IFC to Invest in Apollo Greenfield Plant
The International Finance Corporation has agreed to partially finance Apollo Tyres’ new greenfield facility in Tamil Nadu, India. On April 22 the World Bank organisation stated that, pending the consent of its Board on May 26, it will furnish Apollo with a financial package of US$60 million. Phase 1 of the plant, located in Oragadam near Chennai, is nearing completion, and the commercial production of tyres there began in the first week of March 2010.
Continue ReadingConti Holds Ribbon Cutting Ceremony at California Distribution Centre
The Redlands, California distribution centre opened by Continental Tire the Americas earlier this year is now operating at full capacity, and to mark the occasion an official ribbon cutting ceremony and ‘open house’ was held on April 15. The 46,500 square metre warehouse consolidates the operations of two smaller California based warehouses, and provides Continental with enough space to store and distribute over 450,000 passenger car, light truck and commercial vehicle tyres. Conti estimates that two million tyres will be moved through the Redlands site each year.
Continue ReadingHankook Q1 Operating Profit Surges 501%
Results for the first quarter of 2010, released April 22, show Hankook Tire’s sales to have increased 17.6 per cent year-on-year to 1.3 trillion won (£780.4 million) and operating profit to have jumped 501.2 per cent to 212.2 billion won (£124.1 million). The tyre maker’s operating profit to sales ratio was 15.9 per cent, up from 12.6 per cent in the fourth quarter of 2009.
Continue ReadingHankook China Plant to Have 10M Unit Capacity
Plans for Hankook Tire to build a new factory in China were outlined on April 22; representatives of the South Korean manufacturer said the construction of a new facility there will aid Hankook’s efforts to consolidate its status as the leading international tyre manufacturer in China. The company also intends to increase its sales there by 15 per cent to US$1.21 billion this year.
Continue ReadingKumho Workers Accept Restructuring Proposal
In a vote held on April 21, unionised workers have accepted Kumho Tire’s proposed restructuring plan, including a cut in wages and bonuses. According to information published by the Wall Street Journal, the agreement paves the way for a 10 per cent reduction in salaries for 2010 and a further five per cent reduction before Kumho Tire’s exit from a debt-rescheduling programme in some two to three years’ time. In return, Kumho has withdrawn plans to lay off or outsource around 1,200 workers.
Continue ReadingPirelli Shareholders Approve 2009 Financials
During an ordinary session meeting held on April 21, Pirelli & C. SpA shareholders approved the company’s 2009 financial statements and agreed to the distribution of a dividend of 0.0145 euros per ordinary share and 0.0406 euros per savings share. The payment date will be 27 May 2010.
Continue ReadingAgri OE Sector Weakness Affect Trelleborg Tyre Sales
Speaking on Trelleborg AG’s performance during the first three months of the year, company president and CEO Peter Nilsson stated “the first quarter of 2010 is showing that we are building a stronger Trelleborg and that we are constantly moving towards growing and profitable segments The implemented action programmes continue to give positive effects and we are gradually growing in to a more efficient structure.”
Continue ReadingKumho Tires, Union Reach Agreement
An agreement between management at Kumho Tires and the union representing employees has finally been reached. The Korea Times states that on April 18, during the 26th round of negotiations, both parties found common ground on all major issues. As per the terms of this final agreement, the decision to lay-off 189 Kumho Tires workers has been revoked on the condition that employees submit written assurances regarding the adherence to company regulations. The Korea Times adds that a further plan to outsource 1,006 employees will be cancelled should the agreement gain worker approval when voted upon.
Continue ReadingAmtel Founder Sells S$28 million House to Omni United Boss
Amtel Group founder Sudhir Gupta has reportedly sold a so-called “good quality bungalow” to Sareen Gajendra Singh who owns Omni United (S) Pte Ltd. According to local Business Times newspaper, the $28 million (Singapore dollar) sale of the property in the Binjai Park area of Singapore accounts for more than 5 per cent of total first quarter property sales in the “good quality bungalow” sector of the local market. The paper reports that this segment of the domestic property market recorded sales of S$500 million in the first quarter of 2010.
Continue ReadingNational Tyres to Sell Tyres on eBay
National Tyres and Autocare reports that it has teamed up with eBay to offer car and van tyres to consumers online. National joins well known retail names Tesco, Argos and Debenhams as a top rated seller on the popular site. According to the company, the new partnership enables National to “reach out to a greater number of customers.” Michael Bourne, group marketing director at National Tyres and Autocare, commented: “We are always looking at innovative ways to reach new markets. Our research found that traditional eBay customers were unlikely to consider high street retailers for their tyre purchases, assuming prices to be uncompetitive.
Continue ReadingKramer Confident in Goodyear's Ability to Grow
Goodyear’s newly appointed president and CEO has expressed confidence in the tyre maker’s ability to grow in hand with global economic recovery. At the company’s April 13 Annual Shareholder Meeting, Kramer stated this confidence is supported by the Goodyear’s very strong portfolio of brands, strength in high-growth emerging markets, innovative new product offerings, industry-leading retailer network and enhanced supply chain capabilities.
Continue ReadingKumho Tire Workers Reject Pay Cut Agreement
On April 1 a nine-hour strike held by Kumho Tire workers was called off following a tentative agreement reached between union leaders and Kumho management. This agreement outlined a ten per cent wage reduction for employees at the financially burdened company, plus an additional five per cent pay cut during the time in which Kumho Tire is undergoing a debt rescheduling programme. However the Yonhap News Agency reported on April 9 that this tentative agreement has been rejected by employees.
Continue ReadingBelgian PM Pays Bridgestone a Visit
Belgium’s Prime Minister Yves Leterme has paid Bridgestone Corporation’s headquarters in Tokyo as part of his April 7 to 10 visit to Japan. During the visit, Mr. Leterme met with Shoshi Arakawa, Bridgestone’s chairman of the Board, CEO and president, and several other company executives.
Continue ReadingNokian Preparing for Growth in 2010
The Western and Eastern Europe region grew in importance for Nokian Tyres throughout 2009. The Finnish tyre maker reports European sales accounted for 24 per cent of its total last year, up eight per cent from 2008. This percentage growth in sales occurred largely at the expense of those in Russia and the CIS, which last year made up only 20 per cent of Nokian’s total sales, as opposed to 34 per cent in 2008. Overall, the company reported decreased demand for its tyres in 2009, an occurrence it attributes to the financial crisis and lower vehicle sales. In its general overview of 2009, released April 8, 2010, the company confirmed that measures have been taken “to adjust production to reduced demand.”
Continue ReadingToyo Waives Inter-Company Debt
Toyo Tire & Rubber states its Board of Directors has approved the company’s decision to waive a US$35.8 million inter-company debt owed by Toyo Automotive Parts. By writing-off this debt, Toyo says it seeks to enable this wholly-owned North American automotive parts manufacturing subsidiary to proceed with the restructuring of its business operations.
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