Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
web
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • ITEC
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • Silicone
    • Latex
    • Coronavirus
    • Executive Action
    • Government/Legal
    • Opinion
    • Technical Notebooks
    • International Elastomer Show
    • Women in Tire & Rubber
    • HEXPOL Sponsored Content
    • Goodyear recognized by Lockheed Martin as 'elite supplier'
      EV tire advancements to help secure future
      Lambillotte: Only question on AVs is timing
      CAR official says EV future brighter than autonomous
    • Smithers webinars focus on performance materials in green tires
      Ford to close 3 plants, end production in Brazil, costing $4.1 billion
      Study: Vehicle buyers cling to familiarity amid pandemic
      Kumho launches commercial LT, performance tire lines
    • Smithers webinars focus on performance materials in green tires
      Ferentino Tyre opens Sri Lanka plant; eyes exports to U.S., Europe
      Kumho launches commercial LT, performance tire lines
      Taiwan tire makers propose settlement of import duties case
    • JobsOhio funding gives Sperry & Rice room to grow
      TRAC's Glenn Maidment caps 51-year rubber industry career
      LafargeHolcim looks to solidify U.S. presence with Firestone Building Products purchase
      Hankook Tire holding company adopts Hankook & Co. identity
    • Smithers webinars focus on performance materials in green tires
      Endurica earns prestigious Tibbetts Award from SBA
      Kuraray to raise elastomer prices again
      Synthomer optimistic, raises earnings forecast
    • Safic-Alcan extends distribution agreement with Momentive
      Momentive aims to grow silicone presence in Asia-Pacific region
      IRP Medical solidifies portfolio with KDL deal
      Rubber lab services firm Ace reports record year
    • ASTM cancels April meetings as COVID-19 continues impact
      Paycheck Protection Program funding reopens Jan. 15
      Detroit Auto Show canceled; alternative event being planned for September
      Top Glove reopens COVID-hit factories with enhanced precautions
    • Jack Murphy joins Akron Dispersions
      Adriano Alfani named Versalis CEO
      Maroon Group adds to Southeast sales team
      ASTM taps rubber executive as new board member
    • Paycheck Protection Program funding reopens Jan. 15
      Taiwan tire makers propose settlement of import duties case
      Lobbying group unveils policy agenda to speed transition to EVs
      NADA, bank group to assess political contributions after U.S. Capitol siege
    • Column: Pandemic looms over everything in life, business in 2020
      Column: Lessons from the 2020 Best Places to Work
      Editorial: Silicone hit hard by pandemic, expected to bounce back
      Column: Still far way from normal
    • Effects of multiple repurposed materials for reinforcements of standard rubber compounds
      Impact of peroxide blends on the cure rate and aged properties in HNBR
      Techniques to detect long chain branching in polymers
      A comparative study looking at effects of curing kinetics and batch variation on SBR injection molding and numerical analytics
    • WORD panelists say evolution, authenticity keys to success
      IEC keynote: Communication key to logistics
      IEC speaker: Specialized elastomers may reduce spread of life-threatening pathogens
      Rubber Division seeking abstracts for Spring Technical Meeting
    • WORD panelists say evolution, authenticity keys to success
      New video celebrates women in rubber industry
      ITEC panelists say women can thrive in tire industry
      Rubber Division planning second Women of Rubber event
    • Sponsored By HEXPOL Compounding
      Faster Access to Your Polymer Compounding Experts Around the World
      Sponsored By HEXPOL Compounding
      Take a walk thru a HEXPOL Lab
      Sponsored By HEXPOL Compounding
      HEXPOL offers a unique selection of High Performance Elastomers to match your application requirements
      Sponsored By HEXPOL Compounding
      It’s what you can’t see that makes the Difference at HEXPOL
  • Blogs
    • Products
    • Wacky World of Rubber
    • New Products: MonTech introduces 1,500 kN lab press
      New products: 3M introduces new durable, pliable medical adhesive
      New Products: Lanxess launches energy-efficient PU elastomer
      New Products: MonTech automates bale cutter for safety, productivity
    • Wacky World of Rubber: How Trelleborg, teens sealed a spot in the world record book
      Wacky World of Rubber: Of chicken and feet, but not chicken feet
      Wacky World of Rubber: Time to go mattress shopping
      Wacky World of Rubber: Because nothing says football like 'frunk' shrimp
  • Newsletters
    • Rubber in Automotive
    • Silicone News
    • Latex News
    • Sign Up for Newsletters
    • Smithers webinars focus on performance materials in green tires
      Ford to close 3 plants, end production in Brazil, costing $4.1 billion
      Study: Vehicle buyers cling to familiarity amid pandemic
      Kumho launches commercial LT, performance tire lines
    • Safic-Alcan extends distribution agreement with Momentive
      Momentive aims to grow silicone presence in Asia-Pacific region
      IRP Medical solidifies portfolio with KDL deal
      Rubber lab services firm Ace reports record year
    • Jack Murphy joins Akron Dispersions
      Synthomer optimistic, raises earnings forecast
      Top Glove reopens COVID-hit factories with enhanced precautions
      Malaysia electronics group to enter rubber gloves sector
  • Multimedia
    • Videos
    • Photo Galleries
  • Directory
  • Resources
    • Classifieds & Mold Mart
    • Sponsored Content
    • White Papers
    • Sponsored By HB Chemical
      The Company Behind the Inventory
      Sponsored By French Oil Mill Machinery
      Process Improvement, Cost Reduction with Custom Press Systems
    • Sponsored By Uncountable Inc.
      Cooper Standard deploys lab informatics platform to synchronize R&D
      Sponsored By Elkem
      LSR Selectâ„¢: A solution to improve your financial impact in molding applications
      Sponsored By HEXPOL Compounding
      Peroxide Cureable Silicone Injection Molding
      Sponsored By HEXPOL Compounding
      Understanding and Selecting Performance Additives for Rubber Compounding
  • Data
  • Events
    • RPN Events
    • RPN Livestreams/Webinars
    • Industry Events
    • Past Events
    • ITEC Library
    • International Silicone Conference Library
    • 2021 Healthcare Elastomers Virtual Edition
      2021 Rubber in Automotive Virtual Edition
      2020 International Silicone Conference Virtual Edition
      2020 ITEC Virtual Edition
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
December 11, 2006 01:00 AM

Another year in the rear view mirror

  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    So what was the rubber industry like in 2006? Check back in five years or so.

    Huge events that are bound to have an impact occurred, and are occurring, in the business in 2006. From contraction in the tire manufacturing business, to expansion by non-tire companies, to aftershocks from the supplier price-fixing scandal, much happened that is certain to affect the industry for years to come.

    Here's one list of Top 10 news events, voted on by the editorial staff of Rubber & Plastics News. Feel free to devise your own.

    1. Sea of change in tire production

    Canada and the U.S. fast are becoming the site of high value-added tire production-and not lower-margin passenger tires.

    In the past year Michelin, Continental Tire North America Inc., Bridgestone/Firestone and Goodyear all announced plant closings and/or production cutbacks. The reasons varied in degree, but the consistent theme was that production of lower-end tires in North America can't compete with plants in less-expensive areas of the world.

    To pour salt on the wounds, the year-end report of tire shipments from the Rubber Manufacturers Association noted tire demand in the U.S. tumbled 4.5 percent in 2006. Next year is expected to be marginally better-a 1.4-percent increase.

    2. Steelworkers walk out-or is it walk the plank?-at Goodyear

    The seemingly endless negotiations over a master contract between the United Steelworkers union and Goodyear did come to an end on Oct. 5. The workers went on strike.

    Among the holdups in the talks was job security, which the company said it couldn't guarantee, and proved about a month later when it announced the closing of its Tyler, Texas, plant. As of now, no end in sight for the labor dispute.

    Meanwhile, Michelin settled with the Steelworkers on a master contract, and BFS workers are waiting for Goodyear to iron out an agreement before returning to the table.

    3. Trelleborg movin' and shakin'

    You'd need a scorecard to keep track of all the moves by Sweden's Trelleborg A.B. in 2006, including some major ones in the U.S.

    The big news in this part of the world was the firm's planned $178 million purchase of Reeves Brothers Inc., which will expand significantly its production presence in the U.S. The Reeves deal is one of eight announced or completed acquisitions in the global rubber industry in the past 12 months by Trelleborg.

    On the other side of the equation, the company in November said it would phase out its industrial tire plant in Hartville, Ohio, the one-time Monarch Industrial Tire Co. operation, and was contemplating other closures and divestitures in its automotive business.

    4. Cooper takes on water, captain abandons ship

    Times are tough for Cooper Tire & Rubber. Six-consecutive-quarters-of-losses tough.

    The tire maker struggled to get its tire production venture in China up and running, announced 500 layoffs at its Texarkana, Ark., plant, and cut unprofitable tire lines to drag itself out of the red ink. In August it said goodbye to Thomas Dattilo, who as the top executive at the firm for more than seven years was the architect of many of Cooper's production, image and marketing decisions.

    By the end of the year Dattilo had yet to be replaced. Interim CEO Byron Pond expressed confidence Cooper was back on course, if not quite ready to declare profitability was dead ahead.

    5. America the beautiful, as a manufacturing site

    Surprise! Some companies are quite happy to be manufacturing in America, and spending dollars to prove it.

    Titan International Inc. ultimately won the ``Buy Bryan'' derby, purchasing the Bryan, Ohio, off-road tire plant from Continental Tire, which had been in play for 18 months. An investment company and managers at Avon Automotive Inc. plunked down $115 million to buy the Cadillac, Mich.-based manufacturer, while Fenner Dunlop Conveyor Belting Americas decided $80 million was a good amount to invest in two U.S. operations.

    Freudenberg-NOK G.P. continued to grow through acquisitions, snatching up Helix Medical and Imperial Rubber & Urethane Corp.

    6. Shake-ups in the supplier section

    Suppliers in the rubber industry were coming, going and expanding in 2006.

    Hardly content after buying DSM Copolymer Inc. last year, and jointly purchasing what today is Excel Polymers a year earlier, Lion Chemical Capital Inc. agreed to acquire Chemtura's EPDM and rubber chemicals business.

    When completed, Chemtura's role in the elastomer business will be limited to polyurethanes. Similarly, Teknor Apex Co. moved to phase out its rubber division but remains a thermoplastic elastomer supplier.

    ExxonMobil Corp. announced an expansion at its Baytown, Texas, halobutyl plant, and the addition of a specialty compounded products facility at its Baton Rouge, La., complex.

    7. Natural rubber pricing unnatural

    Back in the day, natural rubber-producing countries squawked about low prices. They have nothing to complain about now.

    NR prices hit 20-year highs in 2006, in large part because of high demand in China and other Pacific Rim countries. The lofty price helped boost the fortunes of some synthetic rubbers, as some rubber processors turned to substitutes for NR.

    The high cost of oil, and its subsequent effect on oil-based rubber chemicals and materials, kept supplier prices high and was cited in many a poor financial report by rubber product makers.

    8. Cost is kaiser at Continental Tire

    It was all about profitability at Continental Tire North America this year, much to the distress of United Steelworkers members.

    The company demanded its U.S. plants be as cost-competitive and profitable as others operated throughout the world by parent Continental A.G., which meant a demand for $32 million in labor cost cuts at its Charlotte, N.C., factory. The Steelworkers wouldn't budge, and Conti closed the factory.

    Fair being fair, Conti also sliced wages at its non-union Mount Vernon, Ill., facility, although it did announce a major investment in the plant. The firm also decided to completely shut down the mostly closed Mayfield, Ky., factory.

    9. China: The dragon keeps roaring

    Five years ago the word ``China'' appeared in 64 stories in this publication. This year, 182.

    If a rubber industry company isn't producing, exporting to or seeking a partner in China, it at least is worrying about losing business to Chinese firms. Continuing the recent trend, all North American rubber manufacturers were hit with one effect of China becoming a rubber industry power: supply availability and prices. China's huge demand for supplies has had a continuing impact on global prices.

    Both rubber processors and suppliers-from Cooper Tire to Excel Polymers to GPX International Tire Co.-were involved in enhancing production in China, including expansions, joint ventures and outright purchases of Chinese companies.

    10. Neoprene subject of closing, investment, tariff fight

    Neoprene tariffs and a plant closing riled several rubber product companies and workers at a DuPont Performance Elastomers plant. In the end, the supplier got its way.

    The synthetic rubber producer announced the March 2007 closing of its Louisville, Ky., neoprene plant, while it invested in production of the rubber at its Pontchartrain, La., factory. That didn't sit well with the 200 employees in Louisville.

    At the same time, Gates Corp., supported by several other rubber product companies, sought to have duties reduced on neoprene imported into the U.S. from Japan. The International Trade Commission, however, sided with DuPont Performance Elastomers, the only neoprene producer in the country.

    Letter
    to the
    Editor

    Rubber & Plastics News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber & Plastics News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber & Plastics News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    web
    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Contact the Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • ITEC
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • Silicone
      • Latex
      • Coronavirus
      • Executive Action
      • Government/Legal
      • Opinion
      • Technical Notebooks
      • International Elastomer Show
      • Women in Tire & Rubber
      • HEXPOL Sponsored Content
    • Blogs
      • Products
      • Wacky World of Rubber
    • Newsletters
      • Rubber in Automotive
      • Silicone News
      • Latex News
      • Sign Up for Newsletters
    • Multimedia
      • Videos
      • Photo Galleries
    • Directory
    • Resources
      • Classifieds & Mold Mart
      • Sponsored Content
      • White Papers
    • Data
    • Events
      • RPN Events
      • RPN Livestreams/Webinars
      • Industry Events
      • Past Events
      • ITEC Library
      • International Silicone Conference Library
    • Advertise
    • DIGITAL EDITION