Galligan Wins Bulldog Rally on Matador
First Stop Network Continues to Expand
Pirelli and Aeolus Tyre Sign Chinese JV Agreement
Yokohama Rubber Announces Interim Results for Fiscal 2005
Sales Increase from Continental
Stapletons Launches Learning Zone
Devon and Cornwall Records Rise in Defective Tyres
Yokohama to Expand Philippines Capacity
Michelin Appoint Kings Road Tyres as Taurus Distributor

Galligan Wins Bulldog Rally on Matador

Top Irish driver Rory Galligan used his Matador range of competition rally tyres to great effect on the recent Bulldog Rally, using the Slovakian engineered rubber to collect the title of 2004 Mitsubishi Evolution Challenge Champion. The former works Peugeot driver produced a stunning display of consistent driving in his VRS Motorsport run Mitsubishi Lancer Evo8 to romp away with the title, despite great pressure from season long rival Paul Wedgebury.

Matador Tyre Sport MD Graham Middleton was delighted with the result: "Rory has done a magnificent job this season. He has been full of praise for the Matador SM-8 gravel tyre, and has set some fabulous stage times using them. I'm very happy that Rory chose Matador as he has given yet more proof of just how capable the tyres are. I'm sure a few more Mitsubishi crews will be looking at the Matador tyres to get the competitive edge in 2005!".

First Stop Network Continues to Expand

The number of independent tyre dealerships joining the Bridgestone First Stop network has continued to rise during 2004 with a total of 160 outlets currently signed-up to the scheme. "In the past 12 months a total of 17 new outlets across the country have become members of First Stop," said Andy Dingley, senior marketing analyst at Bridgestone UK. "This represents excellent growth as we work towards increasing both the size and quality of the network."

Bridgestone UK has invested £¼ million in the network this year. This has been spent on training for dealership technicians and managers, and upgrading the visual appearance of First Stop outlets. "The investment we have put into the network is clearly paying off," said Andy. "Not only is the overall standard of dealerships improving, as proved by this years First Stop Stars awards programme, but we are also continuing to attract more high-class businesses to the scheme."

Eden Tyre Sales (pictured here) is a prime example of the type of high-calibre tyre dealership First Stop is attracting. The company has a series of outlets across the East Midlands and has recently signed three of them up to the First Stop network including a new state-of-the-art outlet in Derby.

Pirelli and Aeolus Tyre Sign Chinese JV Agreement

Italian tyre manufacturer Pirelli and Aeolus Tyre Co. Ltd., the Chinese manufacturer, which is listed on the Shanghai Stock Exchange, have signed a Letter of Intent to set up a Joint Venture in Henan Province during 2005, with a view to producing radial truck tyres, mainly for Chinese domestic consumption and for export to other countries in South East Asia.

In addition, a new plant for the production of radial tyres and a steel cord factory are also planned. When these investments are complete the Joint Venture, will therefore manage three productions sites in the area. The overall investment planned for the next three years amounts to more than 150 million Euros.

China is now the fastest growing tyre market in the world. In the first half of 2004 alone, production of radial tyres increased by 28.5% compared to the same period of last year, with a total output of over 38 million units. This now represents more than 60% of the overall domestic tyre production.

"We have identified in Aeolus Tyre a high profile partner with all the necessary qualities to succeed in this joint venture", declared Mr. Francesco Gori, General Manager of Pirelli Tyres Sector, "Pirelli is a technology leader in radial tyres worldwide and we intend to be among the key players at this time of strong growth of the radial tyre business in China".

"We believe that Pirelli is the best possible foreign partner, either in terms of technology and international experience and in terms of brand recognition on the Chinese market. Pirelli is a well known company across the world with a long tradition and respectful understanding of specific cultural attitudes and local requirements", added Mr. Cao Chaoyang, Chairman of Aeolus Tyre Co. Ltd. "We are confident that this partnership will offer us the opportunity to meet the increasing demand for radial tyres in China, as a result of the rapid growth of the automotive sector. Pirelli and Aeolus will therefore give an important support to modernize our country".

This transaction is subject to the approval of the competent Chinese Authorities.

Yokohama Rubber Announces Interim Results for Fiscal 2005

Yokohama Rubber Co. has finalised its results for the first half of fiscal 2005 (April 1 through September 30, 2004). Net sales advanced 4.3% from the previous corresponding term, to ¥189.7 billion. This reflected solid tyre sales overseas, which offset the impact of a higher yen. Operating income declined 6.3%, however, to ¥4.3 billion, due to increases in the prices of natural rubber and other raw materials, as well as higher logistics costs stemming from increased export volume and a jump in shipping charges. Net income plunged 51.6%, to ¥719 million. This was put down to inventory losses and a loss on devaluation of securities investment.

Sales were strong particularly in Europe, Asia, and the Middle East, helping the Tires Group to a 6.5% gain, to ¥135.4 billion. Operating income from the tyre segment increased 73.0%, to ¥3.5 billion, due to cost-cutting and improved revenues and earnings at subsidiaries.

Sales Increase from Continental

Continental AG has continued its record-breaking performance by increasing its consolidated sales in the first nine months of 2004 by 9.1 percent before foreign exchange effects and following consolidation. Including exchange rate effects and consolidation changes, sales were up 8.6 percent from EUR8,485.0 million to EUR9,214.5 million.

The consolidated operating result (EBIT) increased to EUR777.3 million, up 17.6 percent from last year's figure of EUR661.0 million. The return on sales amounted to 8.4 percent (PY: 7.8 percent). The restructuring of the company's Mayfield plant in the United States impacted the result by EUR108.4 million. Before the restructuring, EBIT improved by 34.0 percent and the return on sales amounted to 9.6 percent. Consolidated net income after taxes increased 75.8 percent from EUR244.9 million to EUR430.6 million, with earnings per share rising from EUR1.86 to EUR3.17.

Stapletons Launches Learning Zone

Stapletons' Tyre Service employees are celebrating the launch of a dedicated training facility, opened as part of the company's commitment to lifelong learning. The Learning Zone, developed in partnership with major tyre supplier, Michelin, is a dedicated area accessible to any employee who wants to develop their skills and knowledge. Located at Stapletons' headquarters in Letchworth, Hertfordshire, the facility has four dedicated workstations, training aids and equipment and will also be used for the delivery of bespoke and internally run training courses.

The Learning Zone was opened by the company's Director of HR, Lesley Williams. "Stapletons places immense value on the skills of its employees at all levels and is continually looking for ways in which to develop learning access for as many people as possible, irrespective of where they work or what they do. It is our intention to replicate this concept throughout our company." The event was attended by Stapletons' employees, training partners such as Skillnet and representatives from Michelin who are one of the company's biggest suppliers.

Devon and Cornwall Records Rise in Defective Tyres

A week long series of roadside tyre checks arranged by Devon and Cornwall Constabulary supported by the Tyre Industry Council has revealed a 4% rise in the number of defective tyres on the roads of Devon and Cornwall. In similar checks in 2003 a below average 8.2% of vehicles checked had at least one tyre at or below the 1.6mm legal requirement. This year the figure rose to 12.2%, above the national average of 11%. The number of vehicles with badly worn tyres stayed static at 14.4%.

PC Ian Tanner, Police Road Safety Officer for Plymouth said "It is disappointing to see an increase in the number of vehicles being used with defective tyres. This should be a safety concern for all motorists who should make regular checks to their tyres"

Yokohama to Expand Philippines Capacity

The Yokohama Rubber Co., Ltd has announced that it is to invest some 10 billion yen in Yokohama Tire Philippines, Inc. (YTPI) in order to increase the subsidiary's annual production capacity to 7 million tyres by September 2006. It is the third-phase expansion of YTPI and the expanded production lines are scheduled to begin operation one after another from October 2005.

YTPI was established in 1996 as a joint-venture company between Yokohama Rubber, which invested 80 per cent of the capital, and JFE Shoji Trading Corporation (then Kawasho Corporation), which invested the remaining 20 per cent, for manufacturing passenger car tyres for export markets. At present, YTPI makes passenger car tyres with internal diameters of 13 to18 inches and tyres for sports utility vehicles. 90 per cent of production is exported to Europe, Middle East and ASEAN countries.

YTPI's production capacity was expanded to 3 million tyres a year as recently as September 2004 as a result of its second-phase expansion programme that began in April 2003. However, Yokohama has now decided to more than double the expanded capacity by fully utilising the subsidiary's plant lot area, partly because the expanded production capacity is still not enough to satisfy increasingly active demand from overseas customers, but also because it has become necessary to strengthen the production of tyres with internal diameters of 18 inches and larger. The new expansion programme of YTPI is part of Yokohama Rubber's ongoing programme to strengthen production capabilities in Asia and Japan and to materialize a high-quality, low-cost production system that should be common among production bases in the region.

Separately from YTPI, in the area of passenger car tyres, Hangzhou Yokohama Tire Co., Ltd., which started operation in May 2003 with the first-phase production capacity of 700,000 tyres a year, will also more than double capacity to 1.5 million by the end of this year. In addition, the annual production capacity of the Shinshiro Minami Plant in Japan, which started operation in December 2003 as a new plant specialised in the manufacture of high value-added high-inch tyres, will reach 700,000 tyres in April 2005, a goal of the first-phase operation.

In the area of truck and bus tyres, on the other hand, Yokohama Tire Manufacturing (Thailand) Co., Ltd. will begin the first-phase operation in April 2005 with an annual production capacity of 350,000 tyres. The subsidiary has a plant lot area of 225,000 square meters and plans to further increase production volume in the coming years.

Michelin Appoint Kings Road Tyres as Taurus Distributor

Michelin, has announced the appointment of Kings Road Tyres (KRT) as the sole supplier of Taurus agricultural tyres to the UK. KRT has a long-standing relationship with Michelin's Taurus brand as the UK's largest agricultural tyre wholesaler. With next day, nation-wide delivery channels already established, they are renowned as a specialist wholesaler of agricultural tyres and are already the sole supplier of the Stomil-Olsztyn / Kormoran range of products, another Michelin Group brand.

Peter Gaster, managing director of KRT said: "We're very happy with Michelin's decision to change their supply route from a network of wholesalers to a sole agent. The benefits are evident for all parties involved - tyre dealer, the Taurus brand and obviously KRT. We pride ourselves in offering the tyre dealer consistency, continuity and quality all based on trustworthy relationship."

Michelin's Gordon Brookes explained the change: "KRT was chosen as the sole supplier of Taurus agricultural tyres because of their substantial delivery network. KRT has proved an invaluable partner importing Stomil-Olsztyn for over 20 years, and provide excellent service to the tyre dealer network. We wanted to create a one-stop shop for Taurus and the Stomil-Olsztyn / Kormoran agricultural tyres in the UK. In this changing market where brands come and go, tyre dealers require continuity of supply and availability and must have confidence in the wholesaler. KRT satisfies this need."