Sri Lanka’s Laugfs Gas PLC, a manufacturer of the Laugfs range of solid and press-on tyres, reported in a stock exchange filing that its wholly-owned subsidiary, Laugfs Eco Sri (Pvt) Ltd, intends to invest Rs. 150 million (£844,000) in convertible debenture at six per cent per annum in Laugfs Corporation (Rubber) Ltd, a wholly owned subsidiary of parent company Laugfs Holdings Ltd. The investment is subject to necessary procedures, the filing said.
Sri Lanka’s Global Rubber Industries, manufacturer of the Globe Star, Ultimate XT, Peak Master, Performer and Air Ryde brands, has opened its second plant. The US$6 million facility, which has the capacity to produce 400,000 solid industrial and press on band tyres a year, was declared operational on September 8.
Smithers Rapra has appointed Rikki Lamba as vice president of North American operations. Prior to Smithers, Dr. Lamba worked for Excel Polymers LLC, a global supplier of custom elastomeric solutions with operations in the US, Mexico, the UK and China. Prior to Excel he was vice president of technology at Columbian Chemicals.
Consolidated quarterly figures for Sumitomo Rubber Industries show the Japanese manufacturer to have earned 145,072 million yen (£1.1 billion) in net sales during the three months to March 31, 2011, a year-on-year increase of 8.2 per cent. Tyre sales accounted for 85.7 per cent per cent of this total, or 124,316 million yen (£942.5 million), a rise of 11.4 per cent compared with the corresponding quarter of 2010. Yet although sales were up during the quarter, operating income was down 0.6 per cent to 9,711 million yen (£73.6 million) and net income decreased 16.7 per cent to 4,242 million yen (£32.2 million). Operating income for the company’s tyre business was 8,465 million yen (£64.2 million) a year-on-year increase of 17.4 per cent.
Sri Lanka’s Kelani Tyres reports that despite a steep rise in costs its net profits rose 11.7 per cent year-on-year to LKR 74.9 million (£419,000) in the quarter to December 31, 2010. Revenues during the quarter increased 37.1 per cent to LKR 1.028 billion (£5.8 million) while sales volumes grew 5.2 per cent to 3,753 tonnes and production rose 10.6 per cent to 3,826 tonnes.
Sekhar Research Innovations (SRI) has been awarded the 2010 Asia Pacific Technology Innovation Award for Tire Recycling Technology by Frost & Sullivan. SRI received the Asia Pacific award in recognition of its performance in terms of uniqueness of technology, impact on new products/applications, functionality, customer value and the relevance of SRI’s innovation to the tyre recycling industry.
Falken Tire Corporation chairman and CEO Yasushi (Tank) Tanaka has been promoted to executive officer of Sumitomo Rubber Industries, Falken’s parent company, reports Tire Review. Tanaka will continue to head Falken’s North America business. Tanaka joined SRI in 1976, and has spent the majority of his career in the export and OE departments of SRI and SRI Tire Trading Ltd.
Speaking on Trelleborg AG’s performance during the first three months of the year, company president and CEO Peter Nilsson stated “the first quarter of 2010 is showing that we are building a stronger Trelleborg and that we are constantly moving towards growing and profitable segments The implemented action programmes continue to give positive effects and we are gradually growing in to a more efficient structure.”
The approval of operational permits and licensing means that Magnum D'Or Resources subsidiary Magnum Recycling USA is now able to supply waste tyres from its 120+ acre Hudson, Colorado landfill facility to Magnum’s planned recycling facility, where rubber powders and compounds such as those the company recently tested in light truck tyres will be manufactured.
The Sri Lankan government is reportedly discussing a programme of measures designed to support domestic tyre production. According to the local ITN news network, minister Kumara Welgama made the announcement during a debate on “supplementary estimates for the Industrial development ministry.” The support package is currently estimated to be in the region of 200 million rupees (£2.5 million) and is intended to fund “the provision of technology to enhance production capacity of industrial establishments and the receipt of new technologies.” Mould making, training and international promotion were also mentioned in the announcement.
Sri Lanka’s Daily News reports that the refurbishment carried out at a tyre rebuilding factory belonging to the Sri Lanka Transport Board (SLTB) is complete. The opening ceremony for the plant was held on May 30; the facility, which is located in Ampara, should help address the tyre needs of the SLTB’s own bus fleet.
This refurbished facility is to be complemented by two factories, located in the country’s Ekala and Matele regions, which will produce new tyres for the SLTB. The transport operator decided in early 2008 that it would produce its own tyres rather than import them – a plan made feasible by Sri Lanka’s import duties. The SLTB will save an estimated 20 per cent in costs by manufacturing its own tyres.
Sri Lanka based Roshan Tyre Retreaders has become the latest company to join the Tire Retread & Repair Information Bureau (TRIB), bringing the organisation’s membership to nearly 500 members in 50 countries. “TRIB continues to grow internationally as more and more companies in the new tyre and retread industries throughout the world realise that TRIB is the only international retread industry association representing new tyre manufacturers, retreaders and tyre repair companies,” said TRIB managing director Harvey Brodsky.
Trelleborg Wheel Systems has revealed that it plans to close its Hartville, Ohio plant on or within two weeks of 10 May. According to local business news sources, the wheel systems manufacturer filed a Worker Adjustment and Retraining Notification with state authorities on 12 March, confirming that operations at the site would cease and that its 90 employees will be made redundant.
Plans are reportedly underway to eliminate jobs at Solideal’s Sri Lanka and China factories in response to declining exports. The manufacturer of industrial tyres recently laid off around 1,100 workers, however company founder and president Philippe Daneels indicated that a five per cent contraction in global exports is anticipated in 2009 and thus further redundancies may take place. Before the initial downsizing measures began Solideal had 8,100 employees at its production facilities.
A recent Government move to end revenue losses amounting to several billions of rupees as a result of under-invoicing by some unscrupulous importers of tyres, has been welcomed by local industry and legitimate importers, the Sri Lanka Daily News reported. Effective from 15 May 15, importers of tyres are required to pay a tyre weight based duty of 80 rupees per kg or 28 per cent of invoiced value, whichever is higher. Previously, duty was computed at 28 per cent of value only. Local manufacturers also see the system as fairer. Such businesses have experienced hikes of 72 per cent in fuel prices since April 2006, and a 25 per cent increase in electricity costs.
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