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Under 40: Rubber industry full of young, promising talent
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There's no denying that the rubber industry needs to attract more young, qualified people. But look closely and you'll find plenty already embracing what it has to offer. That's what the...
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There's no denying that the rubber industry needs to attract more young, qualified people. But look closely and you'll find plenty already embracing what it has to offer. Throughout the next two weeks, we'll introduce you to 28 of those up-and-comers with our Under 40 project. There's no denying that the rubber industry needs to attract more young, qualified people. But look closely and you'll find plenty already embracing what it has to offer. Throughout the next two weeks, we'll introduce you to 28 of those up-and-comers with our Under 40 project. $There's no denying that the rubber industry needs to attract more young, qualified people. But look closely and you'll find plenty already embracing what it has to offer. Throughout the next two weeks, we'll introduce you to 28 of those up-and-comers with our Under 40 project.
Conti to test driverless vehicle this year
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HANOVER, Germany—Continental A.G. has advanced its driverless vehicle technology with the development of a demo vehicle it calls CUbE.In a July 20 news release, the German technology...
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HANOVER, Germany—Continental has advanced its driverless vehicle technology with the development of a demo vehicle it calls CUbE. HANOVER, Germany—Continental has advanced its driverless vehicle technology with the development of a demo vehicle it calls CUbE. $HANOVER, Germany—Continental has advanced its driverless vehicle technology with the development of a demo vehicle it calls CUbE.
Autonomous technology driving vehicle design
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TROY, Mich.—Mobility always has been at the core of the automotive industry, and now it's also about to rock that same core. Autonomous vehicles are on the horizon. And even if that horizon ...
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TROY, Mich.—Autonomous vehicles are on the horizon. And even if that horizon is distant, the industry is preparing to design a new world where millions of people would gain access to the road if the technology can be brought to the mainstream. TROY, Mich.—Autonomous vehicles are on the horizon. And even if that horizon is distant, the industry is preparing to design a new world where millions of people would gain access to the road if the technology can be brought to the mainstream. $ TROY, Mich.—Autonomous vehicles are on the horizon. And even if that horizon is distant, the industry is preparing to design a new world where millions of people would gain access to the road if the technology can be brought to the mainstream.
Arab investment firm partners with Nexen
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ABU DHABI, United Arab Emirates—Mubadala Investment Co., an Abu Dhabi-based strategic investment fund, has made an equity investment in Nexen Tire Corp. and struck a deal with the South...
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ABU DHABI, United Arab Emirates—Mubadala Investment has made an equity investment in Nexen and struck a deal with the South Korean tire maker to "explore strategic partnership opportunities." ABU DHABI, United Arab Emirates—Mubadala Investment has made an equity investment in Nexen and struck a deal with the South Korean tire maker to "explore strategic partnership opportunities." $ABU DHABI, United Arab Emirates—Mubadala Investment has made an equity investment in Nexen and struck a deal with the South Korean tire maker to "explore strategic partnership opportunities."
Rubber rankings top 6 unchanged, but sales slide
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The top echelon of the North American rubber product manufacturing industry stayed intact during 2016, with the top six firms holding the same spots as 2015 and only one newcomer to the top 10....
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The top echelon of the North American rubber product manufacturing industry stayed intact during 2016, with the top six firms holding the same spots as 2015 and only one newcomer to the top 10. The top echelon of the North American rubber product manufacturing industry stayed intact during 2016, with the top six firms holding the same spots as 2015 and only one newcomer to the top 10. $The top echelon of the North American rubber product manufacturing industry stayed intact during 2016, with the top six firms holding the same spots as 2015 and only one newcomer to the top 10.
Business, labor groups react to USTR's NAFTA priorities
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WASHINGTON—A modernized North American Free Trade Agreement, ensuring the highest fair trade standards covering the broadest possible range of goods and services, is the Trump...
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WASHINGTON—The Office of the U.S. Trade Representative released its "Summary of Objectives for the NAFTA Renegotiation." The document was greeted by a wide range of comments from organizations and associations. WASHINGTON—The Office of the U.S. Trade Representative released its "Summary of Objectives for the NAFTA Renegotiation." The document was greeted by a wide range of comments from organizations and associations. $WASHINGTON—The Office of the U.S. Trade Representative released its "Summary of Objectives for the NAFTA Renegotiation." The document was greeted by a wide range of comments from organizations and associations.
Nexen sponsoring Euro soccer teams' U.S. tour
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SEOUL, South Korea—Nexen will be a sponsor of the 2017 International Champions Cup tour, which features a dozen matches between leading European soccer teams at U.S. stadiums July 19-30....
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SEOUL, South Korea—Nexen will be a sponsor of the 2017 International Champions Cup tour, which features a dozen matches between leading European soccer teams at U.S. stadiums. SEOUL, South Korea—Nexen will be a sponsor of the 2017 International Champions Cup tour, which features a dozen matches between leading European soccer teams at U.S. stadiums. $SEOUL, South Korea—Nexen will be a sponsor of the 2017 International Champions Cup tour, which features a dozen matches between leading European soccer teams at U.S. stadiums.
Toyoda Gosei expands Fluid Systems unit
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BRIGHTON, Mich.—A Toyoda Gosei Co. Ltd. subsidiary is about to get a whole lot bigger.TG Fluid Systems USA Corp. has begun construction of a 62,000-sq.-ft. addition to its manufacturing...
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BRIGHTON, Mich.—A Toyoda Gosei subsidiary is about to get a whole lot bigger with a 62,000-sq.-ft. addition. BRIGHTON, Mich.—A Toyoda Gosei subsidiary is about to get a whole lot bigger with a 62,000-sq.-ft. addition. $BRIGHTON, Mich.—A Toyoda Gosei subsidiary is about to get a whole lot bigger with a 62,000-sq.-ft. addition.
Bridgestone invests in proactive ride technology with ClearMotion
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NASHVILLE, Tenn.—Bridgestone Americas Inc. has invested in ClearMotion Inc. to incorporate road-sensing technology into its products to build a smoother ride. Bridgestone will work with...
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NASHVILLE, Tenn.—Bridgestone Americas has invested in ClearMotion to incorporate road-sensing technology into its products to build a smoother ride. NASHVILLE, Tenn.—Bridgestone Americas has invested in ClearMotion to incorporate road-sensing technology into its products to build a smoother ride. $NASHVILLE, Tenn.—Bridgestone Americas has invested in ClearMotion to incorporate road-sensing technology into its products to build a smoother ride.
Editorial: Both sides presented plausible accounts to ITC in ESBR case
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The investigation of emulsion SBR imports at the International Trade Commission featured a fairly typical set of plausible but mutually exclusive arguments. Lion Elastomers L.L.C., the one...
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The rubber industry is a complex one, ruled by proprietary research and development, delicate deal making, and an unavoidable, unpredictable human factor. The rubber industry is a complex one, ruled by proprietary research and development, delicate deal making, and an unavoidable, unpredictable human factor. $The rubber industry is a complex one, ruled by proprietary research and development, delicate deal making, and an unavoidable, unpredictable human factor.
Digital Edition
Digital Edition
Published on September 9, 2002

Michelin takes over tire sales leadership

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Date Published September 9, 2002
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Groupe Michelin, via organic growth and despite unfavorable currency swings, edged back to the top of the ranking of the world's tire makers last year, posting 2001 tire sales of $13.4 billion, 1.7 percent better than in 2000.

Michelin's gains coincided with lower sales by Bridgestone Corp., the leader of Rubber & Plastics News' ranking of global tire makers the past two years. Bridgestone's well-publicized problems in North America left sales by the Bridgestone/Firestone companies in the Americas 4.4 percent behind 2000, holding down Bridgestone's global tire sales to $13 billion, or 5.8 percent below the previous year when expressed in dollars.

Michelin added about $100 million in new revenues to 2001 sales through two moves the previous year-the creation of Michelin Shanghai Warrior Tire Co. Ltd. in China and the purchase of two tire plants and retreading and retail assets in Romania from Tofan Grup. These actions helped offset a decline in the euro-dollar exchange rate.

No. 3 Goodyear also reported lower tire sales last year vs. 2000, down 2 percent to $12.5 billion. That occurred despite the extra sales volume generated in North America by Ford Motor Co.'s recall of 13 million Firestone tires.

Goodyear's unit sales fell 1.8 percent to 219.3 million, but internally the company claims this still makes it the largest tire maker in the world on a unit basis.

Assuming this is correct, Goodyear trails Michelin and Bridgestone in revenue per unit. The company addressed the situation in 2001 by maintaining a hard line on price increases and declaring it will walk away from original equipment business that isn't profitable.

No. 4 Continental A.G.'s sales declined, as the German company shifted production from high-cost locations in Western Europe to lower-cost sites in Eastern Europe. In late 2000 and throughout 2001, the company closed tire plants in Austria, Belgium, Mexico and Sweden and sold its NTS tire retailing operation in Great Britain.

No. 5 Sumitomo Rubber Industries Ltd. fell into the red last year, although corporate sales increased 2.6 percent and operating income declined only about 11 percent. To help the company return to the black, Sumitomo President Misuaki Asai told shareholders the firm hopes to generate more than $55 million in profits by cutting manufacturing costs, personnel, capital investments and other expenses.

Sumitomo said its global purchasing alliance with Goodyear yielded nearly $50 million in cost savings vs. 1999. It expects further benefits this year as the firm's Ohtsu Tire & Rubber Co. Ltd. subsidiary gains from the deal for the first time. Sumitomo also plans to set up production in China and expand its penetration into Southeast Asia with increased manufacturing in Indonesia and new sales companies.

From a profitability standpoint, Hankook Tire Co. Ltd. topped the charts. The South Korean company reported operating and net earnings ratios of 8.5 and 2.1 percent, respectively, nosing out Michelin (6.6 and 2 percent) for the honors.

Four of the 11 tire makers with more than $1 billion in annual sales were in the red last year-Goodyear with a $203.6 million net loss, Continental ($231.2 million), Sumitomo ($59.3 million) and Kumho Industrial Co. Ltd. ($223.9 million). Only Yokohama Rubber Co. Ltd. and Hankook improved their earnings in 2001 over 2000.

Collectively, these 11 companies compiled a loss of $90.5 million for the year, compared with earnings of $827.5 million in 2000.

Reflecting the global economy during 2001, sales by nearly two-thirds of the world's 75 leading tire makers either fell or were unchanged last year-including eight of the top 10. The overall estimated value of the global tire industry's sales fell 1.8 percent in 2001 to $68.5 billion.

Together, the Big Three tire makers accounted for $38.8 billion, or 56.5 percent of the global total, and the 10 largest combined generated $55.3 billion in sales, or 80.8 percent of the total. These totals essentially are unchanged from a year ago.

The makeup of the Top 75 was stable compared with last year, with only three new faces-China's Qingdao Huaquing Tyre Industry Co. Ltd. (No. 28), Russia's Kirov Tyre Co. (No. 66) and Malaysia's Silverstone Tyre & Rubber Co. Sdn. Bhd. Ltd. (No. 68). Dropping from the list are China's Beijing Tyre Factory, Jiangxi Tyres and Liaoning Tyres Group Co. Ltd. Additionally, No. 21 Grandtour Tire (Anhui) Co. Ltd. is the new name for Anhui Jia'an Tire Co. Ltd.

China leads the way in terms of national origin, with 14 companies on the list, the largest of which-Shandong Triangle Group Co. Ltd. and Shandong Chengshan Tire Co. Ltd.-have moved up to 12th and 13th on the list, passing India's MRF Ltd. and Taiwan's Cheng Shin Rubber Industry Co. Ltd.

India follows with eight companies, then the U.S. with seven, and Japan, Russia and Taiwan with five each. South Korea and Malaysia have three each, while Iran, Italy and Ukraine have two each, and 19 other countries have one representative each.

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