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Michelin Enjoying Strong European Truck Volumes

Michelin could report a pre-tax profit (EBIT) increase of up to 40 per cent for the first half of 2007, according to Deutsche Bank analysts. The positive performance has been supported by strong truck replacement market sales. Truck replacement markets are reportedly up by a 14 per cent in Europe (+3 per cent year-to-date) and down 7 per cent in North America (-5 per cent year-to-date).

Michelin’s advantage here comes in the fact that it has a better country mix for this scenario with 50 per cent of sales being generated in Europe and only 35 per cent in North America (55 per cent of these are passenger car tyres, with 33 per cent truck tyres). Add to that the fact that selling prices are up to 50 per cent higher in Europe than in North America, and analysts expect strong first half EBIT increases.

30th May 2007/by Tyrepress Editors

Kumho Chosen for Green LCV

Coventry based manufacturer of zero emission commercial vehicles, Modec Limited, have chosen to fit Kumho tyres as OE on their range of environmentally friendly vehicles. Kumho will supply freight truck tyres to Modec, who officially opened their Binley factory on March 8. The Modec range of electric light commercial vehicles, which are powered by nickel chloride batteries, reportedly generate 102bhp and can reach a top speed of 50mph with a range of 100mph. The Modec is able to carry a load of up to 2 tons.

Kumho has participated in the development of the Modec from the earliest stages. “I am very honoured to work with Kumho Tires, who have supported this project and process from the beginning,” said Graham Mclntosh, product developer at Modec Limited. “Kumho Tires’ product fits the quality and price of Modec which is in high demand in urban cities.”

29th May 2007/by Tyrepress Editors

Heading from Strength to Strength

Following its purchase by the TYM Group in 2004, TYM International has had a remarkably successful three years, with year on year growth forcing the company to seek new and larger freehold premises in Kings Lynn at the start of 2007. Although under new ownership TYM continued their longstanding relationship with Slovakian tyremaker Matador, and today have supplied the brand to UK wholesalers for more than a decade. It is largely thanks to TYM, in addition to the manufacturer’s links with Germany’s Continental, that Matador has left behind its former image as a budget brand in the UK.

In the last three or so years TYM has added two more key brands to their portfolio, with the company commencing the supply of Triangle Tyres products in 2004, an arrangement further cemented by the signing of a three-year deal in September 2006. “Triangle is a great product with a superb range in passenger, Truck and Earthmover,” commented TYM International general manager Steve Eke. “This complete product range has fitted well into the portfolio of our company.” A further feather in the company’s cap came at the end of 2004 when TYM was appointed as a UK importer of products manufactured by Taiwan-based Kenda Tire.

24th May 2007/by Tyrepress Editors

Bemenet plc Introduces Tubeless Michelin Tyre to Ethiopia

The authorized dealer for Michelin Tyres for Ethiopia, Bemenet plc, has finished preparations to import tubeless truck tyres for the first time. The Company displayed sample tyres at the fourth International Automotive Fair recently.

Mr. Kishore Namburi, sales manager of Michelin to Ethiopia has been giving explanations about advantages truck owners can obtain using the tubeless tyre: “There is a refusal to accept new technology by Ethiopian customers. In Kenya, almost 80 per cent of the trucks use the tubeless tyre. Cost per kilometre is cheaper than tube tyres and consumes from 6-8 per cent less fuel, because it has the ability to travel longer. The tubeless tyre has a low profile, which defines the relation between the tyres section width and cross section height and expressed in percentage, the lowest is the preferable profile.”

“It is easy to fit and remove,” said Woizero Hirut Alamerew, managing director of Bemenet plc. It takes only two minutes to fit and remove the tyre during travel, and if some thing punctures the tyre, it does not need a professional. The driver can fix it with a glue like product Michelin Tyres provided, added Hirut.

23rd May 2007/by Tyrepress Editors

Sibur-Russian Tyres Looks for PCR Production Partner

Be in no doubt – Russian manufacturer Sibur-Russian Tyres has set its sights on the global market. And with annual sales of around $800 million and debts of only $100 million, the company has a good credit rating and is willing to go to great lengths in order to achieve this end. The plan, which is already underway, is to enact a radical restructuring programme that will see Sibur-Russian Tyres focus on high value business (like its currently strong truck tyre operation), and offer itself up to premium international manufacturers as a minority shareholder in a new Greenfield passenger car tyre production joint venture. In an interview with Tyres & Accessories during Brityrex International ‘07, Sibur-Russian Tyres business development director Igor Karavaev explained just how his company planned to achieve this; and what lessons they have learnt from certain other Russian tyre businesses.

23rd May 2007/by Tyrepress Editors

Techking Tires Becomes 100th Exhibitor at Tyrexpo Asia’07

China’s Techking Tires has become the one hundredth exhibitor to sign up for September’s TyrexpoAsia exhibition in Singapore, breaking all records for the show as it approaches its 10th anniversary. The OTR specialist is one of more than 20 Chinese companies who have helped swell exhibitor numbers, which have also been supported by increased interest from India and host nation, Singapore.

Newera Equipment and its subsidiary, Kayel Rubber Products, is one Singaporean business that will be making a major statement of intent. Working with its supplier partners from around the world, Newera will be exhibiting on no-less than five stands.

The company is Asia’s largest supplier of tyre-related equipment and will be displaying the latest computerised buffing machine from Matteuzzi. It will also be showcasing the Double Envelope System from Italian supplier MAE and another highlight will be the advanced Shearography Non Destructive Testing technology from German company, Steinbichler.

21st May 2007/by Tyrepress Editors

Indian Figures Show Production Up, Exports Down

Detailed figures showing tyre production and exports by Indian manufacturers have been released, covering the months of December 2006 and January this year. The figures are split into a number of categories – 12 in all – and the January figures show that, in eight of these, production rose compared with January last year. The total number of tyres produced during the month was 10 per cent up on January 2006.

Figure 1 shows the numbers of tyres produced in January, the percentage change over January 2006, plus the percentage change for the period from April to January (06-07) over April- January (05-06). This last figure gives a more accurate indication of trends, as a single month’s figures could be affected by such things as seasonal factors.

16th May 2007/by Tyrepress Editors

Dunlop Adds to Mixed Service Truck Tyre Range

Peterborough’s TruckFest show – an event co-sponsored by Dunlop Tyres UK – was chosen as the launch venue for new additions to two of the tyremaker’s new product lines. The SP382 and SP482 tyre ranges, designed specifically for vehicles operating in on and off-road conditions, have both received new additions.

The SP482 range has welcomed the introduction of tyre that Dunlop claims now ensures all popular sizes are catered for, a 12R22.5 drive tyre. This tyre range is most commonly used on tippers, concrete mixers, cranes and other construction plant equipment that operate on-road most of the time but also find employment in locations such as construction sites and quarries. Therefore the tyre offers high road mileage while delivering the necessary off-road traction and resistance to stone cuts.

15th May 2007/by Tyrepress Editors

Bridgestone Awards First Expert Level Dealers

At the end of April Bridgestone UK announced details of its Expert Level Truck Point Dealer Audit Programme, naming the first three recipients. The accreditation scheme is the latest stage in the multi-million-pound total tyre management investment programme Bridgestone has been engaged in for the last three years. A further 46 external “Expert Level” audits were scheduled to have been completed at the end of April. Bridgestone plan to hold an official awards ceremony for the remaining Expert Level dealers at the annual Truck Point conference in October.

Talking to Tyres & Accessories, Bridgestone representatives described how working with Lloyd’s register made their scheme “a first.” As external auditors, LRQA (Lloyd’s Register Quality Assurance), a leading management systems assessment body, carry out the necessary checks independently, adding greater value to the validation of the Expert Level dealers.
The objective of the programme is to recognise the high service standards of Expert Level Truck Point dealers, and to further improve the service standards of the entire network. The Expert Level Truck Point Audit Programme audits customer service provision, casing management, health & safety policy, equipment checks, administration, invoicing and training within Truck Point dealers.

14th May 2007/by Tyrepress Editors

Michelin and Goodyear Dunlop Chosen for Pan-Govt Supply Agreement

Michelin, with its service partner ATS Euromaster, has been appointed as one of two suppliers of tyres and associated services in a three-year framework agreement for a pan-government tyre sourcing initiative led by the NHS Purchasing and Supply Agency (NHS PASA), in conjunction with the Office of Government Commerce (OGC). The other supplier is understood to be Goodyear Dunlop who will service the agreement through its HiQ and Truck Force retail networks. According to sources close to the arrangement, the contract is divided equally between the two suppliers.

Available to all Public Sector Organisations (PSOs) across the UK – encompassing a combined vehicle parc of more than 300,000 vehicles, ranging from cars and motorbikes to vans, trucks and earthmovers – the deal represents the largest tyre framework agreement of its type ever established in the UK. It also includes the option of a 12 month extension until January 2011 and is estimated to be worth tens of millions of pounds.

The agreement has been set up to deliver significant efficiencies as a result of combined volumes, additional leverage and collaborative working between central government departments and wider public bodies nationwide.

14th May 2007/by Tyrepress Editors

Michelin Files Suits Against Double Coin Dealers

Michelin has informed the media that it is filing suits against tyre dealers selling the Double Coin brand as it follows up previous notifications regarding the sale of tyres with tread patterns resembling those on Michelin truck tyres. The French tyremaker alerted more than 5,000 dealers of the risks involved in marketing these look-alike tyres sourced from Asia back in December 2005, stating that while the treads may look the same on both tyres, the look-alikes may not deliver the same grip or longevity as an authentic Michelin tyre.

With tyres bearing unauthorised copies of patented Michelin tread patterns still available on a number of markets 18 months later, the company has chosen to pursue legal action against dealers of these products in all countries where Michelin sales teams have identified the products.

11th May 2007/by Tyrepress Editors

Michelin Announces Truck Tyre Price Increases

Michelin has announced a price increase of up to 4 per cent for its truck tyres in the US. The increase will take effect on 1 June. In addition from 1 July prices of agricultural tyres sold under the Michelin, BFGoodrich, Kleber and Taurus brands will rise by an average of 3 per cent in the US and Canada, the group said.

Referring to the truck tyre price increase, Deutsche Bank analysts said: “We believe that only a small portion will stick. However, this small portion will go directly to the bottom line since natural rubber price (primary used in truck tyres) is now more or less stable since the beginning of February. So far the reporting season of the industry has highlighted a very strong price/mix effect.”

4th May 2007/by Tyrepress Editors

Conti Publishes “Very Strong” First Quarter Figures

Continental AG’s consolidated sales for the first quarter of 2007 rose by 9.8 per cent compared with the same period of the previous year to 3.964 billion. At the same time EBIT rose by 24 per cent to 436.8 million euros, up from 352.4 million the previous year. For the first three months of 2007, there was a free cash flow of -119.8 million euros, down from -230.2 million. Net debt was 141.3 million euros higher than at year-end 2006. “This was mainly incurred through the financing of the acquisition of the automotive electronics business of Motorola and the contributions to the Contractual Trust Arrangement (CTA) of 630 million euros,” explained CFO Dr. Alan Hippe.

4th May 2007/by Tyrepress Editors

Goodyear Dunlop Reshuffles Management For Strategic Customer Focus

Goodyear Dunlop Tyres Ltd has announced a number of new appointments designed to strengthen the company’s customer focused management team. Significantly, all but one of these appointments is as a result of internal promotions. The company has also formed a new Customer Strategy team. This team will be led by Mark Davison, who joins the company from Nestle on 8 May. Davison’s role as Customer Strategy Director will be to lead the development and delivery of long-term customer strategies across all business units. (Consumer, Truck, Motorcycle and Off-the-Road).

4th May 2007/by Tyrepress Editors

Second Life

Berwickshire based Rocklug Tyres are well aware of the affect a good tyre – and a bad one – can have on the performance of an earthmover. That is why the company, who have been in the tyre business since 1974, decided to make the provision of quality remoulded OTR tyres one of their priorities.

When Rocklug Tyres co-director Graham Redpath spoke to Tyres & Accessories he likened earthmoving machinery to high performance cars. “They are designed around a particular tyre and are optimised for its specifications,” he said. “For example, a Caterpillar 50 tonne dump truck may be homologated for Bridgestone tyres, and it works at its best when fitted with these. But if the operator is unable to replace the OE tyres with another set and instead must fit cross-ply tyres sourced from China, the equipment will not be able to work to its full design capacity. In many cases there have been major shortcomings in the tonne-per-hour capabilities specified for these machines.”

27th April 2007/by Tyrepress Editors