Tag: Chemchina
Prometeon/Aeolus integration stalls
The integration of Prometeon Tyre Group (the former Pirelli Industrial business) and Aeolus Tyre Co. Ltd has stalled after Aeolus’ pending acquisition of a 90 per cent stake in Prometeon failed to gain overseas acquisition approval from Chinese authorities before the 31 December 2017 deadline.
Pirelli IPO marks landmark in new ownership structure
If Pirelli’s sale to the ChemChina-led consortium in 2015, along with the legal and integration work in 2016 wasn’t enough, 2017 is proving to have been another complex and busy year for Pirelli. The last 12 months have seen the company pass two key landmarks in its post-acquisition strategy: the separation of the industrial tyre business (including industrial, truck, OTR and agricultural operations) into the new Prometeon Tyre Group in the first part of year; and the successful re-listing of the Pirelli in the autumn. The latest news is that Pirelli’s major shareholder – Marco Polo International - has increased its shareholding in Pirelli following the IPO by exercising a greenshoe option.
Aeolus continues to rise in Chinese tyre market
With one industry insider calling ChemChina’s acquisition of Pirelli “a genius move”, it would have been remiss of us not to take the opportunity to spend time with new Aeolus general manager Giovanni Pomati and find out more about how the changes affect the best-known ChemChina brand (Aeolus) and the company’s views on the latest changes in the Chinese marketplace during Tyres & Accessories recent visit to China.
Reports: Pirelli IPO set for October
Pirelli is set sell up to 40 per cent of its equity capital in an initial public offering (IPO) on the Milan stock exchange in October.
ChemChina signs Industry 4.0 MOU with Fraunhofer
On August 1, 2017 China National Chemical Equipment (CNCE; also known as ChemChian) and Fraunhofer Institute for Manufacturing Engineering and Automation (Fraunhofer) under Fraunhofer-Gesellschaft signed a strategic cooperation memorandum of understanding (MOU) in Munich. According to the MOU, the two sides will cooperate with each other in the fields of new chemical materials, intelligent manufacturing, automation and information technology.
Pirelli industrial/consumer tyre business split continues
In parallel with presenting its full-year 2016 results, Pirelli has revealed further details of its complex ownership structure and how it is splitting its consumer and industrial tyre business into two separate entities. The latest news is that, as of March 2017, TP Industrial holding (which owns the newly renamed PTG, which was called Pirelli industrial until recently – more on that later) has been separated out from Pirelli’s consumer tyre business. In practice this means the assignment of TP Industrial holding to Marco Polo, Pirelli’s sole shareholder. According to Pirelli, the assignment will “ensure that Pirelli and TP Industrial can pursue their own independent paths to growth and independently developed strategies”.
ChemChina denies bidding for Kumho
Reuters reports that ChemChina did not bid for Kumho Tire, citing a ChemChina executive. told Reuters, denying South Korean media. Roughly 10 parties are said to have expressed an interest in buying a controlling stake in Kumho, which is the world's 12th-biggest tyre manufacturer. Analysts suggest the deal could be worth around 1 trillion won ($870.02 million).
Pirelli on track for a 2018 IPO
On 19 October the board of directors of Pirelli & C. S.p.A. met in Milan to discuss the integration of Pirelli Industrial and Aeolus, along with plans for a 2018 IPO, a year earlier than expected. As a result of the meeting the board, approved the firm’s 2016-2018 industrial plan, including its vision up to 2020 for Pirelli consumer.
Reports: ChemChina interested in Kumho
ChemChina is said to have expressed interest in Kumho Tire Co., according to Korean news source. Citing “industry sources” Pulse News said ChemChina “signed a non-disclosure agreement (NDA) with creditors of Kumho Tire last month and began preparing for an official bid. The Chinese company selected Boston Consulting Group to advice on the deal.”
Travis Perkins: only Pirelli tyres are robust enough
Say Pirelli and the first things you think of are high performance cars and stylish marketing. However, Pirelli’s truck tyre of the business has received renewed attention in recent years, especially in light of last year’s takeover of Pirelli by ChemChina. A key part of that acquisition was based on the belief that, while Pirelli is the undisputed technology leader of that relationship (especially in terms of car tyres), ChemChina’s group of companies is known to be at its strongest in the commercial vehicle or “industrial” side of things. Since then, there have been renewed efforts to develop Pirelli truck tyre position in the UK, Europe and globally – a position that is likely to be augmented by addition production capacity (via the ChemChina group companies) in China as well as their brands. Set against this backdrop, Pirelli recently highlighted its partnerships with well-known truck fleets – notably Travis Perkins group here in the UK, a company it has supplied for 20 years.
Groundbreaking held for Pirelli’s second Mexico tyre factory
The China National Chemical Corporation (ChemChina) reports that its subsidiary Pirelli “recently” held a groundbreaking ceremony for its new facility in Mexico. It shares that the US$360 million has been invested in the new plant so far, and by the end of 2018 the total investment figure will exceed $600 million.
ChemChina to create world’s fourth-largest industrial tyre company
As senior management from Aeolus Tyre disclosed during a Reifen 2016 press conference, the Chinese tyre maker will soon be part of the world’s fourth-largest industrial tyre manufacturing company. This new tyre firm, which has yet to be named, will exist under the umbrella of state-owned concern ChemChina. In addition to Aeolus Tyre, the company will be comprised of Pirelli, which ChemChina acquired last year, and the Italian tyre maker’s new sister companies, Qingdao Yellow Sea Rubber and Double Happiness.
Tyre makers show interest in buying Kumho Tire stake
Germany’s Continental AG is said to be discussing the potential acquisition of Kumho Tire, and is just one of several tyre makers apparently interested in purchasing the company. News of this development comes at a time when Kumho Asiana Group chairman Park Sam-Koo’s efforts to regain control of Kumho Tire have run into difficulties.
Pirelli launches commercial tyre all-rounder R:01 Triathlon
Pirelli has launched its new tyre line for commercial vehicles, the R:01 Triathlon, at Reifen 2016. Designed as third generation products, the tyres provide performance characteristics not only to replace the existing R:01 II, but also to overlap the winter W:01 and long-haul H:01 ranges. While the new tyres are “not designed to replace” Pirelli’s specialist models, the manufacturer’s CEO Europe, Renato Zilli told Tyrepress that the R:01 Triathlon range represents its recognition of users’ “variable needs” and the evolution of European goods transportation; in 2010 the ratio between regional, long-haul and winter applications was 76:20:4, while in 2015 this has changed to 81:15:4. Commercial tyres featuring all-round performance are naturally attractive to dealers as an aftermarket solution, but European fleets also require adaptability between the more popular regional applications and long-haul routes, taking in different climates.
Kumho takeover implosion isn’t the end of market consolidation attempts
No I am not talking about the unqualifiable rumours that Doublestar made an offer of up to 250 million euros for Zenises. Rather, that in the first week of September we learnt that Doublestar’s proposed acquisition of Kumho was collapsing before the firm’s eyes after the Qingdao-Chinese tyre manufacturer asked for a double-digit discount. And it is also worth considering what all this means for the wider tyre manufacturing sector.
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