News from Notch Consulting, Inc.

August 29, 2013

Pirelli expands distribution network in Brazil

Filed under: Tires — Notch @ 3:00 pm

Pirelli Tyre S.p.A. has announced a new deal that will expand its distribution network in Brazil by integrating one of the country’s leading tire chains into its own Pneuac distribution subsidiary. With this agreement, Pirelli anticipates Pneuac’s annual sales will grow to 1.3 billion reals ($550 million) by 2014. Financial terms were not disclosed.

Under the deal, Pirelli will integrate the Abouchar tire sales network, which consists of 29 points of sale, into its network of 104 existing Pneuac outlets. Abouchar is owned by the Comolatti Group through the Distribuitora Automotiva company. The deal involves an asset swap, with Distrbuidora Automotiva acquiring a stake in Pneuac while contributing the Abouchar chain.

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August 23, 2013

Bridgestone opens new technical center in Bangkok

Filed under: Tires — Notch @ 1:22 pm

Earlier this month, Bridgestone Asia Pacific held the opening ceremony for Bridgestone Asia Pacific Technical Center in Bangkok. This will be the Bridgestone Group’s first technical center in Thailand, and also in the Asia Pacific region.

As the markets in the Asian region continue to grow and diversify at a fast rate, Bridgestone believes that it is necessary to set up a technical center in Thailand as a step to strengthen its framework for research and development in the region. By establishing a technical center close to the markets, Bridgestone will be able to grasp changes in its customers’ needs constantly and reflect these in the development of its products. The new technical center will oversee the functions of Tire Development, Production Technology, Quality Management, and Procurement, and serve as a regional base to enhance the operational level in terms of safety, environment, product quality and delivery in its Asian plants.

August 18, 2013

Kremenchug begins offering ultra-clean grades of carbon black

Filed under: Carbon Black — Notch @ 3:49 pm

European Rubber Journal (subscription required) reports that Ukrainian carbon black producer Kremenchug Carbon Black Plant is now offering ultra-clean grades of carbon black for technical rubber and automotive applications. The new grades, which offer sieve residues below 10 ppm, were developed through a joint development project with PentaCarbon GmbH, a German carbon black distributor, which is also selling these grades. The new grades are especially useful for rubber components requiring very high surface quality, such as wiper blades and vehicle weather stripping.

Asia Carbon Industries completes conversion project for carbon black

Filed under: Carbon Black — Notch @ 3:24 pm

On August 14, Asia Carbon Industries announced its earnings for the quarter ended June 30, 2013, reporting net sales of $5,487,310 for the quarter, down 58% from $13,194,534 for the same quarter of 2012. Selling prices for the company’s products averaged $796/tonne during the quarter, down 14% from $929/tonne for the same period of 2012 (pricing average includes both carbon black and naphthalene oil). The company sold 6,890 tonnes of carbon black and oil during 2Q 2013, down 52% from 14,208 tonnes of product sold during the same quarter of 2012. The decrease in sales volumes was due primarily to the suspension of production as the company converted three of of its production lines to specialty carbon black, a project that was begun in October 2012 and completed during 2Q 2013. The decrease in pricing was due to lower coal tar oil prices, which is the primary feedstock for carbon black production.

August 14, 2013

Pirelli increases stake in Russian joint venture

Filed under: Tires — Notch @ 10:18 am

From Rubber News comes news that Pirelli & C. S.p.A. is raising its equity in its Moscow-based joint venture, Pirelli Tyre Russia, from 50% to 65%. The venture operates two tire plants in Russia, located in Kirov and Voronezh. The news comes from Russian Technologies State Corp. (Rostec), one of the venture’s partners. Pirelli is paying an estimated $44 million for the 15% stake owned by GHP Group, a Russian investment group, according to Rostec. GHP retains an approximate 10% stake in the venture, while Rostec retains its 25% stake. Pirelli has options in the joint venture agreement to increase its stake further until 2017 by acquiring GHP’s residual stake and up to a 15 percent share from Rostec, Pirelli said in its half-year financial report. Rostec and Pirelli formed the joint venture in November 2008.

August 7, 2013

Cheng Shin Rubber plans seventh tire plant in China

Filed under: Uncategorized — Notch @ 8:11 pm

From Rubber News:

Taiwan’s Cheng Shin Rubber Industry has announced plans to build its seventh tire plant in China, though details of the project are still being worked out. The announcement from vice president Wu Hsuan-miao came in June, after the company’s annual general meeting. Wu said that the new plant would be located in northern China, but further details would not announced until early next year. The comnpany’s existing plants are operating at 90% of capacity, and are expected to reach full capacity by the end of the year. Cheng Shin/Maxxis International is the world’s ninth largest tire company, with 2012 sales of $4.6 billion and factories in China, Taiwan, Thailand, and Vietnam. The company opened two new plants in central China over the last 18 months.

Cheng Shin Vice President Wu Hsuan-miao disclosed the company’s intentions for the plant in remarks made at the company’s annual meeting recently.

With six plants and a new test facility in China, Cheng Shin has become one of the largest tire companies in China.

The company’s recent investments include:

• $150 million for a 9.2 million-sq.-ft. tire test proving ground adjacent to its Maxxis International tire plant in Kunshan City; and

• $600 million for a passenger tire plant in Chong Qing and Xiamen, both rated at 30,000 tires a day.

Cheng Shin in 2011 said both new plants would be based on the design of its Maxxis International (Thailand) Co. Ltd. factory in Thailand’s Rayong Province, and both would be designed to serve the needs of the company’s export and domestic markets, including original equipment requirements.

Besides the plants in China and Thailand, Cheng Shin has tire factories in Vietnam and Taiwan.

It goes to market with the brands Cheng Shin, CST and Maxxis and is represented in North America by Maxxis International in Suwanee, Ga., and Brampton, Ontario.

Cheng Shin only recently launched a website covering its global businesses, with pages devoted to its various businesses—motorcycle, bicycle, ATV, industrial and commercial. It also maintains a site for the Maxxis brand.

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