Posts
Yokohama Sales Down, Profits Up
Product NewsGlobal economic factors presented Yokohama with a difficult year in 2001. The market was stable in Europe but the slowdown in US growth limited market development. The strong Japanese private sector capital investment was countered by a sluggish consumer market. However Yokohama still increased sales in the domestic market, though this was offset by a strong Yen which affected exports. Net sales dropped by 1.1 per cent in 2001 to 387.9 billion Yen (3,1 bn Euro). Cost reductions and improvements in efficiency raised operating income by 4.2% to 19.8 billion Yen (168,7 million Euro).
Toyota Plans Assault On China
Product NewsToyota is launching a joint venture with First Automotive Works, China’s biggest car manufacturer, to make luxury sedans, SUVs and cheaper, smaller cars in China for the local market. The target is to sell up to 400,000 vehicles a year by 2010 and an unconfirmed report suggests that the investment will total 1.29 billion Euros.
Return To Algeria For Michelin
Product NewsBy forming a company – Michelin Algerie – Michelin has made the first move to re-open its factory in Algeria, which was closed in 1993. A Government-led privatisation programme has been aimed at attracting foreign investment and Michelin is said to be “waiting for some answers from Government” before deciding whether to re-start production. Should this happen, the factory will employ 500 people and manufacture truck tyres, 60 per cent of which will be exported.
PSA And BMW To Develop Engine
Product NewsBMW and PSA (Peugeot-Citroen) are to jointly develop a new family of small petrol engines, with a target of one million units. The base for the project will be Munich and R&D will come from BMW, with PSA handling production and procurement. The total investment is said to be 750 million Euro.
Pirelli looks toward Brazil
Product NewsThe European Investment Bank is evaluating a proposal to fund up to $39 million USD toward the modernisation of a Pirelli tyre plant in Brazil – Pirelli Pneus S.A. The Brazilian subsidiary has drafted a $136.6 million USD plan to add radial production capacity to its 25 year old plant in Feira de Santana plant.
SmarTire Engages Financial Advisor
Product NewsTyre pressure monitoring specialist SmarTire has appointed H. C. Wainwright and Co. Inc. (Boston) as the company’s financial advisor. Wainwright was founded in 1868 and is one of the United States’ oldest private, independent investment banking firms. Additionally, SmarTire has completed issuing 750,000 shares to raise 1.31 million dollars. The funds will be used for debt repayment and working capital.
Ground-Breaking Ceremony For Hyundai’s US Plant
Product NewsToday sees the ground-breaking ceremony for Hyundai’s first car assembly plant in the USA. It is sited in Montgomery, Alabama and represents an investment of $1 billion. The factory on the 1,600 acre site will employ 2,000 people and produce 300,000 saloons and SUVs a year by 2005. Alabama offered incentives of over $252 million to attract Hyundai and the Korean company joins Honda and Toyota as foreign car companies with plants in the state.
Management Buy-Out At National Tyre Service And Viking
Product NewsA double management buy-out of former Conti-owned tyre retailer National Tyre Service and wholesaler Viking International was announced today. The buy-outs, which were for an undisclosed sum, were led by Chairman and Chief Executive Alan Revie. The two companies will continue to trade as separate businesses, under the umbrella of a new holding company, Axle Group Holdings Limited. In addition to National and Viking, the group includes a property company.
Second ContiTech Fluid Joint Venture in China
Product NewsContiTechFluid, the business unit of tyre producer’s subsidiary ContiTech, has recently purchased 51 percent of shares of Chinese hose producer Grand Ocean (Chang Chun). From January 2002 the 100 employees will produce parts for VW models Jetta and Bora and the Audi A6. The project in the north of China requires an investment by ContiTech of up to five million euro.
New Polish Factory For Tenneco Automotive
Product NewsTenneco Automotive has officially opened a new factory in Gliwice, Poland, to supply shock absorbers to European-based vehicle manufacturers. The facility is 21,000 square metres in area and will make six million units annually by the year 2005, eventually employing 120 staff. Tenneco says that the $20 million investment is the latest stage in the company’s strategy to expand in Eastern Europe.
Setback In Negotiations Between Carlyle And Continental
Product NewsAccording to articles in German newspapers the negotiations between the US-Investment company and Continental for the purchase of ContiTech have hit a snag. It is said that Carlyle is not willing to pay the price that Continental expects. According to spokesmen from Continental the group is now negotiating with more than one potential partner.
One Million Pound Investment In Tenneco Exhaust Factory
NewsTenneco Automotive is spending one million Pounds (1.6 m Euro) on a refurbishment programme at its Walker exhaust manufacturing factory at Tyseley, Birmingham in the UK. The investment will improve flexibility and reduce downtime between manufacturing different products. The factory produces two million exhausts a year.
Continental Candidate For Takeover?
Product NewsHelabaTrust (the investment and research subsidiary of Landesbank Thueringen-Hessen) believes that Continental could be a candidate for a takeover. Reasons given are the enormous debts of 3.6 bn Euro and the weak level of the shares.
Latest News From Berliner Reifenwerke GmbH
Product NewsUntil today, the German Berliner Reifenwerke GmbH has been an example of the incompetence of authorities, banks and others. NEUE REIFENZEITUNG has already reported developments in detail, up to the appointment of the official receiver. Part of around 80 million Deutschmarks, which were originally supposed to build up Berliner Reifenwerke, have either been thrown away or squandered in order to support the lifestyles of some company leaders, and of which the creditors are unlikely to see a penny again. But things are not so bad, because the investment bank “Berliner Investitionsbank” has already managed other flops. The truly sad thing is that loyal employees of many years’ standing have been dismissed, and they are now without jobs or prospects. The fact that Berliner Reifenwerke – today called Berliner Runderneuerungswerke –, is still alive, can be attributed to both the official receiver and the RuLa shareholders’ delegates. Berliner Runderneuerungs GmbH was founded by RuLa and, because time is short, the plant is being leased from the official receiver, but for the moment this factory will stay in mothballs. Although the huge pressure of time has been relieved, conclusive decisions are needed for the medium-term, as the whole plant cannot be leased for a long term if the contractual partner is an official receiver. Soon, investors will run off.