News from Notch Consulting, Inc.

March 8, 2018

High-value tires lead Pirelli growth plan for 2018

Filed under: Tires — Notch @ 1:38 pm

Pirelli & C. S.p.A. aims to further increase sales of high-value tires, under a growth plan detailed in the company’s annual results presentation(pdf). The document, issued Feb. 26, builds on Pirelli’s relaunch, last year, as a premium passenger car tire supplier after separating its industrial tire business into Prometeon Group.

Under the latest plans, the company’s Latin America operation is to cut standard tire production and convert to making high-value products, including increased SUV penetration.

Likewise, in its Middle East, Africa and India region, Pirelli said it would look at “progressive reduction of standard production.”

Again, operations there will increase the proportion of high-value product sales, which already exceed 50 percent of sales in the region in 2017.

In Russia, meanwhile, the tire maker aims to improve its share in the 17-inch and larger market, “with an increasing weight of locally produced high value tire.” It also will try to strengthen price position in the region.

Pirelli has previously outlined four categories of high-value products: Prestige which was developed with car makers such as Ferrari, Bentley, Bugatti and Rolls Royce; New premium tires with diameter of 18 inches or more; Specialty tires including runflats and color editions; and Premium moto, which are high-end motorcycle tires.

For 2018, priorities will include re-engineering and consolidating the “integrated business planning process,” starting from Prestige, concluded Pirelli.

Referenced article found here.

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Continental re-enters ag market with introduction of two tires

Filed under: Tires — Notch @ 1:24 pm

A little more than two years after it confirmed plans to re-enter the farm tire market, Continental A.G. has launched its first two standard ag tires, the Tractor 70 and 85, and said they’d be available in North American this summer.

The premium radial drive tires are available initially in 14 sizes, a fraction of the 100 sizes Conti said it will offer in its radial and bias-ply tire portfolio by 2019.

Conti said the tires feature the “N.flex technology” and have a special bead design with a single wire core, making them extremely robust, reducing the risk of tire damage.

The Tractor70 is slightly wider than the Tractor85, and offers a bigger contact patch between the tire and ground. It can run with lower air pressure even when bearing heavy loads, resulting in less ground pressure and, in turn, less ground compaction.

The tires are produced at Continental Mabor Industria de Pneus S.A. plant in Lousada, Portugal. Conti also produces bias-ply tires for the agricultural sector in Port Elizabeth, South Africa, and Petaling Jaya, Malaysia.

Referenced article found here.

Linglong to build fourth China plant, considers two more overseas

Filed under: Tires — Tags: — Notch @ 1:10 pm

Shandong Linglong Tire Co. Ltd. plans to build a fourth factory in China, an $875 million project in Hubei Province, and continues to research locations in Europe and North America for possible expansion.

Yantai-based Linglong plans to break ground in May on the factory—with a capacity of nearly 14.5 million car, truck and industrial tires annually—at a 247-acre site in Jingmen, a city of nearly 3 million residents in central Hubei Province. Construction is expected to take three years.

The plant is designed with annual capacity for 12 million passenger, 2.4 million truck and bus, and 60,000 engineering tires, Linglong said. The plant also will have an annual capacity of 1.5 million inner tubes and flaps as well as for plastic pads.

The company has three plants in China: in Liuzhoui, Guangxi Province, and Dezhou and Yantai, Shandong Province, as well as one in Rayong, Thailand, that it opened in 2014.

Besides the new site in Jingmen, the company also envisions building one more in China and two overseas, one each in Europe and the U.S.

Referenced article found here.

China’s Linglong to assist Iran tire plant project

Filed under: Tires — Tags: — Notch @ 12:58 pm

China’s Shandong Linglong Tire Co. Ltd. has agreed to become the engineering/procurement/construction (EPC) and non-EPC contractor for the construction of a greenfield tire plant in Iran, according to a senior Iranian official.

Massoud Mohammadi, CEO of Arya Hamoon Tire Co., said Linglong is expected to provide production technology for the project, which is being built in southeastern Iran.

“(Linglong) will most likely supply the technology for the production of the agreed 50 sizes of tire,” Mohammadi said.

“Production capacity is 3.1 million units a year, which will include both passenger car tires and truck and bus tires,” he said.

Located in Sistan-Baluchestan province on the Pakistan border, the plant is being set up in Ramshar Industrial Zone in an area of 50 hectares, and is expected to create 1,400 jobs once completed.

Referenced article found here.

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