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Polyurethane-filled holes improve Wilson's swing
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CHICAGO—Polyurethane is at the heart of the latest generation of Wilson's Distance D300 irons.The new golf clubs incorporate Power Holes, which are through-holes that surround the club's...
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CHICAGO—Polyurethane is at the heart of the latest generation of Wilson's Distance D300 irons. CHICAGO—Polyurethane is at the heart of the latest generation of Wilson's Distance D300 irons. $CHICAGO—Polyurethane is at the heart of the latest generation of Wilson's Distance D300 irons.
Editorial: Two deals show medical to remain a hot business area
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As the rubber industry entered into the new year, it’s clear that the medical industry will remain one of great activity. That was exemplified by two acquisitions closed late in 2016 where...
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As the rubber industry entered into the new year, it's clear that the medical industry will remain one of great activity. As the rubber industry entered into the new year, it's clear that the medical industry will remain one of great activity. $As the rubber industry entered into the new year, it's clear that the medical industry will remain one of great activity.
Withdrawal from NAFTA would cost U.S. jobs, study finds
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DETROIT— President-elect Donald Trump's vows to renegotiate the North American Free Trade Agreement (NAFTA) and pursue more protectionist trade policies likely would have a negative effect...
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DETROIT— President-elect Donald Trump's vows to renegotiate the North American Free Trade Agreement and pursue more protectionist trade policies likely would have a negative effect on the U.S. auto industry, a new study reveals. DETROIT— President-elect Donald Trump's vows to renegotiate the North American Free Trade Agreement and pursue more protectionist trade policies likely would have a negative effect on the U.S. auto industry, a new study reveals. $DETROIT— President-elect Donald Trump's vows to renegotiate the North American Free Trade Agreement and pursue more protectionist trade policies likely would have a negative effect on the U.S. auto industry, a new study reveals.
Semperit, Sri Trang demerge Thai gloves JV
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VIENNA—Austrian rubber company Semperit A.G. and its Thai partner Sri Trang Angro-Industry P.L.C. have agreed to demerge their Siam Sempermed rubber gloves joint venture, following a series...
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VIENNA—Austrian rubber company Semperit and its Thai partner Sri Trang have agreed to demerge their Siam Sempermed rubber gloves joint venture, following a series of legal disputes between the partners. VIENNA—Austrian rubber company Semperit and its Thai partner Sri Trang have agreed to demerge their Siam Sempermed rubber gloves joint venture, following a series of legal disputes between the partners. $VIENNA—Austrian rubber company Semperit and its Thai partner Sri Trang have agreed to demerge their Siam Sempermed rubber gloves joint venture, following a series of legal disputes between the partners.
Nexen, Toyota Tsusho establish sales JV
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TOKYO—Nexen Tire Corp. has established a sales subsidiary in Japan to handle its growing replacement tire business there, and to reinforce its OE supply relationships with Japanese...
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TOKYO—Nexen has established a sales subsidiary in Japan to handle its growing replacement tire business there, and to reinforce its OE supply relationships with Japanese automobile manufacturers. TOKYO—Nexen has established a sales subsidiary in Japan to handle its growing replacement tire business there, and to reinforce its OE supply relationships with Japanese automobile manufacturers. $TOKYO—Nexen has established a sales subsidiary in Japan to handle its growing replacement tire business there, and to reinforce its OE supply relationships with Japanese automobile manufacturers.
Kanodia sentenced for Cooper-Apollo insider trading scheme
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BOSTON—A Brookline, Mass.-based entrepreneur and private equity investor has been sentenced to 20 months in prison for initiating an insider trading scheme in connection with the failed...
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BOSTON—A Brookline, Mass.-based entrepreneur and private equity investor has been sentenced to 20 months in prison for initiating an insider trading scheme in connection with the failed acquisition of Cooper Tire by Apollo Tyres. BOSTON—A Brookline, Mass.-based entrepreneur and private equity investor has been sentenced to 20 months in prison for initiating an insider trading scheme in connection with the failed acquisition of Cooper Tire by Apollo Tyres. $BOSTON—A Brookline, Mass.-based entrepreneur and private equity investor has been sentenced to 20 months in prison for initiating an insider trading scheme in connection with the failed acquisition of Cooper Tire by Apollo Tyres.
Wacker to add fumed silica plant at Tennessee campus
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CHARLESTON, Tenn.—Wacker Chemie A.G. intends to invest $150 million to establish a new pyrogenic silica facility on the same site as its existing plant in Charleston. Construction is...
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CHARLESTON, Tenn.—Wacker intends to invest $150 million to establish a new pyrogenic silica facility on the same site as its existing plant in Charleston. CHARLESTON, Tenn.—Wacker intends to invest $150 million to establish a new pyrogenic silica facility on the same site as its existing plant in Charleston. $CHARLESTON, Tenn.—Wacker intends to invest $150 million to establish a new pyrogenic silica facility on the same site as its existing plant in Charleston.
Thailand building auto test center to support tire, NR sectors
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BANGKOK—The Thailand Board of Investment plans to invest $100 million to build an automotive testing center that the government views as a "top priority" for supporting the nation's growing ...
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BANGKOK—The Thailand Board of Investment plans to invest $100 million to build an automotive testing center that the government views as a "top priority" for supporting the nation's growing tire and natural rubber industries. BANGKOK—The Thailand Board of Investment plans to invest $100 million to build an automotive testing center that the government views as a "top priority" for supporting the nation's growing tire and natural rubber industries. $BANGKOK—The Thailand Board of Investment plans to invest $100 million to build an automotive testing center that the government views as a "top priority" for supporting the nation's growing tire and natural rubber industries.
Nexteer, Continental to form joint venture
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DETROIT—Nexteer Automotive Corp. and Continental Automotive Systems Inc. will form a joint venture to supply safety systems for autonomous cars.In an announcement Tuesday at the North...
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DETROIT—Nexteer and Continental Automotive Systems will form a joint venture to supply safety systems for autonomous cars. DETROIT—Nexteer and Continental Automotive Systems will form a joint venture to supply safety systems for autonomous cars. $DETROIT—Nexteer and Continental Automotive Systems will form a joint venture to supply safety systems for autonomous cars.
Toyo plans North American expansion
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WHITE, Ga.—Toyo Tire & Rubber Co. Ltd. plans to expand its North American research and development center, setting up a dedicated business development unit for the market. The firm, in...
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WHITE, Ga.—Toyo Tire plans to expand its North American research and development center, setting up a dedicated business development unit for the market. WHITE, Ga.—Toyo Tire plans to expand its North American research and development center, setting up a dedicated business development unit for the market. $WHITE, Ga.—Toyo Tire plans to expand its North American research and development center, setting up a dedicated business development unit for the market.
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.