Michelin Reports Stronger Tire Sales for October

Michelin has released its October 2009 and year-to-date figures for tire sales, and the figures offer a significantly more positive performance in some key sectors, though difficulties remain. In original equipment passenger car and light truck tire markets, October replacement sales were up in all three of Michelin’s reported regions compared to October 2008, with Europe up 6.4% (of which Europe excluding CIS was up 10.4%), North America up 6.9%, and China up 11.4%. However, October’s original equipment PC/LT tire sales were down 0.9% in Europe and 8.4% in North America compared to October 2008, though China showed strong growth of 75.2%. Given the difficulties of the first nine months of the year, YTD PC/LT sales are still down for both the OE and replacement segments in Europe and North America, though China’s market is up 52.7% in OE and up 14.4% in replacement YTD.

Radial truck tires also posted stronger results in October, at least on the replacement side. Replacement truck tire sales increased 0.4% in Europe including CIS, 16.8% in Brazil, 12.7% in Japan, and 12.1% in China. Among Michelin’s reported regions, only the North American market saw declines in truck tire replacement sales in October, which totaled 3.1%. However, original equipment radial truck tires continued to show steep declines across all regions in October 2009 compared to October 2008, with the steepest percentage declines (60.5%) in Europe including CIS.

Reflecting the deep and prolonged downturn in this segment, truck tire year-to-date figures were down nearly across the board in both the OE and replacement segments. The lone exception was China’s replacement sales, which were up 0.5%.

The full results are here.

Notch Publishes Silica Market Update

Notch Consulting this month published the first issue of the Silica Market Update, a new, twice-yearly report updating conditions in the global precipitated silica market. The 31-page report includes 17 tables that provide detailed estimates of precipitated silica demand by quarter for 2008 and 2009, as well as forecasts for full year 2009, 2010, and 2015. Data are provided at the world and regional levels, as well as for major countries. The report also provides current precipitated silica pricing levels, status updates on 19 recent and pending projects related to precipitated silica production capacity, and a ranking of global precipitated silica capacity by company as of September 2009. The next issue of the Silica Market Update will be published in March 2010. For subscription rates and options, please contact Notch Consulting at info @ notchconsulting.com.

Goodyear to Close Spartanburg

Goodyear has announced that it plans to close its plant in Spartanburg, South Carolina by the end of the year. The plant, which employs about 90 people, produces retread material for commercial truck and aircraft tires. According to a Goodyear statement, the production will be incorporated into other Goodyear facilities in the US.

Vietnam Bans Exports of Silica Sand

Updated: Subsequent to the original report below, the Vietnamese government clarified that the ban would cover only construction sand, and would not cover industrial sand, as previously reported.
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On October 7, Industrial Minerals (subscription required) reported that the Vietnamese government has banned exports of all types of silica sand, including construction and industrial grades. The ban was instituted by Vietnam’s Deputy Prime Minister Hoang Trung Hai, and is effective immediately.

As this ban was being considered, Notch heard from silica producers in the region concerned about how the ban would affect regional supplies of sodium silicate, as Vietnam is known as an exporter of high quality sand.

Michelin Issues Cautious Outlook

From the Wall Street Journal (subscription required):

The recent world economic recovery is shaky and could soon fade, one of Michelin’s non-general managing partners said Wednesday.

Despite “the euphoria we have seen in the past weeks…we never had these signals [of recovery] and we still don’t have them,” Jean-Dominique Senard said in an interview. “The prospects in the coming weeks are not good.”

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The Cash for Clunkers programs in the US and Europe have undoubtably benefited third quarter tire demand, and with inventories so low, that has translated into stronger production levels. But the question of the hour is whether demand will hold after November. Without a more sustained recovery in consumer spending, the third quarter recovery will become a blip in a continuing downturn.

Evonik Raises Silica Prices

On September 29, Evonik Industries announced it would increase its silica prices worldwide. The price increase of 5% will become effective on November 1, 2009, or as contracts allow. It is being driven by higher costs.

Here is the press release.

Toyo Moving Production from China to Japan Due to US Tariffs

Tire Business (subscription required) is reporting that Toyo Tire & Rubber Co. Ltd. will move production of consumer tires it makes in China for export to the U.S. to plants in Japan in response to the Obama administration’s decision to impose higher tariffs on Chinese-made passenger and light truck tires.

Toyo sources tires for the U.S. market from Cheng Shin-Toyo Tire & Rubber (China) Co. Ltd., its former joint venture plant in Kunshan, China. Toyo and Taiwan’s Cheng Shin Rubber Ind. Co. Ltd. set up the joint venture in 1995, but Toyo disclosed in early September it is selling its share in the venture and instead will build its own plant in China.

Cooper Breaks Ground on Tupelo Expansion

On Tuesday, September 22, Cooper Tire & Rubber held a groundbreaking ceremony for a $7 million expansion of its tire plant in Tupelo, Mississippi. The plant currently occupies more than 1.6 million square feet and employs more than 1,250 people. Construction is set to begin this month on a 32,000-square-foot addition, which will include a new mixer as well as a new mixing building. The project is expected to be complete by April 2010.

Pat Jodon, Plant Manager for the Cooper Tire Tupelo, Miss., facility, said, “This expansion will enable Cooper to produce more technologically advanced products and will enable the Company to improve the competitiveness of its operations.

Here is the press release.

Conference on Sustainable Additives and Fillers in Rubber to be Held in London

The Rubber In Engineering Group (RIEG), part of Institute of Materials, Minerals & Mining (London), is sponsoring a one-day technical meeting to discuss the “sustainable future for additives and fillers in rubber.” The conference will be held at IOM3 HQ in London on September 25.

Confirmed topics include:

• The use of beneficated pulverised fuel ash (PFA) derived from coal fired power stations as a filler for rubbers and plastics;
• Biopolymers as sustainable fillers for elastomers;
• Use of crumb rubber as a replacement for mineral fillers in the polymer industry; and
• Sustainable fillers for the polymer industry.

Details are here.

Microcrystalline Cellulose as a Silica Replacement in Tires

The blog Science Codex has an interesting article on the use of microcrystalline cellulose as a reinforcing filler in tires, potentially replacing silica and/or carbon black. A new study by wood science researchers at Oregon State University suggests that the use of microcrystalline cellulose – a product that can be made easily from almost any type of plant fibers – may decrease the energy required to produce the tire, reduce costs, and better resist heat buildup. According to the researchers, early tests indicate that such products would have comparable traction on cold or wet pavement, be just as strong, and provide even higher fuel efficiency than traditional tires in hot weather. Cellulose fiber has been used for some time as reinforcement in some types of rubber and automotive products, such as belts, hoses and insulation – but never in tires, where carbon black and silica are preferred.

In the search for new types of reinforcing fillers that are inexpensive, easily available, light and renewable, OSU experts turned to microcrystalline cellulose – a micrometer-sized type of crystalline cellulose with an extremely well-organized structure. It is produced in a low-cost process of acid hydrolysis using nature’s most abundant and sustainable natural polymer – cellulose – that comprises about 40-50 percent of wood.

In this study, OSU researchers replaced up to about 12 percent of the silica used in conventional tire manufacture. This decreased the amount of energy needed to compound the rubber composite, improved the heat resistance of the product, and retained tensile strength.

Traction is always a key issue with tire performance, and the study showed that the traction of the new product was comparable to existing rubber tire technology in a wet, rainy environment. However, at high temperatures such as in summer, the partial replacement of silica decreased the rolling resistance of the product, which would improve fuel efficiency of rubber tires made with the new approach.