Bridgestone to Close Last Tire Plants in Australia, New Zealand

Australia and New Zealand will lose their last tire manufacturing capacity based on Bridgestone Australia’s announcement on Friday that it plans to close its tire plants in Adelaide, Australia and Christchurch, New Zealand. Goodyear shut its tire plant in Somerton, Australia in June, leaving Bridgestone as the only producer in the region. Bridgestone Australia, a unit of Japan’s Bridgestone Corporation, said that, despite cost-cutting efforts, tire production at these plants was not viable because of international competitive forces. The closures will take effect at the New Zealand manufacturing plant by the end of 2009 and at the Australian facility no later than 30th April 2010. Bridgestone Australia will retain its headquarters in Adelaide, continuing its sales, distribution, retail and other business activities throughout Australia and New Zealand.

Here is the full announcement with additional details.

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.

Upcoming Conferences

A list of upcoming conferences at which Notch will be presenting:

Carbon Black 2009 – Perspective in Asia Pacific
Location: Bangkok, Thailand
Dates: November 18-20, 2009

Tire Technology Expo 2010
Location: Cologne, Germany
Dates: February 9-11, 2010

Carbon Black China 2010
Location: Chongqing, China
Dates: April 18-21, 2010

Cooper Expanding at Texarkana

On Monday, October 5, Copper Tire & Rubber announced that it planned to increase production capacity at its tire plant in Texarkana, Arkansas by January 1, 2010 in response to stronger demand for its tires.

The full text of the press release is below.

Cooper Tire’s Arkansas Operation Moving to Seven Days

FINDLAY, OHIO, OCTOBER 5, 2009 — COOPER TIRE & RUBBER COMPANY (NYSE: CTB) has announced a plan to increase production capacity at its Texarkana, Ark., tire operations. Responding to growing market demand for its products, the operations will shift to a 24/7 operation. The new production schedule will begin January 1, 2010, and approximately 200 additional employees will be required to support the increased production volume. The shift in production will be accomplished over several months in 2010. The facility produces passenger and light truck tires for the replacement markets.

“We are excited about this opportunity to enhance our production capabilities,” said John Bodart, Cooper Tire’s Vice President of Manufacturing for its North American Tire Division.

Cooper has also recently announced expansion plans at its Tupelo, Miss., plant and the continual ramp-up of its operations in Mexico. The Company’s Findlay, Ohio, manufacturing plant is also expected to increase production volumes.

“Through a focus on continuous improvement we are always in a process of improving our capabilities,” continued Bodart. “This allows us to deliver high quality, cost competitive products to our customers and consumers. These moves are logical steps that align with our strategic goals.”

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.

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.

President Obama Imposes 35% Tariff on Imports of Chinese Tires

President Obama has placed tariffs of 35% on passenger and light truck tires from China, siding with the United Steelworkers Union and other labor groups, which had filed a complaint that surging imports were eliminating US manufacturing jobs. The duties will begin September 26 and last for three years, dropping 5% per year (i.e., they will decline to 30% the second year and 25% the third year). The tariffs were lower than those suggested by the International Trade Commission, which recommended tariffs of 55% the first year, 45% the second, and 35% the third. The new tariffs are in addition to an existing 4% duty on all Chinese passenger and light truck tires.

Bloomberg on the story.
The Washington Post on the story.
The Wall Street Journal on the story.

Amtel-Vredstein to Restructure, Change Name to Amtel N.V.

On September 2, Amtel-Vredstein N.V. issued a press release announcing that an extraordinary general meeting of shareholders had been held in Amsterdam at which it agreed on a new board (consisting of one man, Alexander Fayn, a senior executive with Amtel’s main shareholder, ABH holding), and a new set of proposals to restructure the finances of the troubled Russian tire company. The meeting also agreed to a proposal to dismiss Petr Zolotarev and Vadim Pesochinsky from the executive board. ERJ (subscription required) has a good write-up of the latest development and the recent history of Amtel’s financial struggles. According to Alfa, the Voronezh factory is idle, while production at the Kirov factory is sporadic. The company’s new factory, Voronezh II, needs approximately $50 million to become operational.

The text of the latest press release is below. The release is here.

EXTRAORDINARY GENERAL MEETING OF SHAREH0LDERS OF AMTEL-VREDESTEN N.V. APPROVED APPOINTMENT OF MR. FAYN AS SOLE EXECUTIVE BOARD MEMBER AND NAME CHANGE INTO “AMTEL N.V.”

Enschede, The Netherlands – Amtel-Vredestein N.V. (“the Company”) announces that its Extraordinary General Meeting of Shareholders (“the EGM”) held today resolved in favour of all proposed resolutions, including the proposals to dismiss Messieurs. P. Zolotarev and V. Pesochinskiy as members of the Executive Board and to appoint Mr A. Fayn as a sole member of the Executive Board. Mr. Fayn gave a broad outline of the contemplated restructuring plan.

The proposal to amend Amtel-Vredestein N.V.’s articles of association in order to change the statutory name to “Amtel N.V.” was also approved by the EGM. The execution of the deed of amendment through which the actual name change will take place as well as corresponding changes to the Company’s website, corporate materials etc. will take place as soon as possible.

Mr. J.A.D.M. Daniels, bankruptcy trustee of the Company, provided an update on Amtel’s state of affairs and Mr. Pesochinskiy, CFO of the Company, provided the EGM with presentation on Amtel’s 2008 accounts.

ITC Rules that Chinese Tire Imports Have Harmed US Industry

According to Reuters, the US International Trade Commission announced on Thursday, June 18, that China was unfairly flooding the U.S. market with tires. In a 4-2 vote, the International Trade Commission found that a surge of low-cost tires from China had disrupted U.S. markets. Later this month, it will recommend a remedy to President Barack Obama.

The petition was filed by the United Steelworkers in response to a dramatic increase in imports of Chinese tires in recent years. It would limit imports of automobile tires from China to 21 million, the level in 2005. This is roughly half the current level. In a statement responding to the ruling, USW International President Leo W. Gerard said, “Our domestic industries cannot survive unless our government enforces the trade laws that are designed to curb and dissuade anti-competitive practices that cause market disruptions. We anticipate that the remedies that will be delivered to President Obama will allow the time necessary to rebuild the U.S. tire industry.”

Yesterday, the Tire Industry Association came out in opposition to the petition. “TIA would ask the ITC to continue to support a free-trade policy, and reject the USW’s effort to impose a protectionist policy,” the group said in a press release.