Tyres Dumped in Front of School
So-called “fly-tippers” in suburban London caused quite a stir earlier this week when a pile of scrap tyres was dumped in the street outside of an elementary school in London’s East End. The road was blocked by some 60 scrap tyres that had been dumped there in the middle of the night, preventing parents from dropping their children off at the school. Officials think the obvious illegal dumping was the work of “cowboy operators” offering scrap disposal services, which take the tyres and money and then dump the scraps. The tyres were cleared out by the afternoon and were properly disposed. (Tire Review/Akron)
Continue ReadingLanxess India to Begin Tyre Chemical Production in 2010
Specialty chemicals group Lanxess AG intends to invest 50 million euros in relocating production of rubber chemicals from Thane, in the Indian state of Maharastra to Jhagadia, in Gujarat. Production will begin in 2010 and will supply the rapidly growing Indian tyre market. Lanxess is the only western company to establish such operations in India. Lanxess will employ about 250 people at the Jhagadia site during its first stage of expansion. The head office of Lanxess India Private Limited will, however, remain in Thane. Jhagadia will become the company’s second production site in India after Madurai in Tamil Nadu, southern India, and will be the larger of the two.
Continue ReadingMichelin: OE Customers Prepared to Pay Extra for “Green Tyres”
Analysts from the Société Générale report that Michelin representatives have, during a Roadshow event, expressed the opinion that OE manufacturers would be prepared to spend extra for environmentally friendly “green tyres.” The willingness to spend extra for such a product would no doubt be aided by CO2 emission reductions currently on the EU agenda; reductions of 120 to 130 grams per kilometre may in future be required. Should Michelin’s predictions be correct, it will not only be the environment that benefits; while environmentally friendly tyres currently cost the consumer more to purchase, the manufacture of “green tyres” requires less raw materials, thus lowering production costs.
Continue ReadingApollo in Europe: Neeraj Kanwar Speaks with Tyres & Accessories
In the coming months Apollo Tyres will establish a stronger foothold in Europe through the establishment of its first facility, the recently announced 200 million euro passenger car tyre factory to be built in Hungary. Only days after announcing this monumental step for the Indian manufacturer, Apollo Tyres’ joint managing director and COO Neeraj Kanwar spoke to Tyres & Accessories about the decision to enter Europe and what the future holds. Firm news of Apollo’s intention to set up a European production facility was first made public in mid-November 2007, and several sites in Eastern Europe were scouted as potential factory locations; in addition to Hungary the company named Poland and Slovakia as contenders (media reports on potential sites in Germany were dismissed as unfounded). However, the first of these three locations proved most attractive to Apollo: “The decision was primarily on the basis of hard economic and commercial factors, based on which a total cost of delivering the final products to markets was derived,” Mr. Kanwar told Tyres & Accessories. “Hungary was very competitive.” Secondary reasons, including the region’s liveability and cultural openness, were also taken into consideration, he added.
Continue ReadingNew EU Member States Fuel Rise in Car Registrations
The European Association of Car Makers (ACEA) reports that nearly 16 million new cars were registered in the 27 European Union member states plus 3 EFTA countries (Iceland, Norway and Switzerland) during 2007, 1.1 per cent more than the previous year. Most of this growth, as expected, took place in the new EU member states, with 14.5 per cent growth recorded during the year. A number of factors led to restrained buyer confidence in Western Europe, where registrations only rose by 0.2 per cent.
Continue ReadingPirelli Launches Cinturato ‘EcoImpact’ Tyre
Pirelli today re-launched its Cinturato brand as a range of high mileage, low rolling resistance tyres. The glitz associated with Pirelli launches aside, the main news is that the Pirelli claims to have married the odd-couple of lower rolling resistance/increased mileage with improved braking performance. Company executives described this as an “extension” of the Pirelli range, despite the fact that it represents quite different values to the high-speed, high performance image the Italian tyre manufacturer has cultivated for so long. 5 million units of the tyre will be produced initially, rising to 10 million after that. The tyres will be produced at Pirelli’s Bollate, Italy; Manresa, Spain; Izmit, Turkey; and Carlisle, UK factories. The new Cinturato specifically offers a 20 per cent reduction in rolling resistance, compared with Pirelli benchmarks. As a result, the company claims the new tyre provides fuel consumption savings of 4 per cent while, by the same token, reducing carbon dioxide emissions. As far as mileage is concerned, Pirelli Tyre CEO Francesco Gori, explained that the Cinturato’s completely redesigned geometry means that the new tyre has a 30 per cent longer lifespan on average. This means the average motorist will now replace his or her tyres every four years instead of every three, based on a European average driver mileage figure of 15,000 km (roughly 10,000 miles). What’s remarkable is that the company report that braking distances are still shorter than the company’s benchmark, despite the other improvements. Pirelli group chairman Marco Tronchetti Provera explained that the new product’s green credentials are further enhanced by the fact that it is completely aromatic oil free: “We are two years ahead of Europe legislation,” which is set to come into force in 2010. But with a tyre lasting so much longer, and not being aimed at the high-profit UHP sector, does this mean margins will come down? Apparently not. Marco Tronchetti Provera explained that due to the fact that the tyre offers increased value, it can be sold at a higher entry price. So, instead of reducing markets opportunities or cannibalising existing sales, the new Cinturato is designed to develop a part of the market that, up till now, has been neglected due to Pirelli’s focus on the UHP segments. In terms of positioning, this means the new Cinturato tyre will be placed “immediately following the top line” products, according to Tronchetti Provera. “Up till the 1980s it [the automotive business in general] was all about volumes. Today we are looking to expand in the increasingly sophisticated market,” he explained. The product launch coincided with the inauguration of a new exhibition at Milan’s Triennale Musuem, which chronicles the development of the Pirelli brand and its pioneering advertising and communications strategies. The exhibition features dozens of posters, sketches and historic files together with original works by 15 contemporary artists on the imagery covering the Pirelli Cinturato – from its first incarnation in the 1950s to the eco-tyre it has become today. But Pirelli’s decision to name its green tyre demonstrates that the company is by no means distancing itself from its high-performance profile. On the contrary, the first Cinturato was something of an iconic product (especially in Italy) when it was first launched in the 50s; and was known as being “sporty.” In fact one 1956 article quoted during the launch the launch the Pirelli brand as “a tool for having fun.”
Continue ReadingFormer Goodyear Division Forms China Joint Venture
Veyance Technologies Inc., formerly Goodyear Tire & Rubber’s Engineered Products division, has entered into a joint venture with Ruiyuan Rubber and Plastics Co. Ltd. to make conveyor belts in Yanzhou, China. Veyance said the new entity, Shandong Aneng Conveyor Belt & Rubber Co. Ltd., is the largest manufacturer of conveyor belts in China, with 20 production lines producing more than 12 million square metres of conveyor belts each year.
Continue ReadingTitan to Transfer Jobs from Freeport Plant
News reports from the US indicate that Titan Tire is considering cutting back operations at one of its facilities. The Illinois based television channel WREX TV claims Titan Tire CEO Maurice Taylor is unhappy with the revenues generated at the company’s Freeport, Illinois farm tyre plant, and Taylor further believes that union leaders are making it difficult for changes to be made. In response, it seems likely Taylor will opt to expand facilities in Bryan, Ohio and Des Moines, Iowa and transfer jobs currently at Freeport to these two plants. I can make money with those products and those facilities,” Taylor told WREX TV. “I can not do it up in Freeport and Im just tired of the hassle, and so are all my managers. This is nuts.
Continue ReadingPirelli Can Buy Tyre Unit ‘In Reasonable Timeframe’
Speaking at the launch of the Pirelli’s new Cinturanto tyre, Pirelli group chairman Marco Tronchetti Provera reiterated his intention to repurchase the 39 per cent stake in its tyre unit that was sold in group of banks for 740 million in 2006. “There is room to achieve a price that would be satisfactory…within a reasonable timeframe,” Tronchetti Provera told journalists.
Continue ReadingLimited Edition Monza R Redline Launched
Well known for its motor sport styling, Monza R has launched a limited edition Redline alloy wheel design, available exclusively through Halfords. The matt black with striking red beadline Monza R Redline is available in 15 and 17-inch sizes and is priced at £399.99, which includes fitment.
Continue ReadingTitan Tire to Increase Prices
Titan Tire will increase prices on Titan, Goodyear and General branded OTR, farm and construction tyres as of March 1. The company reports that the increases will offset rising raw material, energy and transportation costs. While Titan reports that most prices will be seven per cent or less, it adds that “certain tyre prices may rise in excess of seven per cent due to realignment and positioning of the product.”
Continue ReadingKumho Announces Executive Appointments
Kumho Tire USA Inc. announced that D.H. Ham has been named CEO of the company, in addition to his present role as president. J.H. Kim, who had been CEO for about a year, was reassigned by Kumho Tire Co. to a post with Kumho Asiana. Rick Brennan, who had been director of brand marketing for Kumho, was promoted to vice president of marketing, and will report directly to Ham. Mike Leverington, who had been in charge of Kumho’s marketing efforts, was named director of dealer programs. James Rees was promoted to senior regional sales manager, and was also named Kumho’s salesman of the year. (Tire Review/Akron)
Continue ReadingCTNA May Have Broken Even in 2007 – Wennemer
The chairman of Continental’s executive board, Manfred Wennemer, has said the companys CTNA operations in the US may have broken even in 2007; if so, this will be the first time in over a decade that CTNA has entered into the black. Everything is not finalised, and its still too close to tell, but I am hoping we did it, commented Wennemer to Dow Jones Newswires. During the last two years Conti’s US tyre operation has attempted to reduce costs, mainly through plant closures and changes to employee health care benefits. To remain competitive as a producer in this region, strategic spending has also been implemented; as much as US$100 million was earmarked for upgrades to CTNA’s Mount Vernon facility, where the introduction of more than 500 new or expanded tyre products have been scheduled for introduction between 2006 and 2009.
Continue ReadingEuropean, US Tyre Sales Reveal Mixed Results
Sales of summer passenger car tyres throughout Europe in 2007 are said to have increased by 3 per cent over 2006 figures, which in turn were a 2.5 per cent increase over those recorded in 2005. The information supplied to T&A indicates that, Europe-wide, 120.7 million summer pcr tyres were sold last year. This increase was offset by the second consecutive decline in passenger car winter tyre sales. In 2007 only 35.5 million units were sold in the whole of Europe, a decrease of 9.58 per cent on 2006, when 38.9 million winter passenger car tyres were sold. That year the number of winter tyres sold also decreased, dropping by 13.4 per cent from a 2005 high.
Continue ReadingYokohama Signs European Proving Ground Agreement
Yokohama Rubber has signed a contract with Spain’s IDIADA Automotive Technology SA, permitting the tyremaker to preferentially use the new IDIADA test track, which is scheduled to commence operation in April 2008. The term of the contract is 15 years, from 2008 through 2023. The purpose of entering such an agreement, reports Yokohama, is to achieve better evaluation performance and faster tyre development for European markets; an aim greatly facilitated by the preferential use of a test track that can be used to evaluate tyres even in winter.
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