Russia
Motorsport participation is a stated component of Yokohama Rubber’s strategy for the global development of its flagship ‘Advan’ tyre brand. On March 5 the company announced its Motor Sports Activity Plan for 2010, in which it outlines its continued active support of motor racing in Japan and many other countries. Below are the highlights of the activity plan:
Belgium steel cord manufacturer Bekaert states that capacity increases in China, India and Russia, and the planned integration of the tyre Bridgestone tyre cord plants (in Sardinia, Italy and in Huizhou, China) acquired earlier this year will lift the company’s total tyre cord capacity from its present level of 625,000 tons to an estimated 700,000 tons by the end of 2010. The bulk of this increase will occur in China, where capacity will rise from its current level of 350,000 tons to 400,000 tons.
Ian Fraser, CEO of tyre retail giant Kwik-Fit is preparing to sell its insurance wing for in excess of £200 million. According to a report published in the Sunday Times on 14 February, Kwik-Fit has hired bankers at Credit Suisse to carry out a review of Kwik-Fit Financial Services. The report points out that a sale of the operation would help Kwik-Fit cut its debts of around £822 million.
Speaking on the termination of Vredestein’s five-year connection with Russia’s Amtel in 2009, Apollo Vredestein BV CEO Rob Oudshoorn has admitted in a company publication that “everyone at Vredestein let out a collective sigh of relief” when the cooperation finally ended. Apollo Tyres’ acquisition of Vredestein Banden BV was concluded last May following a prolonged period of financial difficulty for parent company Amtel-Vredestein N.V., and expectations remain high that the Indian company will inject fresh life into its Dutch subsidiary.
On 10 February Kwik-Fit Group announced that is has entered into a Frachise agreement with the ROLF Group, one of Russia’s leading automotive businesses. According to the company, the Russian centres will be established under a new brand – ‘White Service’ – for which Kwik-Fit has established a dedicated support team. As well as providing on the support “on the ground” in Russia, Kwik-Fit is inviting White Service managers to visit the UK to shadow their UK counterparts and share expertise. Prior to this deal Kwik-Fit gained similar experience with over 200 existing franchise outlets across eight countries.
During the global recession and financial crisis of 2009, tyre manufacturer Pirelli negotiated the challenges thrown at it better than expected and in doing so proved it is what many companies only claim to be: a storm-proof edifice. With its world-renowned Pirelli premium brand, the Italian tyre business retains its pattern of growth.
Upon the release of his company’s annual figures, Nokian Tyres president and CEO Kim Gran commented that “eventually, after taking decisive action in a tough market, we achieved quite satisfactory results in 2009.” This action, which included cutting investments by 94.7 million euros and wages and salaries by 44.6 million, helped the company achieve an annual net profit of 58.3 million euros, a figure that is, coincidentally, 58.3 per cent lower than the company’s 2008 profit. Net sales for January to December 2009 amounted to 798.5 million euros, 26.1 per cent less than a year earlier. Operating profit was 102.0 million euros compared with 247.0 million for the 2008 financial year.
The Press Trust of India reports the country’s government has imposed anti-dumping duties upon imported carbon black used by the rubber industry in an attempt to protect the domestic industry against from cheap shipments from China, Australia, Thailand and Russia. The import duties range from US$0.084 to $0.423 per kilogram, India’s Central Board of Customs and Excise (CBEC) said in a statement.
Yokohama Rubber has reported earning a net income of 9.0 billion yen (₤62.1 million) in the first three quarters of the present fiscal year, the nine months to December 31, 2009. That compares with net income of just 222 million yen in the same period of the previous fiscal year. Underlying the rebound in net income, the company explains, was a 0.1 per cent increase in operating income, to 17.3 billion yen (₤119.5 million). The improvement in profitability occurred despite a 16.2 per cent decline in net sales, to 344.0 billion yen (₤2.4 billion), and reflected a downward trend in raw material prices, reductions in selling and other expenses, and smaller losses on currency translation.
All Terrain Tours, an off-road tour company (as the name suggests) has chosen Cooper’s Discoverer STT tyres for use in the Northern English countryside. Started earlier this year by Tony Newton and Mark Langley, All Terrain Tours allows owners of off-road vehicles to use them away from asphalt roads on legally accessible “green lanes”, with prices starting at around £45. Langley’s Land Rover Defender and Newton’s Land Rover Discovery will have the Cooper tyres fitted as they lead tours across some of England’s most remote and beautiful countryside. The company promotes safe and responsible use of four-wheel drive vehicles in the countryside, with routes available for most 4x4s.
February 1 marks the fifth anniversary of specialty chemicals group Lanxess debuting on the Frankfurt Stock Exchange, and the company reports that some 14,600 employees around the globe will mark the occasion. The first price quoted for Lanxess shares on January 31, 2005 stood at 15.75 euros. Five years later, on February 1, 2010, the opening price was 27.42 euros.
Production figures released on 27 January show that Sibur’s tyre production fell 28 per cent in 2009 (7602 tonnes, compared with 10,650 tonnes in 2008). The news is set against a 27.3 per cent increase in rubber sales and a three per cent increased in the large group’s petrochemical product output. As a group, Sibur reported consolidated receipts 152.5 billion rubles (£2.550 billion; 2.948 billion euros; $4.116 billion) for 2009, down 12 per cent compared with 173.5 billion rubles (£3.540 billion; 4.092 billion euros; $5.713 billion) in 2008.
DriveRight has introduced its product offering into Russia by appointing Bazakoles as DriveRight’s Russian-based agent. With DriveRight predicting Russia will become one of Europe’s largest internet markets, possibly even second behind Germany, and an emerging passenger car market to back up tyres, the company is confident the move will bring a “significant advantage” to the company.
DriveRight director Duncan Hadley explained: “The partnership with Bazakoles has been seamless in terms of providing a product to a new region that they can take to market very quickly. Unlike other products sold into non-English speaking countries, DriveRight’s database has been easily deployed without the complication of language barriers or translation services. For example, an Audi A3 is known as an Audi A3 in any country, and a tyre size of 195/60/R15 is the same, even in Russia. Our data is language neutral."
Nokian Tyres reports that its Vianor retail chain reached an important milestone in December 2009 with the opening of its 600th outlet. The store, located in the Ukrainian city of Kharkov, is what Nokian refers to as an ‘entrepreneur-led partner outlet’. The Ukraine, the company adds, now ranks second behind Russian in terms of countries with the largest number of Vianor outlets.
The inauguration of Bekaert’s new steel cord facility in the Russian city of Lipetsk took place on January 20, and to mark the occasion Russian Federation President Dmitry Medvedev visited the plant. The Russian President and three Deputy Prime Ministers were accompanied by Bekaert CEO Bert De Graeve during their time at the site, which is located within the Lipetsk Special Economic Zone (SEZ), some 400 kilometres south of Moscow.
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