Aeolus Placing a Focus upon Quality
Originally established by the Chinese government as an OTR manufacturer, Aeolus Tyre Co. Ltd. has, in its 43 years, become one of China’s top ten tyre producers. The company currently specialises in truck and earthmover tyres, manufactured at its 640,000 square metre factory in central China. Soon a second facility will also enter service. At the Reifen exhibition T&A spoke with company Europe Division Manager Mr. Cuiqiang Fu and vice general manager and chief engineer Mr. Yaoling Feng about the direction Aeolus is taking as a company and as a brand. “Of greatest importance for Aeolus is an emphasis on quality, we always lay an emphasis on quality and technology,” states Mr. Feng. He notes that this focus lies at the heart of the company’s success. “The most important thing for management level at Aeolus is quality and improving the mindset of employees. All Aeolus employees know this brand and the factory would not exist without the quality of our product; all that Aeolus is today is due to that.”
Continue ReadingHigh Import Duties Assure Continuation of Pakistan Tyre Smuggling
Afghanistan has developed a reputation as a centre of heroin smuggling activity; it is less widely known for another illegal cross-border trade – the smuggling of tyres into neighbouring Pakistan. Yet the importation of these sought after items appears to be well worth the effort and expense endured by those in the business, as the average price difference between the cost of a tyre to a smugger and an importer is said to be in the range of Rs3,000 to Rs5,000 (£22.50 to £37.60). Of the Rs3,000 minimum price difference, smugglers expend about Rs1,000 covering transport and bribe costs, leaving a respectable profit at the end.
Continue ReadingBroadening the Base of the Business
Starco GB Ltd has appointed Chris Wilson (who joins from Summit Tyres) to spearhead a new industrial tyre aftermarket sales team. Wilson brings with him almost four decades of experience in the sector, which includes work at the sharp end of running a mobile fitting business. As a result of this - and the recent addition of the GlobeStar forklift tyre range – Starco’s management hopes to develop a real focus on the forklift end of the industrial to complement its growing OEM supply operation. Up till now, Starco GB Ltd has remained relatively quiet about the ins and outs of the company’s generally OE-focused strategy. However, now that the business has made the strategic decision to move more into the aftermarket (while also continuing to develop its business to OEMs), the Europe-wide specialist tyre distributor invited Tyres & Accessories into Starco GB’s headquarters in Rugeley, Staffordshire. T&A met managing director, Bob Cooper and account manager, Chris Royle, who explained that up till now roughly 90 per cent of Starco’s current business is OE related. When Bob Cooper joined the company 12 years ago sales amounted to somewhere in the region of £1.5 million a year. According to Bob Cooper, sales this year will be approaching £20 million, a clear demonstration that the OE-facing part of the business has served Starco well. In the future Starco GB is aiming to generate “very significant growth in the industrial tyre aftermarket” in addition to this, perhaps as much as doubling sales generated in this side of the business. Bob Cooper was keen to stress that the company has no plans to reduce its OE-focus. On the contrary, the strategy is to grow this part of the business too. With offices right across Europe (plus one as far east as Kazakhstan and another in the US), you can’t help wondering if the decision to increase aftermarket focus is part of a pan-European move? In short the answer is both yes and no. Some of the businesses Denmark-based Starco operates around Europe (take the company’s German branch for example) run on quite different strategies to the UK operation. In Germany the OE/replacement breakdown is the mirror image of what it is over here – roughly 90 per cent aftermarket sales and 10 per cent OE supply. So while Bob Cooper points out that there is an overarching drive to broaden the group’s base in general terms, the company is not in any hurry to change what is already working well. Starco takes on GlobeStar forklift range In addition to its existing range of Kenda pneumatic tyres and its own brand offering, Starco recently took on the GlobeStar solid forklift tyre range. With all the leading forklift tyre manufacturers feeling the pinch of increased raw material costs, and most now asking for raw material surcharges the cost/performance balance is as important to customers as ever. Not surprisingly the GlobeStar range is said to excel in this respect, offering good performance for a competitive price. At the economy end of the market, Starco have also brought in the Performer line for those seeking industrial tyres at a lower price entry point. The new industrial aftermarket team, led by Chris Wilson, is comprised of three sales staff with backing from all the other departments of their business. At any given time, Starco’s Rugeley warehouse holds roughly £3 million of stock. Up to a third of this can be described as industrial, including brands such as TVS, Gommasol and Marangoni. The rest of the stock comprises of ATV, wheelbarrow, turf, high speed trailer, small materials handling and other specialist wheels and tyres. Starco GB has also invested in high speed automated tyre fitting machinery, which allows the company to send more 12 to 16-inch tyre and wheel assemblies to OE customers than it ever could with man-power alone. The company has also invested in the construction of temperature controlled curing rooms in order for the company to expand the tyre-fill service it offers it’s customers. Planning for the expansion of the industrial aftermarket side of the business began three years ago and the company has been operating in the wider industrial segment for around eight years now. So, if Starco’s acquisition of a new brand and “very significant” investment in stock is anything to go by, it is clear that the company is preparing for the long-term.
Continue ReadingBridgestone and Fiege Open Czech Republic Logistics Centre
On May 16th 2008 Bridgestone Europe and its logistics partner Fiege officially opened the new Bridgestone “European Logistics Center ” (ELC) East in the Czech Republic town of Bor. Around 100 guests attended the opening ceremony including representatives from 15 local, regional and national media, neighbouring companies, several customers and suppliers, and various members of Bridgestone Europe and Fiege Group companies. Both VIP speakers, Fiege CEO Mr. Jens Fiege and Yves Kerstens, VP Supply Chain, Bridgestone Europe, expressed their satisfaction with the relationship between the two long-term partners and the results achieved, specifically in the case of the Bor tyre warehouse. Mr. Kerstens stated in his speech: “Personally I am very pleased to see the results that have been achieved in this context with the Fiege Group. In 1978 Bridgestone was Fiege’s first “contract logistics” customer in Germany and today Fiege is our main service provider in Central and East Europe, operating warehouses in Germany, Hungary, Czech Republic and also the first partner to perform cross border deliveries.”
Continue ReadingGrowing Demand for “Green Products” in China – Lanxess
German specialty chemicals group Lanxess AG reports it is banking on growing demand for more environmentally compatible products and systems solutions in China, its most important Asian sales market. At an international press conference held during the Chinaplas 2008 plastics fair in Shanghai (held between April 17 and 20), chairman of the Lanxess Board of Management, Axel C. Heitmann, stated ”Sales of our “green” premium products in China have risen significantly in the past twelve months. We expect this trend to continue and to have a positive impact on our business in China.” An analysis conducted by Lanxess indicates that growth of this “green business” could provide double the rate of overall market growth in China. ”Therefore we will focus increasingly on green chemistry products in our portfolio,” added Heitmann. Among the measures to be implemented will be an increase in development of new, innovative products and systems solutions.
Continue ReadingInvestigation Focusing on Tyre Price Fixing in South Africa
On April 9 South Africas Competition Commission announced it had searched the offices of Dunlop Tyres International and Bridgestone South Africa to collect evidence of tyre industry price fixing in the South African market. Also searched were the offices of tyre industry association the SA Tyre Manufacturers Conference. News of this action was reported by Reuters the following day. “We can confirm that the raid took place. We will cooperate fully with the commission,” commented Bridgestone spokesman Romano Daniels to Reuters. “We are not concerned about the investigation. We dont believe we conducted ourselves in an untoward way.” Dunlop has yet to comment on the day’s events.
Continue ReadingFifth Vianor Tyre Retail Franchise to be Opened in Kazakhstan
Finland-based tyre manufacturer, Nokian Tyres, is planning to open a new Vianor retail outlet in the city of Almaty, Kazakhstan. The heads of Nokian Tyres Kazakhstan LLP are expected to take part in the shop’s opening ceremony which is scheduled for 15 April. The new retail business will be owned by a local partner and run as a Vianor-branded retail franchise. According to a Nokian, the opening of the latest store brings the total number of Vianor stores in Kazakhstan to five – situated in the cities of Aktobe, Almaty, Astana, Karaganda and Kostanay. Speaking on behalf of Nokian Tyres, e-Communications manager Anssi Mäki explained the thinking behind the retail expansion: “The goal is to have [a total of] 15 partner outlets in the big cities by the end of 2008 and continue growing also after that.”
Continue ReadingSameer Importing Chinese Tyres to Meet Local Demand
Kenyan manufacturer Sameer Africa has begun importing tyres from China to meet a strong demand for low priced products in its home market. This, however, says Kenya’s Business Daily newspaper, is a measure placing the company in deeper debt as it must borrow heavily to pay invoices. The company installed a new £84,000 light truck tyre assembly machine last July and also increased capacity, however the company continues to struggle, as it has since changing its name from Firestone to Yana tyres three years ago. We were not making enough money from our tyre production unit so we borrowed to finance the importation of tyres that we dont make said Sameer managing director, Eric Kimani. The Chinese brands imported, says Mr. Kimani, include Dyna and Triangle. “The tyres are affordable but very durable. When we import we dont just bring anything, we buy quality, he added.
Continue ReadingYellow Sea to Expand Capacity
Approximately £90 million is said to be earmarked for Qingdao Yellow Sea Rubber to assist it move production to a new facility. This money is to come from controlling company China National Chemical Corporation (ChemChina), and the move of production from its headquarters to an industrial park will allow an increase of all-steel radial capacity to 1.8 million units per annum in 2008, and when its semi-steel radial production moves later the overall annual capacity in the facility will be 3 million units. Additional all steel and semi-steel capacity will be added, with all construction expected to be completed by the end of next year.
Continue ReadingShanghai Baolong Supplies Leading OEMs
As an official supplier of tyre service products to Ford, GM and Chrysler, Shanghai Baolong Automotive Corporation hopes to maximise the value of these contracts when it comes to marketing its Digitire aftermarket TPMS products. Baolong started its business working with the trade, and now after 10 years of development the company has grown into a corporation covering R&D, investment, production and trade. As a way of offering top quality products to our customers, Shanghai Baolong Automotive Corporation and its subsidiaries follow the requirements of ISO9002, QS9000, VAD6.1, ISO/TS16949 and established a strict QC system.
Continue ReadingPneu-Logic to Supply 2 million RFID Chips to Mesnac in China
Advanced ID, a leading supplier of RFID systems to the tyre industry, is to supply millions of RFID chips to Mesnac through its Pneu-Logic division. Mesnac, a leading Chinese tyre production equipment and software maker yesterday signed a memorandum of understanding to buy a minimum of 2 million chips. The agreement also includes a quantity of RFID readers. Tyres & Accessories understands that Qingdao-based Mesnac is already working through a stock of 100,000 chips bought for use in a “range of testing purposes.” No details of the financial terms have been disclosed. The deal is something of a coup for the Swadlincote, UK-based Pneu-Logic for two reasons: Firstly the scale of the deal ensures that there is a bright future for RFID use in tyre production, with signs that take-up could increase rapidly and substantially; and secondly because Mesnac is already applying the technology in both truck/bus tyres and passenger car products.
Continue ReadingAdvanced ID to Supply 2 million RFID Chips to Mesnac in China
Advanced ID, a leading supplier of RFID systems to the tyre industry, is to supply millions of RFID chips to Mesnac through its Pneu-Logic division. Mesnac, a leading Chinese tyre production equipment and software maker yesterday signed a memorandum of understanding to buy a minimum of 2 million chips. The agreement also includes a quantity of RFID readers. Tyres & Accessories understands that Qingdao-based Mesnac is already working through a stock of 100,000 chips bought for use in a “range of testing purposes.” No details of the financial terms have been disclosed. The deal is something of a coup for the Swadlincote, UK-based Pneu-Logic for two reasons: Firstly the scale of the deal ensures that there is a bright future for RFID use in tyre production, with signs that take-up could increase rapidly and substantially; and secondly because Mesnac is already applying the technology in both truck/bus tyres and passenger car products. Yuan Zhongxhue, the chairman of the board at Mesnac, explained that the concept at this stage is to tag the tyres throughout the production process, with a view to uploading tyre data to a central and even web-based system. The UHF RFID technology is intended to establish a new level of transparency in tyre production and throughout the whole tyre life, which is key improving perceptions of the reliability and traceability of Chinese-produced tyres. Asked how long he thinks it will take for RFID to filter throughout the 300 million tyre Chinese market, Mr Yuan told T&A: “The projection is it shouldn’t take too long to filter through. In the Chinese philosophy when [one] decides something, you just do it.” The first stage of what Mesnac hopes will soon be a nation-wide roll out already underway trials. The crucial next stage is a national standardisation programme. In a market as large and diverse as the Chinese tyre business, this could be seen as something of a challenge. However, Mr Yuan’s decision to go down the RFID route carries a fair bit of weight in the Chinese market. In addition to being chairman of the board at Mesnac, Yuan Zhongxue is also a director of the Shandong Province Technical Center of Rubber Industry and Qingdao Municipal Major Laboratory of Industrial Information Technology. Even more importantly, from a lobbying perspective, the Mesnac chairman has a close working relationship with China Rubber Industry Association (CRIA) president, Ju Hong Zhen. Speaking to T&A, Mr Ju explained that the CRIA is in the process of determining the relevant RFID requirements in China, adding that the industry’s interest in this area demonstrates the attention it is giving to improving the quality of and confidence in Chinese produced tyres. Chinese manufacturer to RFID-tag car tyres too In March Pneu-Logic sold a five-digit quantity of chips to an as-yet unnamed European tyre manufacturer for evaluation purposes for three-month long commercial vehicle tyre trials in Germany, Italy and the UK. It is understood that most of the leading manufacturers in Europe are in or approaching similar positions, but the logic here had previously been that RFID would be most useful for truck casing tracking in the retreading process. The Mesnac deal sees movement within the Chinese industry to include RFID tags virtually across the board, and specifically including passenger car products. In order to demonstrate this the Mesnac stand at the China International Rubber & Tyre Industry (Qingdao) Exhibition featured a car tyre and a 4x4 tyre with up to six RFID tags built in. Pneu-Logic managing director Laren Yeomans, explained that this was for demonstration purposes only and, when it comes to mass production, only one chip will be used in each tyre. Teamwork Qingdao Mesnac Co., Ltd, was established in 2000, but in this short time the company has developed key relationships with organisations both at home and internationally. At home Mesnac is involved with a postdoctoral research programme that sees the company join hands with CRIA and the Shandong Rubber Industry Association in the establishment of the Qingdao Rubber and Tire Engineering College. In addition, Mesnac has established a number of international cooperation agreements in order to keep up with worldwide technological advances. According to company literature, the Chinese manufacturing systems supplier has cooperated with Matador Machinery and Konstrukta in Slovakia and US-based Farrel in relation to the development of informatization equipment and technology of radial tyres. Furthermore the Mesnac brochure reports that it has strategic partnerships with world-renowned suppliers such as Siemens, Rockwell and Mitsubishi on the subject of industrial automation production. Mesnac’s relationships with Slovakian companies Matador and Konstrukta are well established and have been going for some time. Both deals agreements were formalized in November 2002, with the Chinese company cooperating with Konstrukta in the production of a 15-70 degree steel ply cutting machine and inner-liner extrusion line. By March 2003 the company was working with Matador on an all-steel, three-drum, radial tyre building machine. By May 2004 this particularly cooperation had expanded to include the establishment of an international technical centre and the manufacture of hydraulic curing machines and radial passenger tyre building machines with Matador. The Matador-Mesnac Technical Centre was opened at the same time, in parallel with the Shandong Rubber & Tyre Technical Centre.
Continue ReadingNew Record as 530 Exhibitors Sign-up for Reifen 2008
As the Essen show celebrates its silver jubilee (Reifen 2008 will be the 25th time the leading tyre trade exhibition has taken place), show organisers are reporting that this year’s show will be the biggest yet. This means that Reifen 2008 will have a record number of exhibitors (530), with this year’s show breaking the 500 barrier for this first time. At the same time exhibition area has increased 16 per cent in comparison with the last Essen show two years ago. And furthermore, 65 per cent more international exhibitors (2006:57%) are taking stands at a show that has become Europe’s leading tyre trade exhibition.
Continue ReadingDon’t Mention the War
When online tyre retailer Blackcircles.com launched its new Meinreifen.de website for German consumers this month, you could be forgiven for interpreting the move as a strategically aggressive act. Hannover-based Delticom AG has been selling tyres online in Germany (and 29 other countries) for years and if its latest financial results are anything to go by, they have been making a rather good job of it. However, Tyres & Accessories has learnt that Blackcircles has been researching a possible entry into the German market for the last three years. So, could we be witnessing the start of an online tyre war?
Continue Reading80% of Nigerian Tyre Market Imported
An estimated 80 per cent the 3.3 million tyres used in Nigeria are imported, according to Dunlop Nigeria Plc, Nigeria’s only domestic tyre manufacturer. The company also said over 150 different brands of tyres are imported into the country from Europe and Asia, among others. Dunlop Nigeria Managing Director Mohammed Yinusa blamed the figures on […]
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