India
Apollo Tyres has commissioned its seventh tyre factory globally and its fifth in India, with the first tyre rolling off the production line from the Andhra Pradesh greenfield facility in the southern part of the country on 25 June. Chairman, Onkar S Kanwar, vice chairman and MD, Neeraj Kanwar, supervisory board members along with the entire senior management team participated virtually in this momentous occasion.
Former Maxxis International president Dr Wally Chen is leaving retirement to assume the chairmanship of the company. Dr Chen, who oversaw Maxxis’ rise to the ranks of the world’s top 10 tyre companies, will assume the chairmanship effective immediately following a vote by the company’s board of directors at a recent meeting. He replaces former Maxxis/Cheng Shin chairman Robert Lo (pictured).
Maxxis India has announced a partial resumption of manufacturing operations at its Sanand, Gujarat factory albeit with reduced workforce numbers. Maxxis India had shut the operation on 23 March 2020 for a period of 42 days, following government calls for a complete lockdown in order to combat the coronavirus.
Indian tyre manufacturer JK Tyre & Industries has inaugurated a new sales and marketing operation in the USA. The new arm of the company, Western Tires, Inc, is based in Houston, Texas. It will focus on sales, service and network expansion, the company stated. JK Tyre has been accelerating its global expansion efforts recently, in common with other Indian players, Apollo and MRF. With around 1.3 billion euros in turnover from tyres, JK Tyre is just outside the global top 20 manufacturers, according to the latest Tyrepress research.
The Rubber Skill Development Council (RSDC) foresees a shortage of skilled manpower in the rubber sector. With the objective of understanding the challenges and concerns related to absorption of workforce back into the business operations post-lockdown RSDC, is running a webinar to discuss “Demand of Skilled Workforce in the Rubber Sector Post Covid19 Lockdown” on Friday 15 May 2020.
With the approval of local authorities, BKT has restarted tyre production, albeit still on a partial basis, in all its plants in India. The off-highway tyre specialist has also resumed supply and delivery to both the OEM and aftermarket channels.
Following a slight easing of the lockdown regulations in India, Apollo Tyres reports it “partially resumed” tyre production yesterday at its Perambra plant in Kerala state. Apollo’s other plants in India remain closed for the time being.
The Competition Commission of India (CCI) has approved Warburg Pincus’ indirect acquisition of a 9.93 per cent stake in Apollo Tyres Limited. The purchase of 108,000,000 compulsorily convertible preference shares in the tyre maker, each share worth Rs 100, is being carried out by Emerald Sage Investment Limited. This transaction is worth approximately Rs 10.8 billion (£114 million).
The Tyre Recovery Association has urged tyre retailers, vehicle dismantlers, and others who need to dispose of waste tyres to beware unrealistically low rates. Reprocessing costs are soaring, as Tyrepress previously reported, and measures by Asian authorities, especially in India, are countering the trade imbalance that has artificially lowered the cost of exporting waste tyres to the continent. Tyre Recovery Association secretary general Peter Taylor explains that rates hit historic lows over the past year or two due to often questionable treatment processes in the region.
The lockdown now in place across India is one of the most radical measures seen to date during the COVID-19 pandemic. As a result, tyre production has come to a standstill at plants across the country. While India’s government exempts the manufacture of “ essential commodities” from the three-week lockdown it hasn’t provided clarity as to what products it considers essential. Therefore it is unclear when tyre manufacture will recommence within the country.
Several states across India have announced lockdowns in order to better deal with the COVID-19 outbreak, and as a result Apollo Tyres Ltd. has halted operations at its plants in Kalamassery & Perambra (Kerala), Limda (Gujarat) and Chennai (Tamil Nadu) until 31 March. In addition, employees in the company’s offices have been instructed to work from home.
Maxxis International
Maxxis
JK Tyre
BKT