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New Conti Distribution Centre Opens in China

The distribution facility in China jointly set up by Continental and the logistics cooperation Penske/Honold has entered operation. On October 1 the Shanghai Regional Distribution Center (RDC) took over from the temporary RDC, opened in March, as the official site for operations. The interim facility will now be closed down.

“For Continental, this [the RDC] represents a logical next step in the development of Asian distribution, Following the large-scale restructuring of logistics in Malaysia, China is the next challenge to be tackled,” stated Carsten Sziegoleit, head of warehousing and tyre distribution worldwide at Continental.

The launching of logistics operations in China is based essentially on the introduction of Continental’s established logistic processes and systems. Lean processes with a minimum of interfaces have already been successfully tested in China, ensuring that the new RDC will get off to a good start. With Penske as partner in China, Continental is relying on a well-established service provider, backed up by the experience of Honold Reifenlogistik, a company specialising in tyres. Honold already serves Continental with over 100,000 square metres of warehousing.

12th October 2007/by Tyrepress Editors

Michelin Runs Training Seminar in Bahrain

A total of 33 employees from Bahrain tyre specialist Ebrahim Khalil Kanoo (E K Kanoo) have been trained at a workshop organised by Michelin. The training was conducted by the Michelin’s Bahrain representative and technical sales officer Mahmoud Madi; and was the first workshop of its kind to be led by Michelin in Bahrain, according to local news sources. Ebrahim K. Kanoo B.S.C. serves customers ranging from on-road to off-road for passenger vehicles; and heavy duty truck tyres and specialised tyres for industrial and construction equipment. The division offers brands such as Michelin, BF Goodrich, Cooper, Sime, Amine and Ceat.

10th October 2007/by Tyrepress Editors

Reorganisation will Reduce Michelin’s Capex, says Deutsche Bank

Deutsche Bank has provided comment on the recently announced Michelin closures and restructuring. According to the bank’s Equity Research division, the closure of Michelin’s factory in Toul, France and the passenger tyre division of its Lasarte, Spain plant will allow the company’s Capex in Europe to be lowered by 30 per cent while tackling the pressing issue of labour costs, which are currently 50 per cent higher than Michelin’s global average.

A reported 830 workers will lose their jobs as a result of the Toul closure, and a further 500 layoffs will take place when PCR production ends in Lasarte. According to Deutsche Bank the Michelin reorganisation in Europe will ultimately lead to a better equilibrium between production and sales for the continent – at present Europe represents 70 per cent of the group’s production but only 50 per cent of sales. The closures and restructuring will also in part address the imbalance of scale faced by Michelin’s European facilities, which are two to three times smaller than what is considered optimal – 8 to 10 million units for a PCR factory and 2 million units for one producing truck tyres.

5th October 2007/by Tyrepress Editors

Van den Ban Takes on Beijing Capital Tyres

Netherlands based wholesaler Van den Ban (VDB) has completed an agreement with BCT (Beijing Capital Tyres) which will see it initially offer three patterns of this Chinese tyre in their portfolio. The PCR S600 line will have the following sizes in the range 155/65/TR13 – 195/60/HR15, the Ultra High Performance S800 will be available in 205/40ZR17 – 235/35/ZR19. The High Performance a-symmetric pattern S900 will be sold in 185/55/VR14 – 205/55WR16. All the described sizes are available from November. VDB has plans to extend the range of sizes next year and towards the end of 2008 with the addition of a Light Truck and M&S programme also being added to the BCT range.

VDB also recently extended its Novex range on two fronts: a new SUV/4×4 range has recently been introduced under the ‘SUV Speed’ name, along with a new range of winter tyres called ‘Snow-Speed’. The SUV Speed initially offers 16 sizes whilst the Snow Speed consists of 56 sizes which also incorporates light truck patterns as well.

5th October 2007/by Tyrepress Editors

Yokohama Tire Changes Executives

(Akron/Tire Review) Yokohama Tire Corp. has seen a number of its executives reassigned. Takao Oishi was named YTC executive vice president of operations, and is relocating from Yokohama Rubber Corp. in Japan. Kenichi Shirai was named chief advisor for strategic marketing, and is also coming from YRC headquarters in Japan. Also relocating to the US will be Iwao Shimomura, who was named YTC senior director of corporate quality assurance. At YTC, Satoshi Miyata was promoted to CFO and treasurer. He had been serving as YTC’s treasurer for the last four years.

As a result, three YTC executives returned to Yokohama’s Japan headquarters: Takaharu Fushimi was named YRC general manager of tyre overseas sales and marketing department No. 1; Tadayoshi Hiraga was named general manager of tyre overseas technical service department; and Takeshi Masatomo assumed the new title of manager of passenger car and light truck tyres product planning department.

2nd October 2007/by Tyrepress Editors

Compass Expands Warehouse 35%

Compass HD Tyres Ltd, part of the Compass Group Ltd, UK and Ireland distributor of GTRadial and Runway-brand tyres, is expanding its warehousing facilities still further. According to company officials a new 35,000 square foot facility will come on stream to add to the current 100,000 square foot of space at the Compass’ Huddersfield base. In addition, a number of extra sales and logistics staff are due to be recruited.

Tim Chesney, managing director of the Compass Group told Tyres & Accessories that the expansion of storage space is directly attributable to the ongoing success story of Giti produced tyres in the UK. The Company launched GT into Europe almost 20 years ago when it imported the first ever containers of the then fledgling car tyre brand with just seven sizes in the radial range. Today the GT Radial car tyre brand has many hundreds of sizes in its range, covering almost every popular size in car, van and 4X4 and it is a market leader in the mid range sector of the market with its development of UHP and other cutting edge tyre designs. Sales into the new car tyre replacement market have increased year-on-year and today, through Compass Group, GT produced tyre brands boast a market share in the UK that leads the market outside the premium sector.

2nd October 2007/by Tyrepress Editors

More Details on Michelin’s Efficiency Improvement Plans

Following a roadshow in the US hosted by financial analysts at Deutsche Bank, further details of the previously reported Michelin corporate restructuring programme have been released. The company is said to be aiming for a 30 per cent productivity increase by 2010 (10 per cent from production increase/ 20 per cent from workforce consolidation).

In addition Michelin is said to be looking to produce a better equilibrium of production/sales by continent. This is likely to have a significant effect on the European business as Europe represents 70 per cent of the group’s production compared with only 50 per cent of sales. Plant size is also likely to be rationalised, with the ideal size being described as 8 to 10 m passenger tyres and 2 million truck tyres per annum – basically double the current size of some plants.

Deutsche Bank reports that Michelin’s management still believes in a potential shortage of truck tyres in 2008.

28th September 2007/by Tyrepress Editors

Imported Truck Tyres Gain Speed in Canada

Use of imported Chinese tyres on the increase in Canada. A recent survey of fleet managers conducted by Truck News found that 18 per cent of managers said their fleets had experimented with far eastern imported brands. The same was true of owner/operators.

However, customer perceptions of Double Coin, Triangle, Woosung, Double Diamond and Aeolus tyres are reportedly still low. Owner/operators were most generous in their praise, rating them as 1.9 out of five. Fleets on the other hand scored the products as 1.65.

27th September 2007/by Tyrepress Editors

PTNA Raise Passenger/LT Prices

Pirelli Tire North America (PTNA) is raising prices in the United States by an average of five per cent for all passenger and light truck tyres. According to a company statement the price increase comes in response to increasing raw material, energy and logistic costs. The exact amount of the increase will vary by product line and/or size. New prices will take effect on 1 November 2007.

26th September 2007/by Tyrepress Editors

Linglong to Build New 40,000 m2 Factory

Shandong Linglong Rubber Co. has announced plans to construct a new 40,000 m2 factory for the production of passenger-car/light truck tyres. Online news sources quoted Jiang Guibo, Shandong Linglong's import and export business business chief, as saying that the new plant will be built in Shandong province, will cost 1.5 billion yuan (£100 million, 141 million euros), and will focus on high performance products.

26th September 2007/by Tyrepress Editors

BFS And Pirelli Hike North American Prices

Bridgestone/Firestone North American Tire and Bridgestone/Firestone Canada are increasing prices on all Bridgestone, Firestone, Fuzion and associate brand tyre lines by up to 4 per cent.

25th September 2007/by Tyrepress Editors

Cheap Chinese Imports Worry Indian Tyremakers

(Akron/Tire Review – India Business Standard) With the Indian tyre market being flooded with cheaper Chinese bus and truck tyres, the domestic tyre industry is up in arms about the under-invoicing of these imports and their inferior quality.

25th September 2007/by Tyrepress Editors

Belshina: Growth Through Investment

The Republic of Belarus has experienced robust economic growth in recent years, with the latest figures showing a growth in GDP of nearly seven per cent. The economy is highly industrialised, with exports playing a crucial part in the growth in prosperity. One of the largest enterprises in Belarus – indeed, one of the largest in Europe – is the Belshina Open Joint-Stock Company. The tyre manufacturer operates three factories, covering an area of 173.6 hectares and employs around 12,000 staff, producing more than 200 sizes and types of tyre, from passenger car up to giant tyres for mining and construction machinery.

Belshina sells tyres on both the replacement and OE markets, having a number of OE contracts with local and foreign vehicle manufacturers across all sectors. (Valtra, Brazil – tractor manufacturer; Terex Equipment Ltd., Scotland – mining and construction machinery manufacturer; Belaz, Belarus – mining machinery; MAZ, Belarus – trucks, KAMAZ, Russia – trucks; MTZ, Belarus – tractors).

24th September 2007/by Tyrepress Editors

Continental Publishes Winter Truck Tyre Guide

Continental Tyres has put together a comprehensive guide to the differing tyre requirements British truck and coach operators expecting to run their vehicles in European countries this winter have to meet. Draconian penalties – including an absolute ban on entering certain countries – will apply to vehicles not properly equipped when there is ice or snow to contend with. Countries including Austria, Germany, Italy, France and Switzerland are covered and the Conti guide – available free of charge to operators – spells where special cold weather tyres are required and when snow chains have to be fitted.

24th September 2007/by Tyrepress Editors

Continued OE Sales Growth in Europe

According to Michelin, the European OE car and light truck tyre market rose by 11 per cent in August compared with the same month of 2006. In contrast, the market in North America contracted by 3 per cent. Sales of replacement car and light truck tyres remained level in Europe during the month, but increased 1.7 per cent in North America.

Year to date, Europe’s OE car and light truck tyre market went up 4.3 per cent from the same period a year earlier, while OE sales in North America were punctuated by a 2.6 per cent decline. Replacement tyre sales were up 1.2 per cent in Europe and 2.1 per cent in North America during the same period.

In Europe OE truck tyre sales jumped 20 per cent in August, claimed Michelin, while across the Atlantic sales were a massive 37 per cent down. The replacement truck tyre market was far steadier, with a 2.4 per cent increase reported in Europe and a 0.2 per cent drop in North America.

21st September 2007/by Tyrepress Editors