Russia
Speaking at the Russian Economic Forum staged in London, Amtel-Vredestein CEO, Alexei Gurin called for President Putin and the Russian Federation to help boost quality, competitiveness and profitability through backing companies in acquiring businesses, technology and skills. He stressed that Russia should use oil windfall revenues to support companies who acquire western businesses and technology.
The size of today’s Russian truck tyre market is about 12 million units per year. Together with improving road infrastructure – in particular in urban areas – and the increasing importance of Western products and technology, the retreading industry too is moving ahead in Russia. It is not only the demand for retreaded truck tyres, which is growing, but also the demand for truck tyres that were retreaded in Russia and other former Soviet states. But one problem remains: in general casings have to be imported because Russian-made truck tyres are not good enough quality to be retreaded, say most market experts.
Investors have ploughed hundreds of millions of euros into the Russian tyre industry in recent years, of which the largest part has been invested in machinery and equipment. Market leader Harburg-Freudenberger from Hamburg in Germany has been operating its own distribution subsidiary in Moscow since earlier this year. This is responsible for the co-ordination of all activities on the growing Russian tyre market. In particular it is the high performance PC tyre sector where machinery and equipment suppliers see a lack of sophistication on the part of the domestic manufacturers.
“Harburg-Freudenberger was able to preserve its contacts” during the breakdown of the Soviet Union, explains sales director Jens Ritter in an interview with Tyres & Accessories. The traditional German company, which was listed until last year as ThyssenKrupp Elastomertechnik, had good contact with Russian tyre manufacturers and the central Muscovite research institute for the tyre industry decades ago.
In the past three years Goodyear has improved its position amongst the growing number of importers supplying tyres to the Russian market, not to mention the replacement market itself. In 2002 the American manufacturer exported some 960,000 Goodyear, Dunlop, Fulda and Sava branded tyres to Russia. According to the Discovery Research Group based in Moscow, this has already grown to 1.39 million units. At the same time Goodyear’s share of the total number of tyres imported into Russia has increased from 12 per cent in 2002 to 17 per cent now, based on a total import market of 8.2 million units each year.
(Akron/Tire Review) Amtel-Vredestein NV says it will invest another $124 million to expand its Voronezh, Russia, tyre plant. The Voronezh II project, previously announced, will see a state-of-the-art tyre plant built on the grounds of Amtel-Vredestein’s existing Voronezh facility. The new plant will produce some 2.5 million Amtel and Vredestein branded tires annually, and could be expanded to 4.1 million tyres.
According to this agreement Amtel-Vredestein will invest $124 million into its new Voronezh-II production facilities. Within this project, state-of-the-art facilities will be built which will produce 2.5 million tyres annually, with a possibility for further expansion to 4.1 million tires per year. Production is set to start in September 2008.
From 1st April 2006, Takashi Urano becomes Chairman, CEO and President of Bridgestone Europe (BSEU). He succeeds Minekazu Fujimura, who is retiring. Mr. Urano joined Bridgestone in 1974, soon after graduating in economics from Keio University, Japan. By 1999, he had risen to become General Manager of the Asia and Oceania Division – and, a few months later, took over as General Manager of the China Department. At the beginning of 2004, he was appointed Director of the Middle East, Africa and Russia Division.
Vredestein Hi-Trac tyres bested those of its international competitors – including those manufactured by Goodyear, Continental, Pirelli and Bridgestone in independent tests which compared braking distances, overall speed & handling and resistance to aquaplaning on wet roads. The tyre took first place on average in 10 tests.
Amtel-Vredestein N.V. has today announced that its new OJSC AV-TO tyre retail subsidiary has acquired 63 additional multi-brand tyre sales and service centres. These are in major cities across Russia – and include the Horoshie Kolesa (“Good Wheels”) and Nordshina chains in St. Petersburg.
Bridgestone Europe has announced that it will sponsor a new category – Best Safety Innovation – in the Interior Motives Design Awards in 2006. Organised by the automobile design magazine Interior Motives, the annual awards promote the importance of innovation in vehicle design by challenging design students from around the world to make their mark on future car design. Winners are rewarded with prizes and the chance to receive recognition from top figures in the international automotive design community.
During January and February of 2006 JSC “Nizhnekamskshina” says it produced 100,000 less tyres than planned. According to the company, the basic reason for the disruption was the high rubber price. The beginning of March has not proved to be much better for Russia’s largest domestic tyre producer. In Nizhnekamskshina’s words the situation “remains complex” due to short supplies of natural rubber.
At 686.5 million euros, Nokian Tyres’ net sales in 2005 were 13.8 per cent higher than 2004’s figure of 603.3 million euros. The operating profit was virtually static at 115.8 million euros (115.6 m) and the net result was up over 11 per cent to 82.2 million euros (73.8 m). Nokian said that growth in the European passenger car tyre market was slower than expected, with sales of winter tyres in the Nordic countries and Eastern Europe beginning exceptionally late, thus shortening the sales season. The strongest growth was experienced in Russia, Eastern Europe and North America, with sales of new cars growing significantly in Russia.
Amtel-Vredestein N.V. has announced plans to issue credit linked notes (CLN) for 100 million Euros during the first quarter of 2006. The CLN issue will be used to finance the company’s retail expansion and to refinance debt. The term of the security will be four years with a two-year put option. The coupon will be paid twice yearly. According to the company, the issue lead manager is Alfa-Bank, Russia.
Automobile tyre-maker YHI International started its aggressive overseas expansion only in the 1990s and yet it already has presence in nearly every continent. Not content with its achievements, it is now focusing on faraway reaches like South Africa.
Up until the 80s, YHI could claim only Singapore and Malaysia as the markets for its tyre distribution business. But the company realised that it had to expand beyond these two markets for further growth. That’s why, in the early 1990s, YHI started to make inroads into China, Taiwan, Hong Kong and Australasia.
The 2006 Autosport/Aftermarket Show confirmed its position as the largest dedicated motorsport exhibition in Europe with 94,000 visitors in total. According to the organisers, 27,000 of these were trade visitors, an 8 per cent increase on 2004.
Russia’s largest tyre maker, Nizhnekamskshina, has announced that it will increase capital expenditure by 14.9 per cent to 880 million ($17.6 million) in 2006. The company will invest in plant upgrades and in new capacity, including the production of radial tyres for SUVs and light trucks.
If you would like the latest news from the Chinese tyre industry in Chinese, visit our partner site TyrepressChina.com. Or click below to continue on Tyrepress.
