Consolidation now
A couple of months ago we discussed the “restructuring” of relatively large and modern Chinese manufacturer Deruibao Tire. Back then, Qingdao Doublestar was top of the list of firms connected with an acquisition/cooperation/merger rescue orchestrated by the local government. A month later government-owned ChemChina announced that it was buying Pirelli. This latter point has been covered in some depth in the pages of Tyres & Accessories, especially in our April edition. The Pirelli/ChemChina story will no-doubt garner more attention as the very complex outworkings of the deal are walked out, but what remains of interest is the way in which both the local Chinese market and the global industry are engaged in a period of both parallel and inter-connected consolidation.
Continue ReadingSumitomo Rubber confirms Goodyear partnership dissolution talks – but cautions against speculation
Responding to reports from a number of media outlets regarding the dissolution of the 16-year old global alliance between Sumitomo Rubber Industries (SRI) and Goodyear Tire & Rubber, SRI stated today that these are “purely speculative in nature.” The company doesn’t refute the reports’ veracity – SRI admits that “it is true that SRI and Goodyear are currently engaged in discussions concerning the possible dissolution of our alliance agreement and our joint ventures” – however it wants to make it clear that neither it nor Goodyear have issued an official announcement on the matter. Nikkei Asian Review, which published the news yesterday, says an announcement may be made “as early as this week.”
Continue ReadingPoint S extends its North American network
Two developments have extended the Point S retail network’s presence in the North American market. Independent US tyre dealer network Tire Factory has joined Point S, while Canadian group Unimax – a member of Point S for the past two years – has elected to rebrand its network using the Point S corporate identity. Point S International operations manager Fabian Bouquet views both measures as a means of reaching the target of rolling out the Point S corporate identity in 600 retail points of sale throughout North America within four years.
Continue ReadingGoodyear Dunlop names Jürgen Titz DACH region group managing director
Jürgen Titz, who served as UK and Ireland director of consumer replacement tyres at Goodyear Dunlop between 2009 and 2013, has been appointed the new head of Goodyear Dunlop Tires Germany. He begins as group managing director of Goodyear Dunlop’s DACH (Germany, Austria, Switzerland) organisation on 1 June, succeeding George Rietbergen, who held the post since 1 August 2013 and will now, according to a statement released by Goodyear Dunlop Tires Europe president Darren Wells, “follow a new career outside the company.”
Continue ReadingHonda targets fuel economy world record
Honda will put the real-world fuel economy of its super-efficient 1.6 i-DTEC engine to the ultimate test in an 8,500 mile drive across all 24 contiguous EU countries, with the aim of setting a new Guinness World Records title for fuel efficiency. On Monday 1st June 2015, two members of Hondas European Research & Development (R&D) team will climb into a Honda Civic Tourer and set out on an epic journey from Aalst, Belgium. Heading towards the Netherlands and Germany, their trip will see them navigate the Continent in a clockwise direction, with the aim of returning to their starting point some 25 days later, on June 25th, having covered a planned total of 13,614km.
Continue ReadingSRI takes a break from growth in Q1 2015
Sumitomo Rubber Industries’ new financial year got off to a sluggish start, with sales declining 2.9 per cent year-on-year in the January-March period to 185.2 billion yen (£976.3 million). Ordinary income went down 34.6 per cent to 12.0 billion yen (£63.3 million) and gave a margin of 6.5 per cent, compared with 9.4 per cent a year earlier. Net profit fell 29.4 per cent to 7.7 billion yen (£40.6 million).
Continue ReadingTurnover down, profits up at JK Tyre & Industries
While JK Tyre & Industries was unable to maintain turnover in the previous financial year, profits at India’s third-largest tyre maker rose significantly. The company reports that turnover decreased 3.6 per cent to Rs 73.3 billion (£743.9 million) during the 2014/15 financial year, which ran from 1 April 2014 to 31 March this year. Operating profit rose 11.7 per cent to Rs 7.7 billion (£78.1 million) while net profit jumped 26.7 per cent to Rs 3.2 billion (£32.5 million).
Continue ReadingKumho wins A’ Design award for Maxplo
The Maxplo, a super-low aspect ratio concept tyre developed by Kumho Tire to demonstrate how tyres of the future may look and operate, has been awarded a Platinum A’ Design Award in the Futuristic category. Along with the other winners of no less than 89 different categories, Kumho received its A’ Design Award last month at a gala dinner in Italy. The Platinum award received by Kumho is the highest of four A’ Design award levels – the others being Iron, Silver and Gold.
Continue ReadingMichelin launches bond issue
Michelin reports its successful placement of a bond issue in two tranches: a €300 million seven-year tranche with a 1.125 per cent coupon and a €300 million 12-year tranche with a 1.750 per cent coupon.
Continue ReadingHankook Tire making its presence known at Europa League final
In a few hours the UEFA Europa League Final will begin in Warsaw, and sponsor Hankook Tire is ready and waiting. The tyre maker has set up numerous fan events around the city and at Stadion Narodowy. In Castle Square, within Warsaw Old Town, Hankook has constructed a 130 square metre brand area in which it is showcasing its tyres and simultaneously offering many football-related activities, such as target shooting, face painting, and fan photography to the visitors. Products are also being displayed outside the national stadium, while a giant inflatable Hankook tyre has been set up at the entrance.
Continue ReadingInter Milan be warned: No Europa league, no Pirelli sponsorship
Italian football club F.C. Internazionale Milano recently unveiled its home kit for the upcoming 2015/16 season, a strip that prominently displays the name Pirelli – an Inter Milan sponsor since 1995 and former shareholder in the club – on the shirt. But a question mark now hangs over whether this partnership will last another season. Pirelli CEO Marco Tronchetti Provera has indicated that the tyre maker’s interest in sponsoring Inter Milan may wane if the club fails to secure a berth in next season’s Europa League.
Continue ReadingEvonik to build new precipitated silica plant near major US tyre factories
An “upper double-digit” euro investment will help Evonik Industries supply growing demand within the North American tyre industry for precipitated silica. The company has announced plans to set up a precipitated silica production plant in the USA. The facility, which will be built in the southeast of the country, in “close proximity to major American tyre production sites,” is scheduled to be completed in late 2017. The overall project now awaits approval from relevant bodies.
Continue ReadingMichelin begins natural rubber JV with Barito Pacific
Michelin has invested US$55 million for a 47 per cent share in a joint venture with the Barito Pacific Group (BPG). The two parties will work in Indonesia on the production of natural, eco-friendly rubber in a project that involves the reforestation of three concessions that were previously ravaged by uncontrolled deforestation, a total area of 88,000 hectares.
Continue ReadingNew global website for Brisa’s Lassa Tyres
Lassa Tyres, manufactured by Turkish number one tyre producer Brisa, has refreshed its global website. Lassa states the new site aims to give Lassa Tyres’ customers and business partners a fresh look, easy navigation and user-friendly experience.
Continue ReadingKumho OEM supply to Yokohama may begin this year
As reported on 18 May, Kumho Tire has begun negotiations regarding its delivery of original equipment tyres to Yokohama Rubber. Kumho says that such a deal, if agreed upon, would help it increase the utilisation rate of its factories in China.
Continue Reading