Current Issue
×

Top Stories

Title Issue Date Category Formats Records Price
Fenner releases new industrial belt
View Description View Full Details
PITTSBURGH—Fenner Dunlop P.L.C.'s Engineered Conveyor Solutions division is pushing forward with a new product designed to widen its reach into the industrial use market. Patriot X is a...
View Full Details »
PITTSBURGH—Fenner Dunlop's Engineered Conveyor Solutions division is pushing forward with a new product designed to widen its reach into the industrial use market. PITTSBURGH—Fenner Dunlop's Engineered Conveyor Solutions division is pushing forward with a new product designed to widen its reach into the industrial use market. $PITTSBURGH—Fenner Dunlop's Engineered Conveyor Solutions division is pushing forward with a new product designed to widen its reach into the industrial use market.
Beaver, Mehler to partner in Europe
View Description View Full Details
FAIRLAWN, Ohio—Beaver Manufacturing Co. Inc. and Mehler Engineered Products Group enjoyed a long courtship before finally entering into a cooperation agreement that will begin next year....
View Full Details »
FAIRLAWN, Ohio—Beaver Manufacturing and Mehler Engineered Products Group enjoyed a long courtship before finally entering into a cooperation agreement that will begin next year. FAIRLAWN, Ohio—Beaver Manufacturing and Mehler Engineered Products Group enjoyed a long courtship before finally entering into a cooperation agreement that will begin next year. $FAIRLAWN, Ohio—Beaver Manufacturing and Mehler Engineered Products Group enjoyed a long courtship before finally entering into a cooperation agreement that will begin next year.
GM aims to sell 1 million electric vehicles annually by 2026
View Description View Full Details
DETROIT—General Motors Co. expects its electrified vehicle business to be profitable with the launch of its next-generation electric vehicle platform in 2021, CEO Mary Barra said. Auto...
View Full Details »
DETROIT—General Motors expects its electrified vehicle business to be profitable with the launch of its next-generation electric vehicle platform in 2021. DETROIT—General Motors expects its electrified vehicle business to be profitable with the launch of its next-generation electric vehicle platform in 2021. $DETROIT—General Motors expects its electrified vehicle business to be profitable with the launch of its next-generation electric vehicle platform in 2021.
Wacky World of Rubber: 'Liquid rubber in a can'
View Description View Full Details
Chances are you've seen the commercials. They bring you all the amazing attributes of the "Flex Seal Family of Products." You know the ones I'm talking about. They star Phil Swift performing any...
View Full Details »
Chances are you've seen the commercials. They bring you all the amazing attributes of the "Flex Seal Family of Products." They star Phil Swift performing any number of miracle repair jobs using a variety of products in the family. Chances are you've seen the commercials. They bring you all the amazing attributes of the "Flex Seal Family of Products." They star Phil Swift performing any number of miracle repair jobs using a variety of products in the family. $Chances are you've seen the commercials. They bring you all the amazing attributes of the "Flex Seal Family of Products." They star Phil Swift performing any number of miracle repair jobs using a variety of products in the family.
TRAC finds Canadians' winter tire use is gradually increasing
View Description View Full Details
CAMBRIDGE, Ontario—It may come as no surprise, but winter tire shipments across Canada have grown at an annualized rate of 4 percent over the past five years, making winter tires the...
View Full Details »
CAMBRIDGE, Ontario—Winter tire shipments across Canada have grown at an annualized rate of 4 percent over the past five years, making winter tires the fastest-growing tire category in the country, according to the Tire and Rubber Association of Canada. CAMBRIDGE, Ontario—Winter tire shipments across Canada have grown at an annualized rate of 4 percent over the past five years, making winter tires the fastest-growing tire category in the country, according to the Tire and Rubber Association of Canada. $CAMBRIDGE, Ontario—Winter tire shipments across Canada have grown at an annualized rate of 4 percent over the past five years, making winter tires the fastest-growing tire category in the country, according to the Tire and Rubber Association of Canada.
Flexaust adds to Indiana facilities
View Description View Full Details
WARSAW, Ind.—Flexaust Co. Inc. is adding a 25,000-sq.-ft. expansion that will connect two buildings at its complex in Warsaw, freeing up space for new manufacturing and providing a single...
View Full Details »
WARSAW, Ind.—Flexaust is adding a 25,000-sq.-ft. expansion that will connect two buildings at its complex in Warsaw, freeing up space for new manufacturing and providing a single spot for finished goods inventory. WARSAW, Ind.—Flexaust is adding a 25,000-sq.-ft. expansion that will connect two buildings at its complex in Warsaw, freeing up space for new manufacturing and providing a single spot for finished goods inventory. $WARSAW, Ind.—Flexaust is adding a 25,000-sq.-ft. expansion that will connect two buildings at its complex in Warsaw, freeing up space for new manufacturing and providing a single spot for finished goods inventory.
The auto interior's endangered species list
View Description View Full Details
For decades, drivers could count on a few interior features to be consistent from one vehicle to the next. An easy-to-find lever to shift the transmission. An easy-to-grab knob to adjust radio...
View Full Details »
Auto makers are increasingly hitting resistance from consumers as they try to streamline and modernize their vehicles' interiors. Auto makers are increasingly hitting resistance from consumers as they try to streamline and modernize their vehicles' interiors. $Auto makers are increasingly hitting resistance from consumers as they try to streamline and modernize their vehicles' interiors.
Private sector plays for overtime on NAFTA
View Description View Full Details
DETROIT—Supporters of the North American Free Trade Agreement see time as their best friend.Trump administration officials originally intended to rewrite the 23-year-old agreement with...
View Full Details »
DETROIT—Supporters of the North American Free Trade Agreement see time as their best friend. DETROIT—Supporters of the North American Free Trade Agreement see time as their best friend. $DETROIT—Supporters of the North American Free Trade Agreement see time as their best friend.
Cooper Standard opens innovation center in Michigan
View Description View Full Details
LIVONIA, Mich.—A wild, fun future is on the horizon for the automotive industry, and Cooper Standard Automotive Inc. is prepared to meet it head on. The firm recently opened a new 137,750-...
View Full Details »
LIVONIA, Mich.—Cooper Standard Automotive recently opened a new 137,750-sq.-ft. global technology center in Livonia, offering capabilities in material science, tooling, development, production and validation. LIVONIA, Mich.—Cooper Standard Automotive recently opened a new 137,750-sq.-ft. global technology center in Livonia, offering capabilities in material science, tooling, development, production and validation. $LIVONIA, Mich.—Cooper Standard Automotive recently opened a new 137,750-sq.-ft. global technology center in Livonia, offering capabilities in material science, tooling, development, production and validation.
USW asks for Labor Department's help in Kumho case
View Description View Full Details
WASHINGTON—The United Steelworkers union has formally asked the U.S. Department of Labor to convene the Labor Council under the U.S.-South Korea Free Trade Agreement (KORUS FTA) to consider...
View Full Details »
WASHINGTON—The United Steelworkers union has formally asked the U.S. Department of Labor to convene the Labor Council under the U.S.-South Korea Free Trade Agreement to consider the dispute between Kumho Tire USA and the USW at Kumho's new plant in Macon, Ga. WASHINGTON—The United Steelworkers union has formally asked the U.S. Department of Labor to convene the Labor Council under the U.S.-South Korea Free Trade Agreement to consider the dispute between Kumho Tire USA and the USW at Kumho's new plant in Macon, Ga. $WASHINGTON—The United Steelworkers union has formally asked the U.S. Department of Labor to convene the Labor Council under the U.S.-South Korea Free Trade Agreement to consider the dispute between Kumho Tire USA and the USW at Kumho's new plant in Macon, Ga.
Digital Edition
Digital Edition
Published on September 5, 2005

Firms plan $4.4 billion in spending

Have a question? Need some help?
Click here to view the FAQ

Tags

Date Published September 5, 2005
Category

The world's major tire makers, led by Bridgestone Corp.'s unprecedented $2 billion in announced capacity expansion projects, have committed nearly $4.4 billion in tire plant capital expenditures in the past 12 months.

That's double the amount announced during 2003-04 and the most since 1996-97 when Rubber & Plastics News tracked $3.6 billion in capacity expansion projects.

In addition, Hankook Tire Co. Ltd. is scouting sites in eastern Europe for a plant, for which it is has budgeted a reported $500 million to $600 million. That would bring the total global tire industry investment to nearly $5 billion.

About half the projects announced are in Asia, with nearly $1.2 billion going to China. Another $1 billion-plus-not counting Hankook's project-is earmarked for projects in eastern Europe and $680 million for Brazil, underscoring the industry's drive for production sources in lower-cost areas.

By contrast, there has been only one capacity increase of consequence announced in western Europe and none in the U.S. or Canada. Bridgestone Americas' $220 million passenger tire plant project in Mexico is the only one of consequence in North America.

The projects represent nearly 150,000 units in new daily-or more than 50 million units a year-capacity to come on stream in the coming two to three years, according to a summary of the projects. This added capacity is not being offset to any great degree by plant closings.

Groupe Michelin was the second most active investor, disclosing $617 million in the period for four separate capacity expansion projects. Pirelli S.p.A. also disclosed four expansion projects, for which the firm has budgeted $434.5 million.

Yokohama Rubber Co. Ltd. and Goodyear announced two projects each, valued at $202 million and $138 million, respectively.

Within the capital spending matrix, investments in OTR tires-which are in short supply-stand out. The majors have scheduled more than $650 million in spending for new OTR tire plants and/or expansion of capacity.

In terms of annual capital spending, the world's largest tire makers last year invested on average 6.1 percent of their sales revenue back into their corporations, up from about 5.5 percent in fiscal 2003.

Summarizing the major projects announced since August 2004:

Amtel Holding

* $75 million to upgrade its tire plant in Voronezh, Russia, and add annual capacity for 3 million radial passenger car tires by year-end 2005.

Balkrishna Tyres

* $20 million to expand capacity 25 percent to 75,000 metric tons per year at sites in Waluj and Bhiwadi, India, and includes construction of a farm and earthmover tire facility in Chopanki.

Bridgestone

* $159 million to boost the scope of a capacity expansion at its Chonburi, Thailand, truck and bus tire plant to 7,500 units a day by the first half of 2008. The project includes expanding steel-cord capacity at the Rayong, Thailand, factory six-fold to 107 metric tons daily.

* $100 million for a steel cord plant in Huizhou, Guangdong Province, China with capacity of 70 metric tons a day by year-end 2008.

* $155 million through early 2007 to expand capacity for large radial off-the-road tires by 20 percent at its Shimonoseki, Japan, operation. The project also includes provisions to expand steel cord capacity 5 percent at a site in Saga, Japan, and for tire components at the Hofu facility.

* $243 million for a high-performance passenger and light truck tire plant near Tatabanya, Hungary, based on the firm's proprietary automated ``BIRD'' production system. Due to begin production in 2008, it will have a daily capacity of 8,000 units initially.

* $300 million for a 5,000 units a day radial truck and bus tire facility in Huizhou, due on stream in 2007.

* $220 million for an 8,000 units a day BIRD-based passenger/light truck tire factory in Monterrey, Mexico, due to start operations by July 2007.

* $160 million for an 8,000 units daily passenger/light truck tire plant in Camacari, Brazil, due on stream in late 2006.

* $100 million to modernize the Santo Andre, Brazil, passenger, truck/bus, agricultural and off-the-road tire facility.

* $130 million to double annual capacity of small radial earthmover tires at its Hofu factory by mid-2006.

* $237 million over two to two-and-a-half years to install the BIRD system at its Hikone, Japan, tire site, where production of car tires using the system should reach 12,000 units daily by early 2007.

* $94.3 million to build a plant in Shenyang, China, for making steel tire cord; 70 metric tons a day by year-end 2007.

Double Happiness Tyre

* An undisclosed sum to build a radial truck tire facility in Taiyuan, China; 300,000 units or 1.8 million metric tons a year.

Federal Corp.

* $30 million to double annual radial car and light truck tire capacity to 5 million units at its Federal Tire (Jiangxi) subsidiary in China by year-end.

Goodyear

* $18 million to install capacity for run-flat passenger tires at its Dalian, China, plant by 2007, with annual output of 200,000 units by 2011.

* $120 million to expand medium radial truck tire capacity 50 percent at its operations in Sao Paulo and Americana, Brazil, by 2006.

J.K. Tyre Group

* $51 million to double annual OTR tire capacity at its Mysore, India, plant to 2,400 units.

* $38 million to expand capacity for steel truck radials at Mysore, for radial passenger tires at its Banmore, India, site, and for bias-ply truck tires at all Mysore, Banmore and Kankroli, India, factories.

Kumho Tire

* $185 million for a passenger and light truck tire plant in Tianjin, China, with 5 million units a year by 2007, expanding to 12.5 million units annually long term.

Matador-Addis Tyre

* $40 million to modernize its facility in Addis, Ethiopia, and quadruple annual capacity to 1 million units by 2008, including capacity for radial tires.

Michelin

* $65.3 million to expand capacity for truck tires at its Tours, France, plant about 25 percent to more than 1 million units by 2007. Project includes phasing out tires at the Poitiers, France, factory.

* $200 million to build an earthmover tire operation in Campo Grande, Brazil. Due on stream by the second half of 2007, the plant initially will have annual capacity of 40,000 metric tons, rising eventually to 55,000 tons.

* $330 million to expand car and light truck tire capacity at its Stomil Olsztyn S.A. tire facility in Olsztyn, Poland, over three years by about 3 million tires.

* $22 million to triple production of car tires at its site in Davydovo, Russia, to 6,000 units/day by year-end 2005.

Pirelli

* $180 million over three years to set up a radial truck tire joint venture in China with Roadone Tyre Co. Ltd. of Jinan, China.

* $130 million over three years to build a passenger tire plant in Slatina, Romania, primarily for performance passenger tires. No capacity data were divulged.

* $100 million to build a steel radial truck tire facility on the site of its Gravatai, Brazil, passenger tire plant and to expand capacity at its recently opened passenger tire factory in Bahia, Brazil. Capacity data were not divulged.

* $49 million, together with joint venture partner Continental A.G., to set up a steel tire cord operation in Slatina. Annual output should reach 30,000 metric tons at full capacity in about three years.

Shanghai Tyre

* $120 million for a truck and OTR tire plant in Rugao/Jiangsu Province, China, that will turn out 2.5 million radial truck tires a year by 2007 and eventually up to 150,000 units of annual capacity for radial OTR tires.

South China Tire & Rubber

* $100 million for a second factory in Guangzhou City, China, with initial output of 2 million radial passenger and light truck tires. Due on stream in 2007.

Specialty Tires

* $1 million to add capacity for about 100,000 radial specialty tires at its Indiana, Pa., tire plant by mid-2005.

Sumitomo Tire

* An undisclosed sum to build a passenger tire facility in Thailand's Rayong Province that eventually will become the company's largest operation at 7 million units a year. Daily capacity will start at about 12,000 units in 2007 and ramp up to 22,000 by 2010.

* $51 million to add up to 10,000 units of new capacity for passenger tires at sites in China and Indonesia.

Toyo Tire

* $25 million to boost annual output of larger diameter passenger and light truck tires at its Kuwana, Japan, plant by 1 million and 120,000 units, respectively, by year-end.

Yokohama Rubber

* $93.7 million to more than double production capacity of passenger and sport-utility vehicle tires at its Yokohama Tire Philippines Inc. subsidiary. Annual capacity will rise to 7 million units by September 2006.

* $109 million to add car and light truck tire capacity at its truck tire factory near Bangkok, Thailand. Capacity of 1.4 million units will be on stream by late 2006/early 2007.

* An undisclosed sum to double capacity for radial truck tires at the Thai plant to 700,000 units by 2007.

ERROR: Object template cce_CCI_SITE is missing!