By Oliver Hall

Michelin has reported a 10.9 per cent drop in sales during the third quarter of 2009 due which it states is “in line with the decline in global tyre markets.”

The French tyres manufacturer also revealed that during the nine months to September 30, 2009 net sales amounted to 10.888 billion euros, a year-on-year decline of 12.5 per cent, the company said in a statement.

However Michelin, which is cutting more than 1,000 jobs in France, said it was still aiming to generate positive cash flow in the second half of 2009.

The company said that in the second half of the year it expected “improved profitability versus the first half thanks to the raw materials tailwind.”

Michelin said it expected market conditions to vary according to business segment and region in the final quarter.

Passenger car and light truck tyre sales should benefit from higher winter demand as well as the government subsidies introduced in major markets to help flagging car sales.

Truck tyre demand has bottomed out, but at very low levels, the company said. “In the replacement segment, the trucking market is still hesitant, but dealers and fleets are no longer drawing down inventory,” Michelin said.

Michelin said it expected improved profitability in the second half compared with the first thanks to a positive impact from raw material prices, leading to 550 million euros of savings at constant exchange rates.

It expected a further reduction in inventory and confirmed capital expenditure at 700 million euros for this year.

Bridgestone will be bringing medium and soft tyres to the first ever race meeting at the Yas Marina circuit for the Abu Dhabi Grand Prix this weekend.

Hirohide Hamashima, director of motorsport tyres development for the Japanese tyres manufacturer, said: “The circuit layout is a typical stop and go street course so there will be traction demands.

“As with any new surface we can expect the possibility of graining early in the weekend. We have brought the medium and soft compound Bridgestone Potenza tyres as they sit in the middle of our tyre range.

“It is difficult to know exactly what the temperatures will be, especially the track surface temperature with such a dark new surface.”

He added: “We work very closely with the circuit and teams with simulations and evaluations of the layout, and we have been working with a sample of the track surface.

“We will also have some data from the GP2 Asia Series test which takes place the week before the Grand Prix. In terms of expected lateral forces we can say that the circuit is similar to Valencia.

“The track surface is similar to Barcelona or Fuji. Our ambient temperature predictions place Abu Dhabi as being similar to Bahrain. The track is new so very dark in colour, meaning it could get quite hot. We expect to see a lot of surface evolution.”

Alex Kapadia, Operations Team

Hardly a day goes by without a story about tyres being dumped on unsuspecting landowners who then have to foot the bill to have them properly disposed of.

A Canary Wharf businessman is facing a bill of around £11,000 after 15,000 tyres were dumped in his warehouse.

David Jones had planned to turn the premises in Charlton into a second paintball centre to complement his site next to the Wharf.

But with just a couple of months to go until opening he has been saddled with mountains of worn casings strewn across the floor.

Mr Jones said: “When I first saw it I almost threw up. I just couldn’t believe it.”

He had first 150 tyres dumped on another of his sites in mid-August. He caught the person involved on the second load, and was told he needed somewhere to temporarily store the tyres while another site was being cleared.

The conman pledged to remove the tyres after three days, but then asked for more time.

Mr Jones said: “I couldn’t keep the tyres on that site, so I told him I would allow him to store that amount in my Charlton warehouse for a week. I gave him the key, and when I took it off him a couple of days later the amount of tyres in there were exactly what we agreed.”

Mr Jones claims that a copy of the key must have been cut, as he returned two weeks later to find 15,000 tyres on-site. He is still on course to open in December, but is now several thousand out of pocket.

He said: “The police have basically said that because I originally let the people on my premises, the onus is on me completely. It goes from criminal law to civil law.

“I’ve had to have the tyres moved myself, and it’s cost me £11,000. We’ve taken an ambitious decision to expand in a recession and stretched our resources to the limit. Having this as well is bordering on breaking me.”

Denna Bowman, Head Office

By Alex Kapadia

Goodyear has today announced improved third quarter earnings in 2009 and discussed opportunities available which will stem from the tyres market recovery.

Robert J. Keegan, the company chairman and chief executive officer, said: “The strength of our brands and steady stream of new and innovative tyres such as our branded fuel-efficient tyres provided marketplace momentum and led a strong third quarter performance.

“The success of our Top Line, Cost and Cash actions together with improving market conditions and lower raw material costs drove improved third quarter earnings compared to both last year and to the second quarter.

“We are pleased that our results for the quarter were in line with our original operating plan despite more difficult conditions than we had expected at the beginning of the year.”

Goodyear said it anticipates year-over-year global industry growth in 2010, especially in markets for tyres featuring high-value-added features, larger rim diameters and fuel-efficient technology.

The company’s industry-leading new product engine, advantaged supply chain and reduced cost structure position it well to capitalise on these market opportunities.

Additionally, the company’s strength in high-growth markets of the world in Asia, Latin America and Eastern Europe will allow it to leverage its advantages in these markets and capture a significant portion of that growth potential.

Everyday rubbish like tyres and old furniture could be transformed into enough electricity for two thirds of London homes, according to a report out today.

The London Assembly hopes councils will stop burning waste or transporting it to landfill sites and instead convert everything that cannot be recycled - from tyres to old furniture - into electricity.

The report, “Where there’s Muck there’s Brass”, is intended to influence Mayor Boris Johnson’s waste strategy, which will be ready later this year.

It suggests several ways of converting non-recyclable waste, including breaking matter down using bacteria and “thermal treatment” using a super-high temperature oxygenated heating processes, called gasification.

Only one fifth of the 22 million tonnes of waste London produces each year is recycled and much of the rest goes to incineration plants - some of which produce electricity.

The report estimates that if every tonne of rubbish was re-used, it would generate enough power to heat up to 625,000 homes and supply electricity to two million of London’s 3.3 million households.

Members of the Assembly’s environment committee want waste companies and councils to invest in conversion systems.

Committee chairman Murad Qureshi said: “Waste-to- energy technology will help the capital reduce greenhouse gases, cut down on waste sent to landfill, increase renewable energy generation, benefit the economy and create jobs.”

But he said a stumbling block was that council contracts with waste firms can last up to 30 years.
The report also says that air pollution could affect the health of people living and working near the new conversion plants and recycling rates could fall.

Michael Warhurst, of Friends of the Earth, said the new technology could be more inefficient than sending waste to a tip. He said: “We should be focusing our ambitions on how high we can get our recycling rates.”

“Lots of these processes have their own problems and many companies claim to have the best technology.”

By Denna Bowman

Residents living near a tyres recycling facility which has exceeded its storage limit are worried it poses a serious fire risk.

OM Recycling in Mayobridge has stockpiled thousands of tyres outside the boundary of its licensed premises.

Fears are heighted in the wake of a massive inferno which took three days to extinguish at a tyre depot in Eglinton, County Londonderry, earlier this month.

The Environmental Crime Unit is investigating the site and the company says it is committed to resolving the issues.

Edwin Poots, the environment minister, said there is a “significant risk to human health and the environment” due to the presence of about 400,000 tyres at facility.

He said the tyres are baled and currently stored on adjacent land which falls outside the licensed area at Chapel Hill.

Mr Poots said that OM Recycling had been told the baling of tyres was not authorised by its existing licence and that the baled tyres stored on adjacent land had no authorisation and “must be removed as soon as possible”.

OM Recycling said it was co-operating with all Northern Ireland Environment Agency departments and that its site was secure.

It said it had a fire safety plan in place with the local fire brigade.

Earlier this month the blaze at Campsie Industrial Estate in Eglintontook, which was tackled by 16 appliances pumping thousands of gallons of water, took three days to put out.

Hankook Set to Build Sixth Overseas Tyres Plant

By Oliver Hall

Hankook plans to build its sixth overseas tyres plant in Southeast Asia as part of its bid to become the fifth largest tyre manufacturer in the world.

The South Korean company is set to spend between US$250 million and $300 million on developing the new facility, which is expected to have an annual capacity of ten million units.

Suh Seung-hwa, Hankook chief executive, also revealed that construction will be completed by 2013.

He said: “We are now searching a site for our sixth plant in Southeast Asia, including Vietnam.”

Hankook, the world’s seventh-largest tyre maker by revenue and about 10 percent owned by French tyre manufacturer, Michelin, aims to increase its ranking by two notches by 2014, Suh said.

“Once the sixth plant begins production and plants in China and Hungary increase their production volumes, our total production volume will reach 100 million units a year after five years,” he said.

Currently, Hankook produces 78 million tyres annually at its plants.

Suh expected the global tyre market to see a tight supply in 2013 or 2014, and said there is a possibility that the company may build a seventh overseas plant if that happens.

Rumours are rife that Pirelli is about to separate its tyres activities from its listed real estate unit, according to a Reuters report.

The news has given the Italian company a boost at a time when the financial results of its tyres unit are looking up.

Pirelli could resuscitate its 2007 plan to spin off its tyre unit — though not this time via an initial public offering — and separate it from its listed real estate company, analysts and investment bankers said.

According to an Equita broker: “We believe some recent moves at the corporate level are clear pointers that will lead to a separation of Pirelli & C Real Estate PECR.MI from the group to transform Pirelli & C from a holding company to a tyre maker.”

Pirelli lags tyre peers Michelin and Continental in terms of market cap — Pirelli’s 2 billion euros is about a quarter of Michelin’s — but is active in high margin tyre sectors and in emerging markets.

In the second quarter tyre unit earnings before interest and tax and after restructuring charges rose to 79.3 million euros from 57.5 million in the first quarter.

Expectations both of a split and improvements in tyre unit financial results pushed Pirelli & C’s stock price to a year-high earlier in October.

The share price move reflects belief among investment bankers that Pirelli will go for a full separation of the Pirelli & C holding from its 56-percent real estate unit but the deal will take time to mature.

“In the end they will do it. The two businesses (tyres and real estate) don’t go together. In a time of crisis companies focus on their core businesses,” a leading financial adviser said.

Denna Bowman, Head Office

By Denna Bowman

Police have warned vehicle owners to be on high alert after more than 100 cars have had their tyres slashed during a seven week crime spree.

The officers have also appealed to residents in Stoke-on-Trent and Longton to help them identify the vandal who is wrecking the tyres.

A sharp implement, believed to be either a knife or a sharp screwdriver, is being used to slash or puncture the tyres, causing thousands of pounds worth of damage.

The vandal mainly strikes overnight in Stoke on Wednesday and Thursdaym while the Longton offences occur on a Monday and Friday nights.

Inspector Elliott Sharrard-Williams, Longton neighbourhood policing unit commander, said: “We need the public to be our eyes and ears to help us identify the offender for this series of crimes.

“Tyre slashings represent a considerable cost to the victim. They are mostly being carried out on cars parked in the roadway rather than in driveways, with a couple of tyres damaged in each car.

“There is no discernible pattern to identify the implement being used.

“Some are punctured while others are slashed.

“Periodically we have cases of isolated tyre slashing as pranks or when people are drunk, but not to this degree.”

Police have stepped up patrols in the affected areas and are forensically examining every car which is vandalised to search for fingerprints.

They are advising drivers to park their cars in a garage if possible, and to be vigilant.

Anyone with information about the tyre slashings can call police on 0300 1234455 or Crimestoppers anonymously on 0800 555111.

Crimestoppers will pay up to £1,000 for information leading to the arrest and conviction of the person responsible for an offence.

Six million British drivers are running around in cars with expired MoTs, according to an insurance company - which also means their insurance policies will be invalidated.

The same can apply to motorists who keep driving on bald tyres to save money or because they have just simply forgotten ever to check them.

But if you are involved in an accident and your tyres were illegal then the insurance company may refuse to pay out against any claims you make.

Leading motoring correspondent Quentin Willson, drew attention to the “MoT black hole” which has been highlighted by Zurich Connect in his Sunday Mirror column.

He makes the point that with no national reminder system in place it is the vehicle owners responsibility to get their car tested for its annual MoT.

The same applies with tyres. It’s up to you make sure they are safe and legal.

And if you are worried about incurring costs because you have to buy new ones, then follow Quentin’s previous advice to come to etyres.

We deliver and fit your tyres at a location of your choice - at home or work - and because we operate a mobile service our overheads are low and we pass our savings on you our customers in the form of cheap prices - up to 40% lower than the leading high street tyre depots.

Alex Kapadia, Operations Team