Efforts made by Yokohama Rubber to increase brand recognition in overseas markets have been acknowledged at the Japan IAA Best Advertising Awards. The company shares that at a presentation ceremony on January 27 it will be handed the bronze award for its “Master of the Road” television commercial, which was aired in a number of international markets.
The Bombay Stock Exchange reports that on December 16 the Madras High Court of Judicature passed an order approving a scheme of amalgamation and arrangement between Elgi Rubber Company Limited and Treadsdirect Limited and Elgi Rubber International Limited and Titan Tyrecare Products Limited and Treadsdirect (India) Limited. This order was received by the company on December 29, 2010, and January 12 has been fixed as the record date to determine equity shareholders of the Company entitled to receive one Elgi Rubber International Limited equity share for every five equity shares held in the company.
Toyo Tire & Rubber has announced that it has completed its acquisition of the Malaysian manufacturer Silverstone Berhad. Tyrepress.com reported initial talk of the acquisition back in October (follow the link at the bottom of this story for full details). Toyo has acquired all of Silverstone Berhad’s 203,877,500 shares. Toyo said the acquisition will “have a negligible effect on the company’s consolidated and non-consolidated financial results for the fiscal year ending March 31, 2011 (FY2010).” Silverstone Berhad has 203,877,000 Ringgit (₤41.1 thousand paid in capital).
While we appreciate tyres getting a mention in the House of Commons yesterday, it is regrettable that our Secretary of State for Transport hadn’t studied up on the subject beforehand. During a speech intended to reassure that last winter’s ‘big freeze’ mayhem would not be repeated this year, no less a person than the Rt Hon Philip Hammond MP questioned their suitability for the UK and told parliament that “winter tyres wear out very quickly on normal road surfaces” – a feature that would be a major disadvantage for the cold weather product, were it true.
While it is widely known that the UK’s winter tyres market will receive a bump this year – indeed, the question is now not whether there will be an increase in sales, but how large the increase can be, given the limitations of supply – a consensus seems to be forming that there will be room for greater future growth, given the performance of the segment in countries of similar climates. ATS Euromaster has contributed to this opinion today, stating that the results of a Dutch survey into road traffic accidents show that UK fleets would be safer if they fitted cold weather tyres. The survey by traffic psychologist Adriaan Heino revealed that cars with cold weather tyres were involved in significantly less accidents during winter than those which remained on ‘summer’ tyres.
Today (30 November) Pirelli signed off on a new revolving line of credit, which provides the company with 1.2 billion euros over a duration of five years. According to the company, the new facility will replace existing lines of credit worth a total of 1.475 billion euros, launched in 2005 and 2007 with maturities in 2011 and 2012. These therefore will be cancelled in advance. An official statement on the matter explained that the new 2015 maturity is aligned to the timing of Pirelli’s recently presented industrial plan.
When Clampco UK was founded in 2001, the company largely focused upon the supply of exhaust clamps and fittings to the exhaust and tyre fast fit sector. The firm was well received and its customer base grew to some 2,000 garages within a few years, yet during this period signs of decline in the exhaust market as a whole became apparent to Clampco. As Clampco managing director Stuart Hubble shares, it was clear the company’s only option for growth lay in diversifying and enlarging the product range on offer. With this in mind, Clampco focused its energies on investigating what other everyday items could be sold through its existing customer base. Two of the first additions to this wider range were tyre repair consumables and wheel balance weights – this was, notes Hubble, a “natural progression” from tyres and exhausts. Subsequently, Clampco added items covering the full spectrum of workshop requirements, including hygiene and safety products plus workshop cleaning products such mops, buckets and brushes. In addition to this, a full range of fast fit garage related tools such as impact wrenches and torque wrenches were added to the Clampco line-up.
Pirelli’s sale of its broadband business is a done deal. On November 29, the Italian company reported the sale of Pirelli Broadband Solutions SpA to Advanced Digital Broadcast Group has been finalised and the transaction is now completed and closed. Advanced Digital Broadcast paid approximately 25.1 million euros in cash and 400,000 listed shares, equal to approximately 7.2 per cent of its capital, for the broadband business. With regard to these shares, Pirelli & C. has undertaken a lock-up commitment for the first two months following the closing, as well as a put option for Pirelli & C. and a call option for ADB, which can be exercised within two years.
Tyre Bay Direct aims to be a one stop shop for all tyre fitting and consumable needs. The company reports the stocking of a complete range of valves, including exclusive customised valves available printed with a company’s details, plus balancing weights, repair materials, workshop tools, tyre changers and wheel balancers as well as other garage equipment. Much of the range on offer is exclusive to Tyre Bay Direct, the company adds.
During more than 50 years in print the UK based publication Motorcycle News (MCN) has sold nearly half a billion copies, and the information it shares is widely read and respected at home and internationally. It is thus no surprise that Dunlop takes pride in the selection of its Sportmax Sportsmart for this year’s MCN Product of the Year – Tyre award. The Dunlop rubber took top honours based both on the decision of the MCN judging panel and votes submitted by readers of the popular weekly paper.
Despite earlier positive news about the second phase of production at the company’s Hungary plant reaching the production readiness ahead of schedule, Bloomberg reports that Hankook Tire Co. shares dropped 2 per cent to 29,100 won during trading on 17 November 2010.
Pirelli & C has sold its broadband business to Advanced Digital Broadcast Holdings (ADB), a company quoted on the Swiss stock exchange for 30 million euros. Analysts received the move as confirmation that the company is wholly dedicated to its tyre business after the separation of its real estate arm earlier this year. The deal was announced on 21 October hours after the company confirmed that Prelios (the new name for Pirelli RE) would make it stock market debut on 25 October.
Michelin’s unexpected decision to announce a 1.2 billion euro rights issue at the Paris Motor Show on Tuesday 28 September may have knocked confidence in the company’s free cash flow generation amongst those observers that are concerned the company is being too cautious. But question marks also remain over what the company’s strategy is here. In the trading session following the announcement, Michelin shares dropped by more than 8.0 per cent according to the AFP News agency.
A desire to accelerate corporate growth has prompted Michelin to launch a 1.2 billion euro capital increase aimed at existing shareholders. Through this capital increase the French tyre maker also aims to enhance its credit rating, access to financing and financial flexibility.
India’s Ruia Group is reportedly “close” to purchasing a German automotive component company, and may route any agreed transaction through its listed Falcon Tyres subsidiary. Group chairman Pawan Kumar Ruia states that Falcon Tyres will raise around Rs 8 billion (£111.6 million) by way of fresh shares through a rights issue, equity convertible warrant or other means to fund its expansion programme of overseas acquisitions and capacity expansion at home.
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