Giti Tire to Sell Bonds
Giti Tire, the largest manufacturer of tyres in China, reportedly intends to raise US$200 million from its first bond sale, being held to raise revenue for capital expenditure and possible acquisitions.
Giti Tire, the largest manufacturer of tyres in China, reportedly intends to raise US$200 million from its first bond sale, being held to raise revenue for capital expenditure and possible acquisitions.
The Securities and Exchange Board of India (SEBI) has directed the Pawan Ruia group, promoters of Dunlop and Falcon Tyres, to make open offers for both the, reports Business Standard. The regulator has also directed the company to pay interest of 10 per cent to the shareholders as penalty from February 2006, over and above the offer price for violation of the takeover code by the promoters.
The Bridgestone Corporation has established a strategic business unit (SBU) HQ in Dubai to cover its tyre business in the Mena region; it has also set up an SBU in Singapore for the Asia-Pacific region. Both offices are set to begin operations on 1 October. Bridgestone says it has set up the SBUs with the objective of speeding up decision-making and action and in order to optimise regional strategy.
Natural rubber prices are predicted to keep rising in 2006 for the second straight year, as demand from tyre manufacturers continues to outstrip supply, Rubber World has reported. “Bullishness may persist in the rubber market as demand for the commodity remains quite strong,” Michael Coleman, managing director of Singapore-based Aisling Analytics told Dow Jones newswires.
After an absence of four years, the UK tyre industry was once again treated to its own, dedicated exhibition when Brityrex International was held in May at the Harrogate International Centre.
The show consisted of more than 70 exhibitors from all sectors of the industry and, over the three days of the show, 2,495 visitors came through the doors. Paul Farrant, Managing Director of organisers ECI International, was delighted with the reactions from visitors and exhibitors, with many of the latter booking space for the 2007 show on the spot.
A common theme in the feedback from exhibitors was the quality of the visitors, with many selling machinery off the stand (in one case, every piece of machinery on the stand was sold during the show) and others reporting lists of genuine enquiries to be followed up.
“This exhibition definitely showed that there is a need for a tyre industry, trade-only event,” he said, “and I see it as the springboard for future shows.” As a mark of their confidence, ECI have booked a third hall for the 2007 show, giving another 1,000 square metres of stand space.
“I would like to thank all the exhibitors for their efforts and I am very pleased that their hard work was rewarded by visitors who were obviously at Brityrex International to do some serious business.” Paul Farrant said, adding: “Hopefully those companies which were sitting on the fence this time will have seen the quality of the show and will lend their support for the 2007 exhibition.”
The exact dates for Brityrex International 2007 will be announced later this week and the show will be officially launched at the Tyrexpo Asia show in Singapore this September. Exhibitors wanting to reserve specific stand locations are advised to book early.
Financial sources are reporting that China based Junma Tyre Cord Co., Ltd., is seeking a listing on the Sesdaq. The move will see Junma Tyre Cord become the first Chinese company to list S shares on the stock exchange.
Junma’s net profit grew at a compound annual growth rate of about 46 per cent to some 60 million yuan, approximately £4 million, in the last financial year.
S shares are shares of China-incorporated companies which are directly listed in Singapore.
According to Modern Tire Dealer, quoting Indonesian Newspapers, Michelin is negotiating with Singapore-based Garibaldi Venture Fund Ltd. to take over the tyre company. Garibaldi recently bought the 78 per cent share in Gajah Tunggal released by the Indonesian Bank Restructuring Agency. Gajah Tunggal is expecting sales figures for 2003 to increase by 17 per cent, with a target of a 20 per cent increase for 2004. The company’s outstanding debts totalled 550 million US dollars in 2003, and are planned to be repaid over the next six years. Gajah Tunggal is by far the largest Indonesian tyre producer with two factories in Indonesia.
Goodyear announced that its Flight Radial aviation tyres have been selected to equip Qantas Airways’ new low-cost carrier Jetstar Airways. Goodyear is exhibiting its aircraft tyres at Asian Aerospace, formerly known as the Singapore Airshow. Goodyear’s five-year agreement with Jetstar Airways also was announced here.
The preview of the Far East’s window on the global tyre market. Singapore is the place to be. All the movers and shakers will be there and January T&A will give the low down on who is exhibiting what at the biggest tyre exhibition in the Pacific Rim.
There are reports in the Asian press that the Indonesian Bank Restructuring Agency (IBRA) has sold tyre manufacturer Gajah Tunggal and Gajah Tunggal Petrochem Industries for the equivalent of US$214 million. The purchaser is Singapore-based Garibaldi Venture Fund; one of five bidders. IBRA took over Gajah Tunggal as a debt settlement by Indonesian tycoon Sjamsul Nursalim, after the financial crisis of the late 90s.
Shares in Singapore-based Stamford Tyres rose by over 13 per cent on news that the company’s net profit had risen from S$ 2.75 million (1.39 m Euros) last year to S$ 8.18 million (4.12 m Euros) for the latest fiscal year. This comes at a time when the Singaporean economy shrank by 11.8 per cent in the second quarter, as tourism was hit by the SARS virus and the war against Iraq led to a decrease in production, said the Government.
Messe Frankfurt, organisers of Automechanika Asia has announced the postponement of this years exhibition, which had been scheduled to take place in Singapore from 18th – 20th April. Citing the impact of recent global events and the regional economic crises, Wolfram Diener managing director of Messe Frankfurt went on to say. “This decision is based primarily upon our concern that exhibiting companies may not receive the returns they would expect for their time and financial commitments in participating in Automechanika Asia 2002”.
Indonesian telecommunications company PT Telkom has awarded a contract to Pirelli and Siemens for the construction of a fibre-optic network in Sumatra. The network will span Sumatra from east to west (2,000 km) and also link with the island of Batam, 20 km from Singapore. The contract, which is worth 70 million Euro, is the first for the Pirelli/Siemens partnership, which was established in May last year.
Nokian has taken the decision to hold back on the launch of its smart tyre to 2002. The “intelligent” tyre which sends tyre information to the driver via a telephone link was due to be rolled out in late 2001. The system designed in partnership with Singapore-based electronics manufacturer, Flextronics, will now be delayed by a full year before it is released commercially.
Goodyear Tire & Rubber has appointed Kevin Kramer to the post of director of marketing, consumer tyres for North American Tire. Kramer has been with Goodyear for 18 years and has held numerous marketing appointments in the USA and Singapore. He is replaced in his former post of general business manager for the Southern Region by Steve McClellan, recently general manager of Allied Tires, a Goodyear-owned subsidiary.
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