Hankook Tire examining distribution structures, looking at M&A growth
Hankook Tire concedes that its response to last year’s “extremely challenging” business environment and the rapidly-changing trends influencing the tyre industry was “not fully sufficient” to combat downward pressure upon its business. Hyun Shick Cho, vice chairman and chief executive officer of Hankook Technology Group, has addressed this issue in a letter to shareholders, discussing means of responding preemptively to these changing trends.
In measures aimed at enhancing “shareholder-friendly management”, Hankook Tire intends to buy back around KRW 50 billion (£34 million) of its shares over the coming six months and will also “sharply expand” the size of its dividends. In addition, the tyre maker will form a support group for external directors and implement an electronic voting system.
Kwik Fit says it is carefully monitoring the COVID-19 outbreak, and at present its centres are open for business as usual “where possible”. It adds that the company’s “overriding priority” is the health and well-bring of its staff and customers.
Yesterday Prime Minister Boris Johnson outlined strict stay-at-home measures for the whole of the UK. These effectively amount to a country-wide lockdown and will be enforced by the police. As a result, gatherings outside of households are effectively banned and shops have to close. However, reading the small print reveals that automotive garages are within the limited number of retailers that will be allowed to remain open. And therefore tyre centres will be allowed to keep going as well. Motorists looking for information on garages in the Covid-19 lockdown can find more on Tyrepresss sister site, WhatTyre.
STARCO & Kenda integrating European technical teams
The technical team that STARCO operates in Europe is joining together with parent company Kenda’s technical team. The aim of integrating the two teams is to leverage synergies within the firms’ global technical structure as well as drive further technological improvements. According to STARCO, it also represents a significant step in both companies’ growth plans for Europe.
Bibby chose Bandvulc for third consecutive contract
Prior to Bandvulc’s contract with CSG, in autumn 2019, the fleet tyre and retread specialist entered its third contract term with distribution giant Bibby.
Bridgestone temporarily closes, slows tyre production at European factories
Bridgestone EMIA will either temporarily close or reduce production plants across its European manufacturing network in response to the COVID-19 pandemic. Its Béthune plant in France and the Bari plant in Italy will be closed until 6 April.
Alliance 321 Plus tyre for backhoes & compact wheel loaders
Alliance Tire Group (ATG) has introduced a new range of heavy-duty tyres for backhoes and compact wheel loaders. It’s called the Alliance 321 Plus, and this R-4 cross-ply tyre range is now available in nine sizes.
Apollo Vredestein ‘scaling back’ European production
Apollo Vredestein is scaling back production at its European plants in Hungary and the Netherlands in addition to “taking measures to protect our workforce in line with government health advisory and measures” against coronavirus/Covid-19.
British-based F1 teams helping raise ventilator capacity
Formula 1 teams based in the UK are working with the government and other groups to help address a shortage of respiratory equipment amid the coronavirus crisis. The news follows a government call for businesses to help increase the supply of ventilators to hospitals. According to an official statement, the teams have expert design, technology and production capabilities, and specialise in rapid prototyping and high value manufacturing, which is hoped can be applied to the critical needs set out by Government.
Michelin implements partial production shutdown in North America
It’s already decided to shutter production at some of its plants in Europe for at least a week, and Michelin has now begun a temporary, phased shutdown of some of its tyre production facilities in the United States and Canada as well. It has also “established appropriate contingency plans” for the weeks to come and will adjust its actions “as the situation evolves.”
On Friday, Pirelli announced it would suspend production at its two tyre plants in the UK in light of the COVID-19 emergency and its effect on the automotive industry. Yesterday it extended the production stop to its Settimo Torinese and Bollate plants in Italy.
Apollo Tyres’ management takes coronavirus pay cut
Top management at Apollo Tyres have announced they’ve accepted a pay cut during the market difficulties brought about by the COVID-19 pandemic. The tyre maker says it is also preparing to implement further measures.
Cooper Tires pausing production in North America, considering options in Europe
Market demand for tyres in some parts of the world is declining parallel to the spread of the coronavirus, and Cooper Tire & Rubber Company has responded by announcing a temporary shutdown of its tyre manufacturing facilities in the United States and Mexico. In a statement published on Saturday, the tyre maker said it is also “currently assessing plans” for its operations in Europe. Cooper Tires’ plants in China, which reopened several weeks ago and have continued to ramp up production since then, remain in operation.
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