Winter Tyres
Nokian Tyres’ turnover last year reached 322.6 m Euro (28% higher than 1998) and an operating profit of 42.1 Euro (1998 32.2 m Euro). Profit before tax was 35.5 m Euro (1998 29.9 m Euro) and net profit 25.7 m Euro (1998 21.6 m Euro). The company invested 85.7 m Euro (1998 72.7 m Euro), this was mainly in production (30 m Euro). There was also expansion in retail equity with the purchase of the Finnish company ISKO.
In the context of summer passenger car tyres the “V” speed rating is a common application. However, in the last year V-rated winter tyres have also entered the market; a development that even quite recently was unthinkable. This year German tyre manufacturer Continental is launching a V-rated winter tyre – the “ContiWinterContact TS 790 V XL”. According to the press release it is the “first true V-rated winter tyre”, allowing for speeds of up to 240 kph. The “XL” stands for extra load, meaning that the new tyre has been developed with a higher load index than competitors’ products. This compensates for obligatory load reductions which usually mean a tyre with a normal load index is permitted to drive at up to 220 kph on a full load, or the wheel load has to be reduced by 9 % to allow it to run at 240 kph. With the higher load index on the Continental TS 790 V XL no compromise will be required, and the tyre may be run at 240 kph at full wheel load. The new tyre is available in ten sizes to cover 96 % of the market segment. Prices will be 11 % higher than the H-rated version of the TS 790. Find out more in the November issue of NEUE REIFENZEITUNG.
Never before so many winter tyres were sold in Germany. The dealers association BRV estimated 17 million units (= +15.3%) for 1999. Also the aftermarket in summer tyres was in plus (+0.9%) with 23 million in total.
Nokian Tyres has released figures for the first nine months of the year. Sales rose 29.9% to 258.6 million Euro (199 m for the same period 1999) and operating profit fell to 11.9 million Euro (18.4 m). Net profit was 2.7 million Euro (9.9 m).
In the last week of March Yokohama Rubber Co. presented the new A 539 tyre to the European trade press at the Japanese D-Parc (Daigo Proving Ground and Research Center). Thirty-three sizes of this tyre will be available in Europe, about 20 of them are already in the market, the remaining sizes to be introduced within the next four weeks. The A 539 has an asymmetrical tread pattern and, according to the manufacturer, the excellent qualities of sportiness, quiet running and good cornering stability on dry and especially on wet roads.
According to the German tyre dealers association BRV (Bundesverband Reifenhandel und Vulkaniseur-Handwerk), in 1999 more than 50 million tyres were sold in the German replacement market, 43 million of them in the passenger car sector. Especially, a new record in winter tyres sales was achieved. Sales in the commercial vehicle sector increased five p.c. to 5.7 million tyres. Whereas retreaded truck tyre sales were stable at 1.7 million units, the fall in sales of retreaded passenger car tyres continued.
The Fürstenwalde production base of Pneumant Reifen GmbH is under threat in the long term, Dr. Rainer Schieben, Commercial Managing Director, announced at the Pneumant head office in Fürstenwalde at the beginning of September. As early as this autumn the company will draw winter tyres from the Japanese production for cost reasons, and part of the summer tyre production will also be transferred to Japan. And, according to Schieben, the new owner, The Goodyear Tire & Rubber Company, has already cut the production planning for the year 2000 by 200,000 tyres, which cannot be without repercussions on investment and employment. Schieben gave too high energy costs at Fürstenwalde as the reason for the problems. The current price per megawatt hour for the process temperature is roughly three times higher than in similar factories of the Dunlop parent company in Germany. By international comparison within the Goodyear group the high energy price has become even less justifiable. Pneumant employs a workforce of 550 plus 40 apprentices at the Fürstenwalde production base. 325 people are employed at the company’s second factory in Riesa. The tyre manufacturer is one of the few former GDR companies to have survived successfully. Thanks to an investment volume of 250 million marks since 1996 by the Dunlop parent company Pneumant possesses the most modern production facilities in Europe. In the car tyre replacement market the company is the clear market leader in the new federal states.
The Vredestein NV group consists of five companies with activities in car, transporter, agricultural and industrial as well as bicycle tyres, boots for consumer markets and industrial applications, recycled rubber, compounds and sealing extrusions. The company employs about 2,200 people in total. The first half of 1999 developed according to forecast, with net profits increased to 600,000 euros – 200,000 euros more than in the first half of 1998. Consolidated net turnover yields rose by ten per cent from 98.1 million euros to 108 million euros, and during the period in question cash-flow was up by 1.1 million to 9.9 million euros. Vredestein Banden’s turnover increased during the first quarter due to the long winter and the resulting good opportunities for selling winter tyres. The first half year was characterised by the “Sportrac” introduction, a new tyre for the high speed sector (up to 240 km/h) developed in close conjunction with Guigiaro Design, the renowned Italian designer firm. Sales of the new Sportrac have exceeded expectations, according to the manufacturer. Several sizes are not yet available, so the impact of its introduction should be felt in full during the second half of 1999. In the agricultural tyre sector the recently launched AS radial (Traxion+) was well received. Industrial tyre sales developed positively. An important part of the Vredestein group’s annual result is traditionally achieved in the second half of the year, mainly due to the strong influence of Vredestein Banden’s winter tyre sales. Assuming that economic conditions remain stable in the most important European markets, the company is optimistic that it will once again be able to increase last year’s profit.
For the launch of its two new winter tyre models, the “ContiWinterContact TS 780” and the transporter and van tyre “VancoWinter” at the beginning of October the Continental AG management chose a very special venue: Iceland. However, a blizzard that raged for days prevented practical tests of the new tyres on the selected glacier. Developers of winter tyres are always faced with the classic dilemma: Do they design for optimum grip on snow or on dry roads? The development of the TS 780 for vehicles of the compact and lower medium classes aimed at reducing the discrepancy between the two objectives. An important innovation is a sipe construction which tries to emulate the architecture of beehives with its honeycomb shape. According to the manufacturer, the honeycomb sipe has clear safety advantages when cornering on snow. A directional tread pattern and the latest silica compound technology are additional features responsible for the new tyre’s good driving characteristics in wintry conditions as well as on dry and wet roads. It is available in all European markets needing winter tyres, initially in 13 sizes from 145/80 R 13 75Q to 185/60 R 14 82T. The “VancoWinter” was specially developed for medium and heavy vans. Traction on ice and snow is provided by sipes which are incorporated in the tread blocks. To achieve a significant improvement over its predecessor, the “LMS 70”, the VancoWinter’s sipes and blocks are twice as high. Its behaviour on icy roads is to be improved by distributing the pressure on the ground more evenly. The van tyre is immediately available, at first in nine sizes (from 185 R 14C to 195/65 R 16C).
Approximately 29 million winter tyres will be sold in Central Europe (i.e. without Scandinavia) this winter. In Germany alone the figure will be well in excess of 16 million units (55 p.c.). Germany’s motorists will spend about three billion marks this year on tyres and services when refitting their vehicles with winter tyres.
Good news for motorists: Tyre prices are coming down fast, especially in popular sizes. So far we have heard of price reductions of up to 15 p.c. compared with the previous season. Unknown second and third lines of large groups compete for the bargain hunter with rock-bottom prices.
If you would like the latest news from the Chinese tyre industry in Chinese, visit our partner site TyrepressChina.com. Or click below to continue on Tyrepress.
