China to Formulate Tyre Industry Policy
The Asia Pulse new agency is reporting that an official from the Chinese State Development and Reform Commission recently said the government is soliciting suggestions from relevant parties on a draft tyre industry policy. The policy, devised by the China Association of Rubber Industry and China International Engineering Consulting Corp, is expected to be made public in the first half of 2005, after it has been revised. The new industrial policy is expected to support enterprises developing advanced technology, encourage the production of radial tyres and slow down the production of bias tyres. According to the draft policy, China will adopt market access management for tyre industry and work out compulsory technical rules relating to tyre quality, safety, environment protection, energy-conservation and raw material consumption. A memorandum and approval system will be introduced to newly established tyre factories or tyre expansion projects invested by domestic and foreign investors. Relevant requirements will be imposed on the amount of investment, technical ability and products for new tyre projects. The policy will also standardise the tyre import market and ban any forms of waste or used tyre import.
Continue Reading2005 Golden Opportunity for Michelin
The new Formula 1 season will bring with it a “giant chance” to finally challenge for the world championship, Niki Lauda told the Home of F1 news services. The former Ferrari driver said new regulations often represent a “golden” opportunity to beat the pacesetter. “Above all I see the new tyre rule as a chance for them” Niki Lauder said referring to the new rule limiting teams to a single set of tyres for both qualifying and the grand prix. When it comes to developing a brand new F1 tyre, he continued, Michelin have a distinct advantage for 2005. “They have much more data, for example of Mercedes, BMW, Honda and Toyota, while Bridgestone has only Ferrari. And we know that tyres dictate victory and defeat,” he explained.
Continue ReadingBridgestone Makes Tsunami Donation
Bridgestone is to donate 100 million yen (roughly £500,000) to disaster relief aid intended for victims of the recent Indian Ocean Tsunami. The money will be distributed through the Japan Red Cross which will allocate funds at its discretion. The company’s subsidiaries in Thailand, India, Indonesia and Malaysia will make separate contributions to local relief efforts. Continental and Michelin have also donated to the cause.
Continue ReadingBandag Continuum with OTR
Bandag is set to introduce a new line of off-the-road precure retreads to the American tyre market. The new range, Continuum, is designed for light and medium earthmover tyres and includes two serpentine tread designs, which, in Bandag’s words have been created to offer “greater flexibility than other retread application methods and products.”
Continue ReadingUSWA Ends Asheboro Unionisation Plans
The USWA has halted plans to unionise Goodyear’s Asheboro, North Carolina plant. So far there is no information about when the activity at the plant stopped or when the union will be allowed to mount a new campaign. According to information provided by the National Right to Work Foundation (NRWF), “Under the terms of the settlement, USWA union officials may not use the ‘card check’ unionisation schemes in any future organisation attempts at the Asheboro Goodyear facility.” In a statement Goodyear North America communications manager, Amy Brei stated that the company has cooperated fully with the National Labour Relations Board (NLRB) and will continue to do so. She said charges in the complaint centred around whether a neutral arbitrator properly accounted for employees who revoked written union authorisation cards they had previously signed. “Goodyear did not ‘ignore’ the revocations; they were presented to the neutral arbitrator for his consideration. Goodyear associates have been - and always will be - free to choose whether or not they want union representation.” Speaking to local newspaper the Asheboro Courier, USWA area representative Brad Smoyer stated a desire to continue the organising drive, adding that the USWA will assist workers in that effort. He said officials found no evidence of coercion by the USWA or Goodyear during the 2004 union drive. The NRWF was clearly pleased with the result: “This victory is a step towards holding union officials across the country to account for trampling workers’ rights under abusive ‘card check’ schemes,” said Foundation vice president Stefan Gleason in a press release. “While encouraging, its an outrage that Goodyear struck a backroom deal with USWA officials in the first place to deny these workers the freedom to decide their own representation through the less abusive secret ballot election process.” cja
Continue ReadingApollo Tyres Aims At Europe
Large-scale Indian tyre manufacturer, Apollo Tyres, is investing 2.5 billion rupees (more than £30 million) in production expansion and is aiming to export more to the European market, Indian news sources are reporting. Company chairman and managing director Onkar S Kanwar told Financial Express: “We are looking at investing [2.5 billion rupees] in the existing facilities in the next fiscal ending March 2006.” Mr Kanwar explained that nearly half of the spending would be pumped into the Gujarat unit alone. “This calendar, we are more aggressively looking at tapping the European market. This can be through direct marketing or even through distribution alliances,” he added. At the moment the company makes between 15 and 20 per cent of its revenues from exports to other countries besides Japan and Europe. Apollo Tyres also recently entered into a joint venture with Michelin. The joint venture, Michelin Apollo Tyre Pvt Ltd, is focusing on manufacturing, marketing and sales of truck and bus radial tyres. “In the first phase, we will manufacture truck and bus radials and sell under the Michelin and Apollo brand. These products will be sold across the country,” he said.
Continue ReadingWaste Not – Want not
The story of a successful industry initiative The EU Landfill Directive prohibited the landfill of whole tyres from 1 July 2003 in all EU states and will ban the landfill of shredded tyres by 1 July 2006. Fortunately, however, the UK has a well-developed collection system and a diverse recycling infrastructure for old tyres when compared to many countries. Currently most of Britain’s tyres end up in some kind of beneficial re-use. Britain’s motorists, hauliers and others collectively generate over 400,000 tonnes of waste tyres annually. Industry estimates suggest that at least three quarters of these are already re-used in some form or other. Some of the many ways in which tyres can be reused include as fuel, carpet underlay, recreational surfaces and in the form of granulates. In the truck sector retreading is a highly efficient re-use of a worn tyre. Using tyres as fuel for cement kilns is another way of re-using large quantities of tyres. And there is considerable remaining capacity for the UK’s cement kilns to take additional tonnage. At the same time the number of new uses for old tyres continues to increase. The fact that tyres have a very high calorific value means, as a fuel, they are not dissimilar to coal. Furthermore, when burned as a co-fuel, tyres can improve the general combustion quality considerably. For all of these reasons tyre manufacturers, with the help of the TIC’s Responsible Recycler Scheme, are confident that the UK will continue to meet the terms of this major EU directive. If there is a downside to this positive story it is that beneficial and responsible recycling comes at a price – albeit a modest one. However small though, it is a price that a few companies still seem unwilling to pay. To promote some more robust standards in the collection and disposal of end-of-life tyres and to help eradicate the scourge of ‘fly-tipping’ and rogue operators, Tyre Industry Council launched its Responsible Recycler Scheme in late 1999 and although just five years old, this flagship initiative has come a long way in a short time. Though initially restricted to just tyre collection companies, it was quickly realised that the commonality of interests between collectors and reprocessers demanded that the Scheme’s remit be widened to include reprocessors as well. Behind the formation of the scheme was the clear recognition that used tyre collection and re-processing were businesses which deserved recognition in their own right and which together had an important role to play in helping tyre manufacturers, retailers and indeed government itself to meet the EU Landfill Directive on used tyres. Those leading the scheme realised at an early stage that whether or not the concept of producer responsibility was introduced into the UK there was a need for collectors and re-processors alike to adopt concepts of “best practice” in response to the challenges ahead. That is why today the scheme puts great emphasis on its audit regime and believes it can demonstrate full traceability, something that is essential for maintaining a good reputation. For the TIC, transparency, traceability and accountability are cornerstones of its scheme. Responsible retailers, fleet companies and other tyre users that work with scheme members are guaranteed that the tyres collected by the Responsible Recycler Scheme companies are disposed of in an environmentally friendly and acceptable method. Whether they are recycled or used as fuel in cement kilns, the Responsible Recycler Scheme helps its members comply with their duty of care obligations as well as protecting the environment. As a measure of its success the scheme continues to grow and to attract international interest. From a single founder member in 1999, it now has reached a temporary ‘high’ of 22, with more applications in the pipeline. In fact such is the sense of purpose and collective professionalism that the scheme has engendered that its members elected to become a trade body in their own right, known as the Tyre Recovery Association (TRA). Apart from operating the Responsible Recycler Scheme, which is now a registered trade mark, on behalf of the Tyre Industry Council, the TRA will have the independent ability to pursue specific issues at both industry and government levels, generate performance data specific to its members businesses, as well as develop stronger international links right across Europe.
Continue ReadingWeber Hydraulik UK Goes It Alone
After nearly three years of preparation, Weber Hydraulik (UK) recently completed a management buyout becoming a wholly independent company. The business was previously managed by parent company Weber Hydraulik GmbH based in Gϋglingen, Germany. As a stand-alone company, Weber Hydraulik (UK) will continue to be a top supplier of hydraulic equipment to the automotive industry. It is now a stand-alone firm, managing sales, service and marketing from its head office at the Broomhills Industrial Estate in Braintree, Essex. The company’s new senior management team, travelled to Germany to present Weber Hydraulik GmbH’s chief executive, Dr Haselman, with a “big cheque” to conclude the deal. One of the new directors, Doug Tokley, commented: “We will continue to provide the level of service our customers have come to expect and are now looking forward to a very prosperous future.”
Continue ReadingSEMA goes hip-hop?
Last year 105,000 people attended the SEMA show. This time around the association expects to have attracted a similar number, roughly half of which are likely to be national or international buyers. According to the association, “early analysis of show activity and reports from members suggests a significant increase in buyer participation and business.” The success of the show has obviously been influenced by the large amounts of publicity that it generates. Tyres & Accessories reviews some of the highlights of a show that has all the glitz and glamour one would expect from an exhibition held in Las Vegas. Cashing in on the hip-hop culture and its associated appetite for vehicle modification, the SEMA show’s organisers were keen to point out that “car enthusiast celebrities” Snoop Dogg and Usher were present. Not to mention the television production companies responsible for a new generation of fly-on-the-wall automotive tuning programmes including Overhaulin and Pimp My Ride. The show’s organisers also noted the presence of celebrities with just a little less street cred, namely Jay Leno and Hulk Hogan, not to mention motorsport luminaries like Mario Andretti. In recent times, a number of manufacturers have tried to cash in on the novelty value of both tuning and the lucrative street-culture attached to it. Pirelli tyres, for example make regular appearances on MTV’s Pimp My Ride. The Italian manufacturer’s products have also successfully managed to find their way into the lyrics of various rappers and an association with one of the world’s most famous basketball players. According to those behind the specialist equipment extravaganza, “the SEMA show has become a magnet for anyone connected with the automotive culture.” And this is exactly what the they want to market the show as, a show that is all things to all people. In the organisers’ words: “Only at the SEMA Show can you find: a classic roadster alongside the newest in off-road racing and performance technologies; a place where Shaquille O’Neal’s DUB-customised Cadillac Escalade competes for attention with the hot new Dodge Magnum or Chrysler 300C alongside Jay Leno’s totally unique Oldsmobile Toronado.” During SEMA 2004, tyre manufacturers were keen to make sure their products were the centre of attention, with some going to greater lengths than others to ensure that this was the case.
Continue ReadingTrelleborg Organises Relief Efforts in Sri Lanka
The Trelleborg Group has been working since the day after Christmas to ensure that none of its employees is missing and has organised relief efforts, primarily in Sri Lanka. Trelleborg, which has approximately 22,000 employees, has operations in several of the countries affected. Reports to date indicate that none of Trelleborg’s employees are missing. The company is continuing to gather information to establish the certainty of this. The Group has approximately 800 employees in Sri Lanka. They have been heavily affected, and some have lost their homes. Since the disaster first struck, Trelleborg has focused its relief efforts on Sri Lanka. This has involved providing food, medicine and clothing to disaster victims. Efforts to rebuild homes that were demolished are ongoing. The company has allocated just over 2 million Krone for relief to Sri Lanka. In addition, the Group has donated 100,000 Krone each to Save the Children and the Red Cross. Individual Trelleborg employees have also donated money toward relief efforts. Trelleborg’s two plants in Sri Lanka are intact and production is under way.
Continue ReadingWholesaling and Retailing In a Difficult Market
Magowan Tyres is a family-owned and run retail and wholesale tyre business, based in Belfast. The founder, Darryl Magowan, has been in the tyre industry for more than three decades and is still in charge of the overall direction of the company. His son, also called Darryl, is managing director of the company and his speciality is purchasing. With the Northern Ireland market being, in his phrase, exceptionally price conscious, it is a distinct advantage if you can buy cleverly. Magowan is very active on the parallel market, importing around eight containers a month from Europe and the USA. For almost 20 years, Magowan Tyres was purely a retail business, moving into wholesaling only three years ago. I put it to Darryl Magowan (Jr.) that this was an odd time to enter the wholesale sector, with rising transportation and associated costs. His response was that the company had examined the situation carefully and weighed up the pros and cons. The main reason was that there was a growing demand in the Irish market for ultra high performance tyres and a lack of wholesale supply. The main market for Magowan Tyres is Northern Ireland, especially Belfast, where the company offers deliveries up to five or six times a day, if required. The service in the Irish Republic is less frequent, but a next-day delivery is standard. Because of the low density of population, which, apart from the major towns and cities, is very spread out, running a wholesale operation efficiently and profitably means keeping a close eye on day to day running.
Continue ReadingMarket Prepares for Breakthrough
There has been much talk about the Chinese tyre market in recent months. Now, following the news of Amtel’s takeover of Vredestein, and the collapse of one of Continental’s joint ventures, the Russian market has been a hot topic. But what about India? The Indian market may not be as large as Russia’s, but it certainly offers many challenges and opportunities to the companies working within it. One such opportunity is radialisation. Currently radial products only make up a very small percentage of the Indian truck tyre segment, around two per cent. And, according to those involved, there is a large backlog in demand. For instance, just recently Michelin entered into a joint venture with Apollo Tyres in order to produce radial truck and bus tyres destined for the domestic market. Pirelli and its partner, Ceat Ltd is also looking to fill the same gap in the market. No doubt other Indian manufacturers will follow suit in the future. Another example, and in this case a big technological challenge, is the production of radial passenger car tyres. Even so, this sector is way ahead of the truck market with 85 per cent of the segment occupied by radial tyres. According to industry association ATMA this figure is likely to peak at 97 per cent in the coming years. But one of the biggest factors influencing the Indian tyre market is the advance of motorisation. As this process gains momentum, more and more Indians want to and can afford to own passenger cars. In the last 10 years automobile production in India has quadrupled, last year alone it increased by an impressive 36 per cent. Within the pages of this supplement on the emerging Indian market, TYRES & ACCESSORIES will give an overview of the major factors that are influencing the market and the big players that are trying to stake a claim in a market they believe should be theirs. Subscribers to Tyres & Accessories can download the supplement in advance of publication. Please click the more button to download the file.
Continue ReadingThe Aftermarket Show 2005
The Aftermarket Show will open its doors to tyre industry visitors at the NEC from 13 to 16 January next year. Organiser, Haymarket Exhibitions, believes that the show will be both relevant and appealing to all sectors of the industry. “The tyre section of the show is sponsored by the TIC, and the NTDA is again taking a stand; this is an exhibition that the tyre and fast fit market is keen and willing to support,” says Haymarket’s group sales manager Giles Brown. Exhibitors such as Vredestein, Nordisk, Rage, Eurosport, Autopart and equipment suppliers like Supertracker, Tecalamit and Mace Industries will all be returning for a second successive year. The last show was the first to combine all elements of an aftermarket industry, elements that had previously been exhibited as separate entities within Autosport International. The move is also an attempt to emphasise the combination of business and pleasure, and the automotive exhibition takes place over a full weekend for the first time. More than 90,000 people, including almost 25,000 from the automotive trades, attended the NEC for the two shows in 2004. Although the focus is on the consumer, brands such as Dunlop, Pirelli, Uniroyal, Yokohama, Kumho and Silverstone will all be displaying their latest motorsport and high performance ranges to visitors. Fulda will also be present and is sponsoring the Live Action Arena at Autosport International as part of its campaign to launch its ultra-high performance car tyres in the UK.
Continue ReadingMichael Schumacher Donates 10 Million
German Formula 1 star Michael Schumacher has made a cash donation of $10 million US dollars to the tsunami victims of southern Asia. The allocation of the money in the region will be undertaken by German authorities.
Continue ReadingChanging Landscape of the Indian Market
India’s strong tyre manufacturing base dates back over five decades. With a current production level of about 55 million tyres the country’s industry is expected to grow seven to eight per cent per annum in the near future, according to market insiders. Increases in domestic demand and exports will bring about a change in the landscape of Indian manufacturers which can already be characterised as an oligopoly, with few dominating players among dozens of competitiors. In order to comprehend the changing realities of the Indian market it is important to have a close look at the companies involved and major trends. The years to come will witness many changes – however the eventual outcome is still open for change.
Continue Reading