Montupet Starts New Investments
Automotive supplier Montupet SA has completed a 75 million Euro investment at its Chateauroux plant in France. Montupet is one of the biggest suppliers of aluminium motor parts and produces for many car makers, especially the Ford group. The investment has given the plant the ability to produce 2.5 million cast aluminium wheels each year, making it the second largest facility in Europe. The companys next project will be to invest in its wheel plant near Belfast to increase capacity from 700,000 to about 2.5 million units annually within the next three years. Montupet is the biggest aluminium wheel supplier to the PSA group (Peugeot and Citroen), one of three dominating suppliers at Renault and has recently begun supplying Nissan UK and Seat.
Continue ReadingQ4 And Full Year Results For TBC
TBC Corporation (Memphis/TN), one of the USAs largest aftermarket tyre distributors has announced record sales and earnings for the forth quarter and year ended 31st December 2002.
Continue ReadingMichelin Full Year Sales Down
Michelin is expected to announce a small drop in sales to 15.54 billion Euro from 15.75 billion Euro. Analysts say this is likely to be due to the weak dollar. They also suggest that Michelin will increase prices to meet growing costs of oil-based raw materials. An announcement from Michelin is expected later today after the close of the stock market. Michelins full results are expected in two weeks time.The companys share prices were pressured last Friday when Standard and Poor’s put the group on negative credit watch over unfunded pension liabilities. However they were given a 4.6 lift on Tuesday by good news from the auto sector suggesting a revival was under way.
Continue ReadingRubber Triumvirate Creaking
Speaking in Malaysia, on recent news that Thailand may not cut rubber supply by four per cent as previously agreed by the three key producers, Primary Industries Minister Datuk Seri Dr Lim Keng Yaik said I hope that is a misquote. However, should it be true, there was an urgency to have a discussion with Indonesia and Thailand. After all, being the biggest producer, Thailand is benefiting more with the present high level of prices. The three countries, which account for about 60% of world rubber production, agreed in Bali in 2001 to cut exports and output by 10% and 4%, respectively, aiming to support rubber prices.
Continue ReadingMichelin Completes Tyre Development For American Utilicraft
Michelin Aircraft Tire Corp. has announced the completion of tyre research and development for the American Utilicraft Corporations FF-1080 aircraft. Michelin is pleased to be associated with this exciting program, says Harvey Stackhouse, director of sales and marketing for Michelin Aircraft Tire Corp. This new tyre design will accommodate the wide variety of applications and configurations that are planned for this aircraft.The FF-1080 aircraft is designed to meet the unique requirements of the air cargo and military transport markets and consequently places specific demands on tyre performance. Improving mobility is at the core of Michelins mission, notes Stackhouse. The FF-1080-200 Freight Feeder aircraft, will be capable of carrying standard industry air containers on short-to-medium range/medium density routes.
Continue ReadingRecord Sales For Federal
Taiwan-based Federal Corporation reported record sales for 2002 of US$ 103.4 million, up 15.7 per cent from the 2001 figure of US$ 89.4 million. Sales outside Taiwan and China accounted for $69.2 m (66.9 per cent), up 28.7 per cent on 2001. Domestic sales fell 4.2 per cent to $34.2 m. Much of the success, says President Jamie Ma, was due to strong demand for the ultra-high performance SS-595 tyre.
Continue ReadingMichelin’s “Green Production”
A 250kW Molten Carbonate fuel cell has been installed in Michelins tyre plant in Karlsruhe, Germany. The project, supported by the energy utility company Energie Baden-Württemberg (EnBW), the local energy supplier Stadtwerke Karlsruhe and DaimlerChryslers subsidiary MTU Friedrichshafen cost about Euro 3.6 million. The facility will run as a test station for about two years. After the completion of a successful trial, MTU will think about mass producing this and similar units from 2006 on.Our tyres have to be black, but their production should be green, said Olivier Furnon, managing director of Michelins plant in Karlsruhe. Apart from producing electric energy, the fuel cell also produces 200°C hot steam which is used in the tyre galvanisation process. One of the major reasons for installing this unit was, apart from pollution-free electricity, the cost factor. The fuel cell uses much less natural gas than a conventional energy power plant.
Continue ReadingApollo Looking For Acquisitions
Armed with a US$35 million loan from Industrial Finance Corporation of India (IFCI), in Washington, Apollo Tyres India is on the lookout for acquisitions. The companys Chairman-cum-Managing Director, Kanwar Singh, said the company was open for acquiring tyre companies in the country and was in talks with a number of them. There is no time frame for going for acquisition, but we are open to the idea, he said.Apollo Tyres is aiming to bring down its borrowing cost by 50 per cent from current levels and is confident to reach a turnover of US$415 million during the current financial year. Commenting on reducing borrowing cost, Kanwar Singh said, Not only we are expecting a steep fall in borrowing cost, but measures like a cost cutting drive will also bring in much better control.
Continue ReadingContinental To Be Official Partner Of 2006 FIFA World Cup
On January 21st Continental AG set the seal on its participation as an official partner of the 2006 FIFA World Cup. The agreement was signed by Joseph S. Blatter, President of FIFA, and Manfred Wennemer, Chairman of the Executive Board of Continental AG - in the presence of Franz Beckenbauer, the President of the Organising Committee of the 2006 FIFA World Cup™ and other guests from sports, business and politics - at the Technology Center in Hanover-Stöcken.Wennemer emphasised that this agreement documented Continentals ongoing involvement in a sport that links and thrills millions of people. Football is the game that attracts more attention than any other sport in Europe and - as demonstrated during last years world championship in Japan and South Korea - also worldwide. He was sure that the world championship in 2006 would be the outstanding sporting event of this decade in Germany. Its commitment as an official partner of FIFA would provide Continental with an unparalleled marketing platform in all international markets.Continental is one of 15 partners involved in global sponsorship. Additionally, there are six national sponsorships for the 2006 World Cup. And the sponsorship is not only targeted at consumers but also internally, as Continental says the move will motivate its own associates.
Continue ReadingIndustrial Strength
The industrial tyre sector consists of some very specialised products to suit very specialised vehicles and applications. But it is not all about just supplying products, as the fitting and servicing of industrial tyres is a job for experts, involving considerable investment and commitment. Understandably, the user of industrial equipment wants service immediately - idle machines are losing money - which puts even more pressure on the service provider.
Continue ReadingWhat’s New?
This time of year traditionally sees the launches of many new tyres. With product life cycles becoming ever shorter, the number of new tyres coming on to the market is growing. We examine the latest offerings.
Continue ReadingDisappointment at Government’s initial response to producer responsibility question
In January, the Tyre Industry Council held one of its regular briefings for the press and associate companies. After welcome from Secretary Peter Taylor, Chris Wakley, who handles public relations for the TIC, gave a brief summary of last years activities. While stressing that the support from police forces was as strong as ever, he said that fewer tyre checks than planned had been carried out. One reason for this was the need for cars to accompany the Green Goddesses during the firefighters strike, but another major reason was the perennial problem of lack of fitters to attend roadside checks. The reasons for this have been frequently aired in this magazine, but the fact is, said Wakley, that fitters are essential for the exercise, as police are sometimes reluctant to interpret tyre law at the roadside and rely on the trades specialist knowledge. The end result is that the number of cars checked was around half of that in 2001.Despite this, the figures concerning illegal tyres are remarkably consistent, with 11.6% of cars checked having at least one tyre with a tread depth below 1.6 mm. The figure for 2001 was 11.7%. However, when we look at what the TIC describes as badly worn tyres (ie with a tread depth above the legal minimum but below 2mm), there has been a worrying increase, from 11.7% to 14.9%. Although common sense dictates that worn tyres increase the chances of an accident, this is not accepted by Government, who say that statistics show that tyres contribute to a very small number of accidents. The TICs answer to this is that the police rarely record tyre tread depths in accident situations, so the figures are artificially low.
Continue ReadingInsurance: Soaring Costs Or No Cover
Insurance premiums are becoming an increasing topic for concern for many businesses. T&A looks at the problem and tries to uncover the reasons why premiums are rising and some companies are having problems finding cover. Insurance is one of those business costs which we all hate but equally almost all agree are a necessity. No reasonable businessman would argue that he didnt need insurance. Firstly there is Public Liability, which, contrary to common wisdom, is not a legal liability, nor is Product Liability for anyone making or repairing a product. Then there is Employers Liability Insurance, which is a legal requirement, and we havent even started on premises, stock, vehicles or more targeted niche policies. The big problem for everyone is that insurance premiums are climbing. There have been warnings of 100 per cent this year, and as much as 400 per cent increase over the next two years.A UK truck tyre retreader who called T&A in a complete state of shock was having to completely reconsider his business strategy and advised us of several competitors who were taking the only option open to them and shutting up shop. His premium for Premises and Business Income Insurance in December 2000 stood at £9,000, by the following year it had doubled to £18,000. This was bad enough, but December 2002 saw the premium rise to an incredible £60,000 with a £50,000 excess. At the same time his Employers Liability Insurance climbed from £9,000, through £20,000 to £42,000. He reckoned that his insurance premiums had risen by 700 per cent in two years. Worse still, this business had never made a single claim ...
Continue ReadingSherbrook Wheels: Turkish Delight In Lichfield
Lichfield-based Sherbrook International Ltd is entering the alloy wheel market and aims to hit the big time. It may be a new name in the wheel sector but the company has a long-standing heritage in the automotive industry and, for a newcomer to the wheels market, has an excellent record for getting things right. This could be just another player trying to make a few extra pennies from selling wheels while the market lasts but nothing could be further from the truth.The company has grown to a staff of 25, sourced from the automotive industry, each an expert in his or her field, carrying out negotiations between both ends of the supply chain. The company offers a 24/7/365 office service to the trade with constant monitoring of schedule performance and awareness of in-transit goods. This is built on effective customer communication and enables stock to be ordered from across the continent, or around the globe to meet Just In Time production processes. Rapid reaction to customer demands and a local technical support team result in quick problem solving which, with an agreed stock buffering system, eliminates supply chain down time from the manufacturing process.Now the company has a turnover in excess of 30 million Pounds and the financial backing of a large Turkish commercial organisation. Koç, this Turkish conglomerate, took over Sherbrook in 1998 giving the company a secure financial future and access to an even wider market and production base. Koç operates in Turkey on many levels, and its company logo of a Rams head in red outline is visible everywhere, especially in the Izmir area. In 2000 the Koç group had 9.2 billion Dollars of consolidated sales from 92 group companies employing 35,500 people. Core businesses cross many sectors, including automotive, banking, construction, household appliances, IT, and food and tourism. In the automotive sector the company has strong links with Land Rover, Ford, Iveco, Fiat and in components covers almost all areas. However, it is the Döktas foundry business which has led the company into wheel distribution in the UK.
Continue ReadingPK Commercial Tyres Diversifies
Ashford-based PK Commercial Tyres is a well-established Bandag franchisee, supplying quality truck retreads for a number of years. Managing director Paul Kuske has experienced both good times and bad, changes in the market and changes in user attitudes and the company has weathered it all, adapting to these changes.Recent changes in the retread market prompted Paul to re-think where the future lay for his company. The main problem is the increasing demand by customers for management information and a total tyre management service, rather than just product. We found that we were having to sell the tyre over again - once to the end user and then to the tyre distributor or service provider said Paul. There were other dangers too - if you use outside companies to provide the services that you are unable to offer, there is always the chance that they might compete for your contracts. We lost two fleet contracts to a former service provider partner he remembers.It was time for a re-appraisal of the companys objectives. PK Commercial took over a retail tyre depot in Aylesford, near Maidstone, offering fast-fit services and MOTs for car drivers. The location and the diversification into car tyre retailing proved successful.
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