Tyres & Accessories April 2013 by Tyres Industry Publications Ltd

OFC April 2013_4mm 09/04/2013 12:00 Page 1

April 2013

The magazine for the tyre and wheel industries

Tyres & Accessories April 2013

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EDITORIAL

National Measurement Office to enforce tyre labelling THE NATIONAL MEASUREMENT OFFICE (NMO) HAS BEEN NAMED AS the enforcement body of the European tyre labelling legislation that was implemented across the continent in November 2012. The NMO’s remit covers the effective implementation of tyre labelling in the UK and includes scope for retail checks as well as monitoring the authenticity and accuracy of the labels themselves. News of the appointment bridges the gap between the legislation put in place and the industry take steps to adapt to it. Now however, there is reason for renewed positivity. Not only because there are people to take responsibility for the deployment of the law, but because we will hopefully now be able to begin gauging the real effects of the legislation on how tyres are bought and sold. Credit has to be given to the UK government and the domestic trade associations that have worked together to see the nomination of an enforcement body through. The British economy is in just as much turmoil as everyone else’s and yet we have found ourselves positioned broadly in line with the rest of Europe. True other major tyre markets, such as Germany had already nominated their enforcement bodies by the time NMO received official confirmation that its bid for the tyre label contract had received the green light from the Department for Transport (DfT), however in reality there is not a great deal of difference between our respective levels of readiness now. Indeed, while the German government had already made their appointment at the Federal level, questions remain about exactly how this will be handled on the allimportant state level. Tyres & Accessories understands that this will be administered by different agencies on a state-by-state basis, leading one industry figure to use the term “dog’s dinner” in relation to the situation. While this is all going on in Germany, across the board in France the Gallic market was still lagging behind at the time of

TYRES & ACCESSORIES 4/2013

going to press. There are a variety of differing states or readiness across the rest of the country. Bearing in mind our national track record on the introduction and implementation of legislation from the lead wheel weight ban in 2005, s-marking in 2007 to Reach/clean oil legislation in 2009, it is particularly good to see the UK take the initiative in this case. Something else to be positive about is the apparent willingness of the NMO to work with the tyre business itself. While it is of course very early days, the initial indications suggest that the NMO is keen to work with industry organisations and to put its resources in applying checks to both ends of the supply chain. Explaining that the ink is still dry on the contract assigning the work to the NMO, director of enforcement Richard Frewin told Tyres & Accessories that the body will soon embark on market surveillance once the national legislation is in place. He continued by explaining that the NMO’s operations are designed to support business, especially those that have invested in compliance. There are many questions associated with exactly how all this might work. The obvious one is how much money is there to spend? But we might also ask: Where will audits start? How many branches will be checked? How will the balance between manufacturer and retail checks by agreed? How do we know the provenance of a tyre (or label) once it enters the European market? There aren’t any quick answers. Neither are there likely to be. For now we have to just acknowledge the fact that we have an enforcement body and that the proverbial wheels are in motion.

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April 2013

Contents

55 Features

News • EDITORIAL NMO to enforce tyre labelling

• NEWS IN BRIEF

• COMPANY NEWS 3 6

• AUTOPROMOTEC PREVIEW

Michelin to close Euro plants? Russia remains a Nokian strength Moody’s downgrades ATU rating

34 37 39

Autopromotec aims to set new records 26 Infinity exhibits new for 2013 range 33

• WHEELS • NTDA NEWS

Continental 3G coach tyre 52 Goodyear aiming to lead in labelling 55

• UK TYRE MARKET Five-figure fine for offences Budget highlights Huw Lewis signs Michelin deal

• PRODUCT INFORMATION

14 16 18

• MOTORSPORT

44 46 49

• INTERNATIONAL WHOLESALERS • INTERNATIONAL TYRE MARKET

• CAREER TRACKS

Wheelwright niche growth Francaise de roue focusing on OE Yokohama HPT rotary forged wheels

Visitors, exhibitors up at Tyrexpo Asia Gajah Tunggal proving ground

80 83

Dealers demanding smaller deliveries Delivering reliability is vital Right tyres at the right time

64 66 72

84 Web Directory – 87 Classifieds – 88 Advertisers’ Index – 89 Preview – 89 Impressum

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Page 05_Page 79 09/04/2013 12:03 Page 1

NEWS IN BRIEF

Bridgestone discussing options for Bari plant It may not be ‘basta’ for Bridgestone in Bari, after all. An Italian-language text published by Italy’s Ministry of Economic Development suggests that Bridgestone’s decision to close its Bari plant in Italy has not been finalised, and the tyre Economic maker may be prepared to Development minister Corrado entertain alternative solutiPassera is encou- ons. The Ministry’s stateraged by the ment follows a meeting bemeetings held with Bridgestone tween senior Bridgestone executives and representaofficials tives from Italy’s government, including Economic Development minister Corrado Passera, plus a second meeting that also involved trade unions and local officials. Further discussions will be held in the near future. The Ministry of Economic Development has voiced its appreciation of Bridgestone’s willingness to review the closure, and has also welcomed the decision by union and local bodies to suspend planned boycott and agitation campaigns. sg

Toyo buys Brazilian parts maker for US$15.6 million Cafmin, the holding company which is currently controlling shareholder of Italian tyremaker Pirelli, launched a fixed-rate 150 million euro ($194.14 million) bond on Friday 11 October. The bond is convertible into 5.85 per cent of Pirelli shares. According to the Reuters news agency, proceeds from the bond will be used to pay 132.4 million euros in debt at Camfin as well as to recapitalise real estate group Prelios. Furthermore the implicit conversion price will reportedly be calculated based on a premium of between 27.5 and 32.5 per cent of the average Pirelli price between the launch of the bond and the setting of final terms. cja

VOSA needs dedicated enforcement budget says BVRLA THE VEHICLE OPERATOR AND SERVICES AGENCY needs to be given dedicated resources to meet the looming enforcement challenges associated with the HGV Road User Levy and the increased privatisation of the HGV annual testing network. Giving evidence to the House of Commons Transport Select Committee earlier this week, the British Vehicle Rental and Leasing Association said that VOSA must be given a dedicated enforcement budget to tackle the threat of foreign hauliers trying to evade the new road user levy due for introduction in 2014. "The current £200 on-the-spot fine for non-payment of the levy is too low and will encourage many foreign hauliers to take a risk by not paying the daily, weekly or monthly charge," said BVRLA director of legal and policy Jay Parmar. "VOSA is going to have its work cut out ensuring that they don't get away with it and the agency will require the means to operate a robust enforcement strategy." The BVRLA also told MPs that VOSA would need more resources to sustain an efficient, nationwide network of independent Authorised Testing Facilities. The agency wants 75 per cent of HGV annual

tests to be carried out in ATFs by 2014, but the BVRLA believes this can only be achieved if VOSA starts accrediting independent vehicle testers that work for the ATF owner. By employing multi-skilled staff, ATFs will be able to operate flexible and efficient testing services without compromising their ongoing maintenance work. "Existing VOSA testers could then be re-deployed to audit the work of these new independent testers and ensure that HGV roadworthiness standards are enforced," said Parmar. "The independent MOT testing regime has stood the test of time, and BVRLA proposals would bring HGVs into line with this successful model. "Some people have raised concerns about having vehicles maintained and tested at the same site, but we are confident that ATF operators would not jeopardise their status by cutting corners on testing." pg

NTDA warns of Northern Ireland tyre scam THE NTDA HAVE TOLD US of a tyre scam currently doing the rounds in Northern Ireland. Regional Chairman Roy Nutt says that two retailers in Northern Ireland have been approached by a person looking to buy tyres with a stolen credit card. An enquiry was submitted via the website and, in what seems like an early April Fool's joke, the enquiry was submitted in the name of a Mr. Fraud and

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the e-mail address given was rip@tyretradeoff.com. The enquiry was for wholesale prices on Pacer Pc50 175/70 13 tyres, based on 50 - 100 at a time. It could be argued that anyone who receives such an enquiry and isn't suspicious deserves what's coming to them, but we are pleased to pass on the warning. pg

TYRES & ACCESSORIES 4/2013

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NEWS IN BRIEF

Pirelli clothing range displayed in Harrods

The P Zero fashion label is said to showcase the “style and design elements behind Pirelli’s core tyre business” Add Harrods to your list of Pirelli retailers – the famed department store will display the Italian brand’s P Zero spring/summer clothing range at a pop up shop there throughout March. Launched in 2002 and inspired by Pirelli’s tyre products, the P Zero clothing range has grown considerably over the past decade. In 2011, Pirelli opened its flagship P Zero store, Pirelli Corsa Venezia, in Milan, with supermodels such as Naomi Campbell attending the launch. Harrods will display the spring/summer P Zero collection on the department’s fifth floor. The area is dedicated to P Zero clothing and footwear, representing both an urban and an active feel. Two custom Pirelli bikes are fixed to the walls of the display at right angles. “Pirelli has been synonymous with fashion for a number of years, with the first rubber garments carrying Pirelli branding appearing nearly a century ago,” commented Pirelli UK managing director Dominic Sandivasci. “The P Zero fashion label showcases the style and design elements behind Pirelli’s core tyre business which targets the premium segment and, where fashion has a particular appeal. Alongside other projects such as the calendar, the store and fashion label reinforce Pirelli’s premium positioning and overall prestige. It seems only fitting that P Zero is displayed in Harrods, which focuses on high-end, innovative fashion.” sg

Michelin adds flavour to its Goodwood stand Michelin’s status as a culinary authority will come in handy at the Goodwood Festival of Speed (FoS) 2013; during this year’s event the tyre maker and Michelin guide publisher will draw visitors in with cooking demonstrations by Michelin starred chefs on its main exhibition stand. Chefs Jason Atherton (Maze, London and The Pollen, Singapore), Richard Davies (Bybrook, Castle Combe), Matt Gillan (The Pass, Horsham) and Michael Wignall (Michael Wignall at The Latymer, Bagshot) will join Michelin in the main festival arena for a series of exclusive demonstrations. Visitors to the Michelin stand will be invited to sample the results and see motorsport-style cooking races throughout the course of the FoS weekend, which runs from 12 to 14 July. Announcements will be made both in the main festival arena and at the Michelin Supercar Paddock to highlight when the star chefs’ demonstrations will take place. To limber up for the summer event, Michelin has started its FoS 2013 campaign with some ‘money-can’t-buy’ competition prizes on its Facebook page, starting with the offer of an exclusive track-day driving experience at the legendary Goodwood Circuit on 19 April – details can be found at www.facebook.com/MichelinUK. sg

Richard Davies (l) and Michael Wignall are amongst the four chefs lined up to show their talents at Goodwood

Wow, a new communication campaign from BKT The month of March saw BKT roll out a new communication campaign for its agricultural, industrial and OTR tyres. The Indian tyre maker says the new campaign – which is calls ‘WOW’ – represents the company’s corporate image for the near future. The letter ‘O’ in WOW will be represented by either an agricultural, earthmover or industrial tyre. This will, BKT explains, be the centerpiece of an utterance that everyone will immediately understand. “The underlying idea is that of emphasising the customers’ surprise, who are satisfied when handling the amazing quality of the BKT products, as well as the excellent and distinguishing quality-price ratio,” elaborates the company in a statement. The campaign was introduced at the SIMA show in Paris and will be used in online and other media around the world this year. sg

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BKT wants to wow customers with its products

TYRES & ACCESSORIES 4/2013

NEWS IN BRIEF

THIS?

REMEMBER

Stories from the past 20 years of T&A

April 1993 At the Geneva Motor Show, Goodyear exhibited the Extended Mobility tyre (EMT): 'the world's first affordable runflat tyre to be fitted to conventional wheels'. Sumitomo Rubber Europe opened a new corporate HQ in Brussels.

April 1998 Chief Executive Peter Webber headed a Management Buy-out at car tyre retreader Technic Group. Dunlop Aircraft Tyres began making tyres and tubes for the Eurocopter Alouette and Dauphin helicopters.

April 2003 Pirelli introduced the MIRS Moto – the first motorcycle tyre manufactured using the MIRS process. In the US, Cooper Tire & Rubber purchased Mickey Thompson tyres for an undisclosed sum.

April 2008 Kumho's tyre manufacturing plant in Vietnam was officially opened. Bridgestone China opened a new US$ 25 million tyre testing facility in Yixing City.

Cooper Tire and Industrias Negromex patent silica masterbatch process Cooper Tire and Industrias Negromex S.A. de C.V. (INSA), a subsidiary of Grupo KUO, report that the US patent office has granted a patent to the two organizations for their silica masterbatch process. According to the two companies, the process to produce silane, hydrophobated silica, silica masterbatch and rubber products results in a broader processing window offering “manufacturing efficiencies” for the end user. “We believe the opportunity to co-develop important pioneering technology with a long-time customer could have a big impact on the tyre business in the future as we focus together on breakthrough technologies.” Close collaboration between the two companies under a long-term joint development agreement led to the successful development of this new technology, which is an outgrowth of their combined focus on developing cost-effective, leading-edge polymer and silica technology to achieve maximum tyre performance. “Collaborative efforts between manufacturing companies like Cooper and key suppliers like INSA can lead to the development of breakthrough technology,”

said Chuck Yurkovich, vice president of Global Research and Development for Cooper. “We expect the relationship between Cooper and INSA to ultimately benefit both companies and the industry as a whole,” Yurkovich added. “We have continuously invested in new technologies for our synthetic rubber business for many years,” said Felipe Varela Hernandez, general director of Industrias Negromex. “We believe the opportunity to co-develop important pioneering technology with a long-time customer could have a big impact on the tyre business in the future as we focus together on breakthrough technologies.” cja

Sailun updates online order portal SAILUN TYRES HAS DEVELOPED the services offered by its online order portal, with European customers now able to track containers and view order details. Each user can now access their own Sailun Order Dashboard, from which the new features can be accessed. Martin West, managing director, Sailun Tyres, EMEA, comments: “The enhanced portal is an excellent tool in giving our customers precise and accurate order tracking information – valuable

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for logistics handling and to assist the sales drive. We are actively encouraging the frequent use of the portal by all of our customers.” Users can access a list of sales orders from the menu bar on the right hand side, which shows the quantity ordered, as well as order and shipping confirmation. By selecting the Shipment List, users can view shipping details for all orders, Sailun explains. akb

TYRES & ACCESSORIES 4/2013

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NEWS MOTs - Here We Go Again! Having successfully seen off the universally-despised attempt by the authorities in Europe to extend the time between MOT tests (the so-called 4.2.2. system), we are now having to contend with another ludicrous idea from the European Parliament. Proposed amendments to the rules on MOT testing read thus: “Economic operators involved in the production, sales, rental, maintenance or repair of vehicles should keep such activities separate from the organisational, personnel and financial aspects of performing roadworthiness tests” and “A person who has performed repairs or maintenance on a vehicle shall not be involved as an inspector in the subsequent conduct of a periodic roadworthiness test of that same vehicle.” Put more simply, this means that the UK MOT stations carrying out the test would not be allowed to do the remedial work to ensure a pass at a re-test. This suggestion has been met with stunned disbelief and total condemnation by the NTDA. The NTDA National Chairman Stephen Callow, who is himself a fully qualified MOT tester and carries out MOTs within his premises in Liverpool says “Adopting the suggestion would do nothing to improve road safety and would mean higher costs and greater inconvenience for the motorist. In addition, the loss of revenue to UK testing stations and repairers would be considerable.” John Tarbox, an NTDA Council member and the Association’s representative on the MOT Forum (a gathering of numerous automotive-related associations, of which the NTDA is one of the founder members) added: “The cost to the public purse of enacting these proposed legislation changes will, in the opinion of the NTDA be, to say the least, prohibitive! Setting up any entirely new MOT testing regime in the UK will have far reaching consequences for the UK MOT testing industry that provides employment to tens of thousands of qualified MOT test technicians, with many more in the supporting replacement parts sector of our motor trade industry. But more especially current EU proposals will have a very serious effect on road safety in the UK. Our current system has consistently shown, over the last 50 years, to be one of the best in Europe.” Tarbox concluded: “Why is Europe proposing these drastic and wholly untried changes, but not learning from a very successful vehicle testing regime demonstrated by the UK for so many years?

Members Warning!! Be Alert For Potential Tyre Scam The Association has been made aware of a tyre scam doing the rounds. B.I.T.S. said that the scam is being perpetrated in the Cambridge/Peterborough area, but there is no reason why it could not become more widespread. It works like this; the depot receives a telephone enquiry for prices of tyres (typically expensive runflat sizes). The caller (the names Craig and Dave have been used in the past) explains that the car is not in the area and fitting will not be required, just the tyres. A mobile number is given – B.I.T.S. says that it may end in 659, 775 or 776 – and the tyres are required urgently and payment is made over the phone by credit/debit card. The tyres are collected via a white transit, taxi or courier. You may receive payment for the first order, but then a much bigger order is placed, again paid by card. This card payment might then be cancelled and charged back to you, maybe some time after you received the payment into your bank account. As it was a telephone card sale and the customer was not present and did not enter a PIN you are not covered against a charge back if the ‘customer’ claims it was a fraudulent or unauthorised transaction or the goods were not received. If this has happened to you, or if you receive such a call, contact Cambridge Police on 101 and give as many details as possible, including phone numbers and names.

www.ntda.co.uk

NEWS Tread Depth Data Needed For Lobbying

All Roads Lead To – Bologna A significant number of NTDA members – both retailers and wholesalers – have said that they intend to visit the 25th Autopromotec exhibition, which is being held in Bologna from 22 – 26 May 2013.

Everyone in the tyre industry agrees that the number of tyres on our roads with less than the legal minimum tread depth is at a worrying level. They also agree that the enforcement of the tread depth laws is woefully inadequate.

Despite the current mood of economic uncertainty, the organisers are predicting an increase in both visitor and exhibitor numbers, with companies from all parts of the world attending. To make life easier for visitors exhibitors of similar products are grouped together – thus there are pavilions devoted to tyres, workshop equipment, breakdown equipment and so on. This year, there are two halls dedicated solely to diagnostics technologies, which illustrates the growing importance of this sector.

At a TIF meeting, the lobbying strategy of the Federation came under discussion and, while it was acknowledged that illegal tyres were a problem, the industry had little in the way of hard evidence to back up its case. True there were occasional reports from individual retailers who monitored the level of illegal tyres removed, but these tended to be for a single depot and a limited period of time. Instead of these snapshots, what is needed is an on-going, in-depth analysis.

Why are so many planning to visit Autopromotec at a time when we are having to tighten our belts and make every penny count? Director Richard Edy explains: “Apart from its sheer size, Autopromotec offers a far broader spectrum of exhibits than most other tyre and aftermarket shows. In these difficult times, our members are constantly seeking fresh opportunities and new ancillary services to offer customers and the variety on show at Autopromotec makes the show a great platform.”

It has now been agreed that the major members of the NTDA will monitor the state of tyres removed at their depots on a continuous basis and submit monthly reports to the NTDA. These will then be collated and – assuming things are as bad as we all fear – the data will be used as ammunition to demonstrate the scale of the problem to Government and as a more effective lobbying tool for greater enforcement of the tread depth legislation.

Northern Ireland Training Initiative The Northern Ireland Region of the NTDA is arranging a series of training courses later in June this year. Organised in conjunction with the Association’s training partner, Profit From Training Partnership, there are three courses planned, covering car tyre fitting, truck tyre fitting and roadside breakdowns. This latter course illustrates the N. I. Region’s desire to engage with the Licence to Fit scheme, which has proven such a success across the country and has received the support of the Highways Agency. The courses are extremely cost-effective and for more details of costs, dates etc. please contact either the Northern Ireland Regional Chairman Roy Nutt (email: Roy@whnutt-son.com) or Lynne Smith at Aylesbury (email: lynne.smith@ntda.co.uk).

UK TYRE MARKET

Recycling firm receives five-figure fine for tyre offences… …but may be counter-suing the Environment Agency for millions ON 1 FEBRUARY Recycled Construction Systems Ltd (RCS) was ordered to pay £27,244 in fines and costs for illegally storing 100,000 waste tyres at a warehouse in East Devon. In the case was brought by the Environment Agency (EA) and heard at Exeter Crown Court RCS was found guilty of illegally depositing and storing 96,000 waste tyres at Westerhope Units, Dunkeswell. According to the EA, the company was one of several defendants in the South West’s largest ever waste crime investigation. At the sentencing hearing Judge Philip Wassall described it as a ‘serious offence’ involving a very large number of tyres. ‘The law is there for a reason and the Environment Agency had a duty to investigate,’ he said. The company, which is no longer trading, was fined £1,000 and ordered to pay £26,244 costs. A former partner in RCS, Tom Dunn, of Cutsey, Taunton, was given a two year Conditional Discharge and ordered to pay £5,400 costs after being found guilty, at the earlier trial, of illegally exporting thousands of waste tyres to Vietnam. At the sentencing hearing, Judge Wassall, said Dunn had ‘chanced it and been caught out’ when he decided to flout Transfrontier Shipment of Waste Regulations and export waste tyres to Vietnam. By imposing a Conditional Discharge, the judge said he had taken into account the ‘considerable impact’ the investigations had had on Dunn and his family: “If you come back and are convicted of further waste offences, the court will take a very different view. I can promise you that.” However, it has to be said that it is not the first time that Dunn has fallen foul of waste tyre management legislation. On 4 July 2008, Tom Dunn Ltd was prosecuted by the Environment Agency for depositing approximately 30,000 waste tyres on a disused airfield at Tricky Warren Farm, Devon, without a licence. The case was heard by Taunton magistrates who fined the company £2,500 with £1000 costs. Indeed it appears that Dunn has been moving in some fairly dodgy circles as the 26-year-old was among five defendants who were found or pleaded guilty to environmental offences following

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Operation Hemlock, a major investigation into large-scale illegal waste activities led by the Environment Agency’s South West Environmental Crime Team. Other defendants included Nicholas Gauntlett who pleaded guilty to operating an unlicensed waste site at a farm near Chipping Sodbury, Gloucestershire. The case against Gauntlett was adjourned pending the outcome of a Proceeds of Crime confiscation application by the Environment Agency. Carl Steele of Deeping St Nicholas, Lincolnshire pleaded guilty to depositing waste tyres at Gauntlet’s farm. Steele has already received a six-month supervision order at an earlier hearing at Lincoln Crown Court and had previously been imprisoned for a series of waste tyre offences across the UK. In fact he is somewhat infamous in the tyre trade following new reports last April that he only paid of £122 of a £2.5 million fine imposed for other offences relating to the mishandling of tyres.

Buried but not forgotten The court heard how thousands of tyre bales formed from waste tyres had been used to construct schooling facilities and training gallops at several equestrian centres across the westcountry. The defendants argued that the bales were buried to improve drainage and provide a springy surface for horses to train on. Each bale contains up to 100 waste tyres held together with steel wires. The prosecution argued that the tyre bales were waste as they did not meet the relevant technical stan-

TYRES & ACCESSORIES 4/2013

UK TYRE MARKET

dards. Many sites lacked planning permissions and in some cases landowners were paid to accept the bales. Dunn was acquitted of four offences of depositing waste at two equestrian sites. This included a South Devon equestrian centre where Dartmoor National Park Planning Authority served an Enforcement Notice requiring 130,000 tyres to be removed at the landowners expense. Two other defendants were also acquitted of related offences including running an illegal waste site at one of the equestrian centres and failing to keep waste tyres secure. The offences near Chipping Sodbury involved the use of bales to create a track and drainage area. Owner of the farm, Nick Gauntlett also used in excess of 3,800 bales (380,000 tyres) to construct a horse gallop at the site. In December 2010, South Gloucestshire Council Planners served a Planning Enforcement Notice requiring the removal of many of the tyre bales from the farm. Inquiries by the Agency revealed that in addition to supplying tyre bales to equestrian centres, Dunn was also illegally exporting waste tyres to Vietnam. In 2009 an estimated 37,500 – 45,000 tyres were exported to Vietnam in 15 shipping containers. The export was organised from premises at MTR (Bristol) Ltd, of Sussex Street, Bristol – a site, according to the EA, managed by Dunn. The court heard that containers went to Vietnam where the import of waste tyres is prohibited. “The illegal handling of waste tyres is a serious issue that affects the environment and undermines the legitimate tyre recycling industry. We take environmental crime very seriously and won’t hesitate to prosecute offenders,” said Andy Gardiner for the Environment Agency. The cost to the Environment Agency of investigating and concluding this large and complex case was approximately £200,000. “These costs have been incurred in a bid to protect the environment and ensure a level playing field for the tyre recycling industry,” said Andy Gardiner. The Tyre Recovery Association (TRA)

TYRES & ACCESSORIES 4/2013

praised the EA: “Britain’s tyre recycling industry has suffered a severe battering at the hands of rogue operators and other opportunists. The activities of these waste criminals can be very damaging. We therefore welcome the efforts of the Environment Agency to combat some of the worst examples of waste crime. To its credit, the Agency recognises how important it is to protect legitimate operators from the activities of waste criminals and deserves our support,” said a spokesman.

Reports: Defendants to counter-sue the EA However something of a row has broken out between the EA and the men involved in the case, with the latter describing the action as a “failed prosecution”. And what’s more they are apparently preparing to sue the Agency for up to £20 million. According to Horse and Hound magazine, Tom Dunn said he and his colleagues lost more than £8 million in cancelled contracts during the three years it took for the case to come to court. The report also states that the original case was brought at a cost of £2 million, ten times more than the EA’s figure of £200,000. Speaking with Tyres & Accessories and Environment Agency

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spokesperson confirmed the £200,000 estimate and question where the £2 million figure came from. Horse and Hound quote Dunn as saying: “We had very large waste management companies giving us substantial contracts and, on the basis of the case brought against us, we lost a lot of business,” and adding: “The Environment Agency’s enforcement teams are running around with taxpayers’ chequebooks. It is alarming to see how a public authority can squander millions of pounds.” While the instances of illegal tyre storage and export are not being disputed, it seems the classification of waste is what lays at the root of this particular disagreement. Although landfill of tyres is illegal, since April 2010, the Environmental Permitting Regulations 2010 have allowed the use of up to 50 tonnes of tyre bales produced in accordance with PAS 108:2007 for use in construction under an exemption from licensing. PAS 108: 2007 is a Specification developed by the Waste Resources Action Programme in consultation with the British Standard Institute. It set out the minimum requirements for the production of tyre bales for use in construction projects. And it is the letter of this law that appears to have determined the verdict in this case. chris.anthony@tyrepress.com

UK TYRE MARKET

Fuel duty binned, pension tweaked and other budget highlights Chancellor of the Exchequer George Osborne chose budget day to join the twittersphere, using his maiden post to say: "Today I'll present a Budget that tackles the economy's problems head on helping those who want to work hard & get on." But what is this 20 March announcement likely to mean for those of us that are hard working in general and for the automotive sector specifically?

In short George Osborne’s key points include confirmation that the income tax threshold will be raised to £10,000 by next year and the first £2000 will be taken off all employers’ National Insurance bills. Growth is forecast to be 0.6 per cent this year, with £3 billion promised for infrastructure investment as a way of improving this. Good news for employers and employees alike. But crucially for many of us, he also scrapped a planned fuel duty increase scheduled for September. The SMMT said the budget “recognised the significance of developing a balanced industrial strategy, as well as taking steps to encourage research and development in the UK through enhanced tax credit rules”. The motor manufacturer’s association point to “welcome changes” to the Company Car Tax (CCT) regime with increased incentives for the take-up of ultra-low emission vehicles (ULEVs) as particularly highlights along with promises for government to provide £1.6 billion of funding to support sector strategies, including automotive, during the course of 2013. “We look forward to further sectorspecific measures which will come out later this year in the Automotive Sector Strategy that will look deeper into protecting and enhancing the UK automotive supply chain, and boost innovation and skills within a competitive domestic business environment. This will provide a distinct rationale and incentive for companies to invest in the UK”. Petrol Retailers Association (PRA) chairman Brian Madderson welcomed the government’s decision to cancel the

fuel duty increase scheduled for 1 September: “Taking into account the projection of RPI% in the first quarter of 2014, combined with the current 20 per cent VAT rate, this action will save the motorist up to 3ppl. This could even stem the continuing decline in overall retail fuel volumes, which according to last year’s Government statistics dropped by 2.9 per cent compared to 2011.” However the association clearly would have like to have seen more done. “…with the Treasury benefiting from the tax windfall of higher VAT over the last two years on ever rising fuel prices, independent retailers had wanted this windfall to be used to cut fuel duty in this budget….The chancellor has missed a golden opportunity to start correcting the penal 60 per cent tax on retail road fuels.” Sue Robinson of the National Franchise Dealers Association was similarly positive, adding: “The NFDA welcomes the general transport measures on fuel duty and road upgrades which will benefit road users across the UK. This is turn should have a positive effect on the vehicle market.”

Pensions changes and other budget tweaks The chancellor has outlined that annual pension savings will be reduced £50,000 a year to £40,000 from next April and that, according to The Telegraph, the total amount you can save in a pension pot will be capped at £1.25 million, down from £1.5 million.

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Income tax changes along with the scrapping of fuel duty measures are welcome, but they are money likely to save us pennies than pound notes per month…

Something else that George Osborne had already announced prior to budget day itself is that the government will bring forward the single-tier pension of around £144 to 2016 to end the penalisation of mothers that take a work break to bring up children. There will also be measures to simplify the process private companies have to go through to repurchase shares from employees. But there could also be more along these lines and in the automotive sector in particular. So we, like the SMMT, are looking forward to hearing the Automotive Sector Strategy, which is due to be published in July. And finally the money saving measure you have all been waiting for: Beer duty will be cut by 1p a pint. Like the other changes, none of us are going to become overnight millionaires because of this, but it might make us feel a bit more comfortable as we continue to ride out this protracted economic downturn. And while welcome this is unlikely to do much to rescue faltering tyre demand. chris.anthony@tyrepress.com

TYRES & ACCESSORIES 4/2013

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03/04/2013 16:02

UK TYRE MARKET

Huw Lewis signs Michelin Certified Centre 2013 agreement HUW LEWIS TYRES, A FAMILY RUN TYRE DEALER with three sites in and around Aberystwyth, signed an agreement to make it the first independent tyre dealer to become a Michelin Certified Centre in March. The agreement follows a partnership begun in the second half of 2012 with ATS Euromaster, for whose fleet customers Huw Lewis Tyres provides local services. From the acquisition of the former ATS Euromaster Aberystwyth site in 2009, the tyre retailer has since expanded to three sites with Lampeter and Machynlleth run by Lewis’s two sons – all this merely seven years after Huw started his business.

T Huw Lewis (bottom left) and Michelin’s Malcolm Scovell sign the Michelin Certified Centre agreement

The Michelin Certified Centre agreement is designed to extend Michelin’s support for the standard of service provided by Huw Lewis Tyres, allowing the indie retailer to “work on bigger projects” and “longer term contracts”, Lewis said; Malcolm Scovell, commercial director at Michelin, told Tyres & Accessories of the importance to Michelin of gaining in return the sort of “third-party recommendations” from retailers such as Huw Lewis. Michelin Certified Centres – the bulk of which are ATS Euromaster sites, or Micheldever Tyre Services’ Protyre centres – are awarded by the manufacturer to tyre dealers it considers to have “reached high standards in all areas of their business”. Michelin judges this on criteria under the three main headings Workshop and buildings; Levels of customer service; and Personnel requirements. The motivation behind the scheme is to find dealers who, in the words of Lewis, buy into the “shared ideology” of assuring the customer of the high standard of service. From a commercial point of view, it is not a giant leap to see how customers seeking a quality proposition in terms of service are also more likely to appreciate the qualitative arguments for buying the most expensive tyre on the market – especially if they are made by a service provider they trust. Guy Heywood, Michelin UK and Republic of Ireland commercial director, told Tyres & Accessories that the strategy behind the Certified Centre scheme is to provide a “more robust… local hero contract” marking out the “most professional tyre retailers in the area” in order to move the UK consumer “from a cost to a value mentality” with propositions such as increased vehicle uptime, fuel savings and so on. This is motivated by a “desire for growth” in Michelin’s business of course, and Heywood talked of the possibilities of “actively winning business” for the retailer with support in the form of visits from Michelin staff, joint calls with customers and so on. Lewis con-

curs, saying his business is “growing with the support of the manufacturer”. Putting this agreement within the context of current severe pressures on the high street, it seems a natural progression for premium brands to seek the support of local retailers and vice versa. Just as tyre brands such as Michelin feel the pinch of consumers seeking the cheapest ways to run their vehicles, retailers providing high quality independent service must find a way to sustain their perceived value as e-Commerce offers a more price-driven selling model. Scovell and Michelin continue to advocate the “need for service” in tyre retail, and the Certified Centre scheme aims to provide structural support for dealers with this ideology.

ATS-E seeing “increasing traffic” at partner sites While the signing of the Certified Centre agreement is a ramp up of Huw Lewis’s relationship with Michelin itself, ATS Euromaster’s agreement with the retailer – and with Northern Ireland’s Modern Tyre Service centres in Belfast, and Lisburn – has been yielding some impressive results. Gill Addy, efficiency programme director at ATS Euromaster, told Tyres & Accessories: “The network partnership agreements we set up in 2012 have been performing well, both for us as a business, and for our customers. We are seeing increasing ATS Euromaster traffic into the six network partner sites on a monthly basis, and receiving positive feedback from fleet customers who appreciate the added convenience of being able to access an extended network. “During the last three years we’ve invested more than £14 million in our own network and this focus on further modernising our centres and launching new services is continuing throughout 2013 – complementing our new relationship with Huw Lewis Tyres and Modern Tyre Service.” The ATS-E partnerships are also reciprocal in nature; customers of Huw Lewis Tyres and Modern Tyre Service have access to ATS Euromaster’s network of more than 350 centres throughout the UK when outside of their own service provider’s coverage.

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abogie@tyrepress.com

TYRES & ACCESSORIES 4/2013

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UK TYRE MARKET

BMTR presented with PPC award PIRELLI UK HAS FORMALLY PRESENTED BMTR with its annual Performance Centre of the Year Award at a presentation at its flagship outlet. The presentation took place on Tuesday 26 February at BMTR’s Perry Barr, Birmingham outlet following a tour of the depot and warehouse. In attendance at the presentation was Pirelli UK managing director, Dominic Sandivasci, as well as Pirelli UK’s marketing and sales directors, Wayne Nickless and Jason Sugden. BMTR was named Pirelli’s PPC of the Year after scoring a near-perfect score on the final audit of 2012. “The commitment to high standards of tyre service was evident in BMTR from the moment we stepped through the door," explained Sandivasci. “We were given a thorough tour of the centre and I was very impressed with the facilities, attention to detail and expertise of the team. Pirelli will strive to support BMTR on joint ventures to help promote its PPC of the Year status throughout the year and on behalf of Pirelli, I would like to congratulate BMTR on achieving platinum status for a second consecutive year.”

Representing BMTR were managing director Paul Smith, director and Dominic Sandivasci (l) presents the award to Paul Smith general manager Gary Hickman and sales manager Graham mechanical staff, will enable us to contiLegget. Paul Smith confirmed that he nue to strive for the total package in cuswas “immensely proud that BMTR has tomer service, care and satisfaction.” Pirelli Performance Centres are a achieved platinum status in the industry leading Pirelli Performance Centre audit ‘club’ of audited, high-quality, highperformance tyre dealerships, allowing for a second straight year.” Gary Hickman added: “We are Pirelli to direct owners of high perfordelighted to accept this prestigious mance cars in confidence. The PPC of the award. The continued investment by the Year award was inaugurated in 2007 to company to make our retail department commemorate the efforts of the compathe best in the country, along with our ny’s PPC depots across the country. sg highly dedicated and qualified sales and

Pothole incidents on the rise, claims Kwik Fit It probably won’t surprise the average motorist at all to hear the findings of a report commissioned by Kwik Fit – the number of vehicles hitting potholes has increased 143 per cent in the last two years. The studies carried out by ICM Research in January 2011 and then in March 2013 indicate that nearly 39 per cent of motorists, some 13 million people, collided with a pothole in the past 12 months, compared with 5.7 million in 2011. However, Kwik Fit observes that missing potholes can be just as dangerous as hitting one; 27 per cent of the 2013 study participants say they were forced to swerve on to the other side of the road to avoid a pothole – a 12 per cent increase on 2011. Over the same period, almost twice as many motorists have been forced to a complete sudden stop. Other ways of coming a cropper due to potholes include hitting the kerb (which seven per cent of motorists did) and mounting the pavement (admitted to by five per cent of motorists). The Asphalt Industry Alliance’s ARLARM 2013 report states that at least 2.2 million potholes were to be found in English and Welsh roads last year. Motorists in the West Midlands have been the worst hit by potholes around the UK, with 71 per cent saying they’ve had to take evasive action. Drivers in Wales

have been the luckiest, with ‘only’ 56 per cent of drivers affected. And while the Kwik Fit commissioned study says 54 per cent of drivers found themselves in a situation requiring evasive action to avoid a pothole in 2011, by March 2013 this figure had crept up to 66 per cent. The study also claims 11 per cent of motorists aged between 18 and 24 have been involved in an accident related to evading a pothole and seven per cent of motorists have witnessed an accident caused by one. “Potholes are a growing problem for motorists, not just through the damage they cause, but the fact that they force drivers to make risky manoeuvres,” said Roger Griggs, communications director at Kwik Fit. “A motorist who suddenly veers around a hole, or brakes heavily without warning, will give other road users very little time to react. It’s no surprise that more than three million drivers have either been in, or witnessed an accident caused by a driver avoiding a pothole and this recent spell of freezing weather is only going to make the situation worse.” Kwik Fit offers a free check over to any motorist who has hit a pothole (or anything else while evading one) and suspects their car may have been damaged. sg

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TYRES & ACCESSORIES 4/2013

UK TYRE MARKET

TyreSafe webinar inspires part-worn crackdown A

WEB-BASED SEMINAR hosted by TyreSafe has prompted Trading Standards Officers around the country to increase their investigation of the illegal sale of potentially dangerous part worn tyres, the road safety organisation reports. The online event attracted more than 80 participants from around the UK, and TyreSafe chairman Stuart Jackson said that the organisation is “looking forward to helping… Trading Standards Officers around the country carry out local investigations and initiatives.” While the governmental Used Tyre Working Group data acknowledges that part worn tyre sales have increased in the UK to 4.4 million units, around 90 per cent of which are estimated to be sold without conforming to existing regulations, tackling this problem has proved strategically problematic. TyreSafe says its webinar participants from around the country were given an insight into the scale of the part-worn problem along with a wealth of advice and technical tips about how they can conduct investigations at a local level. “We’ve been leading the way in campaigning about the safety risks posed by the sale of part-worn tyres so it’s fantastic to see that we have caught the atten-

tion of so many Trading Standards Officers,” explained Jackson. “There was a real appreciation from many attendees that they have a problem locally with part worn tyres but until now, they’ve not really been sure how to tackle this effectively. The webinar acted as a great way for us to provide some ideas and assistance which we hope will see a significant improvement in the standards of part worn tyres being sold.” TyreSafe has been extremely active in highlighting the potential safety risks for consumers buying part worn tyres. The organisation recently conducted its own mystery shopper investigation where it bought 50 part won tyres and found 98 per cent had been sold illegally and more than a third were found to be dangerous. One tyre was even described by the independent examiner as having “the potential to kill.” Tyre safety remains a major road safety concern in the UK. The latest figures available from the Department for Transport show that in 2011, more than 1,100 road casualties resulted from acci-

The lack of effective implementation of existing regulations in the UK part worn market has allowed potentially dangerous used tyres – such as the one pictured – to be sold in the UK replacement market

dents where an illegal, defective or underinflated tyre was a contributory factor. Furthermore, Ministry of Justice figures show that there were more than 9,600 prosecutions in Magistrates courts in England and Wales in 2011 for driving on defective tyres. “We’re looking forward to helping as many Trading Standards Officers around the country carry out local investigations and initiatives,” concludes Jackson. “We have a range of support and education materials freely available, so anyone who was unable to attend the webinar can still benefit from our expertise.” akb

Brake and Autoglass team up on road safety TV campaign Brake, the road safety charity, is partnering with Autoglass to launch a new national campaign promoting road safety. The free Bosch wipers initiative urges drivers to consider the road safety implications of poor visibility and raises awareness of the essential role windscreen wipers play in allowing drivers to maintain good visibility. The joint activity follows the news that the Department for Transport's road safety publicity budget has been slashed from £19m in 2008/09 to £3.9m in 2011/12. As a result, the Government announced it would no longer invest in children's road safety TV advertising. The change in the Government's spending priorities means there is an increased need for corporate organisations to work in partnership with charities to raise public awareness of life saving issues. This latest activity aims to reduce the 40 road deaths, and 600 serious injuries a year that are linked to poor visibility by highlighting the easy steps drivers can take to ensure a clean and safe windscreen, such as the regular checking of windscreens and wipers.

Autoglass and Brake began working together in 2010. The new windscreen wipers initiative follows research released by Brake in August 2012 showing that a huge proportion of drivers are failing to conduct potentially life-saving vehicle checks. Nearly four in ten (39 per cent) set off on long journeys without checking their tyres are in a safe condition with the right pressure, more than one in four (26 per cent) don't bother to check oil and water and the same number (26 per cent) don't ensure washers and wipers are working. The consequences of this are severe - in 2010 (latest data available), 39 people were killed and another 2,178 were injured, some seriously, because of crashes where vehicle defects were a factor. The creative will also see a return to screen of technician Gavin, the famous first face of the Autoglass Heroes advertising campaign. The integrated activity will appear across TV, radio, online and social channels, featuring the hashtag #getfreewipers. The TV ad can be viewed at www.youtube.com/autoglass. pg

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TYRES & ACCESSORIES 4/2013

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14/03/2013 17:16

UK TYRE MARKET

Hankook proves itself good egg to local charities with Easter donation Hankook Tyre UK has a diverse product portfolio, but when it comes to Easter the company has put all its eggs in one basket – and donated them to local charities and centres for children and adults with learning disabilities and autism. The tyre maker has donated hundred of Easter eggs to the Daventry-based Sure Start Children’s Centre, The Cube Disability, a centre for adults with learning disabilities and autism, and Northampton based charity Kidsaid.

An undisclosed source told Tyres & Accessories that Hankook’s latest donation contains 23% cocoa solids

The Cube offers a comprehensive day care service for adults with learning difficulties and autism. It provides a wide range of quality, rewarding activities and experiences, combining education and fun. The Cube has a total of three centres in Northamptonshire including its Daventry centre at Bishop Crewe House. “Hankook of Daventry have very kindly chosen our clients with learning disabilities to receive Easter Egg gifts,” commented Spencer Freed, manager of The Cube Disability in Daventry. “The clients are thrilled to have been chosen and we wish to thank Hankook for their continued support of disability within our community.” Tony Lee, managing director of Hankook Tyre UK added” “Hankook have been based in Daventry in Northamptonshire for many years now and we feel it is important to support our local community. We have decided to continue the Easter tradition once again this year.”

Sure Start is a voluntary centre for local parents, parents-tobe and carers with children aged five and under. It provides an integrated programme of early support and intervention to children and families to meet their needs enabling and empowering service users to stretch their aspirations and improve their outcomes. “We would like to thank Hankook Tyres for their donation of Easter Eggs which will make a difference to lots of children and their families,” said Teresa Humpage, healthy child worker volunteer at Surestart. “The Easter Eggs will be used in our Easter Egg Hunt which will create a fun outdoors activity they can do together as a family whilst socialising with others.” Kidsaid is a midlands-based charity who work with children and young people who have suffered from traumatic events, ranging from illness and peer pressure through to family breakdown, bereavement, domestic violence and abuse. sg

Solstor looks to Vacu-Lug for carbon reduction KENT-BASED supply chain specialist, is also proving financially successful while

The Solstar fleet will be shod with Vacu-Lug’s literally green eco tyres

Solstor UK Ltd has reported a reduction of almost 20 tonnes of carbon dioxide emissions since moving to a Vacu-Lug new and remould tyre policy for its tractor unit fleet and from a new-only policy to a Vacu-Lug remould policy on its trailer fleet last May. "Solstor is firmly committed to reducing its impact upon the environment, and we recognise the contribution being made in this respect to our operations by VacuLug," says Andy Hitchings, operations director for Solstor UK Limited. "Furthermore, in addition to benefiting the environment, the switch in our tyre policy

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operational service levels are unaffected." Since embarking upon its new tyre policies, more than 350 Vacu-Lug Duramold super-single tyres have been fitted to the Solstor trailer fleet, representing a saving of 54.2 kilogrammes of carbon dioxide emissions per tyre. This figure equates to the reduced amount of carbon dioxide emitted during the remould manufacturing process compared to that of a new tyre. To emphasise the environmental benefits of its new tyre policies, a proportion of the Vacu-Lug Duramold remould tyres fit-

TYRES & ACCESSORIES 4/2013

UK TYRE MARKET

ted to the Solstor fleet are made from a green coloured compound developed by Vacu-Lug. This compound has a lower rolling resistance than regular tyres and therefore contributes further towards carbon reduction. The green tyres have been manufactured using a specially-formulated compound which replaces the traditional carbon black with a mix of silicas, resulting in a low-rolling resistance product which provides operational and environmental benefits. Independent trials conducted by TARCC (Tun Abdul Razak Research Centre, the UK-based research arm of the Malaysian Rubber Board) report that the tyres are more environmentally-efficient in a number of ways. Firstly the silica-based compound is harder and tougher than a standard tyre, meaning there is less deformation in the crown area, which significantly improves the tyres' rolling resistance by up to 30 per cent. In addition the tread surface of the highsilica compound is harder and microscopically rougher than regular carbon black-based compound and, as a result, increases surface grip. Less movement in the tread means there is less heat build-up, thereby prolonging tyre life. The harder compound theoretically improves the wear characteristics of the tyre over a period of time. The silica-based compound shows a much improved snow and ice behaviour and better wet skid properties, with abrasion remaining constant. Solstor UK Limited is part of the AG Thames Group. In addition to its Crayford Head Office site, the company has depots in Peterborough, and Boston, as well as operations in Spain, Italy and Poland providing a pan-European, end-to-end solution. The firm's double-shifted fleet of 80 tractor units and 160 trailers is involved in the distribution of fresh and chilled produce to many leading UK supermarket retailers. cja

TYRES & ACCESSORIES 4/2013

UK’s ‘most puncture-prone fleet’ appoints ATS-E A 173 vehicle fleet thought to be amongst the most likely to sustain tyre damage has appointed ATS Euromaster to help maintain its tyres. Oxfordshire-based ChevronTraffic Management is the UK’s largest independent traffic management company and claims to operate in one of the most demanding environments for road-based vehicles in the UK. Chevron runs 4x4 pick-ups, vans and trucks completing daily tasks on debris-strewn motorway hard shoulders. Fleet manager Alan Flynn says the company’s tyre bill is the second highest vehicle running cost after fuel, and at least one vehicle suffers a puncture every day – and often many more: “The risk of punctures and irreparable sidewall damage is our biggest problem. Every tyre in the fleet ends up being replaced due to damage; well before the tread depth reaches the legal limit or we have a chance to regroove.” Chevron has six depots across the UK and previously sourced its tyres via the Independent Tyre Distributors Network. Flynn says increasingly high charges for roadside callouts and lack of adherence to its specified budget tyre policy forced Chevron to consider different suppliers. “We chose to put ATS-E to the test based on the strength of its nationwide coverage and 24/7 mobile support. This gives us access to the largest mobile tyre fitting fleet in the country, which helps ensure fast response times for roadside callouts – even in the middle of the night, which is our busiest time.” ATS-E’s roadside call-out charges follow an agreed national pricing structure and the company is committed to adhering to the customer’s budget tyre policy, with a range of budget brands stocked nationwide. Flynn adds: “This should mean an end to fitters arriving at a breakdown with expensive premium-brand tyres. We’ve trialled premium fitments before, but they aren’t a viable option given the nature of our work. “On occasions where we have been forced down this route at the roadside it’s been an unnecessary cost for the business to swallow. It’s why we are ringing the changes – ATS Euromaster is fully geared up to fit the tyres we specify.” For routine tyre replacements, Chevron Traffic Management utilises a stock of spare wheel and tyre assemblies. Local ATS-E centres collect any spare rims twice a week and fit new budget tyres, before returning the completed assemblies to Chevron’s workshops for fitment. The tyre servicing company undertakes monthly tyre safety inspections at each of the company’s six depots, designed to help reduce instances of tyre-related breakdowns and support the fleet’s commitment to good tyre husbandry. Chevron undertakes all types of temporary traffic management, including lane closures, contraflows, narrow lane systems and mobile lane closures, working in support of the Highways Agency and major infrastructure development companies. It recently worked on the widening of the M25 between Enfield and the QE2 Bridge, which utilised more than 40,000 traffic cones. In addition to its 4x4 pick-ups and vans, the truck fleet ranges from Mitsubishi Canter chassis cabs mounted with dropside bodies for cone carrying, to a flagship fleet of 18 tonne Mercedes-Benz Axor, DAF CF 65 and Eurocargo Impact Protection Vehicles (IPVs). The IPVs feature a hydraulically-operated crash cushion for protecting teams working on the roadside and a rear facing Vertical Lift Light Arrow Board. akb

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Autopromotec 2013 aims to set new records Shows within a show philosophy at the centre of the exhibition’s approach

WHEN AUTOPROMOTEC 2013 takes place at One feature that is intended to offer additional

Autopromotec 2013’s organisers are looking to build on pass successes and make this year’s show, which will be held 22-26 May at the Bologna Exhibition Centre

the end of next month, the organisers are hoping it will be their biggest yet. Complete exhibitor details were not available at the time of going to press, but early indications suggest the show is on-track to achieve this goal. For example, six months before its scheduled opening, certain sections of the international automotive equipment and aftermarket product trade fair were already fully booked. And the momentum seems to be coming from our part of the industry. Indeed the tyre and garage equipment pavilions were amongst the first to sell out.

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momentum is the inclusion of a hub entirely dedicated to the diagnostics technologies that are becoming so important for garages and fast fits across the continent. Located in halls 14 and 15, this decision not only reflects the development of technology in the aftermarket, but also highlights the importance of the “many fairs within one fair” philosophy that is at the centre of Autopromotec’s efforts to maintain and grow both its exhibitor and visitor bases. From the organiser’s point of view it is this that has distinguished Autopromotec throughout its history, allowing visitors to “plan their visit smoothly according to their professional interests, and to optimise the time spent at the fair.” As we have seen, the tyre and garage equipment demand for the show has been strong. However, there is also said to have been strong interest from the spare parts sector, which has seen historical companies confirm their presence and new players commit for the first time. Apparently tools and compressors are also showing high levels of interest. Such is the demand from this part of the business, the organizers have arranged larger areas to host the dedicated companies. New additions to the show include sectors dedicated to car care and fuel stations. This is said to be designed to give room for the innovations and pro-

TYRES & ACCESSORIES 4/2013

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ducts of everything to do with refueling and related businesses. As you can imagine, the internationalization of Autopromotec has grown in parallel with the wider automotive industry as a whole. Over the course of the last five shows, this has led to a significant growth of both foreign exhibiters, directly present and through representatives. These totaled 296 in 2001, but by 2011 had almost doubled to 543. In the same period foreign visitors went from a little over 12,000 to 18,524. One reason for this growth is the investment the exhibitionâ&#x20AC;&#x2122;s organisers have made in reaching to and connecting with various target markets inside and outside Europe. At the same time, the organisers are working to create additional special projects, which will give the According to the showâ&#x20AC;&#x2122;s organisers tyre and garage equipment space sold out six monthâ&#x20AC;&#x2122;s before the show event a strong connotation as a meeting As we have seen following the bankpoint for the international aftermarket, Automotive Aftermarket Symposium) and which will be announced shortly. were held in parallel with the same event. ruptcy and restructuring of two exhaust According to those involved, the conven- makers in the UK in the first quarter of tion forms a core part of the program of this year, vehicles currently in use in AutopromotecEDU featuring Europe are less and less in need of sermeetings at AutopromotecEDU. IAAM 2013 The focus of IAAM13 will be to prov- vice and repair and consumers are seekAlongside the exhibition itself, Auto- ide companies and professionals involved ing low-cost solutions, all the more so in promotec will also host the fourth in the sector of car post-sales with an the midst of the current financial crisis. International Automotive Aftermarket insiderâ&#x20AC;&#x2122;s perspective of the trends and Professionals are forced to adapt their Meeting. The 2013 edition of Auto- developments of the aftermarket sector offering to market contingencies and are promotec, which bills itself as â&#x20AC;&#x153;the most in Europe and in certain strategic coun- organizing themselves to offer customers specialised international automotive tries, such as those of the BRIC group new, more efficient and cheaper seraftermarket event in the worldâ&#x20AC;?, will host (Brazil, Russia, India and China), offering vices, using the Internet as a tool ever the IAAM13 convention on 23 May after them the opportunity to find new inter- more often. The thinking behind this mini-confernthe first three editions that were known national channels for their sales and ce is that while waiting for a better future by the name of EAAS (European marketing activities.

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ting to the international development of its exhibitors and visitors.

South America mission brings ‘Latin’ flavour to Autopromotec

Encouraging education and the cross fertilisation of ideas is once again a key part of this exhibition, with AutopromotecEdu upping its game, according the people behind the trade fair

for Europe, BRIC countries offer interesting opportunities: given the status of top automobile manufacturers they have risen to, in the next decade they will have to cater to the growing needs of their aftermarket structures, creating new spare parts distribution networks. European expertise and the high technological value of European products no doubt represent considerable added value to satisfy the new needs of these countries. IAAM13 aims to approach these themes and thereby offer the market new opportunities and tools for growth. IAAM13 will feature two distinct sessions: in the morning, a succession of speakers will be present their visions of the future trends of the car service and

repair market in Europe and in BRIC countries. Later in the afternoon, a series of meetings will take place between experts and participants to examine in detail the opportunities offered by international markets on a more specific level. Over 300 professionals from all over the world, representing vehicle and component manufacturers, independent distributors, as well as aftermarket networks, are expected to attend the IAAM13, a witness to the international appeal of this event. By organising IAAM13, a one of a kind event in Europe, Autopromotec further asserts itself as a meeting venue for the international aftermarket and as an unmissable opportunity, not only for business but also to examine more closely the main themes that will characterise the market of tomorrow. Auto-promotec thus fulfils its mis-sion to support automotive professionals, offering them the unique opportunity to have an exchange of views with key market players, and contribuWith dozens of tyre-related businesses exhibiting, this part of the aftermarket remains a key focus at Autopromotec

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When it comes to talking about the internationalisation of Autopromotec, the figures speak for themselves. In 2011 the show attracted 9 per cent more exhibitors from outside Italy than in 2009 and 11 per cent more visitors from abroad. Since then focused efforts to encourage the participation of target markets have continued. This time round the South American countries of Brazil and Argentina have been the subject of particular focus. The goal was simple: to meet the key players on a local level, from the chief associations in the sector to trade fair organizers, all the way to marketing agencies, and to the representatives of the specialized press. Autopromotec’s ‘mission’ was conducted last June by Emanuele Vicentini, the show’s brand manager. It keeping with this goal Autopromotec reports that it has offered travel packages that include business meetings during the days of the fair, so as to make it easier for individuals to visit the event, as well as of securing the presence of a delegation of buyers.

Brazil The exploratory mission in Brazil fit into an agreement signed between Promotec, the Region of Emilia Romagna and BolognaFiere, to promote the event in the Country, as well as in China and Turkey, nations that are considered strategic for the automotive sector and more specifically for aftersales. A number of meetings have been organized to this end with associations in Brazil to essentially promote the presence of important buyers at Autopromotec 2013. The most strategic meetings were held with SINDIREPA (Sindicato da Indústria de Reparação de Veículos e Acessórios do Estado do São Paulo), which owns the network of workshops of the most important Brazilian state in

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DB 900 IN UG – NEW DYNAMIC BALANCING MACHINE

FCT 850 and 1200 – AUTOMATIC SIDEWALL VENEERING MACHINES

terms of traffic and vehicles, and with ARESP (Associação das Empresas Reform-adoras de Pneus do Estado de São Paulo) and SINDIBOR (Sindicato da Indústria de Artefatos de Borracha no Estado de São Paulo); the two associations tied to the tyre business and supporters of Pneushow and Expobor, exhibitions that are very important on a local level.

Argentina In Argentina, Promotec’s promotional efforts have roots that date back further, thanks to an agreement signed with the Italian Chamber of Commerce in Buenos Aires, which directly supports promotional activities on behalf of Autopromotec on all Argentinian soil. This cooperation led to the organization of meetings both with important local associations and with marketing agencies across Argentina. As far as associations are concerned, the meetings with Grupo Proa (Group of Vehicle parts Manufacturers), which will undertake to have the event listed in the official calendar of trade fairs sponsored by the Argentinian government, and with AFYDREM (the Argentinian association of engine parts manufacturers and distributors), with which Autopromotec has considered the possibility, instead, of organizing the participation of a group of buyers at the fair, deserve to be mentioned. Finally, the Federación Argentina de Neu-máticos (Argentinian association of Tyre Retreaders), has expressed the intention to organize a delegation of visitors interested in the novelties of the industry to attend the 2013 edition. chris.anthony@tyrepress.com

The tyre and wheel contingent As we can see this year’s Autopromotec intends to offer expansion on two fronts – increased emphasis on the educational aspects of the exhibition (which is increasingly marketing itself as forum for thought leaders); and increased internationalisation, particularly with regard to BRIC nations in general and Brazil and Argentina in particular. As far as the tyre and wheel contingent is concerned there are definitely a number of names you will have heard of, but perhaps not as many of the best known brands as you may have thought. That said, as they say, the show ain’t over till the fat lady sings and many of those that have shown up choose to register in the names of their local distributors rather than their international brands. So, with all this in mind, here are a few examples of the kinds of companies from our particular part of the automotive industry that will be exhibiting at Autopromotec. These include (but are not limited to) in alphabetical order: AIRTEC SRL ALCAR ITALIA SRL ALLIGATOR VENTILFABRIK GMBH AME INTERNATIONAL AOSEN TYRE INC. ARCOM SP. J. ATEQ-SYSTEMES ANAL. ITALIA SRL AUTODATA LTD. AVEX TRADE SPOL. S.R.O. B & J ROCKET SALES AG BEST CHOICE INT. TRADE CO. LTD. BORRACHAS VIPAL S.A. BRIDGESTONE ITALIA SPA BRISA BRIDGESTONE SABANCI TYRE CHINA UNITED RUBBER CORP. CHONCHE AUTO DOUBLE HAPPINESS COUNTERACT BAL. BEADS EUROPA CROWNTYRE IND. CO. LTD. DELDO AUTOBANDEN N.V. ELGI RUBBER COMPANY LIMITED ESKAY TYRES LTD. EURO TYRE B.V. EUROMASTER SRL FASEP 2000 SRL

FINTYRE SPA GLOBAL TYRES SRL GT PNEUS SRL HAEMMERLING THE TYRE COMPANY HANDLOPEX S.A. HANKOOK TIRE ITALIA SRL HEUVER TYREWHOLESALE HOFMANN MEGAPLAN GMBH HOLMAN WHEEL WEIGHTS INTER-SPRINT BANDEN B.V. ITALMATIC SRL M.I.G. SRL MAK SPA PIRELLI TYRE SPA QINGDAO DITRIP TYRE CO. LTD. QINGDAO FULLRUN TYRE CORP. LTD. QINGDAO ODYKING CO.,LTD. RAVAGLIOLI SPA SHANDONG WANDA BOTO TYRE CO. SHANDONG YONGTAI CHEMICAL SPX SERVICE SOLUTIONS GERMANY VEE RUBBER CO. LTD. YOKOHAMA ITALIA SPA

From this we can learn that, if we take tyre, wheel and related businesses in isolation, Autopromotec is on course to provide the kind of broad, international aftermarket show it promises. The biggest tyre names are undoubtedly Bridgestone, Pirelli, Yokohama and Hankook. But with half a dozen German, Italian, Belgian and Dutch European wholesalers exhibiting and with a dozen up and coming brands, plus further budget brands there too – they are by no-means dominating the subject of tyres. There are also a fair few related to retreading, garage equipment and diagnostics too. But this is all about who is show what. When it comes to visitors, well that’s a completely different subject. chris.anthony@tyrepress.com

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AUTOPROMOTEC PREVIEW

Infinity exhibits new for 2013 5-tyre PCR tyre range INFINITY TYRES HAS EXHIBITED the three latest additions to its at the upcoming Autopromotec trade show in Bologna during range at events in France and Spain. Joining the recent performance geared passenger car tyre lines, the Ecomax and the Ecosis, the Ecopioneer, Enviro and Ecovantage patterns were displayed at Pneu Expo in Lyon and at Madrid’s Motortec Automechanika Ibérica. The two performance PCR products have begun shipping to Europe from China’s Shandong Linglong plant, which manufactures the brand, while the other new models will arrive later in the year to complete a full 13-19 inch line-up in 2013. Explaining the structure of the range, Infinity says the Ecopioneer is designed for small city and commuter cars; the Enviro is the brand’s “new premium SUV tyre”; while the Ecovantage is designed for modern light commercial vehicles. The production models of all three tyres have been approved and Infinity revealed that the new ranges only “await legislative confirmation” before their official launch. This will take place

May 2013. Nigel Hampson, Infinity’s head of business development, said: “The feedback we’ve had already on Ecomax and Ecosis has been very positive and we’re really excited to reveal the completely new and extended Infinity passenger range for 2013. “For any tyre brand to launch a whole new generation of tyres from 13 to 19 inches in such a short period as well as launching new tyres for commercial van and SUVs is quite unprecedented. Our engineering and design teams must be commended in managing to complete all these projects on schedule. But we want to do things right for the European tyre market and demonstrate the commitment we have to our partners in developing Infinity with them for the long-term. We can’t wait to share the good news.” akb

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COMPANY NEWS

Michelin considering European plant closures When it comes to making cost savings in Europe, Michelin’s management is not ruling anything out. In a clear sign of the pressure tyre manufacturers are under in Europe, Michelin said to be considering headcounts and manufacturing capacities. The fact that such things are being discussed so openly could also be interpreted as a sign that the company is trying to allay investor questions related to what action it is taking to address the tough conditions the market has found itself in.

Quoted in the Monday 25 March 2013 edition of French daily Les Echos, Florent Menegaux, director of the passenger car and light truck products division reportedly said: "We do not exclude anything, we must consider the evolution of the market, whether the situation is sustainable or not," adding: “We are in a situation of overcapacity. All segments are impacted." Various news sources point out that Michelin, which employs 63,000 across Europe and is the world’s second largest tyre maker, met with union representatives on 7 March to discuss the future of some of its French plants. Any move in this direction would appear to counter earlier strategies to reduce headcount in the mature European markets through the natural cycle of attrition. "We must think about the market's evolution, assess whether the situation will last,” Menegaux told Les Echos, with the company pointing out that passenger car and light truck tyres fell 13 per cent in February after declining 14 per cent in January.

Truck tyre traffic jam: with demand stalling, market share falling and production capacity underutilised, Michelin is said to be considering factory closures in Europe. French plants and the truck tyre sector are thought to be specific targets. and suggests the company is preparing for the possibility of taking action in this way. As far as the question of what direction the cuts will be focused on is concerned, financial analysts at Deutsche Bank are suggesting that the situation is particularly acute in the case in truck tyres.

Lower market share means reduced factory utilisation

Are truck tyres a particular concern? The questions are will Michelin have to follow through on plans of this kind and if so what will be cut first? Of course with the tail-end of the closure of Goodyear’s Amiens, France plant still underway, there is precedent for such action amongst the companies peers. However, as a French company has always appeared reluctant to cut jobs in its homeland through direct redundancies and plant closures wherever other options remain open. That the company is being so open about the scenarios it is considering highlights the seriousness of the situation

In an investors note dated 26 March, Deutsche Bank points out that since 2007 (after which the financial crisis began) the European truck tyre market has declined by 8 per cent (from around 22 million units to 20 million units). At the same time, Michelin has reportedly lost market share from 36 per cent in 2007 (which is made up of a 70 per cent share in OE and 22 per cent share in replacement tyre sales) to an overall figure of 29 per cent, according to Deutsche Bank. This is said to be partly attributable to a voluntary reduction of the company’s OE market share. However the result is

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that 7 of the company’s plants in Western Europe are said to be running at a low 60 per cent of capacity. And this specifically means production of 5.5 million units compared with a capacity of 9.9 million units. Furthermore the analysts estimate that overcapacity can be estimated at 2.5 million units (or two plants) and 2,500 people. Nevertheless Deutsche Bank’s thesis is that nowadays tyre companies are more profitable in passenger car tyres than in truck tyres because truck tyre operations have suffered from “limited restructuring, weak volumes, higher raw material content (especially natural rubber)” and in addition despite higher selling prices Michelin generates lower margins in trucks (7 per cent EBIT margin in 2012) than its European peer group. However, whether this is an accurate picture and what this would mean in practice if it is (will Michelin consider closing two whole plants or spread cuts across the continent? Is there another option?) remains to be seen. cja

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COMPANY NEWS

Pirelli’s ‘record profitability’ in 2012 confirms emphasis on premium segment PIRELLI & C. SPA

REPORTS it achieved “record profitability” in 2012 thanks to its “focus on premium and efficiencies.”The figures certainly seem to bear this out. Net profit rose 27.4 per cent year-on-year to 398.2 million euros on the back of a 7.4 per cent increase of sales to 6.1 billion euros. And EBIT rose 34.2 per cent to 780.8 million euros and the EBIT margin went up from 10.3 per cent in 2011 to 12.9 per cent last year.

“The Pirelli group’s results for 2012 show growth in the key economic indicators compared with 2011, in particular in profitability, notwithstanding the difficult macro-economic context, especially in European markets,” the company stated on 11 March. “Pirelli’s positioning with premium products and in markets of rapidly growing economies, as well as progressive improvements in the efficiencies’ plan, allowed the group to achieve a level of profitability among the highest of the tyre sector.” The 7.4 per cent growth in sales included growing premium segment revenues, which totalled 2.1 billion euros, a 20.9 per cent increase from 2011, and equalled 47 per cent of consumer segment sales in 2012, up from 43.7 per cent the previous years. Europe remains the main premium market; growth here declined to four per cent in 2012, however, in comparison with the NAFTA region, where premium revenues registered 35 per cent growth. At the end of 2012, emerging markets in total represented 22 per cent of premium revenues, but the rate at which this level is growing is accelerating; in 2012 this was +69 per cent compared with 2011. Pirelli says this focus on high-end products, characterised by higher profitability, together with a rigorous pricing policy, allowed it to “comfortably absorb” a decline in volumes, especially in European markets as well as other negative factors and strategic investments. Activities carried out by Pirelli Tyre accounted for virtually all the company’s revenues. Of the 6.0 billion euros revenues earned through Pirelli Tyre in 2012, 4.4 billion were earned in the consumer segment – a growth of 12.6 per cent. Pirelli’s industrial business declined 3.9 per cent year-on-year to 1.6 billion euros. The Italian firm’s targets for 2013 are based on the projection that the global passenger car tyre market is expected to grow 2.5 per cent, or around 1.3 billion pieces, essentially due to the development of the premium segment, which continues to grow at more than seven per cent – a rate at least three times faster than non-premium. Pirelli expects the overall percentage held by premium to grow from 12.7 per cent in 2012 to 13.3 per cent this year. Mature markets will see “contained” growth of one per cent,

mainly due to the premium segment growing 3.8 per cent, and by the end of 2013 the premium segment should account for 18.2 per cent of the market in these regions, as compared with 17.7 per cent in 2012. Emerging markets should register four per cent growth, with premium developing at around 15 per cent and equal to 8.5 per cent of the total at the end of 2013, up from 7.7 per cent in 2012. The radial truck tyre market is expected to grow by 4.8 per cent or around 136 million pieces, with similar trends in mature (+5.3 per cent to 37 million pieces) and emerging (+4.6 per cent to 99 million pieces) markets. Pirelli confirmed its focus on premium and aims to improve its replacement channel positioning in mature markets. These objectives in 2013 will be reflected in a three to four per cent increase in total volumes, with a high-single-digit trend in emerging markets and “substantial stability” in mature markets compared with 2012. The premium segment will drive growth, with a rate of development during the year between 13 and 14 per cent. Price/mix is expected to grow between four and five per cent. Total revenues are expected to increase by between four and five per cent to 6.3 to 6.4 billion euros. sg

Pirelli 2012 results at a glance Net sales: EBIT:

6.1 billion euros 780.8 million euros, up 34.2 per cent

EBIT margin:

12.9 per cent (2011: 10.3 per cent)

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COMPANY NEWS

Stable 2012 sales for Trelleborg Wheel Systems FULL YEAR RESULTS for Swedish firm Trelleborg AB show its Trelleborg Wheel Systems business unit generated net sales of SEK 3,865 million (£386.8 million) in 2012, a very slight increase on a year earlier. In the final quarter of 2012 sales came to SEK 833 million (£83.4 million), 13 per cent less than a year earlier. Reporting this fourth quarter result, the company says Q4 sales were lower year-on-year in all market segments, however they were in line with general market trends. Operating profit amounted to SEK 449 million (£44.9 million) last year, a 12 per cent increase the Swedish company attributes to enhanced efficiency and favourable capacity utilisation. Final quarter operating profit dropped 27.3 per cent per cent to SEK 72 million (£7.2 million), primarily due to lower sales. “The seasonally weak fourth quarter was distinguished by a lower rate of production in Europe, in contrast to the higher number of tractor registrations,” wrote Trelleborg in its fourth quarter and year-end report 2012, which was released on 13 February. “This prompted a number of OEMs to reduce their inventory levels. The global trend for material handlings vehicles were mixed, with lower sales in Europe but a stable market in North America. In China, the market for industrial tyres as well as agricultural tyres continued to develop positively.”

Trelleborg Wheel Systems’ annual net sales of SEK 3,865 million represent 18.2 per cent of the total sales of SEK 21,262 million (£2.1 billion) generated by Trelleborg in 2012, and its operating profit of SEK 449 million 19.2 per cent of the SEK 2,342 million (£234.4 million) total. Trelleborg Wheel Systems achieved an SEK 11.6 per cent return on sales during the year, higher than the 11.0 per cent company average. Capital employed by the business unit in 2012 came to SEK 2,794 million (£279.6 million) and an 18.4 per cent return on capital employed was achieved. Giving his overview of Trelleborg AB’s performance during the year, company president and CEO Peter Nilsson stated: “Full-year 2012 was a good 12 months for Trelleborg. In a turbulent economic climate, we improved our geographic balance and portfolio of operations and strengthened our positions…It is a demonstration of our strength that we are able to report satisfactory sales, operating profit and operating margin, despite the period that were underpinned by the considerable unrest prevailing in the global economy in the fourth quarter. In addition, cash flow developed positively as a result of efficient management of working capital. We are seeing signs that the market trend is beginning to stabilise, albeit uncertainty remains. We are carefully monitoring economic developments and have a solid financial base and continued high readiness to manage a volatile market.” sg

Russia remains a Nokian strength NOKIAN TYRES HAS REPORTED 10.7 growth in net sales to 1.61 billion euros, 9.2 per cent rise in operating profit to 415.0 million euros and a 7.1 per cent increase in profit to 330.9 million euros. Publishing its 2012 results, the company said Russia proved a regional strength during the year and demand for Nokian’s passenger car tyres increased there, while demand “decreased clearly” in Central Europe. Combined output of the company’s plants in Nokia, Finland and Vsevolozhsk, Russia in 2012 was 15.7 million tyres, and the annualised capacity at year-end was 18 million pieces. “In 2012, Nokian Tyres performed well in a challenging environment and recorded all time high sales and profits combined with excellent cash flow,” reported company CEO Kim Gran. “Our position is very strong in core markets, the company is debt-free and we are able to further develop our business from a healthy position.” Although Gran observed that “uncertainty and slowing growth” continued to be a feature of the global economy, he pointed out that Nokian Tyres’ two core markets, Russia and the Nordic countries, “were among the best of the developed world” from an economic development point of view.

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Sales of passenger car tyres in Russia, a market where Nokian describes itself as “the market leader and the biggest manufacturer of premium tyres,” grew three times faster than those in the overall market. In 2012, Russia and the CIS accounted for 35 per cent of the company’s total net sales. Nokian estimates that 41 million car and van tyres were sold on the Russian market during the year, and it anticipates that the premium tyre market there will grow by a yearly average of 10 per cent. Nokian is the largest exporter of consumer goods in Russia; tyres from the two Vsevolozhsk plants are now delivered to

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COMPANY NEWS

over 40 countries. Capacity in Russia will further increase with the installation of a 13th production line this year. “Production in Russia has been supported by tax relief based on the amount of investment and the location of the factory within customs barriers. By Russia joining WTO, the tyre duties will go down gradually; duty of car and van tyres will decrease from 20 per cent to 18 per cent in 2013 and gradually to 10 per cent in five years,” Nokian reports. Meanwhile demand was significantly lower in Central Europe due to the region’s economic situation combined with high carry-over inventories. Nokian gives the size of the European market in 2012 (excluding the Nordic countries) as approximately 230 million car and van tyres. It adds that total market growth is slow, with the winter tyre segment growing faster. The company’s net passenger car sales for all regions rose 13.9 per cent to 1.22 billion euros and operating profit increased 12.5 per cent to 410.8 million euros, with a 0.4 per cent decrease in the margin to 33.7 per cent.

Heavy Tyres While overall sales in the Nokian Heavy Tyres business decreased 7.5 per cent to 104.4 million euros year-on-year, average selling price increased by six per cent due to an improved sales mix, price increases and a higher share of replacement market sales (these now account for around 60 per cent of the total). Production volumes for Nokian Heavy Tyres decreased 13 per cent compared with 2011, and Nokian says that during 2012 production was “optimised to match a lower demand from OE customers and to reduce the inventory level.” Segment operating profit declined 34.3 per cent to 11.3 million euros and the margin contracted from 15.3 to 10.8 per cent. Investments are now in progress to modernise the Nokian Heavy Tyres factory, to open bottlenecks in production and to increase radial tyre output. The factory upgrade will be completed in 2013.

manufacturer observes that the truck tyre market was “challenging” in Europe last year, and although increasing demand for winter tyres led to an increase in demand towards the end of the year, overall 2012 demand was down 19 per cent from the prior year. The company says its truck market share in Russia and the Nordic countries due to an “improved product range in both premium and standard tyres.” Net sales of Nokian truck tyres and retreading materials declined 10.2 per cent year-on-year to 52.9 million euros. Nokian describes operating profit and cash flow as being “at a healthy level”; however it does not give any figures.

What about overall earnings traction? Reading Nokian’s financials provokes a number of interesting observations. First of all, the healthy figures appear to fly in the fact of predictions from financial analysts. In the run-up to Nokian’s publication of its fourth quarter financial results, some were asking if the Finnish company’s earnings are losing traction. The reason was said to be that “decelerating Russian sales and an unexciting European winter tyre season are a recipe for disappointment”. Apparently that is not the case. But the thinking behind the predictions is perhaps worth bearing in mind. According to Morgan Stanley car sales are slowing down in Russia, which together with the CIS states, accounted for nearly 40 per cent of Nokian’s total revenue and an estimated 60 per cent of profit in 2012. New car volumes are said to be important for Nokian because the analysts estimated that sales of winter tyres for new cars in Russia account for greater than 50 per cent of total premium winter tyre unit sales in the country. And all this is expected to be particular bad news for Nokian as it could mean it is difficult for the company which specialise in the so-called “dual niche” of winter tyres in Eastern Europe, Nordic markets and Russia, to shift inventory without the help of discounting. sg/cja

Nokian 2012 results at a glance Net sales: 1.61 billion euros Operating profit: 415.0 million euros

Truck Tyres The Nokian Truck Tyres unit primarily focuses on tyres and retreading products for winter conditions. The Finnish

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COMPANY NEWS

Moody's downgrades ATU’s corporate family rating Moody's Investors Service has downgraded the corporate family rating of Germany’s A.T.U. Auto-Teile-Unger Investment GmbH & Co. KG from Caa1 to Caa2 and the company’s probability of default rating from Caa1-PD to Caa2-PD, while affirming the Caa3 rating of the issuer's 143 million euro senior subordinated floating rate notes. At the same time, Moody's has downgraded the 75 million euro senior secured floating rate notes issued by ATU from B3 to Caa1.The outlook on all the existing ratings has been changed to negative from stable. “The rating action has been triggered by the increased refinancing risk for the outstanding bonds totalling 593 million euros, falling due between May and October 2014 as well as the company's weaker-than-expected operating performance in first half of its 2012/13 financial year ending June 2013,” stated Oliver Giani, lead analyst at Moody's. "The weak operating performance during the past two years has not only resulted in elevated leverage ratios, but also makes ATU's refinancing more challenging.” Although Moody’s notes that ATU's management has been “exploring various options to ensure a long-term financing structure ahead of final maturity,” it points out that “no viable and concrete refinancing plan is visible at this stage,” given the maturity of the 450 million euro notes in less than 15 months. Driven by economic uncertainty and extremely weak consumer sentiment in the automotive aftermarket, ATU's sales went down by 1.6 per cent to 1.22 billion euros for twelve months to 31 December 2012. ATU reported a net debt-to-LTM EBITDA ratio of 6.0x as of December 2012, compared to 6.2x a year earlier. However, due to weakened EBITDA as adjusted by Moody's (which includes restructuring costs), adjusted debt/EBITDA has been deteriorating to 8.4x as of year-end 2012 from 7.9x a year earlier and 7.2x per year-end 2010. According to Moody’s base case projections, leverage will stay high at above 8.0x in the next few years, as it does not expect positive free cash flow generation which could be used to reduce debt, nor does Moody’s expect any significant improvement in EBITDA. “ATU's weak performance in the past two years makes it more challenging to secure the necessary refinancing in the coming months,” Moody’s adds.

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Announcing its decision to downgrade ATU’s corporate family rating, Moody’s stated: “We acknowledge that ATU gained some market shares and is well on track to improve its cost base, which has largely offset the decline in top-line to keep EBITDA in the range of 90-100 million euros (adjusted by ATU). However, this was not sufficient to cover the high interest burden and increased capex during the past two years. We expect ATU's cash flow generation and debt service capacity to remain quite limited in the near term.” As of December 2012, ATU had a cash position of 23 million euros and a supersenior revolving credit facility (RCF) maturing in March 2014, which was drawn from time to time to cope with the seasonal swing in working capital. As of December 2012, the 45 million euro RCF was not utilised. “We note that drawings under this facility are dependent on a minimum EBITDA covenant, under which the company had adequate headroom as of December 2012,” comments Moody’s. “The company had no short-term debt maturity except the 450 million euro notes due in May 2014. Moody's cautions that it might be challenging for ATU to renew its RCF before the resolution of the refinancing issue, leading to a potential deterioration of ATU's liquidity profile. Overall, we consider ATU's liquidity profile to be rather weak.” Moody’s says the negative outlook reflects its increased concerns about ATU's ability to secure a long-term financing structure ahead of final maturity. It also reflects the deteriorating trend in leverage during the past two years, which is unlikely to recover in the next few years. Any indication that the refinancing cannot be achieved before final maturity, or that the company plans to engage in a

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distressed exchange, would put pressure on the ratings, Moody’s adds. Downward pressure would also arise if the group's restructuring efforts prove to be insufficient to maintain an earnings level and the leverage would continue to increase. Likewise a deterioration of ATU's liquidity profile would create downward pressure. “We would revise the outlook to stable if ATU is able to timely and sustainably refinance its upcoming debt maturities, and avoid any further deterioration in its leverage ratio and liquidity profile,” Moody’s continues. “The rating could be upgraded in case of a reduction in the overall debt level leading to a more sustainable capital structure.” ATU is Germany's leading operator of brand-independent car workshops with integrated specialist auto retail stores. As of December 2012, ATU operated a network of 645 branches, 598 of which are located in Germany, others in Austria, the Czech Republic, the Netherlands, Switzerland and Italy. In 2012, ATU generated 1.2 billion euros in revenues through its approximately 12,000 employees. Around 80 per cent of its sales are generated in the vehicle workshops through servicing and repairs, with the remaining amount generated through the sale of auto parts and accessories in stores and online. ATU is owned by private equity firm KKR and management. sg

COMPANY NEWS

2012 performance best ever, says Conti CEO At Continental’s annual press conference on 7 March, CEO Dr. Elmar Degenhart described the company’s 2012 performance as “the best results in Continental’s 124 year history.” He reiterated that last year’s annual profit of almost 1.9 billion euros equals 9.24 euros a share, compared with 6.21 euros in 2011. Therefore, Dr. Degenhart shared, Continental’s management intends to propose to the company’s Annual Shareholders’ Meeting on 15 May that a dividend of 2.25 euros per share be paid out for fiscal 2012. “As in the previous year, out intention here is for our shareholders to participate directly in the company’s success,” he added. “In addition to the dividend, our shareholders also benefit from the extremely positive share price performance – with an increase of 82 per cent in fiscal 2012 alone. As such, our shares displayed the highest price increase of any of the DAX companies. It is fair to say that an investment in Continental shares paid off handsomely in 2012.” Degenhart said Continental remains “confident, albeit a bit more guarded” with its forecast for the current year. “Essentially, we expect markets to develop much the same as in 2012: Europe will remain weak, while North America is likely to grow, though at a much slower pace than in 2012. We expect strong growth in Asia, with China as the driving force there. “As expected, 2013 got off to a difficult start,” Degenhart continued. “Current assessments indicate that combined light vehicle production in Europe and NAFTA will fall by around

eight per cent in the first quarter of 2013. For Europe alone, we anticipate a decline in production of 12 per cent. We still generate approximately 50 per cent of our Automotive Group sales in this region. This year, the downturn in the first quarter cannot be offset by growth in other regions, as was possible, for example, in the fourth quarter of 2012. Demand on the Investing in Conti shares replacement tyre markets in Europe and “paid of handsomely in NAFTA is, moreover, also showing conti- 2012”,noted CEO Dr. Elmar Degenhart nued sluggish development. “Overall, we therefore expect consolidated sales to drop one to three per cent in the first quarter vis-à-vis the record sales in the first quarter of 2012,” the Conti CEO shared. “For the remainder of the year, we expect to see a pickup in consolidated sales, particularly in the latter half of 2013, buoyed by an increase in global light vehicle production and demand on the replacement tyre markets. As mentioned earlier, for all of 2013, we anticipate an increase in global production of passenger cars, station wagons and light commercial vehicles from 80.9 million units in 2012 to approximately 82.5 million in 2013. We also expect demand on Continental’s key replacement tyre markets to grow by around two per cent.” sg

Lanxess reports strong 2012, notes Q1 2013 weakness IN THE INTRODUCTION TO LANXESS AG’S 2012 ANNUAL REPORT, Board of Management chairman Axel Heitmann comments that “when Lanxess became an independent company eight years ago, few people believed it would have a successful future. That’s why I can look back on the 2012 fiscal year with particular pride. There is hardly any other year in our history that demonstrates more clearly just how successful we have become since 2005, despite many predictions to the contrary.” Heitmann notes that EBITDA and net income reached new highs in 2012. Yet he also cautions that such results shouldn’t be interpreted as evidence of an easy 2012 at Lanxess. “We had to work incredibly hard for our success until the last day,” he comments. Positive final quarter results were mainly the product of fewer one-time effects compared to the previous year, and Heitmann shares that economic conditions deteriorated in the second half of the year, with weaker growth in parts of Asia and sluggish economic momentum in Latin America adding their weight to the eurozone crisis’s effect on the European economy. For full year 2012, Lanxess achieves sales of 9.094 billion euros, a year-on-year increase of 3.6 per cent, while fourth quarter 2012 sales of 2.123 billion euros remained at the same level as the final quarter of 2011. EBITDA pre-exceptionals reached 1.225 billion euros in the year and 239 million euros in the

fourth quarter, respective year-on-year increases of 6.9 and 37.4 per cent, with margins of 13.5 per cent for the full year and 11.3 per cent for the last quarter. EBITDA amounted to 1.188 billion euros for full year 2012, a 7.9 per cent increase, and in the final quarter amounted to 228 million euros, up 58.3 per cent yearon-year. Operating result, or EBIT, at 810 million euros for the year, rose 4.4 per cent in 2012, while in the fourth quarter it amounted to 126 million, up 142 per cent from the last quarter of 2011. Net income rose 1.6 per cent year-on-year to 514 million euros and 920 per cent to 51 million euros in the fourth quarter of 2012. Lanxess’ Performance Polymers segment made sales of 5.176 billion in 2012, up 2.3 per cent year-on-year and a result described by the specialty chemicals company as “a very solid performance compared to the strong prior year.” The company says all the segment’s business units saw declining demand from their principal customer industries. “Our Butyl Rubber and Performance Butadiene Rubbers business units, which are closely allied with the tyre industry, posted slight declines in volumes in light of the weak sales in the automotive industry,” wrote Lanxess. “The extremely low to negative growth rates posted by the tyre and automotive industries in some regions had a tangible effect on our Performance Polymers segment.”

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TYRES & ACCESSORIES 4/2013

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GiTi Tire introduces new HR director – Europe

Dr Gabriele Bosselmann joins GiTi Tire’s European operation in the newly created position of HR director - Europe

GITI TIRE HAS ANNOUNCED the appointment of Dr Gabriele Bosselmann to the newly created position of HR director - Europe. Dr Bosselmann will join the EU leadership team and be responsible for HR policies, processes and procedures, as well as hold a key role in the development of business plans and objectives. GiTi says the appointment forms part of the continuing strategy for Eu-ropean growth, strengthening the company’s structure in the territory. Dr Bosselmann will report directly to Richard Lyons, managing director – Europe. The company has expanded rapidly in Europe over the last six years, having introduced a strategic sales subsidiary in 2006 and set up a sales and retail operation in the UK in 2009. Dr Bosselmann, who possess over 20 years’ pan-European HR

experience, joins from O-I Europe, the world’s leading glass packaging maker, where she held the title of HR director. She previously held senior roles undertaking HR Deployment of LSS, FCP-Folding Carton Partners and Jackstädt GmbH. Lyons said: “In just eight years staff numbers across Europe have increased substantially in line with our market share, and our business strategy and growth projections will see this number expand still further over the coming months and years. “The CV of Gabriele is hugely impressive, with a proven track record of strategic HR and financial management to match her qualifications. This is a huge coup for Giti Tire, and one that marks another important day in the development of the company and its brands.” akb

Greco resigns from Pirelli board Pirelli & C. SpA has announced the resignation of Mario Greco from his role as a member of the company’s Board of Directors. The reason given for his resignation is the “considerable commitment” required of him by the reorganisation of the Generali Group (Assicurazioni Generali). Greco took over as CEO of the Italian insurer in August 2012. Upon announcing Greco’s resignation, Pirelli thanked him for his contribution to the group. sg

Dunlop appoints Dee as Motorcycle Motorsport head Dunlop Motorsport has announced the appointment of Jason Dee as manager, Motorcycle Motorsport Europe. He replaces Steve Male, who announced his retirement from Dunlop Motorsport after 43 years’ service. Dee has worked at Dunlop for 16 years, most recently being responsible for the Motorsport Sales and Operating Process and Supply Chain functions. He will be based at the company's Motorsport Technical Centre at Fort Dunlop, Birmingham, England. Dee has extensive experience of the Motorcycle Race business, having been product manager for the sector between 2007 and 2010 and having worked on the company's MotoGP programme between 2001 and 2003. Dunlop Motorsport says Dee will move into this position next month to allow a full transition period with Steve Male.

"I am proud to be progressing my career with Dunlop Motorsport and look forward to the challenges and opportunities that managing the motorcycle race business will bring. The team is already very strong, winning in national and international events, and we have exciting plans to build our presence in the coming years," said Dee. Jean-Felix Bazelin, general manager, Motorsport Europe explained that Dee’s appointment is the latest in a series of recent appointments to the company's management team. "In the last two years we have strengthened our management team with five new appointments, across Marketing, Design, Finance and now Business Operations. I'm delighted that each of these appointments has been the result of in-house talent development, bringing strength and experience to our team has we plan for the next exciting

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New manager at Dunlop Motorcycle Motorsport Europe, Jason Dee

chapter in Dunlop's 125 years of winning. Jason brings vast experience of both the business and the sport and will play a key role in driving Dunlop to future racing success." Dunlop Motorcycle tyres were the choice of winners in the FIM Endurance World Championship and Isle of Man TT in 2012 and are also the official tyre of the Moto2 and Moto3 World Championships. akb

TYRES & ACCESSORIES 4/2013

Chris Wakley joins Chicane

SEMA appoints Spagnola as vice president SEMA has appointed Mike Spagnola into the newly created position of vice president, OEM and product development programs. The move, which is effective immediately, see Spagnola bring with him 40 years of specialty auto parts experience, including more than 20 years of product development and project vehicle work. “We’re excited to have Mike join SEMA in developing services that help members with product development and OEM initiatives,” said Chris Kersting, SEMA president and CEO. “SEMA’s

vehicle technology and OEM programs, led by John Waraniak and Bill Wolf, have proven to be extremely beneficial over the years. Mike will work with our existing team to enhance and add to the services SEMA makes available to our members.” Spagnola’s track record includes retail, distrib-ution and manufacturing experience. Most recently, he served as president for Street Scene Equipment where he managed the company’s dayto-day business for 16 years. cja

Continental appoints Dick Rozeboom as Benelux two-wheel head Dick Rozeboom has recently changed to a new job with Continental Group BV in Barneveld, Holland. According to an official statement released by the company in order to announce the news, Rozeboom takes on his new role with immediate effect in a move designed to strengthen the company’s sales and distribution in the area.

Until the middle of last year, Rozeboom was responsible for truck tyres at Continental. Now he has switched to the comparatively small lightweight motorcycle tyres and is responsible for the motorcycle in the Benelux region. cja

Noji new Yokohama North America boss

New pricing analyst at Point S Point S has appointed Jonathan Smith as a Pricing Analyst. As Pricing Analyst, Smith will be responsible for regularly reviewing the data provided to Point S by suppliers including Bridgestone, Michelin and Yokohama. Any insights gained from this information will then be fed back to member via the pricing area of the new Point S website. In addition he will also be developing a range of automated processes that will enhance member’s experience of Point S. Jonathan Smith Prior to joining Point

TYRES & ACCESSORIES 4/2013

Chicane, has boosted its media relations team with the appointment of Chris Wakley as a consultant. Wakley brings with him 35 years of automotive media relations experience and will assist Chicane with further developing its media relations offerings to automotive businesses as well as to the agency’s existing client base. Chris Wakley is a former press officer at the SMMT, a founder member of the Motor Industry Public Affairs Association (MIPAA) and a founder director of Automotive PR, an agency he ceased working with last year. Since that time he has operated as an independent media relations consultant and continues to act for a variety of motoring clients. Chicane director, Gary Barak said, “We are absolutely thrilled to have Chris on board. I have known and respected Chris as a friend and a fellow PR man for many years and to have him working alongside us can only benefit us as a company, our clients and indeed future clients.” cja

S, Jonathan worked as a statistician and data analyst for AIS Ltd the department and furniture store buying group. Speaking about his appointment John Cowderoy CEO of Point S said: “Over the past year Point S has experienced significant growth in terms of membership, as an organisation we are committed to delivering the best possible service for our members and Jonathan’s appointment is the logical next step. Pricing has always been key within the tyre industry and as a result we are always looking to ensure our members are aware of the best deals available to them, and by employing Jonathan we feel that we will be able to do this better.”

In addition to serving as president and representative director of Yokohama Rubber, Hikomitsu Noji has been appointed CEO of its North American operation, Yokohama Tire Corporation. Noji begins as CEO on 1 May; he is expected to travel to the United States regularly in his new role but will remain based at Yokohama Rubber’s headquarters in Tokyo. Incumbent YTC president and CEO Yasushi Tanaka will take up the position of assistant to the president of Yokohama Rubber’s Tire Business Group. In his new capacity, Tanaka will oversee Yokohama Rubber’s global plans on new plant constructions as well as expansions on existing plants.

cja

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04/03/2013 12:40

WHEELS

Wheelwright responding to tough passenger market with niche growth Market conditions in Europe for the aftermarket sale of car, 4x4 and light commercial vehicle wheels have continued to provide an inhospitable environment to those active in the area. The ability to sell luxury, desire-driven items in a down economy has been a question to which UK distributor Wheelwright has continued to seek an answer since 2008. The company has taken many positive steps, having revamped its website and e-commerce services to address growing internet buying habits; introduced the private Calibre and Calibre Couture brands; and increased marketing to a more diverse range of applications, such as winter and van wheels. Wheelwright managing director, Kevin Greer told Tyres & Accessories that the company has found positives in certain niches having “acknowledged the reduced demand” of the UK car wheel market. “Interest from operators of light commercial vehicles has grown,” Greer says, reflecting more interesting size and style options for what was once a deeply conservative segment. He says interest has grown thanks to such fitments as 20” wheels on Volkswagen’s Transporter T5 and the Vauxhall Vivaro. There has also been increased interest in steel and alloy winter wheels. Another encouraging market has been the used prestige vehicle market, which traditionally picks up when drivers seek to make more economical purchases. Greer explains that aesthetic modifications such as new wheels can be a very attractive and “cost-effective” way for buyers to spruce up older models. Tyres & Accessories asked whether there was a chance that tyre dealers would seek to add wheels to their product range, since diversification is generally seen as a good option in economically difficult times. Greer explained that there had been “an exodus from the high street a few years ago” as e-commerce became more attractive, but that

Wheelwright is seeing the beginnings of a return. Greer explains that the growth of e-Commerce seems to have plateaued and higher prices have brought with them “increased interest in contact with sales” and customer service teams. A Tyrepress poll run on the website over the past month suggests that there is plenty of room to grow tyre depots’ interest in wheel sales, with only two per cent of respondents saying they do currently sell wheels.

rim. With 8x18” and 9x18” sizes, the wheel is designed to look at home on retro rides, Wheelwright says. The Calibre Couture CC-V is a more modern, heavily concaved design aimed at the more prestige end of the market for tuned VIP, Jap or Euro cars. Finished in satin silver with a polished lip, the CC-V’s five spoke design features substantial geometric shapes with an aggressive shoulder that cuts back into the deep lip, along with clearly defined perpendicular edges to all front faces. This allows for large caliper clearance, permitting the fitNew designs look to past, US ment of the largest possible brake upgraTrends of wheel sales in the USA, to des. Calibre has targeted many 18, 19 which much of Europe looks in this seg- and 20-inch sizes for this wheel, making it ment, suggest that a recovery could be a major release in this category. coming, since 2012 estimates put growth andrew.bogie@tyrepress.com at around four per cent in the country. Understandably, the latest aesthetic choices have also been inspired by US styling, Greer says, with three major fashion trends being “concave wheels, threespoke wheels and old school designs.” Greer also points to the influence of “extreme West Coast styling”, which favours “uniqueness as a key want” of the part of wheel segment catering to a largely 20s and 30s male demographic. Some of the latest wheels from Wheelwright private brand Calibre include the CC-X, a retro-inspired design with Calibre CCV the latest technology and finishing techniques; the CR-III, responding to the comeback of the three-spoke wheel; and the more modern, heavily concaved Calibre Couture CC-V. The CC-X is sized for a wide range of fitment and PCD options. Finished in a brushed silver hue inspired by the latest surface textures, the CC-X uses the classic ‘mesh’ design with pseudo-split-rim styling and an aggressive shouldered spoke that allows it to be fitted with larger brakes. Recalling Brabus and Saab designs the CR-III also has pseudo splitrim detailing and a fashionable deep dish Calibre CR3

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TYRES & ACCESSORIES 4/2013

WHEELS

MWS, ATS Euromaster launch wheel safety training DVD MOTOR WHEEL SERVICE DISTRIBUTION MANAGING DIRECTOR John Ellis has sustained a lengthy campaign for increased safety checks on commercial vehicle wheels over the past few years – a campaign that has seen him address the British and more recently European parliaments. The results of his most recent explanation to the European Parliament of the insufficiency or non-existence of regulations and guidelines governing inspection procedures within the commercial vehicle wheel supply chain and vehicle servicing sector remain to be seen; his MWS report will continue to be discussed at EU level as its Roadworthiness Package is drafted. (See Tyrepress.com/issues of Tyres & Accessories for regular updates regarding Ellis's proposals.) In the meantime, MWS has acted upon the scarcity of wheel safety information via a rather different route. T&A visited the wheel distributor's base near Manchester to view a recent DVD and service and support manual produced in conjunction with commercial partner ATS Euromaster, and hear about the company's efforts to improve the market's awareness of wheel safety through partnerships rather than legislation. The ATSE training DVD, produced "in association with Motor Wheel Service" as a slide declares at its beginning, divides its wheel message into three parts, first summarising the requirements of seller and operator before demonstrating MWS's ten point checklist for CV wheels and then outlining the commercial possibilities for wheels. After introducing the Chevron brand steel wheels and xlite forged aluminium wheels supplied by MWS to ATS-E, the bulk of the training in the video gives ATSE staff both an explanation and a visual demonstration of the ten signs of wear for which wheels should be checked. These comprise: dents and damage; cracks; signs of under-inflation, which results in increased wear along the circumference of the bead seat; corrosion; markings on the nave plate; markings on the mating surface;

TYRES & ACCESSORIES WWW.TYREPRESS.COM 4/2013

damage to the centre hole or bore; stud holes; paint thickness; and the valve hole. During the demonstration of the details of each of these checkpoints, an ATS-E technician is shown inspecting a wheel taken off the vehicle - Ellis explained that it is important for wheels to be inspected in this way particularly since cracking often appears on the inside of a vehicle first. While improving safety is the ultimate goal of the DVD, the third part shows how increasing the stringency of checks also increases commercial opportunities. In a direct sense it is clearly more likely that damaged wheels will be identified sooner and this will necessitate a distress purchase. Indirectly, raising the attention the fitter pays to the wheel allows a wider interest in the product to develop. Ellis refers to this training as an "attempt to change the culture" by getting fitters and fleet managers alike on the same message; that wheels "shouldn't be brought down to a commodity culture level" since this is "wrong for he product," in his view. He says that it isn’t a difficult argument to get major fleets onmessage, especially given the partnership with ATS-E. MWS hopes that the progress made with ATS-E will lead to a snowball effect. In addition to the ability to get a positi-

ATSE and MWS collaborated to provide extensive training to fitters in promoting wheel safety checks

ve safety message understood across fleets, the MWS/ATS-E wheel proposition is designed to combat what Ellis calls “the patchwork effect” – ie. the replacement wheel being left to chance factors at the point of replacement. Delivering three service levels with Chevron branded steel wheels and the upgrade option of forged aluminium xlite wheels, the companies are using branding as “a way to educate end users [and fitters] about the differences between wheel applications.” Ultimately this represents another method of dissemination for the safety message MWS continues to pursue at legislative levels. andrew.bogie@tyrepress.com

MWS launches reduced weight xlite super single wheels MWS expanded Wheels India’s xlite forged aluminium wheel range earlier in the year, launching two of the lightest super single wheels on the market. The 11.75x22.5 wheel, with a 0mm inset and 10x26mm mounting holes, boasts a weight reduced by 1.6kg to 22.1kg. The new 120mm inset wheel weighs 3.7kg less than its predecessor at 24.3kg. Both wheels have an increased load index from 4,500kg to 5,000kg. John Ellis, managing director of MWSD, said: “This is an important development in the xlite portfolio as it allows us to cover a new range of commercial vehicle applications. The increased load capacity itself is a great development, but to couple that with a reduced wheel weight for both the 0mm and 120mm inset super singles will be a huge factor when speaking to fleet operators.”

The new, lighter xlite 120mm inset forged aluminium wheel has an increased load index of 5,000kg

akb

WHEELS

Surface specialties are our domain Française de roues focusing on original equipment When listing off the major European alloy manufacturers, it isn’t hard to forget the “Française de roues” plant in Diors, smack in the middle of France. The company, along with Dial, is the only cast alloy wheel manufacturer remaining in France.The wheel maker has been established for a number of years and was known as Montupet before its parent company announced plans at the start of to divest its wheel business to Indian company Deltronix. A view of F2R production in Diors

Immediately following this transaction, the former Montupet operation’s business with car makers, which in some instances was only getting under way, suffered and business relationships with customers such as Seat and Alfa Romeo folded. The wheel manufacturer however retained supply deals with the two major French vehicle makers – PSA, with its Peugeot and Citroën, and Renault, with its partners Nissan (supply for the Qashqai was a huge success) and Dacia. In addition, the alloy wheel supplier was and remains market leader with minor vehicle manufacturers such as Mia and Axiam, producers of vehicles that are virtually unknown in the UK but a presence on French roads. “My role now is primarily to re-expand our customer base,” shared sales director Patrick Farque-Metais, who previously served in this capacity at the “old Montupet” and as of last autumn was asked to return to the fold by new owner Deltronix. He explains to Tyres & Accessories a bit about the family-owned Indian company behind the French wheel business, now renamed “Française de roues”, or F2R for short, and why the wheel manufacturer retains the highest standards that will, once again, see strongly it engaged in original equipment business.

the company has established a new plant in Chennai. This entered operation in December 2012 and has an annual capacity of 2.2 million cast alloy rims. Several years earlier, market analyses conducted by the Gupta family into which segments of the emerging Indian automotive industry are expected to grow most of all in the near future led to a decision to engage in cast alloy rim production. Previously only Visakhapatnambased Synergies Casting Ltd. and Enkei manufactured these products in India, and therefore Deltronix intends to fill a gap in the market. The Deltronix group It was at this time that an opportunity presented itself. Established 20 years ago, the Deltronix group belongs to the Montupet, which had already closed its alloy wheel plant in Gupta family and is primarily engaged in supplying the Indian Northern Ireland at the turn of 2006/7, now wished to disautomotive sector with products such as the rubber compo- pose of its facility in France. This offered not only the chance for a newcomer to gain a nents used in ignition equipment. The company is production site, but also also Indian market leader, with a 70 per cent to acquire much-needed share, with its activated carbon filters. And know-how. And the French Deltronix’s wheel business now accounts for plant had know-how aplenmore than 50 per cent of its corporate portfolio. ty, having been in operation Taking advantage of existing Indian OE consince 1970. tacts, Farque-Metais worked towards ensuring But there was a catch: that British manufacturers Jaguar and Land Rover, Today Montupet and Franboth part of India’s Tata group, were supplied by çaise de roues must share Deltronix – as are, amongst others, Maruti Suzuki the Diors plant. Thus walls and Mahindra in India and global players who have were erected and buildings set up shop there, including General Motors, Ford repartitioned following the and Volkswagen. Project manager Kévin Pilliot (l) and sales director Patrick acquisition. Overall, this set Part of the reason why the alloy wheel busi- Farque-Metais with Cecile Lemeu and samples of the latest developments up where two completely ness is growing in importance for Deltronix is that

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TYRES & ACCESSORIES 4/2013

WHEELS

independently-operating firms work under the one roof functions very well, shares Patrick Farque-Metais. Admittedly small jealousies have surfaced, such as when high utilisation rates meant that the F2R workers needed to remain at work while their counterparts at Montupet enjoyed a holiday. The company’s business model sets out that, at least initially, the Indian alloy wheel plant will manufacture basic and, by European standards, small dimension wheels. These wheels are be suited to the Indian market, however the F2R sales director says production in Chennai also promises a better mix for European customers. As opposed to Chinese-produced wheels, tariffs play virtually no role when it importing wheels from India, therefore it in essence irrelevant whether a mould to produce a particular wheel is set up in Chennai or in Diors. Yet the goal isn’t to have two fundamentally identical factories with low pressure cast moulds; instead, the factory in Diors will be utilised for specific niche requirements, confirms plant director Piere Braillon. With a maximum capacity of around two million units, F2R will hardly be able to keep abreast with the largest firms supplying original equipment customers, however it will come into its own with specialties that that would perhaps interrupt the production flow at these other factories, such as individualised, large-dimension wheels. The headquarters of Française de roues is located in Paris and employs only several people, however managing director Kapil Gupta spends a large proportion of his working week there. About 460 people work in the plant itself, which is located some three hours’ drive away from Paris. The plant has both ISO TS 16949 and ISO 14001 certification. Production is carried out according to a 4shift model from Sunday evening to Saturday morning. Since Deltronix acquired the plant in 2010, seven million euros have been invested in projects that include a new smelting oven, and a further five million has been set aside for new equipment such as an automated x-ray facility plus

TYRES & ACCESSORIES 4/2013

production flow optimisation. Turnover at F2R amounted to 81 million euros last year, representing the production of 1,720,000 units. While the Chennai plant has a daily capacity of 10,000 wheels, capacity at the sister plant in France is 9,000 a day and average daily output last year was 7,700 wheels. The company expects production levels to remain the same in 2013. Plant management currently doesn’t foresee the occurrence of any real bottlenecks such as those experienced by some factories due to the constant growth of wheel dimensions. The allow AISi7Mg is exclusively used and wheels from 13 to 19-inches are manufactured (the Indian plant is able to produce wheels up to 21- Carrying out final finishing on a 14-inch Twizzy wheel inches). Currently 18-inch fitments are for an electric car the strongest sellers at F2R and account logos on its wheels, F2R has a full line of for almost 50 per cent of all wheels pro- product solutions at hand in order to fulduced; the percentage of diamond cut fill the high requirements of OEM custowheels manufactured is almost exactly mers. This also applies for the increasingas high – just a few years ago this was a ly-used stickers used for personalising niche product. Two Alstom paint facilities wheels in the replacement business. The are in operation at the plant, the first of manufacturer says it is in a position to these processes around 4,000 units up to take all shades of colour into account and 17-inches in a working day and the a total of 24 various colour tones, combisecond can handle double so many and is ned in either ‘satin’ or ‘gloss’ finishes, are compatible with wheels up to 19-inches. already used in the production process. “Bi-colour-Diamond” wheels are becoming an increasingly popular choice for Specialities ‘fun cars’ and turn even small electric Coloured wheels presently account for cars into eye catchers. F2R offers indivijust a small proportion of total producti- dualised markings that can be applied on, but this is growing rapidly. These pro- and then later removed: these can be ducts have already been supplied to colourful or shaded, or any other wish the OEM customers, evidence that the firm company receives. Such a focus is otherwise only known has rich experience in this area, and it is ready to produce in greater volume at any in the replacement business. The differtime. Technologically-speaking, Française ence here, and it is a major one, lies in de roués is well established; for example, the fact that F2R has managed to realise for more than two years it has utilised such wishes while also fulfilling the high laser technology and is astounded that demands of the original equipment segothers still celebrate this as an innovative ment. Due to historical reasons the focus breakthrough. Some technologies the remains on original equipment, Patrick plant has long used would have benefit- Farque-Metais notes, however in the ted from patent protection during the medium-term nobody is against targeting transition from Montupet to F2R, and are the aftermarket with such products, eitnow widely used by other wheel makers. her independently or on behalf of other However it still enjoys the benefit of replacement market providers. patented processes, such as TCA (short detlef.vogt@reifenpresse.de/sg for Thermo Compactage Accéléré). When it comes to colours, inserts and

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WHEELS

Superior to build new plant,announces 2012 results In addition to reporting its 2012 results, US-based aluminium wheel manufacturer Superior Industries International, Inc. has announced plans to build a new manufacturing facility in Mexico to expand capacity and meet anticipated growth in product demand. The company’s net income for full-year 2012 amounted to US$30.9 million, or $1.13 per diluted share, compared with $67.2 million, or $2.46 per diluted share, in 2011. Superior says the net income decline largely reflected a “swing to income tax expense of $3.6 million in 2012 from a $25.2 million income tax benefit in 2011.” Net sales for 2012 declined slightly to $821.5 million, from $822.2 million in 2011. A seven per cent increase in unit sales volume for 2012 was offset by a reduction in average selling price, primarily due to a decline in aluminium prices. Unit shipments rose to 12.5 million in 2012 from 11.7 million units shipped in the prior year. Gross profit for 2012 declined to $60.6 million, or seven per cent of net sales, from $67.1 million, or eight per cent of net sales, in 2011. The 2012 gross profit included a $3.5 million noncash benefit from resolution of a foreign consumption tax issue. The company said the decline in gross profit and margin percentage reflected the impact of higher levels of manufacturing costs, principally labour and maintenance. The increase in manufacturing cost resulted from higher sales volume, as well as equipment reliability and other challenges that reduced operating efficiencies, especially in the older US facilities. Superior reports continuing to operate its factories at high utilisation rates throughout the year. “The opportunities and challenges in our business have clarified the next steps to improve our operating returns,” said Steven J. Borick, chairman, chief executive officer and president of Superior Industries. “Superior remains the premier aluminium wheel manufacturer in a healthy and growing North American automotive market. While our operations in Mexico consistently have performed at class-leading levels, it has been evident we are not currently positioned to participate fully in North American market growth. Accordingly, after a thorough evaluation of ways to deploy our capital, we have decided to expand our manufacturing footprint by constructing a new manufacturing facility in Mexico, where significant light vehicle assembly expansion has been announced or already is underway.” Borick said Superior intends to invest approximately $125 million to $135 million to construct and equip the new manufacturing facility, which will have an initial annual production capacity of 2 million to 2.5 million wheels. He said a specific site within Mexico still is being identified, with groundbreaking targeted for around the middle of 2013 and completion of con-

struction anticipated about two years later. Architectural plans currently are underway. Borick added that existing liquidity is adequate to fund the project, however the company is evaluating credit options. In addition to erecting a new plant, Superior intends to make further enhancements to its existing operations in both the US and Mexico. Capital expenditures amounted to $23 million in 2012, more than a one-third increase over the prior year, and the company expects to increase the pace of reinvestment in its current factories in 2013 with a goal to improve process capability and operating efficiency, especially in the US. More than two-thirds of capital expenditures in 2012, or almost $16 million, were invested in the company’s older manufacturing facilities in the US, which supported just under 40 per cent of total unit sales volume for the past year. “I am excited about this next milestone step for Superior and for our future prospects. We believe there are great opportunities to improve the company’s operating performance, which we believe should translate to enhanced shareholder value. We remain committed to retain our position as the premier aluminium wheel supplier to the North American automotive industry,” Borick added. sg

Alcoa to present at FPS Expo Alcoa Wheel Products has announced that it will display its forged aluminium products at oil distribution industry exhibition FPS Expo from 17-18 April at Yorkshire’s Harrogate International Centre. The market leader manufactures in Székesfehérvár, Hungary with a service and distribution centre in Paal, Belgium. The company says it will use its stand (B14) to display its most innovative products, such as the Dura-Bright patented surface treatment products; Dura-Flange wheels for longer service life under extreme conditions; and WorkHorse wheels, suitable for construction vehicles with higher maximum load ratings. Forged from a single block of aluminium, Alcoa will explain the many benefits of forged aluminium over steel wheels, such as their strength, reduced weight leading to environmental and economic benefits, and their increased cosmetic appeal. akb

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TYRES & ACCESSORIES 4/2013

WHEELS

Yokohama HPT confirms ‘rotary forged’ wheels across brands The UK distributor ofTSW, Beyern and Mandrus replacement alloy wheels, Yokohama HPT has confirmed the addition of several new wheels to its UK line-up that use the “rotary forging” process to create strong, dynamic and lighter wheels. During manufacturing the outer rim is forged while the wheel centre and rim mould are spun at high speed. TSW’s Panorama and Tanaka, the Beyern Spartan, the Mandrus Rotec and the Victor Equipment Innsbruck are all products of this technique in the current Yokohama HPT range. Named after the world-famous Mount Panorama circuit in Australia, the location for the legendary Bathurst race, the Panorama is a straight-edged, five-spoke wheel with the spokes running from the deep-dished five-hole centre mounting to the very edge of the rim. Sizes range from 17 to 22-inches and in widths up to 11” with three possible finishes; matte black, matte bronze or silver with a mirrorcut face. The Tanaka is also named after the Okayama International Circuit in Japan. It again features five mounting holes and a corresponding number of sharply-edged spokes running to the edge of the rim with a sharp angle turning at the very edge, reminiscent of the sty-

TSW’s Panorama Silver takes its cues from the Australian circuit

ling predominant in drifting. It is sized from 17 to 20-inches and is also available in staggered fitments and in matte black or hyper silver. The Spartan is the latest addition to the Beyern range, designed exclusively for BMW models. Inspired by motorsport, the wheel has eight forked spokes running to the stepped rim and has been designed to integrate with BMW’s TPMS. Available in staggered fitments and sizes from 17 to 20-inches, it comes in three finishes – matte black, hyper silver and chrome. The Mandrus Rotec, part of the Mercedes-specific range, is a multispoke, hard-edged wheel designed to

The Tanaka Silver is also inspired by a circuit, this time Japan’s Okayama International

clear all available brake packages on Mercedes models, integrate with the factory TPMS system and in staggered sizes, from 17-22”. It comes in three finishes – matte black, silver with a mirrorcut face and chrome. The Innsbruck is created for Porsche models, featuring eight forked-tongue split spokes running to the stepped rim. Available in sizes from 18 to 22-inches the Innsbruck is available in two silver with a mirror-cut face or matte black finishes. akb

Carbon One to introduce eco-friendly carbon wheels BRITISH DESIGN FIRM CARBON ONE is poised to introduce a new range of wheels manufactured with carbon to achieve reduced weight targets. The firm estimates that using “nextgeneration lightweight materials, such as carbon fibre composites, could reduce passenger car weight by 50 per cent and improve fuel efficiency by about 35 per cent without compromising performance or safety” – and wheels are the latest component to which it is seeking to apply this thinking. The downsides to manufacturing with these materials are the additional expense and complications in manufacturing. Carbon One says it is working with prestige car manufacturers to develop the next generation of wheels using carbon and carbon/metal hybrid materials capable of enduring higher impact resistance than that of metal wheels. Initial testing on wheels using the new generation of carbon fibre composites “is proving very encouraging”, Carbon One tells Tyres & Accessories, with major energy savings over metal wheels: they use approximately 50 per cent less energy than

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an aluminium wheel with a 45 per cent reduction in moment of inertia from the lightest of metal alloy wheels, the company states. What this means is that they reduce fuel consumption and emissions and increase the power output of a vehicle. Some initial testing on high performance vehicles have showed a saving up to nine per cent on fuel consumption, eight per cent on CO2 emissions and up to a 10 per cent increase in power output. With these figures, car manufacturers can see these advantages as critical, as they can translate in major cost savings in engine development. Another benefit Carbon One identifies is the new wheel technology’s versatility. It says prototypes have shown excellent impact and blast/ballistic properties with air portability thanks to weight reductions that have generated “significant interest for military applications in the UK and US,” the company reveals. The company says it will soon launch its new technology with a line of carbon wheels aimed at high performance vehicles. akb

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WHEELS

SSW launches Euro Technik

Thailand based manufacturer Stamford Sport Wheels (SSW) has launched a new alloy wheel design collection into the UK and European wheel markets, the Euro Technik. The company says the new range marks a first venture into Europe having become established in South East Asia. The design has been exclusively produced in a European style targeting prestige and luxury high performance marques. Colin Choo, general manager of SSW says the range, now available through the company's appointed European dealerships, has received positive feedback in The Netherlands, Italy and the UK. “At the moment we have released an initial six different Euro Technik designs from E101 up to E106 and it is our intention to increase the range with a further four new designs by the end of this year. Ultimately the range will be extended to 15 design options by the end of 2014.” akb

Kirkby invests in blaster Speke OTR and commercial tyre and wheel wholesaler Kirkby Tyres says it has recently undertaken a major programme of investment, upgrading its existing facilities with a new shot blaster capable of processing wheels up to 54” and above. A customised temperature and pressure controlled spraybooth has also been installed along with new fitting facilities. Kirkby is the appointed agent for MaxionLemmerz, Jantsa, Titan, LP and recently Accuride forged aluminium wheels from the USA. It supplies not only the agricultural market, in which it has built a reputation, with rowcrop, trailer, wide flotation, and hi-speed/low compaction but also truck, industrial and earthmover markets. The wholesaler can now add GKN to that list, one of the world’s leading manufacturers of agricultural and off highway wheels, has chosen Kirkby Tyres as a partner for the OE and replacement markets in the UK and Ireland enabling them to supply a built up unit for almost every application. akb

Rimstock winter wheels initiative “a success” Rimstock introduced a range of Team Dynamics winter alloy wheels for the first time this season. The company has been impressed with the results, labelling the new initiative “a success” despite a mostly quite mild 2012-13 winter season. The company said it is “looking to expand the programme further for 2013”, with “two large OE marques” interested in adopting a winter programme. The programme works similarly to the trend of storing summer tyres in “tyre hotels” over winter widely used in Europe, but with take-up in the UK only occurring over the last few winters. Rimstock believes it is becoming attractive with the trying grip conditions and poor road maintenance of Britain’s winter roads, to protect original equipment wheels when temperatures drop. Rimstock’s Team Dynamics range of alloy wheels introduced a range of alloy wheel and tyre packages specifically developed for the British winter. While the benefits of winter rubber are at least acknowledged by those who work in the trade, motorists are less familiar with the benefits of using a winter alloy wheel. Firstly Rimstock explains that the cost of replacement OE wheels makes it desirable to protect them against kerb damage and attack from the corrosive mix of salt and grit on British

Team Dynamics’s newly introduced Silverstone and Eagle wheels

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winter roads. It says Team Dynamics’ alloy wheels are clear coat lacquered to deliver the best possible paint protection in these conditions, while their much reduced cost versus the cost of replacing an OE wheel makes a good economic argument for buying two sets of wheels. Seeking to add value to this proposition, Rimstock introduced another first for the UK market: a wheel specific “hotel and spa”. When buying new winter wheels in this package, Rimstock offered to fully refurbish to OE standards drivers’ “summer” wheels. This refurbishment takes place at its alloy wheel manufacturing plant in the West Midlands using CNC machining centres and its pre-treatment and paint facility. The wheels are then held in Rimstock’s warehousing facility and are fully tracked and traced via barcode ready to be exchanged once winter is over. The winter wheels are then subject – if necessary – to the same treatment or cleaned, checked and stored until winter comes round again. Darryl McNey, Rimstock sales director commented: “This is a first for the UK market and a trend we expect to see grow in the future, hence developing a robust range of offerings that our customers can use during the winter months.” Rimstock has introduced several new wheels to its 2013 portfolio, including wheels such as Balmoral targeted at prestige vehicles with as the names suggest a hint of Britishness about them, deep concave stagger fit on the Silverstone for performance car owners and the new Eagle for the Smart car. It has also invested in its forged wheel production programme, developing what it calls “one of the largest forging plants in Europe at a cost of over £3 million”. akb

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06/11/2012 14:16

PRODUCT INFORMATION

Continental 3G coach tyre launch increases specialisation German manufacturer opts not to “settle for ‘one-size’ solution”, looks to the future of European people transportation THE LINK BETWEEN CONTINENTAL’S SPONSORSHIP of top level footballing events such as the UEFA Champions League and Euro 2012 and its tyre business was made explicit during the latter of these events. In Poland, Coaches for players and fans were fitted with Conti’s HSR2 tyre and a specially modified HSU1 respectively by the Conti360 network. Public transportation and its role in Europe remained high on Conti’s agenda moving into 2013 as the manufacturer introduced the first commercial vehicle tyres of its “third generation”: a three product speciality coach tyre line-up. Once again, Conti chose to introduce these products alongside its football sponsorship at St George’s Park in rural Staffordshire, the English Football Association’s new training and development site of which Conti is an official supporter, its branding displayed in various places around the impressive state of the art facility.

Continental is predicting large increases in the importance of what it calls the “People” segment within the European truck and bus tyre market in the coming years. Bernd Korte, vice president product development and industrialisation at Continental’s Commercial Vehicle Tire unit told Tyres & Accessories that Conti predicts the current 13 per cent of the TBR market held by the People segment would rise with the population’s age and lifestyle. (The ‘Goods’ segment represents 74 per cent of the current market and ‘Construction’ accounts for the remaining 13 per cent according to Conti. By 2050 it is estimated that 84 per cent of Europeans will live in urban areas,

while 30 per cent will be over 65, both factors that increase the importance of public transportation alongside long-term European commitments to reduce emissions by 80 per cent in this period. In the UK, Conti says 12 per cent of the working population currently take the bus every day, accounting for five billion journeys a year: efforts are being made to grow this still further. The need for increased specialisation indicated by the new tyre range has much to do with Conti’s premium positioning; while multi-purpose TBR tyres can be used, Korte explained the differences between the performance envelope requirements between the vehicles gives a specialist tyre the advantage. For example, coaches generally require the ability to travel at 100kmh, while trucks settle at 80kmh. Similarly greater safety, handling and comfort properties are required by coach fleets, while truck customers generally prefer reduced rolling resistance, greater resistance to chunking and more traction. This is not where Conti’s redefinition of coach tyres ends: the three new tyres have been designed to cover a working range categorised by Long Distance,

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Regional and Urban usage. Korte says the middle of these was “never really addressed” directly in this segment before now – with the introduction of the HA3 Conti Coach, Conti CityPlus and the Conti Urban. Conti acknowledges that a large part of this new specialisation is the increased importance of talking with customers and end users to identify the correct product for their usage requirements; this was also a factor in the third generation’s revised nomenclature, supplementing the usual three-digit tyre model with an application-specific name.

Passenger transport tyre range for all applications Using the second generation CV products, of which Korte says Conti is “very proud”, as a starting point, the development team prioritised further reducing fleet costs for customers. Continental says the third generation tyres take “the outstanding properties of the previous tyres, for example, high mileage, low rolling resistance, maximum safety and a high-quality casing with optimum retreadability,” but the new tyres continue “on a higher level with regard to maximum customer use.” At the long distance end of the range, the Conti Coach HA3 will be available in

TYRES & ACCESSORIES 4/2013

PRODUCT INFORMATION

Bernd Korte, vice president product development and industrialisation at Continental’s Commercial Vehicle Tire unit

the sizes 295/80R22.5 and 315/80R22.5 for fitment on all axles. Conti says it guarantees good longitudinal and lateral grip, directional stability, precise steering and, thanks to the sipe technology, improved wet handling performance over the life of the tyre. It is also designed to be particularly fuel efficient – the tyre has a somewhat unusual scooped design at the edge of the tread running into the shoulder. This has been named the “fuelsaving edge”, and Korte explains that the removal of rubber from the shoulder edge should prevent some heat building as a result of this “unnecessary extra rubber”, leading to improved rolling resistance characteristics. The Conti Urban HA3 is designed for demanding public transport tasks in the sizes 275/70R22.5 and 315/60R22.5. It feature further reinforced side walls for effective protection against damage from curbstones, allow up to 20 per cent greater mileage. The tyre is M+S marked, showing its suitability for fitment on all axles and in all weather conditions. It is also equipped with a sidewall depth indicator. The greatest innovation of the new range comes in the form of the Conti CityPlus HA3, a tyre specially developed for regional (inter urban) transport usage. While its suggested applications overlap the long distance and urban travel of the

TYRES & ACCESSORIES 4/2013

other two tyres, Conti has identified a sweet spot in the middle, meeting more precisely the requirements of what it calls a demanding and growing segment. It is available in the size 295/80R22.5 with the M+S marking. Essentially designed to cope with similar challenges to both the long distance and the urban product, as befits a tyre designed for intercity travel, the tyre is designed to provide improved handling and wet grip properties over the tyre’s entire life, improved longevity and even wear. Conti says that both the high level of ride comfort for bus passengers and economic aspects like fuel efficiency and recutting and retreading capabilities have been taken into consideration for the tyre, making it something of an all-rounder. Not that this is a reason to fit the tyre to coaches for all applications; Conti says the tyre is as specifically tuned to provide the best possible economic proposition for its particular application, in common with the non-overlapping Coach and Urban tyres. The casings of all three bus and coach tyres feature a four-ply triangular belt, Conti’s AirKeep technology and a bead with a steel cord chafer. The four plies of the triangular belt absorb the lateral and radial forces at the tyre base and reduce the proper movement of the tyre together with the tread that is closed on the outside. The AirKeep system uses a lining with a very tightly packed molecular structure to considerably reduce the creeping loss of pressure in the tyres. In addition, the reinforced steel cord chafer ensures an extremely secure fit on the wheel rim and less flexing movement on the rim flange. All three tyres also feature a regrooving indicator, and are designed to aid retreading, which was a key focal point of the company last year. Conti announced plans to develop a synergetic

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The third generation Conti Coach HA3 features a reconsidered shoulder that the company has called a “fuel saving edge”

TBR retreading facility at its ContiLife Cycle plant in September 2012, and Korte describes the process as “core” to Conti’s future plans in the segment. For wintry road conditions, the Continental range has featured the special HSW 2 Coach winter tyre since 2010. This winter tyre is also intended for use on all axles. On typical wintry roads, winter tyres provide more traction than standard M+S tyres thanks to a greater number of edges and sipes. With these four tyres, Korte explained that Conti believes it is “the first manufacturer to have a full range of products in the People segment.” “The new tyre generation sees us provide customers in the transport and logistics industry with advanced tyres that will allow them to operate even more efficiently in face of increasingly tougher competition,” stated Herbert Mensching, head of marketing and sales truck tyres EMEA. The third generation of Conti commercial vehicle tyre range is due to be completed in 2015 when its latest Construction segment tyres are launched. Before then, the biggest segment, Goods will arrive between late-2013 and early-2014. Each of these segments will be branded with new nomenclature too. Korte said the decision to bring the Passenger segment to the front of the development cycle was motivated by the “potential to become a specialist in this area”, though he anticipates that other premium manufacturers may develop similar products soon. andrew.bogie@tyrepress.com

PRODUCT INFORMATION

Continental’s One-Channel ABS for motorbikes A day after our coverage of European rules relating to the introduction of ABS on two-wheel vehicles. Continental AG has released details of its one channel ABS for motorcycles. According to ADAC Accident Research, around a fifth of all motorcycle accidents could have been prevented if the bike had been fitted with an antilock braking system (ABS). To improve the active safety of motorcycles, Continental is expanding its range of electronic braking systems by introducing an one-channel ABS for smaller motorcycle and scooters. Based on its cars technology it was developed especially for cost-sensitive markets such as Asia, where the wheelers must be equipped only with a hydraulic brake on the front wheel. Production launch of the one-channel ABS is planned for the beginning of 2014. With a box volume of significantly less than 300 cubic centimetres and weighing roughly 420 grams the motorcycle ABS is very light and can be easily applied to suit the widest range of motorcycle and motor scooter models. ABS control of the front wheel stops it from locking up even during a panic brake by the driver and prevents a fall. A wheel speed sensor constantly monitors the front wheel’s turning speed and from this the algorithms in the control unit calculate whether braking could potentially cause the front wheel to lock up. If so, the system will reduce the brake pressure, thus preventing loss of directional stability and road holding.

ABS saves lives on cars and will on bikes too The one-channel ABS is the newest addition to Continental’s portfolio of motorcycle systems currently in series production: Motorcycle Integral Brake Systems and Motorcycle Anti-Lock Brake Systems (2-Channel ABS). “In line with our Motto,

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‘Safety for Everyone’, we want to make the onechannel ABS available to all road users and offer the world’s motorcyclists a significant safety gain”, said Lothar Kienle, Head of Development Motorcycle in the Business Unit Electronic Braking Systems of Continental’s Chassis & Safety Division. Just how great the requirement is, throughout Asia for example, is demonstrated by a study into global traffic safety carried out by the World Health Organization (WHO) in 2009. It found that roughly 28 per cent of traffic fatalities in India and China were suffered by drivers of two and three-wheeled vehicles. In countries such as Indonesia and Thailand, the figure rose to 61 and 70 per cent respectively. The 2010 DEKRA Traffic Safety Report in Germany showed that ABS could either prevent many accidents or reduce the severity of their impact. It even concluded that 25 to 35 per cent of the serious accidents analyzed in the report could have been prevented, had the motorcycles been fitted with ABS. “The widespread use of ABS for motorcycles and scooters would contribute considerably to reducing the number of serious injuries and fatalities”, said Kienle. Even in Europe, the ratio of motorcycles fitted with ABS is still low. This is something that the European Union (EU) intends to change: For all motorcycles over 125 cubic centimetres ABS will become mandatory Europewide. This regulation is effective for all new typeapproved motorcycles from 2016 and for all new motorcycles from 2017. cja

TYRES & ACCESSORIES 4/2013

PRODUCT INFORMATION

Goodyear aiming to lead in tyre labelling EfficientGrip ‘Performance’ variant added to range Goodyear has revealed details of its latest efforts to take a lead in the post-labelling era of tyre development, refreshing its passenger car range with the launch of the Efficient Grip Performance. While the tyre is inched out of the highest possible European Tyre labelling score (AA), with the 205/55 R16 tyre scoring AB 68dB it is not far away at all.

THE NEW EFFICIENTGRIP is being made available tyre label itself. After all, as we all know, it only in 39 14-18-inch sizes (correct as of 1 March). With tests three characteristics – wet grip, rolling resistfurther additions said to be on their way, this puts ance and pass by noise. And as Goodyear Dunlop the manufacturer in a leading position both within and many of the premium tyre manufacturers its own stable (Dunlop offers dry and high perform- often explain, magazine tests look at something ance biased characteristics that don’t look so good like 15 characteristics, and leading OE suppliers on a label) and in the wider market. Following the routinely analyse 50. (See chart “Goodyear Dunlop introduction of the EfficientGrip Goodyear Dunlop EMEA Tyre Labelling” for all the details). Looking at the market in general, booth reports that it covers three out of four sizes of Europe’s high performance summer tyre market Goodyear and Dunlop compare well with their premium colleagues. However it is worth further tyres labelled CC or above. Broken down by brand, this means that 82 per investigating exactly which peers the company cent of Goodyear tyres are CC or above. A huge 63 describes as premium. With Dunlop not included, per cent of available sizes are at least BA graded in Goodyear compared its standing with five other the summer high performance segment (H and V premium competitors. What is clear is that altrated up). Dunlop on the other hand has a third of hough the best competitor has a similar proportion tyres below CC, 67 per cent at least CC and 57 per of highly label rated tyres in its portfolio as Dunlop, cent BA. While at first glance this doesn’t look too none came near to Goodyear’s current range and good, it can also be seen as a reflection of in fact most have the majority of tyres floating Dunlop’s emphasis on dry characteristics and lack around the “at least CC” level. This trend is even of emphasis on things like rolling resistance – more marked in the UHP segment. Although three something you might expect from a performance- competitors outperform Goodyear for the proportion of tyres CC or above, none competes for the orientated brand. This logic is supported when you drill down into the two brand’s labelling coverage in the summer ultra high performance segment. Here, Goodyear once again outperforms Dunlop in terms of labelling results, but not by as much as you might think. True 49 per cent of products are at least CC and nearly a quarter remain at least BA (24 per cent), but more than half (51 per cent) are under CC. The same proportion of Dunlop tyres in this segment are lower than CC and the same share are over CC (49 per cent), however when optimising tyres that give a performance edge there is an apparent payoff in terms of labelling performance and only 14 per cent of Dunlop tyres are at least BA. With this in mind, we can perhaps attribu- The curved aquaplaning demonstration, which pitted to AB-rated tyres against each other showed that the results of the straight-line focused wet braking label test have little impact in other wet conditions. te such discrepancies to the limitations of the

TYRES & ACCESSORIES 4/2013

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PRODUCT INFORMATION

Goodyear Dunlop EMEA tyre labelling

% of market covered at least CC

% of market covered at least BA % of market covered worse than CC including segment non-coveres

within BA b

within CC

Summer Ultra High Performance b

% of market covered at least CC

worse than CC

within BA b

within CC

Summer High Performance a

% of market covered worse than CC including segment non-coveres

% of market covered at least BA

a Passenger market based on Europool 2012 Total Europe (excl. Turkey and Ukraine). All grades based upon publically available information on tires available for sale as at February 2013. HP segment covers H and V speed indexes, UHP segment all speed indexes above b B grade in Rolling Resistance Index / A grade in Wet Grip Index.

Tyres & Accessories 4/2013

Source: Goodyear

EfficientGrip Performance brings GY to the top level in label grades with the highest market coverage Premium Summer Passenger HP Market Coverage 100% 80% 60% 40% 20% 0% -20% -40% -60% -80%

Premium Summer Passenger UHP Market Coverage

GY EGP

Goodyear

Comp. A

Comp. B

Comp. C

Comp. D

Comp. E Below C/C

100% 80% 60% 40% 20% 0% -20% -40% -60% -80%

GY EGP

Goodyear

Within C/C

Comp. A

Comp. B

Comp. C

Comp. D

Comp. E

Within B/A

Passenger market based on Europool 2012 Total Europe (excl. Turkey and Ukraine). All grades based upon publically available information on tires available for sale as at March 2013. HP segment covers H and V speed indexes. * * Competitors include premium brands and best available reported grades by size.

Tyres & Accessories 4/2013

Source: Goodyear

proportion BA or above and one had three excels in the dozens of other testing criteria not measured by the label and the quarters of its range below CC. foibles of the labelling system itself in the brand’s choice of demonstrations at the Labelling limitations EfficentGrip Performance launch. In one Perhaps all this is why Goodyear was of the most interesting parts of the keen to point out both that its product event, which took place at Goodyear

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Dunlop’s Mireval proving ground near Montpellier in the South of France, journalists were given the opportunity to pitch equally label rated premium tyres against one another. Of course Goodyear Dunlop’s intention was to highlight the prowess of its latest Goodyear rubber,

TYRES & ACCESSORIES 4/2013

PRODUCT INFORMATION

Goodyear lauds Which? review results

but the exercise did a good job of pointing out the limitations of the label system at the same time. The curved aquaplaning demonstration compared two identical VW Golfs, one fitted with the new EfficientGrip and the other with a respected premium competitor. Cars had to drive around a wet circle, holding the line, before satellite measuring equipment calculated the amount of lane departure when the vehicles hit a 7mm pool of water. While our driving could not be described as 100 per cent accurate, there was a consistent variation of three to four meters, which itself is in keeping with what the professionals were saying. Of course the point is that two equally rated tyres can perform significantly differently in specific safety-related circumstances. Of course curved aquaplaning in 7mm of water isn’t exactly a daily occurrence for most of us. But then again departure of almost an entire motorway lane isn’t something you want to experience even once. And therefore the dual points of the performance of the new Goodyear EfficientGrip and the limitations of the labelling system are well made. As Hugues Despres, Goodyear brand director EMEA, commented: “When we develop a tyre, we want to deliver a quality product that will continue to perform throughout its life. Thanks to technologies like WearControl, the new EfficientGrip Performance can deliver optimum wet grip and rolling resistance balance over the entire life of the tyre.”

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Compact variant completes range Following the launch Goodyear announced that, with the introduction of the EfficientGrip Performance, and the EfficientGrip Compact in a number of small sizes, it now offers a range of tyres to suit “all European road car needs.” From the EfficientGrip SUV, introduced last year to serve the larger car market, through to the Performance, Goodyear now meets a significant percentage of Europe’s total car park needs in HP and UHP with a single branded product. EfficientGrip Performance will, when fully rolled out, deliver some 90 sizes, of which 28 will be UHP, ranging from 15 to 18 inch. For winter, the company is increasingly focusing on its UtraGrip range to establish a similar role. The growth of the EfficientGrip range does not discount any other tyres currently on the market, but it does replace a number of older technologies such as Excellence, Eagle NCT5, and Duragrip. The new range, under a single product name, is designed to bring more clarity and a clear design line to Goodyear’s summer offering. The EfficientGrip is being offered in sizes ranging from 13 to 15 inches. The tyre will serve the EMEA car market for small vehicles. EfficientGrip Compact comes with a European tyre label B for wet grip and a C for rolling resistance in 85 per cent of the total range.

Goodyear is currently celebrating picking up two Which? Magazine Best Buy awards. The latest issue of Which? Includes tests on 225/45 R17 and 185/60 R15 products, with Goodyear’s Eagle F1 Asymmetric 2 tested in the former category and its EfficientGrip Performance in the latter. Goodyear says the Eagle F1 Asymmetric 2’s “impressive performance in fuel economy and wear rate” helped land it a Best Buy, while EfficientGrip Performance was said to “live up to its name” in the areas of fuel consumption, wet road grip and dry grip. “To walk away with two Which? Best Buy awards really shows the top performance of our tyres,” commented Goodyear brand manager Michelle Fisher. “Which? tested both an ultra high performance and a high performance tyre ensuring to cover a wide range of vehicles on the road. These tests show that we have a strong portfolio and can provide award winning tyres for almost any vehicle on the road. Our Eagle F1 Asymmetric 2 has already received a number of awards including the Auto Express Best Buy and Product Award, this Which? award just adds to its forever growing portfolio of awards.” sg

chris.anthony@tyrepress.com

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MOTORSPORT

Falken supporting grass roots motorsport in northwest England

Sumitomo Rubber Industries high performance tyre brand Falken is to supply its ZIEX ZE912 tyre to two grass roots motorsport series in the northwest of England, after agreeing to a new sponsorship and support scheme. Drivers in the Association of North Western Car Clubs (ANWCC) K11 Micra Challenge and the Under 17 Motor AutoSOLO Championship for Standard Cars will have access to free and subsidised tyres to qualifying competitors and others involved with the championship respectively.

North West K11 Micra Challenge series founder Steve Johnson with daughter and fellow competitor Hazel

Seeking to strike a balance between durability and affordability, Falken says the progressive nature of the ZIEX ZE912 makes it an ideal choice for novices and those learning car control at the limit for the first time. “The ZIEX ZE912 is a predictable and durable tyre,” says UK director of Falken Tyres, Matt Smith. “It is a long lasting and therefore cost-effective cover that also performs when pushed to the limit.” Founded by multiple rally and autotest champion Steve Johnson, the North West K11 Micra Challenge was created to bypass the escalating costs that are normally associated with stage rallying. By creating a championship that was open to just one class of car, an affordable one litre Nissan K11 Micra, Johnson envisioned a regional championship that offers an affordable way for people to enjoy motorsport. Specifying control tyres such as the ZIEX ZE912 from Falken also helps keep entry requirement costs to a bare minimum. Johnson and his team launched the championship this year at the Autosport Falken’s ZIEX ZE912 Show in January at Birmingham’s NEC.

Falken is providing its ZIEX ZE912 tyre to the K11 Micra Challenge and Under 17 AutoSOLO championship In addition to the K11 Micra Challenge, Falken is also supporting the Under 17 Motor Club which provides opportunities for 14 to 17 year olds to gain experience in vehicle handling in a controlled environment away from the public highway. The Under 17 AutoSOLO championship in partnership with Falken aims to discover and nurture the future stars of UK motorsport. “We chose Falken Tyres due to the fact they have lasted up to six rallies per set of tyres which is great value for money,” says Johnson. “The Falken tyres have a proven to be good in a wide range of grip conditions and have a great resistance to punctures. They allow all drivers to find the grip limits of the car and tyre allowing the drivers to develop their driving skills.” Falken is also to support a Nissan Micra in the Under 17 series later in the year to offer journalists the opportunity to pit their skills against the young drivers in the championship. akb

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Dealers demanding smaller, frequent deliveries Consumer tyre wholesalers responding to market stresses AT THE

START OF THE YEAR, the Society of Motor Manufacturers and Traders reported the UK new car market hit a four-year high in 2012. But the annual figures didn’t warrant breaking out the streamers and champagne and dancing into the wee small hours – last year’s result represents an improvement on rather dismal prior-year performance, and at any rate the UK proved the exception to the rule in 2012. According to the European Automobile Manufacturers’ Association, new car registrations across the EU declined 8.2 per cent during the year. After five years of recession and sovereign debt crisis, European consumers remain reluctant to spend money on buying or maintaining vehicles, and the effects of this caution is being seen in all areas of the industry.

Shipments of just a couple of tyres are no longer uncommon

“It is hell for car tyres at the moment,” observed a European wholesaler while recently speaking with Tyres & Accessories. Another described the European market as extremely weak. “Last year was already challenging in terms of turnover and even more so margins. Even keeping turnover levels was impossible.” He added that colleagues who have been in the business for 40 years have never experienced anything like this before. The current environment for Europe’s passenger car tyre wholesalers was described to T&A as a “perfect storm”, with economic, international and climatic factors working together against many wholesalers and their customers. “Local wholesalers everywhere in Europe are having problems,” T&A was told. “And how large these problems are depends on the kind of clients they serve; those serving dealers are under large pressure as dealers are not selling new cars. In addition, because of the crisis people are postponing car servicing and maintenance.” The wholesaler added that inexperience in dealing with tougher times has also compounded many dealers’ woes. “Some dealers complain they have no

margin. Many times they have no margin as they have no knowledge of what is going on in the market. If they buy tyres cheap, they sell cheap, which is a big mistake. And often they are unaware of availability problems for particular sizes, which can drive customers to source the size from a competitor.” Other wholesalers’ customers were lulled into a false sense of prosperity by booming winter tyre sales. “Many fitting stations, both chains and independent, had two extremely fat years because they had extremely good winters,” a Benelux-based wholesaler told T&A. “And they never made so much profit in their lives as in these two winters. After the second winter they bought a lot of stock and they expanded their premises or built new ones, but in the third winter there was no snow. The only thing that increased during this third year was their mortgages. And they also had problems with decreasing margins because demand was lower. Costs increased a great deal, turnover decreased and margins decreased. They ended up in trouble. What we’re seeing in many cases at the moment is that smaller fitting stations

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are stronger than the big ones because, in my opinion, the big ones invested too much in the last two years.” A competitor within the region noted that “You frequently hear about people in the industry, garages and car dealers, going bankrupt. It’s a current trend.” The European wholesalers quoted in this text are larger players and their size has protected them from the worst of all this. Nevertheless, one doesn’t have to travel far to hear reports of regional car tyre wholesalers responding sharply to market events. T&A has heard of one German wholesaler that laid off 100 staff, including drivers, and personnel have also been laid off at many smaller, national car wholesalers within the region.

Dealers shedding stocks After a difficult 2012, many tyre dealers and garages tried to reduce stock levels to ensure a good balance sheet. This trend towards lower stock levels has been very marked, and all passenger car tyre wholesalers T&A spoke with have adjusted their businesses to accommodate it. “The issue of cash flow or over-

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stocks needs to be managed very well in a market like this,” commented one wholesaler. “It’s a way to counter the economic situation. Stock management is of crucial importance.” The trend in the last year or two has been towards smaller, regular shipments of tyres instead of container loads. As a wholesaler explained to T&A: “In the past, we bought big and sold big. Now we buy big and sell out small – it will stay this way.” Shipments of a handful of tyres are not uncommon these days and wholesalers see the necessity of building up their own stocks so that they can fill customer orders immediately – something they need to do in order to retain business. A swing towards building up stocks has, however, dumped another complication into wholesalers’ laps. “The prices manufacturers are asking for tyres is decreasing, tyres are getting cheaper and cheaper,” a wholesaler shared. “Therefore, inventories are losing their value. If you have several hundred thousand or a million tyres in stock, a five per cent price reduction is a source of concern. You can feel exposed. But, fortunately, this is not happening for every tyre brand; some are becoming more expensive rather than cheaper.”

Coming to grips with a changing market As mentioned, all the major players have identified a growing demand for smaller orders and are adjusting their own stocks accordingly. This involves an unavoidable risk for wholesalers – they must predict demand, and price, when purchasing from their manufacturer partners. For example, one commented that even though the next winter season is nigh on impossible to predict at this stage, it has nevertheless commited itself to investing in winter tyre stocks. It has no alternative if it wants to retain its position as a total, one-stop supplier. Looking further ahead, some wholesalers are addressing weaknesses in the European wholesale business by more finely honing their extra customer services, while at least one wholesaler has its eyes on parts of the world enjoying better economic conditions. Further information can be found in the following section.

Commercial sector stronger Wholesalers specialising in other segments have had an easier time of it than their consumer tyre counterparts. The truck tyre business is admittedly slow

Wholesaler stocks must be comprehensive to accommodate more frequent customer orders

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and is seen as having reached its deepest point, but the winners are those dealing in off-road and, particularly, agricultural tyres. Various wholesalers described their agricultural businesses as “excellent”, “booming” and “doing superbly”. Off-road wholesalers are also protected to an extent from market fluctuations as their customers are found in a range of business areas. “The nice thing with our company is that if one part of the business is moving slowly, another part is good,” commented a commercial segment wholesaler. “For a few years agricultural tyres were just okay, and now they’re performing very well.” Or as another summed up: “There is always one segment that has problems, but when another one goes well it is not so bad.”

No respite in 2013 We’re now approaching the middle of 2013 and although all the wholesalers T&A spoke with are looking forward to an improvement in the European market, none suggested that the current problems will be over by Christmas. “I don’t want to sound negative, but you must be realistic,” commented a wholesaler in the Benelux region. “The market correction that’s occurred in this last year is still going on. There’s simply less demand. When will this change? That’s extremely difficult to predict.” Another noted that “we don’t foresee a huge change in Europe for the time being. It will be a moderate region.” Although wholesalers now work harder for results than was the case a few years back and nobody entertains fantasies that a boom market will return tomorrow, the various wholesalers T&A spoke to were united in a confidence that opportunities exist even in difficult market situations. The words of one particular wholesaler sum up the sentiments expressed by all: “If you keep doing the right thing and investing in the right areas, you will come through this difficult period. But you need to view how the market is developing as a positive thing, rather than as a threat.” stephen.goodchild@tyrepress.com

INTERNATIONAL WHOLESALERS

Delivering reliability is vital Heuver focusing on customer relationships, introducing new products in 2013 LESS THEN FIVE DECADES after starting out as a oneman tyre business in western Holland, Heuver Tyrewholesale has grown into a major commercial segment wholesaler. Today the company is headquartered in Hardenberg, near the Dutch border with Germany, and specialises in supplying truck, OTR and agricultural tyres to customers throughout Europe. Tyres and Accessories recently spoke with director Bertus Heuver about Heuver Tyrewholesale’s current activities and focus; he shared that during 2013 the wholesaler is introducing an entirely new brand and intends to grow in at least two key regions. Heuver Tyrewholesale directors Bertus Heuver (l) and Jan Heuver

Heuver Tyrewholesale is well known for its distribution of the Aeolus brand in eight key European markets – Germany, Belgium, the Netherlands, Luxembourg, Sweden, Finland, Denmark, Austria, France, Switzerland and Romania – however the wholesaler is active throughout most of Europe and also offers a number of competitive ranges for the countries where it doesn’t deal in Aeolus. This year, another brand has been added to this portfolio. “We have obtained European distributorship of Leao, a brand produced in China,” Bertus Heuver tells Tyres & Accessories. “The brand is new to Europe and price-wise we see it as a very interesting opportunity for our customers.” The Leao range covers truck and agricultural tyres – Heuver says that Leao is the first Chinese brand of tractor radials to be sold here in Europe. Although Heuver Tyrewholesale already stocks a number of sizes in the Leao range, the company won’t begin actively promoting the agricultural line-up for another few months. “We need the full range available before we can really start selling them as every tractor has two tyre dimensions, and when you only have the front tyre sizes available it is

hard to sell a set,” explains Heuver. The director says Heuver Tyrewholesale has a “full focus for Aeolus in the eight countries where we are distributor” but will actively promote Leao in the other markets where it does business; he adds that Heuver Tyrewholesale is looking for dealers for the Leao brand in Poland, Scandinavia, the UK and Ireland, especially dealers who can cover a large area. In addition to offering Leao, Heuver Tyrewholesale acts as importer for the Alliance OTR and agricultural ranges in all its markets. “We got the dealership four years ago and turnover is rising strongly. We are very happy to have this brand, it gives our agricultural business a big boost,” shares Bertus Heuver. A further important brand is Athlete Wheels; Heuver Tyrewholesale is looking for dealers throughout Europe for this range.

Fully convinced of Aeolus’ quality As for Aeolus, Bertus Heuver states “we are fully convinced of the quality of Aeolus and their patterns. We’re very happy to have the Aeolus factory’s main brand. The Aeolus brand will always be their main

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focus for development, research and for supply – we have this guarantee.” The Aeolus range distributed by Heuver Tyrewholesale in eight European markets covers all three commercial segments; in addition, Aeolus now produces passenger car tyres. Visitors to the Heuver-run Aeolus stand at last year’s Reifen trade show in Germany were amongst the first to see the new passenger car range. At the time it appeared Heuver Tyrewholesale would add this line to its existing Aeolus product portfolio, however Bertus Heuver says this won’t be the case. “We helped the Aeolus factory a lot in the tyres’ development and with technical and regulatory support,” he elaborates. “The more we were involved in this pcr project the more enthusiastic we became, but alongside this we were aware that passenger hasn’t ever been our business. We decided last August not to distribute the Aeolus passenger car tyre range. It will still definitely be sold in Europe, and at the moment Aeolus is looking for wholesalers that are more specialised in car tyres. “In Holland there are huge passenger car tyre wholesalers whom we have very good relationships with,” Bertus Heuver continues. “Our customer base is differ-

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ent; to get involved in car tyres is new from a logistics perspective. We are very good in commercial tyres, this is where our strength is. We would have had to build new logistics and sales teams to distribute the passenger car tyre range.” The Heuver Tyrewholesale director describes the Aeolus pcr line-up as a “very good product” and notes that with it Aeolus is aiming not to compete with the many Chinese brands on the market, rather to target the market segment currently occupied by Hankook and similar products.

Growth in Poland, Scandinavia Heuver Tyrewholesale has employed a sales representative for the UK and Ireland for a number of years now and although it doesn’t distribute the Aeolus range here – Bertus Heuver says his company has very good relations with UK/Ireland distributor Kings Road Tyres – this market is important to Heuver. Other regions the Netherlandsbased wholesaler is focused on building up include Poland, where it hired a sales representative in December 2012, and Scandinavia, where Heuver is currently looking for a sales representative. Bertus Heuver describes Poland as very attractive place do to business in terms of logistics. “It is easy for us to transport tyres there. We can have tyres there within two or three days. Furthermore, I think Poland’s

economy is growing stronger now – if you look at all the European countries I think Poland is doing very well.” In Bertus Heuver’s opinion, Leao and Athlete, with its full range of OTR tyres, gives the wholesaler a strong position in these markets: “I see big opportunities.” To reinforce Heuver’s presence in these and other markets, recently the heads of the company’s four business units – Aeolus, truck tyres, OTR tyres and agricultural tyres – met and decided to increase faceto-face contact with customers. “All sales people need to be on the road as much as possible as we need to be at our customers’ sites as much as possible these days,” reflects Bertus Heuver. “That’s where we make our sales. “Reliability to the customer is very important to us,” Heuver adds. “We want to achieve a very close commitment to our customers in supply, reliability of services, in the deals we make, in webshop orders, everything. We are trying to improve our business and our services on a daily basis. As a wholesaler you don’t manufacture a product but you provide the customer with services. What we do is try to work very closely with the customer and to have this, logistic-wise, technically and informationwise on the highest possible level. Every customer should feel very comfortable doing business with Heuver. This is one of my main aims – the Heuver brand is some-

Heuver Tyrewholesale’s headquarters in Hardenberg, The Netherlands

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thing we want to build more strongly in the market – you can repeatedly tell people you are very good, but the important thing is to prove you are very good. We have focused a lot on improvement over the last five years and improved our reliability in supply, in invoicing – everything should be to a very high standard. That’s our daily thrill, you can say.”

Agri segment strong The current European financial situation has weighed heavily on many wholesalers, particularly those specialising in the consumer tyre segment. “The nice thing with our company is that if one part of the business is moving slowly, another part is good,” observes the Heuver Tyrewholesale director. “For a few years agricultural tyres were just okay, and now they’re doing brilliantly. OTR is doing reasonably well, while truck tyres is a bit slow.” Heuver adds that “2011 was a good year and 2012 started a little slow. It recovered in April, May but was again slower later in the year.” He concedes that it is much harder for passenger car tyre wholesalers at the moment though. “Many tyre dealers had a difficult year with car tyres and tried to reduce stock levels to ensure a good balance sheet at the end of the year. Business is particularly slow for consumer tyres. The winter was also not strong – a lot of negative factors came together for wholesalers.” Given Heuver Tyrewholesale’s presence in three commercial tyre segments, the company projects that turnover in 2013 will reach a similar level to last year. “Our turnover will be the same,” states Bertus Heuver. “We’re looking at Scandinavia and we’ve just started in Poland, so we expect some extra market activity there. If I look to the budget, we expect profit to be 15 per cent higher in 2013. We anticipate this because we expect to take a step forward in Scandinavia and Poland, because we’re putting more people on the road, and because we expect to win more market share in the OTR business, along with extra turnover with agricultural dealers in Germany.” stephen.goodchild@tyrepress.com

INTERNATIONAL WHOLESALERS

Growth in new markets giving Deldo a better spread

Atlas is Deldo’s newest private brand; this size 205/65R16 fitment is from the ‘Green’ range

WHEN TYRES & ACCESSORIES spoke labels, which Veerman says are shipped with Deldo’s Rutger Veerman in the last week of March, he and several colleagues from the Belgium-based wholesaler had just returned from the Tyrexpo Asia show in Singapore. In addition to praising the exhibition as “the best show in Asia” , Veerman shared that Deldo’s presence at Tyrexpo Asia was important as Asia represents a region that is increasingly important for the company. “As the European market is slow, we look to markets that are still moving in order to give us a better spread,” explains the international sales and marketing manager. “Asia is one of them. We’ve been doing business there for many years already, but in the last years with more focus. The number of customers and markets we have in Asia is increasing.” A lot of the business in the Asia Pacific region relates to Deldo’s private

direct from China to customers. He adds that Deldo also sells premium brands there and is seeing growing demand for these products in Asia; replacement fitments for (expensive) European cars are increasingly required. Everything can be delivered mixed in a single container, and the international sales and marketing manager says that even freight costs for premium tyres, which are shipped from Deldo’s warehouse in Antwerp, are competitive. “Because we have high volumes, we get good conditions,” says Veerman. “We share these with our customers. Furthermore, freight prices from Europe to Asia are much less than for the other direction. For example, it only costs half an euro to ship a tyre from Antwerp to Asia, a quarter the cost of shipping the other way. A huge volume of freight is shipped from Asia to Europe, but empty containers need to return, therefore it is cheap.”

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Freight prices for even the most geographically distant locations, such as Australia, are low enough to make doing business there worthwhile. Rutger Veerman notes that freight from Antwerp to Australia is cheaper than from Antwerp to Finland, although the latter is a mere 1,250 nautical miles away compared with the former’s 10,000 or so. “The more popular the route the cheaper it is,” he comments. “We can cost effectively sell in Australia. It is an interesting market for us, and sales are performing nicely in the largest five cities where the country’s population is concentrated. We’re selling both premium and private there; the market is not as budget oriented as the UK.”

Europe remains core business Although sales outside of Europe – the wholesaler is present in 64 countries – now account for ten per cent of Deldo’s total, Europe is still very much the company’s main market. Operating

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in this crisis-battered region presents Deldo with the same challenges as it does other companies in the tyre business, and Veerman describes Europe in 2013 as a “very weak” market where margins are being squeezed. Although inventory stocks of winter tyres left over from the previous season have been sold and tyre dealers are placing orders for tyres, Veerman observes that dealer behaviour is becoming careful. “We’ve seen a large increase in parcel services (DPD). Customers are ordering two pieces or four pieces; these smaller orders are not only coming in because of internet B2C, tyre shops and dealers are also ordering small. Placing small orders is a no-risk decision for them, and distributed just-in-time. By taking advantage of smaller, more frequent orders, dealers need less space and capital for stocks.” Larger orders are shipped to Europe direct from China (Rutger Veerman says that Deldo’s factory partners set aside warehouse space for the wholesaler’s stock) and smaller (seasonal) orders are dispatched to European customers from Antwerp – he describes this arrangement as giving Deldo “the best of both worlds.” And although Europe’s tyre business is slow at the moment, Veerman sees a silver lining in this. “It’s given us a chance to think through new cost efficiency strategies. Cost efficiency is very important, and we already have introduced costefficient flexibility into our warehouse. About half the 140 staff there in peak times are sourced through agencies; at the moment we are saving money as we do not need the full capacity in the warehouse. Flexible labour agreements are a good system and we are also considering introducing greater flexibility into our transport in the long-term. Presently about 60 per cent of our total transport is through our own fleet. This is a fixed overhead and we foresee that good external partners could perform better and more cheaply.”

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Investing in private brands When it comes to product, Rutger Veerman shares that Deldo is investing solely in private brands. “We’ve decided to make private labels our investment focus as we have full control of these brands,” he adds. The most recently-introduced brand is Imperial, which entered the Deldo portfolio last year. It will soon be joined by Atlas, the wholesaler’s fourth private brand. The Atlas range will include passenger car, light truck, SUV and winter sizes. The very first private label introduced by Deldo was Minerva. This brand has been owned by Deldo since 1995 and Veerman points out that the Minerva range now covers some 300 sizes. “No other Chinese private label has so many,” he says. To complement these numerous passenger and light commercial sizes, Deldo is also launching a line of Minerva truck and bus radial tyres. “A lot of customers are demanding TBR. We will distribute this range through the same channels as our pcr products.”

Still much to do Although Rutger Veerman doesn’t foresee the European market turning around in 2013, he says Deldo is confident about its future here. “We have a strong company and a good mix of people. One day the markets will pick up again – we are not pessimistic.” In the meantime, the company sees exploring new markets as a priority. “Our founder Jos Delcroix has just turned 69 but is here every day,” Veerman comments. “He says the ‘world is so big, and there is so much still to do.’ He believes we can sell seven or eight brands in every market – an accomplishment that will give Deldo plenty to keep it busy.” stephen.goodchild@tyrepress.com

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Multi-brand a focus for new VDB truck business Shortly before Tyres & Accessories visited Van den Ban in late March, the Netherlands-based wholesaler announced plans to enter the truck tyre market. A truck specialist, Hans Bakker, has been appointed to assist Van den Ban in growing this business; Bakker, along with commercial manager Cyril Versteeg, discussed the wholesaler’s plans in relation to truck tyres. “I started with Van den Ban as truck tyre sales manager on 18 March,” Bakker shares. “Developing Van den Ban’s truck business is a new challenge for me. The first priority is to build it up in the Benelux market, along with some business in the German and French markets. Further down the track we will look at expanding truck into the rest of Europe.” Cyril Versteeg adds that the strategy for the truck segment, as is case for Van den Ban’s passenger car tyre business, is to be multi-brand: “We are building up the programme. Hans knows the market, and this will help us in our multi-brand approach, and in knowing where in the market we can sell truck tyres.” Hans Bakker has been involved in the truck tyre business for 15 years now; he began with Pirelli in 1998, taking on responsibility for the Dutch truck tyre business. He carried out this role until 2004, when he moved to car service chain Profile Tyrecenter, where was responsible for buying and making agreements with the industry. A year later Pirelli asked him to return and Bakker recommenced in his former position; in 2009 he was placed in charge of the truck business for the whole Benelux region, a role he carried out until beginning with Van den Ban. “We need a specialist like Hans to make our entry into the truck business work,” Cyril Versteeg states. ”It’s a specialised business, much more than a matter of putting truck tyres in the warehouse and then selling them to customers.” Elaborating the strategy for building up the truck tyre business, Bakker says that often Van den Ban’s existing customer base and distribution channels will be used. “For the Benelux, there are separate truck dealers and we will develop micro distribution,” he says. “But for the rest of Europe most Van den Ban customers are multi-branded and distribute both pcr and truck tyres. Therefore we can use these existing networks. We should be able to use our purchase and sell-out contacts to develop a truck tyre line. I also have many contacts in the industry.” Building a new business from scratch naturally takes time, but Versteeg and Bakker say that by the end of April the company will have stock and a greater clarity regarding brands, and will be prepared to enter the market.

JIT increasingly important for pcr supply Even with the entry into the truck tyre sector, passenger car tyres will remain Van den Ban’s core business. This particular industry segment has been affected by the recent economic climate, and the Dutch wholesaler says many customers are reducing their own stock levels. Versteeg sees this as an opportunity for Van den Ban and says the company is responding to

this ongoing trend by listening closely to customer needs and by keeping its own stock at a high level and further increase the quantity of patterns and sizes. In addition to its premium business, the company is expanding existing budget ranges, including Hifly, an important brand to Van den Ban that is soon to receive SUV fitments and a wider winter assortment. The commercial manager also comments that ‘quality’ brands, such as Hankook, Toyo and Kumho, are growing in importance. As for private brands, he shares that UHP sizes will be up graded by way of introducing a new pattern in the Novex range in the coming months and a whole new brand will soon be introduced; details will be released Hans Bakker, Van den Ban’s new truck tyre sales manager in the near future. “As people are lowering their stocks, we need to constantly fine-tune our logistics,” adds Versteeg. “Just in Time delivery is becoming more important as people are less inclined to take risks and instead stock up just before the season. There we see a future role for Van den Ban; if we have the tyres at the right time, together with our good logistical solutions and JIT delivery, we should be successful.” The average amount of tyres sent in each shipment has significantly reduced, he adds, as the trend is towards more shipments of small quantities. Throughout the rest of the year, Van den Ban plans to keep investing in its webshop and IT solutions, and place more time and effort in marketing support. “The focus is going to be even more on helping customers locally, to support them with their local businesses,” explains Versteeg. “We’ll do this with a good range of products in combination with a good logistical solution, IT support and marketing support. If we can help our customers to succeed locally, we will do this. It’s a way to help each other through this difficult market. In addition, we will continue to increase availability, to be your total tyre supplier!”

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stephen.goodchild@tyrepress.com

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‘Right tyres at the right time’ Inter-Sprint growing to ensure ‘one-stop’ availability IT’S JUST OVER A YEAR since Tyres & Accessories last visited InterSprint’s headquarters in Moerdijk, The Netherlands, and something immediately apparent upon returning is that the company’s premises has grown in that time. Brand new warehouses now stand on formerly vacant and muddy sites, and an existing neighbouring warehouse now bears the Inter-Sprint name. But although appearances would have us believe Europe’s economic crisis has ended early in this corner of the continent, it is in fact financial issues within the tyre industry that prompted Inter-Sprint’s physical growth.

This recently-completed warehouse, along with the acquisition of an existing warehouse, has enabled InterSprint to increase stocks by up to 25%

“The new warehouse we’d started building last year is now ready, and we’ve grown even further,” reports Wim Zoet, who this year celebrates 45 years at InterSprint. “Our neighbour Bridgestone also moved its warehouse to Zeebrugge in Belgium, and we took the vacant property. We are able to use this warehouse for our Double Coin truck and OTR business. In addition, we’re building a new building for our wheel company, Inter-Tyre tuning and for Wheeltyre, our company for complete sets. We have two warehouses for stock now and the original warehouse is now just used for loading our trucks and for our express service.” So why is Inter-Sprint investing in more warehouse space at a time when the West European tyre industry is doing it so tough? Zoet says that housing additional stock – he estimates the new additions have enabled levels to increase by 20 to 25 per cent – is necessary to

accommodate how many dealers now choose to operate. “A lot of dealers feeling the effect of the financial situation in Europe don’t want stocks of their own any more. They prefer to buy tyres as the need arises, and they buy online. Around 80 per cent of all orders we receive today are electronic, and this will continue to rise. Therefore, we believe our stock must be wider in future, because increasing online buying means you need to always have a suitable product in stock. “When a customer logs into our web shop we mustn’t force him to go to another website because we can’t serve him,” he adds. “We must increase our stock to maintain our level of turnover.” Wim Zoet admits that maintaining turnover in hard economic times can come at the cost of margins, but he tells Tyres & Accessories that holding onto market share is the priority for Inter-Sprint as the time will soon come where the company

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will grow again if it keeps its market share.

Local stock advice Reluctance amongst dealers and small wholesalers to invest in stocks of their own, and their wish for regular, à la carte deliveries in place of this has presented Inter-Sprint with what Zoet calls a “huge opportunity.” He elaborates: “The crisis in Europe offers us an opportunity to cater to a new and extremely important trend – nobody wants to have stock but they still want turnover. We’re building up a logistics system to meet this need and are investing a lot in manpower and machinery in order to get the right tyres to customers on time. Some wholesalers can’t sleep because of the crisis, but InterSprint is a solid company. We are builders.” In hand with increasing stock to provi-

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de more frequent, “à la carte” deliveries, Inter-Sprint provides its customers with specific advice on which tyres they should be buying. “In the past, we delivered private labels and some ‘A’ brand to customers and wished them the best, and many were successful as they were good with the label we gave them,” Zoet comments. “But with today’s lower stocks you must be 100 per cent sure you can deliver the right tyre at the right time. And we can advise our customers on what stock they need in order to succeed in their local area.” Wim Zoet says this advice is based upon data that Inter-Sprint collects through the course of its day-to-day business. This data in itself is nothing particularly special; what sets the wholesaler apart is that it has data specialists that can interpret this information and communicate it to customers. “For example, they can say to a customer ‘these products are good for south Rotterdam, but they’re not good for Delft. Different products sell well in Delft.’ The information is very region specific. With it, we are able to start up with somebody without any risk. We can tell them that if they don’t get the turnover in, say, six months, we’ll take the stock back. And that has never happened.”

Private and exclusive brands Inter-Sprint deals in major brands and has a number of exclusive and private brands on offer. Its main private brand is Tyfoon, which Zoet describes as “a wonderful product with wide summer, all-season and winter ranges in PCR, SUV and van,” and it also offers the Mastersteel, Meteor and Milestone brands. As for exclusive brands, the most recent addition is Nexen, which the Dutch wholesaler has distributed exclusively in the Benelux region for the last half-year; Zoet says the Nexen range is “selling fast”. Another

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exclusive brand is Landsail. “They are one of only a few companies certified to make aircraft tyres,” he adds. “This shows its quality.” And Inter-Sprint also distributes the popular Double Coin range in numerous European markets. Inter-Sprint’s truck tyre specialist, Ari Twigt and Wim Ficken are the men to speak to when the subject turns to Double Coin. “I’ve been visiting China for more than 20 years and seen a lot of factories,” Twigt tells Tyres & Accessories. “A few factories, Double Coin included, are very good. Double Coin is still a stateowned company and therefore benefits from a lot of investment.” Twigt says the Chinese manufacturer’s projected total production for this year is 7.2 million tyres; he adds that Inter-Sprint has distributed many thousands of Double Coin truck tyres over the years, and attributes product quality as a key factor for the Chinese brand’s acceptance in the European market. The truck tyre specialist also shares that Inter-Sprint is working hard to build up its original equipment business with the Double Coin brand. “After two years of testing, the largest German trailer company now uses our tyres. OE adoption is a very involved process – people test very carefully and directly compare Chinese products with European products.” A further Double Coin development at Inter-Sprint is the roll out of a breakdown service for Western Europe; Ari Twigt says this will begin in the next couple of months. Twigt also points out that Double Coin tyres are very well suited for retreading. “You can expect to get 280,000 or 300,000 kilometres from a new drive axle tyre, and then another 180,000 kilometres after retreading. You can also regroove the tyres. The casing has a very good quality. For fleets, cost per mile is all-important, therefore casing quality is vital.” Spanish firm Grupo Mesas has retreading Double Coin TBR

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and OTR casings using the mould cure process for some time now and InterSprint is now negotiating with Grupo Mesas to expand this activity in several European countries.

Inter-Tyre tuning As already mentioned, Inter-Sprint’s recent growth includes a new building for the company’s Inter-Tyre tuning wheel business. The operation now stocks some 65,000 rims and rapid delivery is essential in the wheel business, therefore Zoet says extra warehousing space is much needed. In addition to providing Inter-Tyre with more room for stocks, the additional warehouse offers space for a new fully-mechanised tyre fitting machine that can mount a tyre on a rim in 18 seconds, regardless of the size.

Positive about the future While growth in challenging economic times obviously depends on having good products, Wim Zoet is convinced that the team the company has assembled is also crucial Inter-Sprint’s success. “A lot of the young generation that have taken over and are taking over here at Inter-Sprint have already been with the company for 20, 25 years,” he tells Tyres & Accessories. “They know the business. Usually they also started out in ordinary positions and therefore they have a great respect for the people working in the warehouse, for all our employees. “We strive to build and maintain strong relationships with our customers,” Zoet adds. “This helps them to be more successful, and therefore happier to do business with us. Although the wholesale business is undergoing change at the moment, we are very positive about how it is developing. And if you’re not positive, you have no future.” stephen.goodchild@tyrepress.com

INTERNATIONAL WHOLESALERS

‘We want to be as close to our customers as possible’ Starco expands, reorganises global operations as part of agri focus IN RECENT TIMES, Starco has placed a significantly stronger focus on one specific business area. While the firm has been guided by the vision to become “the global market leader in special wheels” for a number of years now, its group strategy for the period from 2010 to 2014 singles out the agricultural sector for particular attention.This focus is influencing Starco’s numerous operations, including its development of new products – a subject that will be covered in a subsequent issue of Tyres & Accessories – and the company’s wholesale business. Indeed, the agricultural sector was a crucial factor in the company’s recent expansion into a new continent. “We decided last year that we wanted to move into South Africa,” shares Starco group marketing manager Brian Lorentzen, speaking recently with Tyres & Accessories at the company’s headquarters in Denmark. “And we have acquired an existing entity there, Mac & Tirecity. The company was run by Calie Stassen, who has been in the tyre business all his life. In South Africa you have two main

businesses – one is industrial and mining, an existing focus for Starco, and the other is agricultural. Stassen built up three entities in South Africa, covering the whole South African market from three departments. We took over these last year, and by this May we will have fully turned the company around and integrated it into our group in terms of corporate identity.” Mac & Tirecity founder Calie Stassen remains with the company and now heads up Starco South Africa as regional director. “Calie will now begin extending his business from South Africa into some other African countries,” Lorentzen adds. “We don’t expect this to happen this year or in 2014, but our clear strategy is to extend our business in Africa. Expansion in Africa will likely involve us starting our own businesses in other countries there, although if we find a particular business that matches our corporate model we might acquire it.” Elaborating on the South African business’s integration into Starco, the group marketing manager says efforts to convert Mac & Tirecity into a Starco business unit have been very straightforward. “The great thing with the South Africa business is that the way Stassen has been operating in South Africa complete-

ly reflects the way our aftermarket entities in Europe are run,” he explains. “His company had more or less the same way of working, the same structure, the same segment groups, the same product groups – it was a perfect match. The company mentality is also the same and there are very few products that didn’t match with our programme. It all fits into what we are thinking.” Establishing a presence in South Africa also fits in with the late 2011 opening of Starco’s fifth and newest factory, Starco Lanka Ltd. “We already had four plants producing wheels and equipment, and what we needed was tyres,” the group marketing manager relates. “Building a factory to produce solid tyres in Sri Lanka was a natural choice for us as a large part of the business requirement in South Africa is for this particular product. A lot of the shipments from Sri Lanka now go directly to South Africa. Having a solid tyre factory simply makes sense for us.”

New distribution centres

Brian Lorentzen points out that the attractiveness of the agricultural sector explains Starco’s entry into Africa. It also explains, he adds, the establishment of a central warehouse in Russia. Tyres & Accessories readers will recall that Starco began serving its aftermarket customers in Western Europe from a central warehouse located in Winsen, in Ger-many’s Starco had reduced warehouse activities at its headquarters in Denmark, but recently completed north, in mid-2012. This extensions to the administration building is now one of three

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central warehouses; a changing global market and Starco’s growing interest in the agricultural business have necessitated changes in how the company’s distribution network is structured. “In the past, all sales entities were seen as independent distribution centres,” the group marketing manager comments. “We built our new central warehouse in Winsen, Germany for the aftermarket. But we asked ourselves – what should we do in the case of customers located too far away from the central warehouse, and how do we cater to the original equipment market? We therefore decided to establish a further two central warehouses, in Latvia and Russia. We also set up OEM distribution centres in Belgium, France, Poland, the UK and Russia.” These centres supply customers in their respective regions, reducing the role played by Starco’s warehouse in Denmark. “As a Danish company it is a strange feeling to downsize here, where we have been present for so many years,” Lorentzen reflects. “But the market has changed, and agricultural implement manufacturers – our core customers – are less active in Denmark now. If you look at the big manufacturers, they are now producing in places like Poland. The agricultural market is growing in areas such as Russia, the Ukraine and South Africa, and ever larger implements and tractors are being used in farming there. Where do we find the market for this? These products aren’t manufactured in Denmark as there is no market for them. You must manufacture and stock products close to the market in order to minimise transportation cost and time. If we want to stay in this business, we need to be where our customers are. The whole strategy is that we want to be as close to our customers as possible. Therefore, we have the distribution centres where the majority of our customers are.

ed Galaxy range of agricultural tyres in Denmark, Sweden, Poland, Germany and the Benelux countries, Lorentzen sums up Starco’s current focus in one pithy sentence: “Agriculture is what we do now. On the manufacturing side of things, most of the tyres and wheels we’ve developed in the last year have been for this business. Ag is a good business, and the segment has changed from smaller machines to larger equipment – if you don’t have the capacity to follow and invest in this change to larger machinery, and larger wheels and tyres, then you’ll run into problems. But those with this capacity are in a good position, as the food industry and those industries related to it will always be there.” With five factories now in operation, it comes as no surprise that Starco’s wholesaling and manufacturing activities overlap in certain areas. A current example of this is the use of the company’s regional distribution centres to supply OEM customers with Starco-produced ‘conversion kit systems’. Lorentzen explains: “In addition to producing large tractors, Kubota also produces small, compact tractors up to 120hp. Our conversion kit systems replace standard wheel fittings on these compact tractors and enable a single tractor to be used for multiple applications. In 2012, Kubota in France accepted Starco as a complete supplier of these conversion kits, and the Kubota importer in Germany has also accepted Starco as supplier of these wheels; we also have an agreement with Case New Holland in Germany. These deals are very good business for us as they use wheels from our own factory in Croatia and in some cases from Starco Schaad, and in most cases it is our own tyres or tyres coming from our key suppliers.”

Corporate unity aided by new website

Today Starco is made up of 32 entities around the world, including 28 sales points in four geographical regions (a Ag is what we do fourth region was recently formed by After reporting that Starco now serves as shifting the Scandinavian countries from exclusive distributor for the ATG-produc- the West group to their own ‘Nordic’

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group). It also works very closely with three strategic partners in the Americas – ATX in Brazil, Buco in Argentina and Excel in the US. When operating this number of entities, it is important to maintain a sense of corporate unity. To reinforce this cohesion, Starco has redeveloped its starco.com website. As reported by tyrepress.com on 15 March, a new group website in English and – reflecting the region’s growing significance to – Russian has been launched. “Previously our many corporate entities sent out slightly different signals through their websites,” comments Lorentzen. “Therefore last year we decided to develop a corporate-wide site that gives visitors a quick picture of who we are, where we are and what we do. Following the launch of the main site our local entities will convert their own sites to the Starco corporate image, with local touches, of course.”

Higher turnover for 2013 This year Starco anticipates achieving turnover of just under 150 million euros, up almost ten per cent on last year’s result. “In general, 2012 was a tough year; it wasn’t a negative year, just a tough one,” Lorentzen shares. He adds that a priority for the company in 2013 will be to further develop the business and strategy it has for the aftermarket and the agricultural OE business. “Agricultural has been developing well this last year, in line with our strategy. The plan is to increase aftermarket to be 50 per cent of our turnover, and we’re pretty close to that. We also plan to develop the OE agricultural business.” Further down the track, Starco will also renew its focus on the industrial sector. “We will achieve 50 per cent of our turnover from the aftermarket by 2014. And gives us two more years, and we’ll be supplying the major European OE customers.” stephen.goodchild@tyrepress.com

INTERNATIONAL WHOLESALERS

NDI – Combining flexibility and good prices A

COMMON THEME while talking with wholesalers this year has been the need for flexibility. Various companies are approaching this in different ways, and Danish wholesaler Nordisk Dæk Import, better known as NDI, has chosen a path not yet taken by any other European wholesaler. In order to offer customers the double advantage of flexible ordering and competitive prices, the company has established a new warehouse in Qingdao, China, near where its Nordexx private brand is manufactured. From this warehouse, NDI will directly supply Nordexx-brand and other products to its European and international customers; in early March the first shipment of Nordexx tyres arrived in the new Qingdao warehouse, and by April the full Nordexx range was in stock. “We now have tyres in stock in Qingdao,” NDI export manager Carsten Andersen told Tyres & Accessories. “We are the first European wholesaler with stock in China. Having stock in our own warehouse in China means we can supply tyres, including the Nordexx private brand, to European customers within five or six weeks of an order being placed. People ordering from China usually must wait three to four months before their tyres arrive.” Andersen acknowledges that finding a good price for tyres in China is – in theory – not particularly hard at the moment. But as he points out, there are often pitfalls that make ordering in China less attractive at second glance, particularly for smaller customers. “Everyone can buy in China, but they need to pay in advance, they need to to take care of various things and then can only buy a whole container of one size,” he explains. “We are really looking forward to the opportunities the Qingdao warehouse offers. There, with our own stock, we can mix the total programme – you can take four tyres of this size, eight of that, a hundred of that. You can mix a container as you want to. We can offer flexibility together with good prices, and we look forward to gaining a lot of business in Europe through this.”

The plan, adds Andersen, is to increase the quantity of Nordexx tyres sold in Europe. “We are well-covered in Norway, Denmark, Sweden, Finland, Germany – markets where we have our own companies. Everything is going very well in these countries. We work together with sole importer Desmond Simpson in the UK, and this is going incredibly good. But what we need to do now is focus on other European countries, including Eastern Europe. We want to focus on all European countries.”

Everything is taken care of

starting on page 74 of the October 2012 magazine, for further details). Lindvig is building up the team in Qingdao and he is in charge of growing NDI’s business outside of the European/Scandinavian regions; the Qingdao operation now sells the Nordexx brand to a number of countries, including Australia, Brazil, plus several other South American and African countries.

Nordexx range to grow in 2013 “The Nordexx brand offers great potential,” comments Andersen. “We are constantly developing the programme and it now contains van tyres, winter tyres with both Nordic and European compounds, and summer tyres. We regularly study what sizes are needed and expand the range.” The export manager also tells Tyres & Accessories that further developments to the Nordexx range will take place this year. “The plan is to extend the range further. We want to grow with Nordexx in Europe, not just in passenger car.”

Following the warehouse’s opening, NDI is particularly targeting smaller and mid-size customers, offering them a complete service. “People are sometimes afraid to buy in China as they are used of orders taking three or four months – but we can supply a container in six weeks and take care of everything, such as duty and payment terms – all the things people are afraid of. That’s a big job if you don’t know it well and you can easily lose a lot of money on it. We are getting so many tyres into our warehouse now that we require a department to look after these things. So, we thought – why not also offer this as a service for our customers?” The warehouse in Qingdao has capacity to house 100,000 tyres and the operation is headed up by Gregers Lindvig, a fluent Chinese-speaking Dane who Tyres & Accessories first met at the CITExpo show in Shanghai last September (see our Following the opening of the Quingao Warehouse, NDI’s facility in Denmark coverage of CITExpo, will focus on same/next day deliveries

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The Nordexx range is sold through the company’s own Super Dæk Service outlets and through independent retailers, and is also sold to wholesalers in European countries outside of its Scandinavian home market. “The market for Nordexx is growing in Europe. We are one of the largest Scandinavian wholesalers and our market share there is already very high, but Nordexx is important for the big European export markets. We want to export more in Europe.” Within Europe, NDI is looking for “good and stable partners who don’t just want the cheapest.” The export manager then shares that the reclaim rate for Nordexx is less than for many premium brands. “We’re proud of the tyres – Nordexx is not just another Chinese brand, it’s not just budget. People who deal with us can get a good product.”

Agricultural sector booming

being placed, regardless of whether it is high or low season. Clients are impressed Passenger car tyres, including Nordexx, with our delivery times. We are growing a make up 50 to 60 per cent of NDI’s total lot because of our quality and delivery wholesale business. The company also times.” supplies the truck and agricultural sectors, and the company’s main agricultural brand 2013 outlook for the Nordic countries – Norway, Sweden, Denmark and Finland – is Despite the economic situation in Europe, Alliance. Carsten Andersen says agricultu- NDI is still investing in growth – as its comral is “booming at the moment.” He tells mitment to Qingdao shows. As for what Tyres & Accessories that NDI’s agricultural the wholesaler anticipates for the rest of sector business in the first two months of this year, Carsten Andersen says that he 2013 was up 40 per cent year-on-year. “We can give no concrete estimate figures, NDI are also growing in the agricultural wheel has grown every year and is expected to sector,” the export manager adds. “Our AP do so in 2013. He adds that the Danish Dual Wheels are sold through European company continues to gain new importers and global importers. These are tailor-made for its products around the world. wheels that we manufacture ourselves stephen.goodchild@tyrepress.com here in Denmark. We can produce and deliver these within ten days of an order

INTER-SPRINT B.V. DISTRIBOULEVARD 25 4782 PV MOERDIJK THE NETHERLANDS WWW.INTER-SPRINT.NL T: 0031-168-392000

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TGI investing for market share LAST SEPTEMBER the US tariff on consumer tyres produced in China was removed, and as expected the number of Chinese imports for this sector swelled in the follow-ing months. Figures released by trade data supplier Global Trade Information Services indicates that in October and November 2012 – the first two full months following the end of the tariff – consumer tyre imports into the US from China effectively doubled. This influx of tariff-free tyres may have come as no surprise, yet it has brought on some changes for wholesalers. In March,Tire Group International CEO Tony Gonzalez explained to Tyres & Accessories how the tariff’s removal, combined with other factors, has affected the US wholesale business. “The tyre market here in recent months hasn’t been down to the extent it has in Europe,” he observes. “What ended up happening here is that events occurring in various parts of the world, such as the European economic situation plus the slowdown in the Chinese economy, affected the US market. This, combined with the end of tariffs on Chinese consumer tyres, forced the Chinese Tony Gonzalez, tyre makers to scramble to sell more tyres.” CEO of TGI And the result? “Prices for tyres from China have plummeted,” Gonzalez shares. “In the last four or five months you’ve had no floor when it comes to prices. It’s been possible to arrange a better deal every week. At the moment there are still incredible deals to be had, and as a major wholesaler we don’t want to see this as it means small-time newcomers are often getting the same and sometimes even better deals from Chinese agents as we are, even though the volumes they’re ordering are much lower.” The TGI chief executive describes the elimination of duties as having a “severe” effect on the market. “Around 60 to 90 days before the duties were due to end, distributors stopped buying tyres from China and began trying to get rid of tyres they had in stock. While the tariff was in place the tyres in a wholesaler’s inventory always rose in value, and therefore wholesalers had so much stockpiled. Then, shortly before last September, everyone had the same thought and wanted to get rid of these tyres. This led to dumping, but smaller distributors and retailers were smart and realised that tyre prices would continue decreasing. Therefore they were reluctant to buy these stockpiled tyres. Tony Gonzalez shares that TGI could only shed one third of its stockpiled product before the tariff ended on 26 September. “Luckily for us, most other wholesalers were in the same position and therefore prices didn’t plummet 25 per cent or so in one go. Price decreases have been more gradual.” He notes that retail prices for Chinese consumer tyres haven’t dropped much in the US since September, and therefore those buying at these lower prices have enjoyed better margins.” In addition, these bargain prices for tyres in the US have led to a knock-on effect in other markets: “This scenario prompted Chinese agents to dump tyres in South America, Central America and in some African Economies where the economies are more stable and based on primary industry – markets that have

traditionally been strong markets for us,” he adds. “This had a ripple effect and hurt us, and we’ve had to sacrifice margin in order to keep market share.” Tire Group International is now once again ordering product from China. “But we’re being cautious,” Tony Gonzalez adds. “When dealing with countries like China, you’re talking about a 60 to 90 day order cycle. You order, but 60 to 90 days later prices may be three per cent lower or five per cent lower than what you’ve paid. With orders of 50,000 pieces, this difference hurts. You have to be very careful at the moment; it is much easier in an environment where prices are rising.”

Economies picking up Looking ahead, Gonzalez eagerly awaits the return of more stable prices. “It may sound strange, but I must say that I look forward and pray daily for prices to increase again. I’d also be happy to see a return to a stable market – we haven’t had a stable market for four or five years now. Earlier the same prices would remain in place for a year or 18 months, but now I don’t even bother memorising prices as they change so quickly. You need to watch the market closely and have good market intelligence in these conditions.” The CEO expresses optimism regarding the situation, however; he sees that while a lot of factors have contributed to market uncertainty, quite a few of these are now fading away. While issues related to the tariff’s removal resulted in “perfect storm” conditions that affected 2012 results – Tony Gonzalez says TGI took a three to four per cent hit on gross margin in order to eliminate its inventory – the wholesaler still managed to achieve an annual organic growth of six to seven per cent. This year, TGI projects growth of 15 to 20 per cent, but this growth will involve a sacrifice in gross margin. “We anticipate that our gross margin will be the same as at the end of 2012, in other words around 12 to 13 per cent below our normal gross margin,” the CEO elaborates. “This year will still be crunch time for gross margins but we will grow. The economies in the US and the Americas are picking up.”

Investments in products, marketing Helping Tire Group International’s growth in 2013 are agreements signed with Cooper Tire & Rubber and the Alliance Tire Group last

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year; these give the wholesaler respective exclusive rights to distribute the Mastercraft brand throughout Central America and the Caribbean plus Galaxy-brand industrial, agricultural and OTR tyres in Latin America and the Caribbean, with exception of Colombia and Ecuador. â&#x20AC;&#x153;We have additional products, and weâ&#x20AC;&#x2122;re also investing in new marketing initiatives with our private labels.â&#x20AC;? Gonzalez reports. These new products include a fifth private brand for Tire Group International, Orion. â&#x20AC;&#x153;This was introduced late 2012 and is a medium commercial truck line aimed at US fleet operators. It contains our Dura-Last technology, which strengthens the sidewall and shoulder areas to give low rolling resist-ance, maximum deflection, better wear and fuel efficiency. We offer a casing warranty for the brand, and in the second quarter we will introduce a mileage warranty â&#x20AC;&#x201C; this will be the first of its kind for a Chinesemade product. We know we have a top-tier product being made for us in Asia.â&#x20AC;? Another area of investment is TGIâ&#x20AC;&#x2122;s presence in China. â&#x20AC;&#x153;We have two offices in China and weâ&#x20AC;&#x2122;ve invested in our office there that deals with logistics,â&#x20AC;? says the CEO. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re investing in personnel to guarantee weâ&#x20AC;&#x2122;re better equipped to get shipments out.

We are also investing in China-based engineering staff. This investment is being made to ensure product quality is maintained. You have to be vigilant to make certain manufacturers give you exactly what theyâ&#x20AC;&#x2122;ve promised.â&#x20AC;? In addition, importantly, the wholesaler is investing in the marketing needed to retain a strong presence in all its markets. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re investing to market our brands, including Alliance, Mastercraft, Galaxy, Cosmo and Orion, and weâ&#x20AC;&#x2122;ll be present at trade fairs in Latin America, Africa and the Middle East.â&#x20AC;?

The market will rebound Summing up Tire Group Internationalâ&#x20AC;&#x2122;s current priorities, Tony Gonzalez states that â&#x20AC;&#x153;we know that the most important thing is to keep market share, even if this costs you margin. Itâ&#x20AC;&#x2122;s also important to keep your manufacturers happy. The market will eventually rebound, and time is something that we have. Perhaps the smaller players donâ&#x20AC;&#x2122;t have this luxury of time due to their financing arrangements, but the larger players will withstand the storm.â&#x20AC;? stephen.goodchild@tyrepress.com

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Local and international visitors arriving at the Singapore show

Visitor, exhibitor numbers up at Tyrexpo Asia THE

ORGANISER OF

TYREXPO ASIA 2013 we also attribute some of the success of the

recorded a “substantial increase in visitors” Tyrexpo Asia event to our other growing events in to this year’s Singapore show. Exactly 4,355 Africa, India and the UK in being able to deliver individual visitors from 97 countries attended the trade exhibition held at the Singapore Expo Centre between 19 and 21 March, an increase of 22.5 per cent in comparison to the 2011 show’s prior record. Exhibitor numbers at the 2013 show were 64 per cent higher than two years ago, with 250 suppliers displaying their products at Tyrexpo Asia 2013.

“We knew we had a record number of exhibitors in the hall, but until the doors opened on day one we couldn’t predict that visitor numbers would show such substantial growth compared to 2011,” said ECI International sales director, Rowena Suthers. “The show has been steadily gaining momentum over the past few years, but this year it has really come of age in every respect. In part

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The ISRG forecasts “sustained growth and strong demand for new vehicles and tyres through the coming decade”,shared Dr Stephen Evans during his opening address

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quality, focused events that meet the demands of both exhibitor and visitor expectations. ECI is proud in playing its part as a facilitator in bringing together tyre professionals from ever increasing global tyre sector markets.” ECI International awarded BKT’s stand the Most Innovative Stand Design awarded, with Beltyre and Zafco receiving Gold and Silver awards respectively for their presentations. Among the hundreds of tyres displayed in Hall Two of the Singapore Expo Centre, the distinction for the largest single tyre went to an Apollo Xtrax 27.00-49 mining fitment, featured on the Banama Corporation stand.

to move from 786 million units in 2012 to 1.3 billion units by 2022. “We believe there are currently around 1.1 billion vehicles in use around the world and predict that figure will rise to as many as 1.7 billion towards the end of the coming decade. China alone is set to reach a target of an extra 250 million vehicles over the same time frame,” said Dr Evans. With around 70 per cent of natural

20 March with the launch of a complete range of PCR tyre products. The new venture comes on the back of the construction of a new car tyre manufacturing plant in Jiaozuo; the 625,000 square metre factory is capable of manufacturing six million tyres a year. Aeolus showed its new tyres at Tyrexpo Asia 2013. Aeolus’ new tyre range includes the GreenAce AG02 ‘Standard’ series PCR tyre built for overall comfort, low noise,

IRSG secretary-general hails tyre makers’ ‘decade of opportunity’ Speaking as principal guest at the opening of Tyrexpo Asia 2013, the secretarygeneral of the International Rubber Study Group (IRSG) predicted strong global demand for tyres through the coming decade. Dr Stephen Evans said that large scale Chinese and Indian car registration growth is projected to help increase the world’s vehicle pool by more than 50 per cent in the next decade. Dr Evans said: “Following two years of disappointing economic growth, in response to the European Sovereign Debt crisis, the weak USA economic recovery and budget issues, plus the economic slowdown in China, our latest forecasts point to a period of sustained growth and strong demand for new vehicles and tyres through the coming decade. “Much of the demand will originate from China and to a lesser extent India, but from an overall perspective the years through to 2022 will be a period of opportunity for tyre makers and the replacement and service sectors.” As evidence for his forecast, Dr Evans pointed to strong growth in OE and replacement tyre sales as a result of increased vehicle production forecasts. OE passenger car tyre sales are predicted to grow from 333 million units in 2012 to 524 million units by 2022, while replacement car tyre sales are projected

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A Chinese dragon visits BKT’s show stand

rubber and 50 per cent of synthetic rubber going into tyre production, global rubber consumption is expected to follow increased tyre manufacture accordingly. 2012 consumption of 10.9 million tonnes of natural rubber for all markets (tyre and non-tyre) is forecast to grow to 17.2 million tonnes by 2022. The comparable figures for all synthetic rubber markets are 15.0 million tonnes in 2012, rising to 21.0 million tonnes by 2020.

summer usage and high mileage performance, aimed at economy cars and taxis; the PrecisionAce AH01 ‘Comfort’ series specifically designed for use on limousines; the SteeringAce AU01 ‘Sport’ series UHP tyre, designed with asymmetrical grooves for improved steering, handling and grip on wet surfaces, and aimed at “sport-oriented drivers”; the UtilityAce AS02 ‘SUV’ series, designed with the city sports utility vehicle in mind; and the TransAce AL01 ‘Van’ series, targeAeolus reveals Asia PCR range, top 10 ted at light trucks and offering increased mileage and load carrying ability. ambitions Commenting on the launch, Zhang China’s fifth largest tyre manufacturer by Shutian, director of Asia and Africa sales, Aeolus announced its entry to the Region for Aeolus, said: “The importance Southeast Asia passenger car market on of high quality and safety to the car con-

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sumer in southeast Asia will make this a key market for us in the region. Local car buyers are committed to proven brands and we expect to quickly establish a reputation for reliability and excellence in tyres here.” Aeolus also confirmed its ambition to become one of the top 10 tyre makers in the world. General manager Wang Feng, said: “The company’s goal is to have a price/quality position higher than that of South Korea’s Hankook Tyre Company. Currently we are at around the 20th position in the ranking of world tyre manufacturers; our intention is to be in the top ten manufacturers in the world.”

BKT reveals new crane, forklift tyres at Tyrexpo Asia 2013 India’s BKT exhibited its latest high speed crane and forklift tyres. The 445/95 R25 Airomax AM27 pattern for high speed crane fitments and the Maglift STF solid range for forklift trucks debuted at the show, along with the recently introduced Container King 18.00-25 tyre popular in Asian ports. BKT currently claims around five per cent of the global OTR market, with a long-term ambition to double that to ten per cent by 2020. A fourth manufacturing

Yokohama opens Mexican subsidiary In order to expand its market presence through direct sales, customer service and more efficient distribution channels, Yokohama rubber has established a subsidiary in Mexico. Guanajuatobased Yokohama Tire Mexico S. de R.L. de C.V. (YTMX) was founded in March, with former Yokohama Tire Corporation vice-president Gary Nash taking on the role of president as of 1 April. YTMX is expected to be fully operational in May, taking over from Yokohama Tire Corporation as supplier of consumer, commercial and OTR tyres in Mexico. sg

plant will add 350 tonnes per day to out- lug to void ratio in its class, for Backhoe put by the end of 2014, bringing total Loader applications; the Galaxy Beefy capacity to 750 tonnes. Baby III flagship pattern for skid steer applications, redesigned for the changing needs and specifications of materials GRL showcases OTR products, large handling machinery; and the Galaxy Port capacity increase Star Plus, introduced for port applicatiIndian tyre manufacturer GRL is best ons, with E4.5 tread depth. known for bicycle and two-wheel products, but at Tyrexpo Asia the company New tyres from Mindtrac, Beltyre, showcased its recent strategic invest- LAUGFS ment in off highway tyres. The company is manufacturing tyres covering agricultu- Singapore’s Mindtrac launched its new ral, industrial and construction applicati- Ultra X range of Indian-manufactured ons. cross-ply tyres for truck and light truck The move is part of a major develop- applications in a 20-strong line-up. The ment program that will culminate in com- company said it secured business at the missioning of a new US$275 million pro- show with customers in Singapore, duction plant in Gujarat in 2015. The addi- Pakistan and the Philippines. tional capacity is set to increase productiBeltyre used the third day of the exhion from a current level of 50 tonnes per bition to meet and sign distributor agreeday to 325 tonnes. ments with customers from, among other territories, Singapore, Indonesia and Malaysia. New to Singapore was the ATG launches four new patterns company’s 24.00 R35 dump truck tyre. Sri Lankan industrial tyre maker Alliance Tire Group launched four new patterns to its materials handling range of LAUGFS introduced two new solid fork tyres at Tyrexpo Asia. The Galaxy Giraffe lift tyres at the show, the premium Ultima XLW, which has multipurpose usage for and economy Optima patterns in 18x7-8. telehandler, boomlift and yard crane appli- The Ultima is targeted at OE customers cations; the Galaxy Jumbo Hulk, which in South Asia. akb/sg ATG says has the highest tread depth and

Kraiburg investing in extruder, process upgrades Kraiburg Austria reports that it will continue investing in machinery, facilities and processes at its Geretsberg site this year in order to provide its retreading partners the best possible quality and service. The company has earmarked a budget of three million euros for several projects, with a major chunk of this amount expected to be directed towards Kraiburg’s extruders. These will be upgraded to enable their meeting of potential future requirements, such as an extension of the tyre label to retreaded tyres. The Austrian retreading specialist also intends to provide its research and development department with an additional laboratory mixer. Last but not least, the company will invest in numerous process operations in order to improve production and administrative efficiency. The first fruits of these measures were witnessed in October 2012 with the installation of a thermal power station in Geretsberg. The unit’s thermal discharge provides heat for the presses used in K_base, K_plus and K_tech tread production and also provides the entire production site with process heat. The construction of this facility, together with heat recovery measures, has reduced the Geretsberg plant’s CO2 emissions by approximately 1,000 tonnes per annum. sg

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Groundbreaking held for Gajah Tunggal proving ground On 5 March PT Gajah Tunggal Tbk held a groundbreaking ceremony for its new proving ground in Karawang, on the Indonesian island of West Java. Construction of the 65 hectare proving ground will take place in four stages, with the first stages ready in mid-2014 and the final stages the following year. The proving ground will accommodate the development of commercial vehicle, passenger car and motorcycle tyres for the domestic and international markets. In a statement reporting the ceremony, the Indonesian tyre maker writes that the proving ground’s construction embodies three commitments Gajah Tunggal

has to being a world class manufacturer. First, it shows a commitment to developing quality tyres that meet the requirements of OEM partners in Indonesia and internationally, in line with Gajah Tunggal’s 2011-implemented corporate strategy. Second, the proving ground demonstrates a commitment to continuously improve product quality and customer satisfaction through research and development. Third, it shows a commitment to support the development of Indonesia’s automotive industry. At the groundbreaking ceremony, Gajah Tunggal CEO Christopher Chan said the company decided in part to build the

Vice-minister of Indonesia’s Ministry of Industry, Alex SW Retraubun, Gajah Tunggal CEO, Christoper Chan, deputy chairman of investment monitoring and implementation at the Indonesia Investment Coordinating Board (BKPM), Azhar Lubis, and Kerawang government regent Ade Swara lay the proving ground’s ceremonial foundation stone

proving ground in Kerawang as it is close to other industry players. “It won’t be necessary to go abroad to prove our tyre quality; we can do it in Indonesia,” he said. Corporate Communication and Investor Relation director Chatarina Widjaja added: “We hope that this facility can function as we’re committed to developing quality tyre products as needed by our OEM partners in Indonesia and internationally.” sg

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Tyre Distributors/Wholesalers www.aeolus-tyres.eu www.bitsuk.co.uk www.blackcircles.com www.bridgestone.eu/truckpoint www.dalytyres.com www.cooperbros.co.uk www.deldo.com www.deklokbanden.com www.dessimpson.co.uk www.euro-tyre.com www.fieldens.co.uk www.fulda.co.uk www.glanworthtyres.com www.gold-spark.com www.goodyear.co.uk www.gripenwheels.com www.grouptyre.co.uk www.gt-tires.com www.haemmerling.de www.herculesinternational.com www.heuver.com www.internationaltyres.com www.inter-sprint.nl

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www.kenda.com.tw www.kingdavidtyres.co.uk www.kirkbytyres.co.uk www.kumho-euro.com www.lassa-europe.com www.lexanitire.com www.lctyres.ie www.lytire.com www.magnatyres.com www.maitechtire.com www.marangoni.com www.mastercrafttyres.co.uk www.matador.sk www.midlandmobiletyres.co.uk www.micheldever.co.uk www.mickeythompson.co.uk www.mrftyres.com www.nankang.com.tw www.nete.co.uk www.nexentire.co.kr www.northwesttyres.com www.pirelli.co.uk www.sd-international.cn www.sentaida-international.com www.silverstone.com.my www.sintontyres.co.uk www.southam-tyres.co.uk www.starco.com www.stapletons-tyres.co.uk The fast and direct way to your homepage: Web Directory in Tyre & Accessories & the Link section in www.tyrepress.com To appear in thisWebsite Directory for 12 months – which will include hyperlinked entries on the Tyres & Accessories website – please contact: info@tyrepress.com

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Tyre Exporters www.china-tyre.com

Tyre Manufacturers www.bkt-tires.com www.bridgestone.eu/truckpoint www.conti-online.co.uk www.coopertire.com www.dunloptyres.co.uk www.eptyres.com www.hankooktire.eu www.mitas-tyres.com

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Tyre Repair/Inflation www.airbosstyre.com www.harvieprema.co.uk www.monaflex.com www.schrader-valves.co.uk www.smartronics.co.uk www.punctureproof.com www.uniflate.com

Vintage Tyres www.grouptyre.co.uk www.longstonetyres.co.uk www.northhantstyres.com www.vintagetyres.com www.vredestein.com

Wheels www.afan-tyres.co.uk www.alcar.co.uk www.elitedirect.com www.imagewheels.co.uk www.mswuk.com www.overfinch.com www.performancealloys.com www.tsw-wheels.co.uk www.trelleborg.com/wheelsystems-uk

Wheel Balancers/Accessories www.dionys-hofmann.com www.haweka.com

Workshop Equipment www.agequipment.co.uk www.bateman-sellarc.co.uk www.beissbarth.co.uk www.butler.it www.cosengautomotive.com www.innotecworld.com www.pro-align.co.uk www.reinheimer-stitcher-roller.com www.sunbornsolutions.com www.supertracker.com www.tip-top.co.uk www.tsissg.com www.tyre-equipment.co.uk www.wheelalignmentuk.com

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Advertisers Index A Aeolus 27 C Cima 31 Cooper Front Cover D Deldo 79 E Event Tyres 39 Eversafe 33 F Falken Back Cover Federal 63 G Giti 21 Giti Truck 43 Grouptyre 23 H Hankook 11 Heuver 69 I Infinity 29 Inter-‐Sprint 77 K Kirkby 71 Kumho 19 M Michelin 17 N Nankang 9 Nexen 41 P Petlas 83 Primewell 7 Promotec Spa 25 R Remog Spa 28 S ShandongLinglong 35 T TYM International 5 W Westalke 61 Y Yokohama 51

/ / / //

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