Conti merger an opportunity to rectify past mistakes
The longest-serving Continental AG board member, Hans-Joachim Nikolin (55), leaves the company’s Executive Board at the end of July and its youngest member, Nikolai Setzer (40), will take over a combined tyre business and thus lead the company’s most successful and currently highest turnover-generating division. The company’s business unit structure has decreased at a management level to adapt with future requirements and now benefits the previously independently-led truck tyre division, which in many past years failed to meet expectations and suffered under the griping of Nikolin’s fellow board members Wennemer and Hippe. During that time, numerous threats were allegedly made to sell off the entire commercial vehicle tyre division should it prove unable to rapidly achieve an EBIT margin of or near double figures. Such threats placed Dr. Hans-Joachim in a very helpless position as yield-hungry analysts could have all too easily interpreted them as promises.
Continue ReadingGoodyear sells global wire business
Goodyear Tire & Rubber has agreed to sell its global wire business to Hyosung Corporation, pending government and regulatory approvals and other customary closing conditions. The Korean company will pay Goodyear and its affiliates approximately US$50 million for the business, subject to post-closing adjustments. Included in the deal are the tyre reinforcement wire manufacturing plants in Colmar-Berg, Luxembourg and Asheboro, North Carolina, which together employ some 600 people. In addition, upon closing the deal Goodyear and Hyosung will sign a multi-year supply agreement. The sale is expected to close in the third quarter of 2011; Goodyear says it doesn’t expect the sale to result in a significant gain or loss.
Continue ReadingConti merges commercial, passenger tyre divisions
On August 1 Continental AG’s Passenger & Light Truck Tires (PLT) and Commercial Vehicle Tires (CVT) divisions will be consolidated into a single unit known simply as the Tires division. This combined division will be headed up by Nikolai Setzer, who has led the PLT division since joining the company’s Executive Board in August 2009. Current CVT division head Dr. Hans-Joachim Nikolin has resigned from Continental on “highly amicable terms” and will leave the company on July 31. Conti’s Supervisory Board gave its consent for Dr. Nikolin's relinquishment of his office by mutual agreement at a meeting on June 7.
Continue ReadingGITI aiming for 10% market share
GITI Tire has appointed Richard Lyons to the position of general manager Europe as part of a series of moves that sees the firm implement a new organisational structure for its European operations. The structure, which took effect 1 May 2011, has been established following the departure of Michael Andre in March. Andre previously held the role of marketing director for passenger car tyres Europe and was managing director of the company’s Giti Tire Germany GmbH Deutschland subsidiary. Hervé Richert, GITI’s executive director, international sales and marketing described the new-look team a “direct consequence of GITI Tire Europe’s growth of business over recent years.” Writing in a statement detailing the reshuffle, he explained that it also follows the company’s “clearly defined strategy of building on strong relationships with its partners and customers with a focus on key markets in Europe and emerging markets” such as CIS and Russia.
Continue ReadingConti outlines PLT division management reshuffle
Continental’s Passenger and Light Truck Tire (PLT) division is gearing up for a round of management musical chairs: On July 1, head of worldwide Research & Development PLT, Christian Kötz, takes over as head of PLT Replacement EMEA, a slot temporarily filled by Nikolai Setzer, head of the Passenger and Light Truck Tire division. The position previously held by Kötz will be taken on by David O’Donnell; to take up this Germany-based role O’Donnell will leave the United States, where he is currently oversees Key Account Management The Americas for PLT’s OE business. And, as previously announced, Continental’s current head of Mergers and Acquisitions activities, Dr. Jochen Etzel, takes charge of the PLT business unit Replacement The Americas, also on July 1, 2011. He will be based in Fort Mill, South Carolina. Etzel succeeds Matthias Schönberg, who will be taking on a new assignment within the Rubber Group by taking over the helm of ContiTech Fluid GmbH.
Continue ReadingEC approves Kwik-Fit acquisition; 10 new centres planned for this year
Following the approval of its acquisition by Itochu Corporation, investment in new Kwik-Fit outlets is continuing with plans to open ten new centres this year and a similar number in 2012. Confirmed centre openings this year are in Farnham, Heywood and Scunthorpe, with other locations expected to be revealed over the coming months. These new sites add to those opened in recent months in Brentford, Brierley Hill, Bury St Edmunds, Charlton, Ipswich, Luton, Newport Pagnell, Rugeley, Thetford and Walsall. Prior to the launch of the latest centre investment programme, Kwik-Fit operated a 669-centre network, supported by a mobile fleet of more than 200 vehicles.
Continue ReadingMaterial costs squeeze JK Tyre 2011 profits
Reporting on the financial year that ended March 31, 2011, JK Tyre & Industries Ltd. notes that the selling price increases implemented for its products were unable to keep pace with raw material cost increases, and this adversely impacted upon the company’s margins. Therefore, despite a 30.9 per cent increase in net sales to Rs 59,454.4 million (£806.9 million), the Indian tyre maker’s before profit tax dropped 64.2 per cent to Rs 1,119.6 million (£15.2 million) and net profit declined 71.5 per cent to Rs 625.5 million (£8.5 million). Revenue from the company’s operations in India accounted for 80.0 per cent of total net sales and the former Tornel facilities in Mexico the remaining Rs 11,343.5 million.
Continue ReadingTitan 2011 sales, earnings outlook revised
As he prepares for a conference call on May 23 to discuss his company’s first quarter 2011 results, Titan International chairman and CEO Morry Taylor, offered a revised outlook for the remainder of the year.
Continue ReadingYokohama Board of Directors confirms Nagumo, Noji appointments
At its May 20 meeting, Yokohama Rubber’s Board of Directors decide in favour of the promotion announced by the previous Board of company president Tadanobu Nagumo to the role of chairman and CEO. Nagumo maintains his role as representative director. Taking his place as president is Hikomitsu Noji, currently director and senior managing corporate officer, and president of the Yokohama’s Tire Group; Noji will continue serving in this last-mentioned capacity. These and other promotions decided upon at the meeting will be formally approved at the company’s general meeting of shareholders on June 29.
Continue ReadingYokohama sales, profits up in FY2011
During the 2011 fiscal year, which in Japan began on April 1, 2010, net sales at Yokohama Rubber increased 11.4 per cent year-on-year to 519.7 billion yen (£3.9 billion); leading this sales growth were tyres and hose, sealant and adhesive products, and the company reports it “reinforced its sales momentum” through successfully implementing price increases that offset the effect of rising raw material costs and the appreciation of the yen. Operating income increased 37.5 per cent to 29.5 billion yen (£223.0 million) and net income grew 21.2 per cent to 13.9 billion yen (£105.1 million).
Continue ReadingLanxess progresses with HQ relocation plan
Following a two year recession-related delay, plans for German specialty chemicals group Lanxess to transfer its corporate headquarters from Leverkusen to the nearby city of Cologne are back on track. More than 1,000 Lanxess employees will make the 15 kilometre move to a newly renovated 22-storey building in the second half of 2013; the new headquarters’ opening will bring almost all the company’s management functions under one roof.
Continue ReadingReliance Industries to build up rubber business
A new major player may be set to enter the global rubber industry: India’s Reliance Industries (RIL) intends to invest in building up a rubber business to meet growing demand in Asia. "We are developing a whole new rubber business,” company chairman Mukesh Ambani told India’s Economic Times. “We will make RIL one of the world's largest players in rubber as the whole tyre industry moves to Asia. The big trend is that if you look at next ten years, the projections for automobile growth is all China, India and Asia focused." In total, RIL plans to invest some US$10 to $12 billion in its chemical business to strengthen the company’s portfolio in a number of sectors.
Continue ReadingDuPont acquisition of Danisco finalised
DuPont’s acquisition of Danisco has been finalised. On May 16 the chemical company reported that its wholly-owned subsidiary DuPont Denmark Holding ApS had taken on 92.2 per cent of Danisco’s outstanding shares, having paid 700 krone (£82) per share. Following the acquisition’s finalisation DuPont CEO and chair Ellen Kullman said “we are delighted that the tender has been successful and we can move on to the process of integrating Danisco into DuPont.” Danisco chairman Jorgen Tandrup added the Danish company is “very pleased that a vast majority of Danisco shareholders have accepted DuPont's offer” and commented on the two companies’ shared outlook on science and research capabilities.
Continue ReadingYHI – Now is the ‘right time’ for greater OEM sector involvement
The newly-released annual report from YHI International states the Singapore-based wheel manufacturer and automotive components distributor is embarking on a “new exciting era.” Specifically, the company has begun a five-year expansion plan to grow its manufacturing and distribution segments and achieve sales of S$1 billion (£494 million) by the 2015 financial year.
Continue ReadingMichelin 2010 market recovery ‘much stronger than envisioned’ – Senard
At the Michelin Annual Shareholders’ Meeting on May 13, the French manufacturer reported its position strengthened in every geography during 2010 and particularly in mature markets. “Last year at this same time we were observing how the exceptional crisis of 2009 had had an impact on our business,” observed Michelin managing general partner Jean-Dominique Senard. “I think that this year we need to admit that the 2010 context is different and it was a buoyant situation. We had a much stronger market recovery than we could have envisioned at the time.”
Continue Reading