News of falling rubber prices should be welcomed by Chinese tyre makers; the Shanghai-based Oriental Morning Post reports that 50 per cent of tyre manufacturers in China have recorded losses in the year to date as a result of continued high natural rubber prices. Most manufacturers have responded to recent high raw material costs with price increases – the China Rubber Industry Association notes that since the Chinese New Year holiday period a number of tyre makers, including Michelin, Bridgestone, and Double Coin Holdings, have raised prices by between five and eight per cent. The association adds that those who have not yet increased prices are planning to do so either in March or April.
Introduced in 2002 to give designers around the world an opportunity to promote their work, the Michelin Challenge Design programme is now in its tenth year. During this time the number of designs submitted has increased some 700 per cent and designers from 98 countries have taken part. Pre-registration for the 2012 Michelin Challenge Design has commenced, and the tyre maker says initial feedback indicates a record year awaits.
When financial analysts said that 2009 was a “banner year” for Cheng Shin Rubber Ind. Co., Ltd. in a report published back in May, the market watchers weren’t overstating the facts. But in 2010, when the 2009 results were made public, the Taiwan-based tyre manufacturer which is responsible for the Maxxis brand and Maxxis International companies, announced plans for two new factories, an international standard proving ground and some high profile OE contracts. It was also the year that saw the company move into 10th place in Tyres & Accessories’ annual ranking of tyre manufacturing companies. With all this in mind T&A recently visited Cheng Shin/Maxxis’ Kunshan tyre production plant near Shanghai, China and asked if 2010 was the real breakthrough for Maxxis? And if so what happens next?
Double Coin Holdings has announced plans to invest at least RMB 3.18 billion (£301.5 million) establishing a wholly owned subsidiary in China’s Anhui Province. Within this subsidiary, known as Double Coin Huili Tire Co., the company will establish a new factory capable of producing 15 million tyres per annum. Double Coin will provide RMB 1 billion of the funds for the factory project, with the remainder coming from bank loans and from a RMB 900 million loan obtained from controlling shareholder Shanghai Huayi (Group) Company.
The National Multi-Commodity Exchange of India has dismissed allegations of rubber future price manipulation. Despite claims from Automotive Tyre Manufacturers' Association director-general Rajiv Budhraja regarding “evidence for the price manipulation of natural rubber on the NMCE,” the commodity exchange states prices for the raw material have risen due to an imbalance between demand and supply.
CITExpo, the Shanghai tyre and trade and industry exhibition, has announced the dates for its 2011 show. The ninth edition of CITEXPO will be held in the same venue – Shanghai Everbright Convention and Exhibition Center – from 7-9 September 2011.
Unlike for many in the tyre industry, for commercial agent SD International 2009 did not lead to the much feared recession. As managing director Mike Zhang explained during the CITExpo show, last year’s company turnover was able to hold its own in comparison with 2008 levels – a feat that, in light of the global drop in demand that particularly affected tyres from China, can be considered a glowing success. For the current year the managing director of the 2002 established company is making an even more positive prediction: he expects a doubling – or more – of turnover from its own brands. European sales will be the largest driving force behind this sales increase, however Zhang adds it will also come from Oceania and South America.
This year the China International Tire Expo – CITExpo for short – once again broke records. The show’s organiser states that the three-day exhibition was visited by more than 7,400 tyre experts. Last year Reliable International Exhibition Services registered the attendance of 6,320 visitors, which means that this year’s CITExpo, the eighth held, enjoyed 17 per cent visitor growth. This year’s numbers also well exceeded the show held in 2008 – before the global crisis – for which only 6,860 visitors made their way to the Shanghai Everbright Convention & Exhibition Center. At this year’s show, 60 per cent of visitors came from various regions throughout China, and the remaining 40 per cent from 92 countries around the world.
The organiser of the Shanghai based China International Tire Expo (CITExpo) tyre fair, Reliable International Exhibition Services, has issued statistics from the 2010 show. Managing director Wilko Fong states that between September 8 and 10, some 7,400 visitors from 92 countries and regions attended the show. From this number, 40 per cent were international visitors. The 22,000 square metres of exhibition area was occupied by 290 exhibitors during this year’s show.
Sibur, the largest petrochemical holding company in Russia and Eastern Europe and, has opened a Chinese trading company. Known as Citco (Shanghai) Trading Co., Ltd., the new China registered trading company is located in Shanghai and will engage in sales of petrochemical products, with payments in Chinese currency. Previously exports of Sibur’s products to China were coordinated through the corporate trading company CITCO (Austria), with payments in US dollars. Included in the petrochemical products Sibur exports is synthetic rubber, such as polybutadiene, for use in tyre production. In 2009 Sibur sold more than 47,000 tons of synthetic rubber in China.
The organiser of the Shanghai based CITExpo exhibition, Reliable International Exhibition Services, reports the signing up of even more international exhibitors for September’s tyre show. Managing director Wilko Fong reports that exhibitors from Belarus, Korea and Taiwan have recently confirmed their presence at CITExpo next month. Furthermore, Fong states that many exhibitors have already booked stand space for 2011, and the majority of those doing so have decided to reserve an even larger display area for next year’s show.
Wilko Fong, the managing director of Reliable International Exhibition Services has announced that the ninth edition of CITExpo will be held at the Shanghai Everbright Convention and Exhibition Center on 7, 8 and 9 September, 2011. According to the organiser, 2011’s show has – even before the start of this year’s show – already received more than 11 exhibitors’ bookings.
Tire Review reports that Goodyear has named Damon Audia, Scott Honnold and Jenny Wang to new leadership positions. Audia, senior vice president of finance and treasurer, was elected senior vice president of finance for the company’s Asia Pacific region, which is headquartered in Shanghai, China. Audia replaces Jenny Wang, who has accepted a new position in the company’s Asia Pacific operations. Honnold has been elected vice president and treasurer, replacing Audia. Honnold was previously assistant treasurer, responsible for Goodyear’s capital market activities.
Damon Audia, Scott Honnold and Jenny Wang have been appointed to new leadership positions in Goodyear Tire & Rubber Company's finance department. Audia, senior vice president, finance and treasurer, was elected senior vice president, finance for the company’s Asia Pacific region, which is headquartered in Shanghai, China. Audia replaces Jenny Wang, who has accepted a new position in the company’s Asia Pacific operations. Scott Honnold has been elected vice president and treasurer, replacing Audia. Honnold was previously assistant treasurer, responsible for Goodyear’s capital market activities.
While Jenson Button’s tyre choice is receiving a measure of credit for the British driver’s victory in the Chinese Grand Prix, the round, black objects are being ostracised as the scapegraces of Michael Schumacher’s first Formula One comeback race. The 41-year old finished the Shanghai race in tenth position, a result the seven-time world champion would have previously considered mediocre or perhaps even agrestic. Nevertheless, Schumi and Mercedes GP team principal Ross Brawn are determined to address tyre and other issues so the renown driver can disport himself in the manner he is accustomed to during May’s Barcelona Grand Prix.