Taiwan’s Cheng Shin Rubber Industry Co. will supply OE tyres to China’s Geely Automobile Holdings.
The tyremaker also plans to invest $300 million to expand its production capacity in China, Thailand, Vietnam and Taiwan, according to company officials.
In August, Cheng Shin Rubber agreed to buy Toyo Tire & Rubber Co.’s share in its joint venture tyre plants in China. (Tire Review)
Thailand-based Vee Rubber launched three new tyres at the SEMA Show: Vitron, an all-season high performance tyre; Winter Season III, a studdable snow tyre; and Taiga Ice Axe, a studdable light truck snow tyre. The new lines are part of the company’s growing presence in North America. Sold through regional wholesalers and large tyre dealerships – those with 20-plus locations – Vee estimates it will sell six times as many tyres as in 2008, said Patrick Hyland, the company’s sales and marketing manager.
China is the world’s largest consumer of rubber, and growth in the use of compound rubber – a substance containing 99 per cent natural rubber but attracting 15 per cent less tax than its pure 100 per cent counterpart – is colossal. This year the country is expected to import 950,000 tons of compound rubber, a leap of almost 71 per cent from last year. Many rubber exporters in Thailand, Indonesia and Malaysia are now focusing on producing compound rubber more to take advantage of China's import duty structure. "Compound rubber import volume was increasing in recent years because the customs tax was lower than [for] natural rubber," the China Rubber Research Institute said in a report prepared for an international conference in Vietnam.
Thai news source, The Nation has reported that the country’s sole distributor of Toyo-manufactured tyres is to begin a process of aggressive penetration in the domestic market via a change of segment emphasis from premium to the wider market and the opening of more shops in 2009. The company may also build a new manufacturing facility in Thailand, according to the report.
Looking to capture 5 per cent of Thailand’s tyre market within three years, Continental AG opened its first official sales office in Bangkok. “Within the next two, three years we hope to have captured 5 per cent of Thailand's tyre market, and within five years we will be among the top five brands here,” stated Benoit Henry, vice president of marketing for Continental’s Asia-Pacific region. Thailand has a local market of about six million tyres per year. Continental currently has two tyre plants in Malaysia that can service Thailand, but Continental may consider building a local plant there. (Tire Review)
Some 5,000 trees have been planted at the Yokohama Rubber tyre factory in Thailand as part of the company’s tree planting programme. The second phase of the plant’s "Yokohama Forever Forest" project – the first phase two planting conducted at a Yokohama facility outside of Japan – took place on August 12. Around 1,100 employees, family members, local residents and other volunteers planted 26 varieties of tree under the supervision of Sirin Kawlaierd, tree planting expert employed by the Thai Imperial Household Agency and Akira Miyawaki, an expert in physiognomy and Professor Emeritus of Yokohama National University.
China's natural rubber imports jumped 25.8 per cent to 165,876 metric tons in July. Malaysian news sources cite customs reports that show the figure is close to an 11-year high which last peaked in March. China buys rubber from main producers Thailand, Indonesia and Malaysia, as well as Vietnam, Cambodia and West Africa. The high comes off the back of China’s strong passenger car sales in July, which jumped 70.54 per cent from a year ago.
The New Indian Express newspaper has reported a “severe crisis” looming over India’s tyre and tread rubber manufacturers. According to the newspaper, carbon black supplies are critically low and the four major Indian manufacturers of the substance lack the capacity to meet domestic market demand. This problem is compounded by allegations that India’s Ministry of Commerce is preventing the importation of carbon black to compensate for this shortfall.
A number of factories are said to have been idled as a result of this shortage, which The New Indian Express attributes to a Ministry of Commerce decision to restrict carbon black imports if the landed cost is less than RS 80 (£1.00) per kilogram, markedly more than the current Indian price.
Maxxis has completed its second Maxxis Rewards prize draw, giving 13 tyre retailers £500 worth of gift vouchers from either Marks & Spencer, Thomas Cook or High Street Gift Vouchers, which they can spend at more than 18,000 stores across the UK, including Boots, HMV, Debenhams, Waterstone’s, M&S, House of Fraser, Carphone Warehouse and Threshers. Under the terms of the Maxxis Rewards initiative, the more Maxxis car, van and 4×4 tyres that accredited retailers purchase during the promotional period, the greater their chances of winning a major prize.
The Maxxis Rewards dealer support programme has been organised in conjunction with Grouptyre, the exclusive Maxxis distributor in the UK. Dealers who sign up are automatically entered into the quarterly prize draws, which run until 11 December. Based on their purchase levels, retailers also have the opportunity to earn Argos vouchers and Maxxis-branded promotional clothing and accessories.
The winning tyre dealers and Grouptyre members who supply them are:
Auchinlea Tyres (dealer) – Cooper Bros. (Grouptyre member)
Baker Tyres – Broadway Tyres
Baldonrie Garage – Kenway Tyres
Carmarthenshire Tyre Services Ltd – King David Tyres
DIY Motorist Centre – WJ Wood & Son
Holderness Tyre Services Ltd – BAB Distribution
Hometyre Services – Car Tyrestore
Homend Tyres – ETB
K&M UK Ltd – EG Wholesale
Leeds Commercial Vehicles – NE Wholesale
Lurgan Tyre Company – MT Wholesale
Tyre Care Ltd T/A Havers Tyres – We Sell Tyres (Wholesale)
Wheels ‘n’ Tyres – Oak Tyres
Asian markets hold great potential for retreaders. To boost sales within this region and develop its solutions business in Japan, Asia and China, Bridgestone is investing some 5.2 billion yen (£34.7 million) in building a new precure retreading plant in Thailand. Construction at the 43,600 square metre site, located approximately 60 kilometres southeast of Bangkok, begins in July 2009 and the facility is scheduled to enter service in November 2010. The plant will employ around 100 staff when production commences and by the second half of 2013 capacity is anticipated to reach 30 tons per day.
B-Quik Co, Thailand’s leading operator of car service centres, has increased its revenue target this year to 2 billion baht (42.1 million euros) from 1.8 billion (37.9 million euros) as sluggish demand for new cars has been a windfall to the maintenance market. Eight to 10 B-Quik service centres will be added this year to the existing network of 56 sites nationwide, said chief executive Henk Kiks.
“The market has been surprisingly good for us with revenue surging over 30 per cent in the first half,” said Kiks. “We earlier projected sales of 1.8 billion baht, growth of 21 per cent from last year, but now we are aiming for over a 33 per cent rise to 2 billion by the end of the year.”
Production of natural rubber in the seven countries that account for 93 per cent of world supplies – Thailand, Indonesia, Malaysia, India, Vietnam, China and Sri Lanka – is continuing to fall. Data covering the period to May 2009 indicated that natural rubber in Thailand (the country that supplies a third of the world’s requirements) dropped 22 per cent during the first four months of 2009 to 107,175 thousand tons. In the first five months of the year Malaysian output fell 28 per cent to 47,333 thousand tons due to a combination of factors including lower than anticipated rains which slowed tapping activity, poor export demand and an ongoing replanting programme. Replanting and the resultant reduction in tappable crop area were largely responsible for production in Vietnam declining 22 per cent year-on-year in the January to May period to 11,036 thousand tons, while natural rubber output in India fell nine per cent in the first five months of the year.
It has been more than a year since UK-based trio Peter Whittle, David Brammar and Bryan Allison were sentenced for their role in a well-publicised global marine hose cartel, yet investigations into the affair continue. The Australian Competition and Consumer Commission (ACCC) has commenced court action in response to allegations that the cartel took advantage of some of the nation’s largest oil production projects.
A new facility belonging to Continental AG subsidiary Continental Automotive (Thailand) has opened in Amata City. The 11,500 square metre factory, built with an investment of approximately five billion baht (£90.2 million), will produce powertrain diesel injectors, high pressure pumps and common rail assemblies. The production of interior electronics is also planned.
While around 70 per cent of total output will ultimately go to domestic vehicle manufacturers – the factory will start supplying the Thai market next year – the first exports to Europe, China and India are expected to get underway before the end of June.
New business agreements with a number of existing and new customers are being received with gratitude by a financially beleaguered Hayes Lemmerz International. On June 5 the company announced its Saraburi plant in Thailand will produce 16-inch alloy wheels for the Toyota Scion. This new award, Hayes Lemmerz notes, provides additional volume for the company, which is already a major supplier to Toyota in many parts in the world. In addition, the Thai plant has received new business awards to produce 14-inch alloy wheels for existing customer Nissan as well as 15-inch alloy wheels for a new customer, Nissan subsidiary Autech Japan, Inc.
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