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.
Phoenix, supplier to the vehicle industry, itself a tyre manufacturer many years ago and still specialising, though not exclusively, in rubber parts for the automobile industry, is not reaching its turnover and profit targets as quickly as planned. Air springs, an area in which Continental is also involved, however, promises to develop into a jewel for the group from 2001 and gives ground for hope of steep rises in turnover and earnings in the long term.
Degussa-Hüls AG is doubling capacity at one of its production plants in Antwerp, Belgium for sulphur-functionalised organosilanes. These rubber silanes are used as coupling components when precipitated silicas are used as fillers to reinforce rubber. Together with rubber silanes and rubber carbon blacks, precipitated silicas are the major component in “Green Tyres” which feature reduced rolling resistance and thus help to cut fuel consumption.
The Dutch company Rumal – part of the Kargro Group – recently received the ISO 14001 certificate. They process more than 25,000 tons of truck scrap tyres into granulate and rubber meal per annum.
Following price increases of between 3 and 5% by Cooper, Goodyear, Pirelli and Yokohama in the US market, Michelin is increasing its prices of passenger car and light truck tyres by 5%. Tyre manufacturers need a minimum price increase of 3% merely to compensate for the 8% increase in raw material costs (rubber, oil, carbon black).
The problem of scrap tyres (or, as ETRA prefers to call them, post-consumer tyres) is one which affects every country where tyres are sold. ETRA, the European Tyre Recycling Association, is the only European organisation devoted exclusively to tyre and rubber recycling and in July, the association held a conference in the UK to discuss the scale of the problem, assess progress and look at possible solutions. ETRA regards post-consumer tyres as a readily available and inexpensive resource rather than merely a problem and the association is keen to get this viewpoint across to the industry, governments and the public. Around 2.5 million scrap tyres arise every year in the EU, of which 61% are re-used or recycled in some form. 39% go to landfill, which will be banned shortly. The conference programme was a full one, with a variety of speakers, including representatives from enforcement and licensing agencies, trade associations and those involved in developing new processes and uses for scrap tyres. Among the solutions discussed were rubberised asphalt, rubberised sports surfaces, the emotive subject of using tyres as artificial reefs and a method of using microwaves to break down tyres into their component parts. The effective and environmental disposal of scrap tyres is a problem for all parts of the industry and one which will become even more acute when landfilling of tyres is banned in a few years.
Following a few months of indifferent performance, stock market analysts are meanwhile promoting tyre manufacturers’ shares as a good buy. The reasons for this optimism are that the rise in prices of raw materials (rubber, oil, carbon black) appears to have stopped, or at least slowed down, and that price increases announced in the USA are holding.
It was the biggest day in Timisoara since the revolution, and it will perhaps set off another – this time in the tyre industry. The new tyre production facility was opened 20th October by Continental president, Dr Kessel, and Romanian Prime Minister, Mugur Isarescu, the latter facing the possibility of losing office in the coming election. Amongst the 400 attending the opening were representatives from Continental’s key suppliers and selected customers, as well as German and Romanian journalists. When the factory has reached its final stage it will produce 8 million car tyres a year, employing about 1,000 people. The article in November’s TYRES & ACCESSORIES shows that the factory tour revealed little new; we were shown assorted Japanese vulcanising equipment and ancillary machinery, but the state-of-the-art tyre construction machines were still under wraps. The iron curtain may have fallen, but for now there is a rubber curtain round the new technology at Timosoara.
Finnish tyre manufacturer Nokian has confirmed that the company intends to produce commercial tyres in the USA as soon as possible. The first products will be forest tyres, followed by industrial tyres. A spokesman for Nokian said that it had not yet been decided whether the company would build its own factory in the USA, whether there would be some kind of joint venture co-operation, or whether tyres would be manufactured in an off-take agreement. The Finnish company has been active in the US and Canadian markets for some years.
Degussa-Hüls AG of Frankfurt/Main (Germany) is to increase prices by 5% for precipitated Silicas and Silicates effective from June 15. The company argues that energy cost increases could no longer be offset by other measures. Silica is an important component for the reduction of rolling resistance in ‘green tyres’, as are rubber silanes and rubber blacks.
The Rubber Manufacturers Association (RMA) is launching a tyre safety awareness campaign called ‘Be Tire Smart – Play Your PART’ urging consumers to think about Pressure, Alignment, Rotation and Tread. The campaign supported by the American Automobile Association (AAA) comes in the light of a RMA survey which showed that most drivers failed a tyre safety quiz. In the survey only four percent admitted to checking tyre pressures regularly. Only 28 percent knew the regular service interval for rotating tyres. Only 22 percent knew the legal minimum tread depth. In the overall quiz only 23 percent managed to get a grade “C” pass or better.
Cooper-Avon has announced that it will be making 80 staff employees redundant in Europe. Locations affected are the Melksham (UK) HQ and offices in Switzerland, France and Germany. The cuts are blamed on the high level of the Pound and large numbers of imported tyres from the Far East and have been made, says Cooper-Avon, to reduce costs and increase job security for the remaining 900+ employees.
First Stop is a partnership program of Bridgestone/Firestone Europe in cooperation with independent tyre dealers. The chain started five years ago in Scandinavia and Great Britain and now numbers about 1.100 Outlets in sixteen European countries. All the First Stop dealers have the same corporate identity with a black, grey and red livery. In Germany, the First Stop concept started one and a half years ago with perhaps 30 Outlets, based on the experiences gained in the other European countries and successful marketing measures at Germany’s Bridgestone/Firestone own chain A3. Nowadays First Stop has 75 service stations all over Germany and plans for the end of 2000 to reach hundred – representing between 80 and 90 dealers. Marketing and advertisement support is part of the First Stop concept as well as training in technical, business administration and sales aspects. The efforts of the Bad Homburg headquarters also include car servicing (shock absorbers, brakes, exhausts and oil) which is not very strong at many German tyre stations. Also the cooperation guarantees benefits in the purchase of workshop equipment and other parts such as wheels. The dealers can also participate in a three phase tyre offer for cars (for trucks Bridgestone/Firestone developed the Truck Point system): the premium brand Bridgestone, the well known brand Firestone in medium segments, and FST 2000 tyres. FST 2000 is a car summer tyre in nearly 30 sizes from 135/80 R13T up to 195/50 R15V, produced only in Europe and exclusively distributed through its First Stop partners who need an offer for the end user who is more price-conscious. And of course the world’s leading rubber company guarantees best quality. Now Bridgestone/Firestone has added First Stop Winter to complete the program for the dealers. Details can be found in issue 10/2000 of NEUE REIFENZEITUNG.
Six of the largest tyre manufacturers have announced their intention to develop a global e-business purchasing company. Rubbernetwork.com is an independent company which will host a global exchange, including Conti, Cooper, Goodyear, Michelin, Pirelli and Sumitomo Rubber. Confidentiality is assured and the exchange will be open to all manufacturers and suppliers. It will be operating by the year end. ‘Significant’ savings and efficiencies in purchasing are predicted.
Goodyear reported a net loss for the third quarter of $6.6 million and a net income of $109.1 m (Q3 1999: $3.3 bn). High raw material and energy costs were contributory factors. World-wide Q3 sales were $3.5 bn and sales for the first nine months of the year were $10.5 bn (1999: $9.3 bn). Before these figures were revealed, analysts – following a statement towards the end of September by Samir Gibara, describing a “difficult outlook” for the tyre industry – had widely expected Goodyear to break even at best.
On February 15th, Bridgestone opened its fourth plant in Japan devoted to the production of diversified products such as high performance functional films and precision components of rubber and plastic. The factory, sited in Iwata, covers an area of 17.3 hectares, of which 2.3 hectares are under cover, and employs 130. It is Bridgestone’s 15th factory in Japan.
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