIS title after they pass inspections from government officials. After agreeing with the Nagoya-based Inoue Rubber Co. to jointly manufacture tyres in 2000, Bridgestone reportedly invested in Inoue’s subsidiary in Thailand, IRCT, which began producing Bridgestone tyres in Thailand in August 2001.
Goodyear is about to make a second attempt to sell non-core businesses with suggestions that its engineered products division will be the first one up for sale, according to ‘The Deal’ reports. The news comes after Goodyear cancelled the sale of its rubber chemicals business in July. The company had promised to pay down its debts, using the sale of some its assets to provide the necessary funding. So far the company hasn’t sold any of its significant assets.
The Deal reported that oa source close to the company suggested that the next business unit up for sale will be the engineered products business. The sale process is expected to start in January. Refusing to mention the speculation, Goodyear’s engineered products spokesman, Skip Scherer said: “To maximise shareholder value, the company evaluates from time to time its business portfolio, but we don’t speculate or comment on that process.”
It is not clear how much the business unit will cost, should it be sold, but one analyst, Morningstar Inc’s Philip Guziec, has been quoted as suggesting that between $600 million and $1.2 billion would be a likely figure.
Malaysian news sources are reporting that Lion Forest Industries Bhd is teaming up with Chinese tyre manufacturer Shandong LuHe Group Co Ltd to form a 75:25 joint venture company to produce Silverstone tyres in China. On 15 December the two companies said that Lion Forest’s subsidiary, Lion Rubber Industries Sdn Bhd, had signed an agreement with Shandong LuHe to form the joint venture company with paid-up capital of 152 million ringgit (approximately £21 million).
Lion Forest’s newly acquired subsidiary Quay Class Ltd and Lion Rubber also entered into an agreement with Silverstone Bhd’s 100 per cent subsidiary, iMpression Worldwide Inc, for the provision of technical know-how and services and the use of the Silverstone brand name. Silverstone Bhd is a wholly owned subsidiary of Silverstone Corporation Bhd.
Goodyear Tire & Rubber Co has said its Belgium-based joint venture with Japan’s Sumitomo Rubber Industries has arranged financing worth up to $365.5 million (£189.52 million), the associated press is reporting.
The transaction, which will be completed in euros, will provide $219.25 million to Goodyear Dunlop Tires Europe BV, Europe’s second-largest tyre maker. That amount, which will be secured through accounts receivables, could expand before the facility’s term ends in five years. Goodyear said the transaction is expected to be completed by the end of the year, and will replace an existing $109.6 million facility. The deal is subject to customary annual renewal of back-up liquidity lines, Goodyear said.
Shares of Goodyear rose 84 cents, or 6.43 per cent, to close at $13.91 in trading on the New York Stock Exchange. The stock increased another 5 cents to $13.96 in after-hours trade.
Thomas A Dattilo has been named Industry Executive of the Year by Rubber & Plastics News. Mr Dattilo, who is also chairman of Rubber Manufacturers Association and vice chairman of the Manufacturers Alliance (MAPI), has served as Cooper’s president chairman and CEO since April 2000. According to Rubber & Plastics News, Mr Dattilo has helped the company to grow by nearly 25 per cent. Identifying Dattilo as the first “outsider” to lead the company, Rubber & Plastics News noted that he has provided the company “international experience and a better understanding of outside forces that influence companies in today’s economy.”
”Cooper’s people and customers are what drive the company’s success. My role is to lead an already outstanding organisation to even greater success – greater than what they may realise they can achieve,” explained Dattilo. “I am thrilled and honored to be named to this prestigious honour and gladly share this recognition with the entire Cooper organization.”
Thomas Weidemeyer, formerly senior vice president and COO of United Parcel Service and president of UPS Airlines, has been elected to Goodyear Tire and Rubber’s board of directors. “In his 32 years with UPS, Tom distinguished himself in the transportation service and package delivery industries,” said Goodyear chairman and CEO Robert J Keegan. “We are confident that he will make significant contributions to our board.” The election of Mr Weidemeyer brings the size of Goodyear’s board to 11 members, 10 of whom are independent.
Minekazu Fujimura, CEO of Bridgestone Europe has warned that China’s production explosion is causing a severe shortage of steel cord, natural rubber and other raw materials, essential to tyre production.
Mr Fujimara told the Financial Times that the shortage has already driven up tyre manufacturers’ raw material costs by between 10 and 15 per cent, adding that further increases were inevitable. But it isn’t all bad. In the short term, Mr Fujimura conceded, the supply problems were proving to be financially beneficial. So far this year, the leading tyre producers have been able to raise their prices three times in acknowledgment of the rising cost problem.
As a result the big producers have reported improved results. Bridgestone itself has just reported operating income of $983m on sales of $12.6bn in the first three quarters. Goodyear this week reported a profit of $36.1m for the third quarter, its second successive quarterly profit after a long period of losses.
But Mr Fujimara is not resting on his laurels. “The problem is global and there is no escape from it. We have no choice but to pay the premium,” he said adding that the increases are likely to have a wider impact. “They will be working their way through into higher car prices,” said Mr Fujimura.
Following the news that Amtel was in “detailed discussions” with Vredestein Banden, Amtel president, Sudhir Gupta has confirmed that his company will buy Vredestein Banden and that it is planning initial public offerings (IPO) in London and Moscow in the next two years.
According to Dr Gupta, Amtel is planning a primary listing on the London Stock Exchange followed by a secondary listing on the Russian Stock Exchange. In a conversation with far eastern business publication, Business Times, Dr Gupta explained why the IPO would take place in London and not New York. “Europeans always understand Russia better than the Americans and most of the investment in Russia is European. That’s why we think London is a better place to list.” The secondary listing is also the result of ‘encouragement’ from the authorities for successful companies to list on the Russian Stock Exchange, and because “the stock exchange has good liquidity because of high oil prices.”
The listings are due to take place in one of two time frames; either October to November 2005 or April to May the year after, the Amtel president said. Currently, Dr Gupta owns about 85 per cent of Amtel. An international investment fund managed by Templeton Asset Management Ltd, owns 5.65 per cent, while 10 per cent of Amtel’s shares were recently sold in a private placement for $34.2 million. These shares were bought by about 22 institutional investors in Europe, the US and Russia.
It is clear that a key part of Amtel’s expansion plans will involve venturing outside of Russian borders. One part of this is the company’s purchase of Vredestein Banden. By purchasing the Dutch company, Amtel appears to have been aiming to buy a ready-made foothold in the market. At the moment Vredestein sells 40 per cent its tyres in Europe’s biggest market (Germany) and has well organised distribution operations across Europe.
Japanese based tyre manufacturer, Yokohama has officially launched its Advan brand. In an effort unify its global image, the company 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. 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 products, the Advan Sport and Advan ST.
Cooper Tire has been given the ‘go-ahead’ to sell four of it Cooper-Standard Automotive plants having reached an agreement with the United Steelworkers of America (USWA) union. As a result an appeal to the US 7th Circuit Court of Appeals will be dismissed.
Previously Cooper had been under an injunction granted on 2 November, by the US District Court in Indiana. This followed a complaint filed by the USWA asserting the right to negotiate new labour agreements with a buyer before a sale of the four union facilities.
Cooper has already announced a definitive agreement to sell Cooper-Standard Automotive for $1.165 billion to an entity formed by The Cypress Group and Goldman Sachs Capital Partners.
“I am pleased that the talks with the Steelworkers have produced an expedited and favorable conclusion,” said Thomas A. Dattilo, Cooper’s chairman, president and CEO.
Mr Dattilo added: “We have continued working toward closing our transaction with the Cypress Group and Goldman Sachs Capital Partners throughout the process of negotiating with the union. This agreement certainly brings us closer to concluding the sale of Cooper-Standard Automotive, without any additional cost to Cooper Tire & Rubber Company. We continue to believe that the transaction will close before the end of the year.”
Exact details of the agreement have not been released. Cooper expects its deal with Cypress/Goldman Sach to be completed by the end of the year.
Nokian Tyres has confirmed that it has sold its factory premises in the town of Lieksa for a total of 3.6 million euros. The Finnish company sold the bicycle tyre business to Suomen Rengastehdas Oy. According to Nokian, the new owners took over the management of the plant straight away and will provide contract-manufacturing services to Nokian. All personnel, a total of 59 employees, are to keep their jobs working at the Bicycle Tyres profit centre and in heavy inner tube manufacture.
Suomen Rengastehdas Oy is a subsidiary of Suomen Kumitehdas Oy. The companies are engaged in the manufacture of bicycle tyres, rubber boots, footwear and other rubber products, and in the reprocessing of rubber. The principal owners of the companies are Mr Arto Huhtinen and Mrs Tuire Erkkilä, both previously members of Nokian Jalkineet Oy’s (Nokian Footwear) management.
In 2003 the Lieksa plant manufactured 784,000 bicycle tyres and inner tubes.
Bridgestone Firestone North America and Bridgestone/Firestone Canada have jointly announced price increases. Prices are due to increase by 5 per cent on passenger and light truck tyres, 7 per cent on truck and bus tyres and 10 per cent or more on agricultural and off-the-road tyres. The companies say the increases will affect Bridgestone, Firestone, Dayton, associate and private brand tyres and will come into effect from 1 January 2005.
According to Mark Emkes, CEO and chairman of Bridgestone Americas Holding, parent company of BFNT and BFCA, “Our tyre companies are facing an unprecedented continuation of rising raw material prices on a number of different fronts. From steel to petroleum to rubber chemicals, we have seen cost increases that simply can not be offset by the increases in efficiencies and productivity that we have implemented at all levels of our company. The action we announced today is a necessary step in addressing these escalating costs.”
Bridgestone Corporation today announced that it has entered into an agreement with The Goodyear Tire & Rubber Company to purchase 95 per cent of the American company’s stake in Goodyear Sumatra Plantations (GSP). Terms of the pending purchase have not been disclosed.
GSP, which began operations in 1917, is one of the largest natural rubber estates in North Sumatra Indonesia. Its activities include the planting, growing, tapping and processing of natural rubber. GSP has approximately 18,000 total hectares (47,000 total acres) with approximately 5,000 employees.
Bridgestone said its acquisition of GSP is part of its aim to secure a stable supply of natural rubber and to increase its research and development in this area. The group supplies some of its own demand for steel cord, synthetic rubber and natural rubber, as well as carbon black.
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