Hankook Aiming for Doubled Euro Sales by 2010
With the opening of Hankook Tire’s £340 million facility in Dunaujvaros, Hungary scheduled for June, the South Korean manufacturer’s goal of doubling its European market share to 8 per cent by 2010 looks on track. By the end of this three-year timeframe the new factory will have an expected capacity of 10 million units. During this same period Hankook plans to increase global output from 69 million to 80 million units, and the company has previously stated that its longer-term goal is 100 million units a year. Hankook is the fastest growing of the world’s top 11 tyremakers, with sales increasing by 20 per cent annually. Furthermore, it reportedly enjoys the industry’s highest profitability, with average operating profit margins exceeding 10 per cent. And as Hankook’s largest export market, Europe is naturally very important to the tyremaker - a fact confirmed when the company referred to Europe as their “second domestic market” earlier in the year. A total of 35 per cent of the company’s export revenue (which in turn is 70 per cent of total revenue) comes from European sales.
Continue ReadingApollo Investing a Further £50 Million in Healthcare
The Apollo Tyres group has outlined plans to invest a further Rs 4,000 million (£49.78 million) in significantly expanding its recently established healthcare venture, Artemis Health Sciences. These funds would be used to establish five new hospitals in India – four secondary healthcare facilities each containing 150 beds, and a speciality hospital with 220 beds - and at present the company is looking at a number of prospective cities, including locations in Jaipur, Chandigarh, Ludhiana, Vadodara, Coimbatore and Bhubaneswar. These hospitals would be set up in the next three years. Artemis has already invested Rs 2,000 million (£24.89 million) building a 260-bed hospital in the city of Gurgaon. This facility is expected to be operational by mid-June. Additional future investment will see the number of beds at the Guragon facility, which specialises in orthopaedic, cardiovascular and oncology treatment nearly double to 500 beds.
Continue ReadingMichelin Investing Heavily in Poland
This autumn Michelin will launch production of new rubber mixes at its manufacturing site in Olsztyn, Poland. This comes as part of a £172 million investment program that also incorporates the construction of an adjacent logistics and warehousing centre. This investment program, Michelin’s largest in Europe, will create more than 500 new jobs. The Olsztyn site first opened in 1967 and was incorporated into the Michelin Group in 1995. It is currently Michelin’s only facility in Poland.
Continue ReadingNo Plans for Pirelli Tyre IPO – Gobbi
According to Pirelli & C SpA managing director for finance and strategic planning Luciano Gobbi the company has no plans for a separate listing of its Pirelli Tyre unit. These comments were reported by Italian media agency Radiocor, and come from a speech the executive gave in Paris. “At the moment, the IPO of Pirelli Tyre is not in the programme. We have no evidence of a plan in this direction,” said Gobbi. Recent analyst reports indicate that Pirelli will move to re-acquire the 38.9 per cent Pirelli Tyre stake from Speed, a company set up by six Italian and foreign banks. For this purchase Pirelli will dip into the funds – an estimated 3.3 billion euros - it will receive from selling its stake in Telecom Italia SpA. Gobbi said he expects these funds to arrive between July and October. In January Tyres & Accessories reported that an IPO of Pirelli Tyre looked likely, based on information that indicated both Speed and Marco Tronchetti Provera were keen to press ahead with plans to list the division.
Continue ReadingBroadway Aiming for ‘World Class’ Wholesaling
Broadway Tyres has unveiled a new corporate identity, pointing to the future development of the business. Jonathan West, the company’s founder and Chairman, addressed staff, main suppliers and industry leaders who are invited to preview the new strategy and new look at a reception at Wycombe Wanderer’s. The new look consists of a radical new corporate livery together with a new strapline ‘High Performance Delivery’ and the introduction of the ‘Broadway B’, configured from two tyre images. Most strikingly, the company’s fleet of 40 vehicles will be covered with an all-over wrap featuring some specially commissioned photography. Broadway Tyres has invested over £150,000 into the rebranding, believing it is a natural progression for the £25 million annual turnover company, which is looking to increase its share of the South East’s tyre market to 20 per cent over the next two years, by extending its deliveries, with an enlarged fleet and improved storage facilities at its depots.
Continue ReadingThe Magic Touch(less)
In recent times the name Beissbarth has become all but synonymous with their new Touchless wheel alignment system, and if the company’s presence at Brityrex was anything to go by, they don’t mind this at all. The aligner, often referred to using the words ‘revolutionary’ and ‘breakthrough’, took centre stage at the Beissbarth stand. “This is the biggest advance in wheel aligner technology that I have ever witnessed in more than 30 years in the industry,” said Beissbarth UK managing director Philip Hodges. “Aside from pinpoint accuracy, there are enormous time savings per vehicle on the current process, which will build both capacity and turnover in all busy workshops.” The Touchless system, previously reported by Tyres & Accessories on several occasions, is touted by Beissbarth to offer the fastest wheel alignment ever. The non-contact aligner will, they say, save up to 20 minutes on preparation time per vehicle. “There’s no wheel clamps to mess about with,” a Beissbarth representative commented to Tyres & Accessories. “The vehicle is just driven into position and the results can be seen on screen in seconds.”
Continue ReadingMaxxis Raises its Profile at Brityrex
Maxxis has reported that the company enjoyed a busy three days at Brityrex International 2007, the UK’s only independent tyre trade show, with the Maxxis Centres of Excellence initiative and the new Maxxis catalogue reportedly generating major interest. “Visitors to Brityrex were the first to see our new product catalogue, which incorporates 500 tyre patterns and sizes and covers performance radials, high performance tyres and 4x4 tyres for cars and vans, plus heavy truck products and our Trailermaxx high speed trailer range,” said Derek McMartin, managing director of Maxxis International UK. “We were also impressed with the level of interest Group Tyre members showed in the Maxxis Centres of Excellence programme, which is designed to help retailers maximise profitability though a winning combination of quality products, value for money and industry-leading delivery and technical support,” he continued. According to Group Tyre (UK) commercial operations director, Karl Naylor, several dealerships have already signed up to become Maxxis Centres of Excellence (see T&A June 2007’s retail feature for more details on this).
Continue ReadingKwik-Fit Uses Mobile Phone Technology
Kwik-Fit has begun using digital pens and mobile phone technology to provide an improved fleet service. The move sees Kwik-Fit Mobile’s tyre inspectors deliver report results electronically to a control centre at the end of each day. Each report, which is logged in the digital pen, is sent immediately on completion by inspectors via their mobile phone using both Bluetooth and GPRS technology to the control centre. This means the replacement of damaged or illegal tyres, can be carried out much quicker than previously. Kwik-Fit Mobile operations director Simon Lucas said: “On receipt of the information the control centre can then contact a car driver immediately to arrange the time and location of any work to be carried out. The technology also means that we can source any tyres that are required immediately, which enables any work to be undertaken within 24 hours.
Continue ReadingAvon OE on Car that Recreates Racing’s Golden Age
Avon tyres has secured its third OE contract with a British sportscar manufacturer within the space of six months. Avon parent company Cooper Tire & Rubber Company Europe Ltd has announced the signing of an agreement with Peterborough based manufacturer Vanwall – a postwar racing marque given a new lease of life in the 21st century. This latest deal comes on top of recent contracts with Connaught and Morgan. Avon’s Turbo Steel 70 has been confirmed as the official tyre for Vanwall’s V12-powered Grand Prix Racer. Starting at £50,000 per car, and built to each customer’s individual specification, the Vanwall GPR V12 is a road legal, two-seater racing car styled on the classic 1950s Formula One cars bearing the same name, made famous at the hands of motor racing legend, Sir Stirling Moss.
Continue ReadingMichelin Exclusive Tyre Partner for Kia Cee’d
Michelin has been chosen has the exclusive tyre supplier for the Kia cee’d. Two Michelin tyres have been chosen for fitment to the cee’d range: the latest-generation Michelin Energy for 15 and 16 inch wheels; and the multi-award winning Michelin Primacy HP for 17 inch wheels. Speaking at the car’s international launch near Rome, Michael Lugert, Kia’s Vehicle Evaluation Manager explained how the R&D process began: “Very early in the car’s evolution, Kia decided to fit Michelin tyres exclusively so we could fine-tune the new model’s ride and handling characteristics very precisely. In addition, this collaboration included creating tyres that improve fuel consumption and reduce CO2 emissions – without reducing grip.”
Continue ReadingBridgestone UK Names New Motorcycle Division Manager
Bridgestone UK has strengthened its sales team with the appointment of Andrew Whitehead as manager for its motorcycle division. According to an official company statement, Whitehead’s primary role will be to “secure Bridgestone’s market share of quality motorbike tyres.” This portfolio includes the new Battlax BT-021, a long-term replacement for the successful BT-020, the market-leading sport touring tyre. “It’s an exciting time to join the motorcycle division following the official launch of the BT-021,” said Whitehead. “It’s a fantastic product, and the positive feedback we’ve received about the handling and performance capabilities of the tyre leads us to believe it will make a real impact in the market. The BT-020 is an incredibly tough act to follow, but my focus is to ensure the BT-021, and the rest of the Bridgestone motorbike range, can generate equally impressive unit sales. Andrew Whitehead, 44, formerly worked in a sales capacity for Bridgestone’s truck division following a six year stint at Dunlop, where he was also responsible for truck and motorcycle tyre sales.
Continue ReadingPlimsoll Produces Tyre Prosperity League Table
A new league table from leading financial analysts Plimsoll Publishing aims to provide an answer to that age-old question in the Tyres, Exhausts & Batteries market: Why do some companies fail and others prosper? The equation is not as simple as strong sales equals survival. Nor is the success rate of a firm automatically affected by market conditions. Instead, they say, it depends on the ingredients in a finely-balanced recipe that includes good margins, low borrowing, responsible management and foresight. Plimsoll’s new analysis of the market weighs all these ingredients and turns them into a unique one-page snapshot of each company’s prospects. From that, it establishes a league table based on 1000 leading firms that looks like this: 278 companies are in a strong position, with a pre-tax margin of 10 per cent; 116 are in the good sector, on 4 per cent margins; 160 are rated as mediocre, on 3 per cent; 272 are in the “caution” category and 174 are in the “danger” range.
Continue ReadingVipal: Aiming for the Top Three
Already represented in more than 90 countries, 2006 saw Borrachas Vipal’s exports grow roughly 30 per cent as the retreading materials and repair company took steps to increase its presence in the main European markets. Going forward, Vipal’s willingness to utilise its strong production capacity should not be underestimated. Early indications are the Brazilian company is making headway in its plans to become a top-three player in the European retreading materials market. The Brazilian retread market, the second largest in the world, covers approximately 8.5 million units, 90 per cent of which are cold retreads. Here, on home turf, Vipal controls a commanding lead in terms of market share, holding roughly 43 per cent. Such a figure is streets ahead of the well-known European market leaders’ South American subsidiaries (Marangoni do Brasil, for example, has a market share of around 6 per cent).
Continue ReadingViking Rewards Dealers for Tyre Sales
Viking Tyres recently introduced a new dealer-based reward programme, and to mark the occasion has embarked on a number of promotions giving all Viking dealers the opportunity to win prizes as a bonus for their tyre sales. The winner of the recent iPod dealer promotion, launched in January this year, was Nigel Hennessey of the Buckingham Tyre and Exhaust Centre. The dealership is a family run business and has been a Viking customer for many years. Nigel and a further three members of staff were awarded with the popular 30GB Apple iPods as a reward for their Viking sales in the first quarter of the year. They were presented with their prizes by Kevin Peck, Sales Director, for Viking International. “The iPods are great and it’s a fantastic extra to receive from Viking as a reward for our business,” commented Nigel upon receiving his prize. Viking Tyres, exclusive to Viking International, has recently launched another promotion that sees an additional bundle of prizes up for grabs.
Continue ReadingDick Denby Transport Puts New Michelin Trailer Tyre to the Test
Lincoln-based Dick Denby Transport has become the first haulier in the country to fit Michelin’s new X One MaxiTrailer tyres, which deliver up to 50 per cent more mileage than standard 385/65 R 22.5 tyres. Fitted to a Schmitz Cargobull tri-axle curtainsider, the X One MaxiTrailer tyre is the first trailer tyre to incorporate Michelin Durable Technologies. Dick Denby, Chairman, explains: “We fit a lot of Michelin tyres across our fleet and will be monitoring the MaxiTrailer tyres very closely, to carefully ascertain the benefits they offer in comparison with our regular trailer fitment. Any tyre which claims to offer such a massive leap forward in mileage performance is certainly worth putting to the test, as the pay back across the fleet could be significant.”
Continue Reading
