Apollo Tyres is said to be finalising plans to establish a new greenfield factory in Asia. Indian financial daily The Economic Times reported on 8 April that the tyre maker is close to making a decision on location.
In response to growing demand in Asia for tyres to fit full-size motorcycles, Sumitomo Rubber Industries, Ltd. has decided to install equipment for the production of motorcycle radials at its factory in Thailand. Approximately 1.4 billion yen (£9.9 million) is being invested in the motorcycle tyre project, and the new facility is scheduled to begin production in January 2015. By the end of 2018 the plant is expected to have the capacity to manufacture 64,000 motorcycle tyres a month.
A day after our coverage of European rules relating to the introduction of ABS on two-wheel vehicles. Continental AG has released details of its one channel ABS for motorcycles.
According to ADAC Accident Research, around a fifth of all motorcycle accidents could have been prevented if the bike had been fitted with an anti-lock braking system (ABS). To improve the active safety of motorcycles, Continental is expanding its range of electronic braking systems by introducing an one-channel ABS for smaller motorcycle and scooters. Based on its cars technology it was developed especially for cost-sensitive markets such as Asia, where the wheelers must be equipped only with a hydraulic brake on the front wheel.
Starco’s new plant in Sri Lanka has now been manufacturing the company’s Tusker and Unicorn fork lift tyre ranges for a year, and the Danish firm says its entry into regular production completes an endeavour that required several years of investment and commitment.
It appears Apollo Tyres may have shelved its plans to establish a greenfield plant in Eastern Europe. Indian Financial Daily the Financial Chronicle writes that the tyre maker has “decided to drop its tyre plant proposal in the Eastern Europe region now due to declining volumes and uncertain economic environment.” Further details were not supplied.
Bridgestone Corporation has announced plans for its Bridgestone Asia Pacific PTE Ltd (BSAP) subsidiary to establish a technical centre in Thailand. The total investment of the project is said to be around 3.7 billion yen, with the opening pencilled in for July 2013.
Thailand, currently the world’s largest rubber producer with an output of 3 million tonnes/year, is seeking to attract investment from international tyre producers in an effort to promote its domestic market and simultaneously contain its rubber export volume. Deputy Agriculture Minister Yutthapong Charasathian invited tyre makers to come and construction manufacturing plants in the South East Asian country, saying the Thai government has already sounded out “leading tyre manufacturers in the US, China and Japan” to expand tyre manufacturing operations in the country.
Shandong Linglong Tyre Co. Ltd. headlined its participation in Brityrex International 2012 with the introduction of its Green-Max product family to the UK market. According to the company, the Linglong stand was visited by prospective customers, apparently “eager to discuss new developments and opportunities.” The new Green-Max passenger tyre range was said to have been of particular interest and representatives from Linglong’s global headquarters in China were also on hand to welcome visitors and answer questions.
Shandong Linglong Tyre Co. Ltd. headlined its participation in Brityrex International 2012 with the introduction of its Green-Max product family to the UK market.
According to the company, the Linglong stand was visited by prospective customers, apparently “eager to discuss new developments and opportunities.” The new Green-Max passenger tyre range was said to have been of particular interest and representatives from Linglong’s global headquarters in China were also on hand to welcome visitors and answer questions.
In its 18 October-announced Mid-Term Management Plan 2012, Bridgestone reported it plans to spend an average of 250 billion yen on capital expenditure projects, half of which will be for strategic tyre projects. Further to this company announcement, a Japan-based reporter for Reuters writes that in the 2013 calendar year Bridgestone will spend 280 billion yen (£2.2 billion) to expand capacity in emerging markets, including India and Thailand.
Shandong Linglong Tyre Co. Ltd. recently signed a contract with Hemaraj Land and Development plc. to purchase 49 hectares for a new manufacturing facility in the Hemaraj Eastern Seaboard Industrial Estate, located 150 kilometres east of Bangkok in Thailand’s Rayong province. For Linglong, a leading Chinese tyre maker and one of the top 20 globally, the factory plans are something of a first as the mark the first time the company has sought to build a factory outside the People’s Republic.
India’s Ministry of Finace has implemented anti-dumping duties on cross-ply tyres imported from China and Thailand. The duty will be in place for five years; tyres imported from Thailand will attract duties of $0.86/kg, while most cross-ply tyres from China will be liable to duties of $1.31/kg. Tyres produced in China by Hangzhou Zhongce Rubber Co Ltd will have a lower $1.12/kg duty.
Sumitomo Rubber Industries reports that its 100 per cent owned subsidiary, Sumitomo Rubber (Thailand), held a groundbreaking ceremony for its new agricultural tyre factory in Thailand on 2 August. The plant, which is currently under construction in the Amata City Industrial Estate, Rayong Province, will be Sumitomo’s first agricultural tyre factory outside of Japan. It is being set up with a total investment of some 10 billion yen (£80 million) and is scheduled to enter production in May 2014. The 130,000 square metre facility should produce around 50,000 tyres a month by the end of 2017.
A statement on the International Tripartite Rubber Council’s website shows that the organisation, set up in 2001 to represent the interests of the world’s three largest natural rubber producing countries – Thailand, Indonesia and Malaysia – doesn’t intend to sit back and accept the lower prices the commodity has received of late.
Stamford Tyres Corporation and Sumitomo Rubber Industries have commented further on their plans to set up a joint venture sales company in India. Yasutaka Ii, director and senior executive officer of Sumitomo Rubber, said “India is a market with huge potential. We are delighted to continue our partnership with Stamford Tyres which has a strong distribution track record, as part of our group’s expansion into new markets. This new joint venture will allow the two companies to leverage on their expertise to address the needs in the Indian market and tap onto this market’s huge potential.”
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