Goodyear Jamaica Ltd’s liquidator, Deloitte Touche Tohmatsu in Jamaica, is to offer “interim distribution” compensation of $3.75 per share to existing shareholders “by the end of October or early November.” Goodyear Tire & Rubber Company is a leading shareholder and will reportedly receive over J$131 million (US$1.48 million) of the first payout. The liquidation process is expected to be completed by 2010.
Nexen Tire is planning to invest 1 trillion won (£526 million; 572 million euros; $829 million) in a new factory in South Korea. The move is seen as a way of ramping up production in anticipation of a 6 per cent annual growth of global tyre demand. The new plant, which will be located in Gyeongnam Province, southeast of Seoul, would be the world's largest to produce tyres for passenger vehicles and light trucks, according to the company. The investment, which is scheduled to be made by 2017, will double the company’s existing annual output from its other China and South Korea plants to 60 million units and place it among the world's top 10 tyre makers, the company said in a statement.
Nexen shares rose 1.35 per cent to 6,020 won by 0248 GMT 28 September 2009 following the news.
Shares in Hankook Tire rose 5.94 per cent today after Korean media quoted the company’s vice-president as saying it was negotiating a supply deal with Toyota. “Orders from Japanese such as Toyota could accelerate Hankook's brand image enhancement and we would view the order positively if it were to be finalised,” commented Morgan Stanley in a note.
Goodyear Tire & Rubber has announced that its Luxembourg based subsidiary Goodyear S.A. will commence a cash tender offer to acquire any outstanding shares in Polish tyre company TC Debica for 59.52 PLN per share.
The Obama administration’s announcement that it is to impose tariffs of up to 35 per cent on Chinese-manufactured imports had a large impact on daily trading in the USA and Seoul, as Goodyear and Cooper shares bumped, and Hankook stock floundered.
In South Korea, shares in Hankook Tire gained 1.84 per cent after the tyre manufacturer announced that it would invest 230 million euros ($334.9 million) by 2011 to expand its factory in Hungary.
Reuters reports have suggested that Continental will issue 1.5 billion euros’ worth of new shares before the end of the year in an attempt to “increase capital,” according to one unnamed source. Schaeffler had initially opposed the plan, since it will reduce the proportion of its shareholding in the company from approximately 90 per cent to 66 per cent. However, in light of a 10 billion euro debt incurred when Conti purchased VDO from Siemens, in addition to its own dedt-pile, Schaeffler now says that the company must “repair its balance sheet” before a merger takes place. The next supervisory board meeting, postponed by Continental until mid-October according to Reuters, could be interesting (see also ‘Schaeffler to Propose Prof Dr Ing Reitzle as Supervisory Chair’).
The recent labour dispute Kumho Tire in South Korea ended peacefully after “marathon” talks concluded peacefully on Saturday 5 September at 21:00. At the conclusion of the negotiations, local newspapers report that union workers agreed not to receive 2008 bonuses and to negotiate 2009 bonuses in the first quarter of 2010. As a result of the mutual agreement, Jooang Daily reported that Kumho management’s called off previously announced layoffs – a fact emphasized union sources. It is not clear if this means all 733 workers who were to be laid off on 24 August will now be able to work again.
Jooang quoted Kumho Tire as saying that the average annual salary of the 4,200 employees who work the company’s production line is 70 million won ($56,600). The company also said more than 30 per cent of workers receive an annual paycheck of more than 80 million won.
The UK battery market is seeing branded products in growth at the expense of private labels, though the latter still hold over two-thirds of the total market, according to Paul Matarewicz, the managing director of Johnson Controls Batteries and VARTA. Meanwhile, Manbat’s MD, Steve Sheppard believes that the rising brand awareness in the UK is a result of the general economic slump, to which consumers are responding with a desire for greater reliability and longer lifespan.
Transense has signed a Memorandum of Understanding (MOU) with Qingdao Mesnac Co. Ltd, the parent company of the Sailun brand’s tyre manufacturing division. According to an official statement, Transense and Mesnac have entered into an agreement to combine their individual areas of expertise, for the purpose of developing Transense's patented tyre pressure monitoring sensor technology for the attachment or embedding of these sensors into tyres. Under the terms of the agreement Mesnac have agreed to an initial upfront payment and will pay additional sums for technology transfer/engineering support on an as required basis. Transense shares rose 17 per cent following the news.
Continental has completed its acquisition of Slovakian company, Continental Matador Rubber S.r.o. following the purchase of the 34 per cent stake held by the Cyprus-based minority shareholder, M.I.L. Investments Ltd for $67 million (£41.1 million).
The Schaeffler Group has moved one step closer towards a merger with Continental AG after reaching an agreement with banks to refinance 12 billion euros in debt. According to a Schaeffler statement, the ball bearing manufacturer’s credit lines have been split into two portions of 4 1/2-year and six-year maturities and will be implemented in several stages. Refinancing deals were arranged with UBS, Royal Bank of Scotland, Unicredit SpA’s HVB Group unit, Commerzbank AG and Landesbank Baden-Wuerttemberg.
General Motors Co. has confirmed it has signed a stock purchase agreement with Koenigsegg Group AB regarding the sale of 100 per cent of the shares of Saab Automobile AB. The deal is expected to conclude in the next few months and will then secure Saab's future. The stock purchase agreement will be subject to agreed closing conditions. Conditions to close the sale include expected funding commitments with Swedish government support and guarantees, as well as transitional assistance from GM, as Saab becomes independent. Saab is about to launch several new cars, developed with General Motors, that are in the final stages of development.
The possibility of an extension to the US’s “cash for clunkers” auto rebate scheme has led to a bump in Asian stock prices for shares in Bridgestone, Hankook and others, according to Reuters reports. The US senate is mulling over a plan to offer 200 per cent of the original funding for its car sales booster scheme, since the billion dollar pot quickly evaporated. Purchasers can claim a rebate of up to $4,500 when they trade in old models for new, green alternatives.
Continental AG said contracts, customers and employees could be lost if Dr Karl-Thomas Neumann is pushed out of his chief executive position. Quoting a document submitted to representatives of supervisory board members, Dow Jones Newswires reported that the group’s communications committee for management said: “We know that some of our customers are considering moving their business to rivals…We also run the risk of the attrition of further managers, at all levels, and the company losing its attractiveness as an employer.”
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