Goodyear to sell business unit
AKRON-Goodyear began marketing its Engineered Products business unit to potential buyers in the second quarter, though executives expect the sale to take ``considerable'' time.
In a conference call with analysts, Chairman and CEO Robert Keegan said he expects a long selling process because of the size and complexity of the business.
``We are still in the early stages of the process,'' he said.
In the second quarter, Engineered Products' sales fell 5 percent to $427 million as segment operating income rose 10 percent to $30 million.
Conti to close Mayfield plant
CHARLOTTE, N.C.-Continental Tire North America Inc. will close its scaled-back Mayfield, Ky., plant in about six months, laying off about 150 workers.
Conti already had phased out tire production at Mayfield at year-end 2004 but has continued to make products for other Conti facilities. The tire maker said the closure will have no impact on customers.
Declining business in original equipment passenger and light truck tires as well as escalating raw material costs led to Conti's decision to close the plant, the firm said.
Stamford Tires opening warehouse
CHARLOTTE, N.C.-Stamford Tires & Wheels Inc. is opening a second distribution center in the U.S., in Charlotte, to improve its distribution to dealers in the Midwest and along the northern Eastern Seabord.
Stamford Tires, a subsidiary of Singapore's Stamford Tyres Corp. Ltd., also is moving its headquarters to Charlotte from Medley, Fla., where it will maintain a warehouse. In Charlotte, Stamford is opening an 80,000-sq.-ft. distribution center. Stamford sells Sumo-brand tires and SSW-brand alloy wheels.
The new center in Charlotte will allow Stamford ``to effectively service tire and wheel dealers from Miami to New York and most cities east of the Mississippi River with one-day delivery service,'' said Jim Seidel, Stamford Tires vice president and chief operating officer.
``Tire and wheel dealers are telling us that they need quality products at competitive prices that need to be delivered on time with a high fill rate,'' said David Lau, Stamford's newly named regional sales manager-Southern region. ``With our new strategic distribution centers, we will be able to satisfy these requirements set by the dealers themselves.''
Mr. Lau previously was responsible for tire and wheel sales in Latin America for Stamford Tires.
Manufacturers raising prices
AKRON-Continental Tire North America Inc. (CTNA), Bridgestone/Firestone (BFS) and Michelin North America Inc. (MNA) are raising tire prices Aug. 1, Sept. 1 and Oct. 2, respectively.
CTNA will increase prices on all Continental-, General-, Semperit- and private-brand truck tires by up to 5 percent. Conti last raised truck tire prices in North America on March 1 by up to 6 percent.
BFS will raise prices in North America on its passenger, light truck, truck and bus, agricultural and off-the-road tires by up to 4 percent. The increase will affect all Bridgestone-, Firestone-, Fuzion-, Dayton-, associate- and private-brand tire lines in the replacement, original equipment and export channels, BFS said. It last raised prices in North America on Nov. 1 by up to 8 percent.
Michelin will raise prices on its passenger and light truck replacement tires in the U.S. by 3 percent.
The tire rakers cited rising raw material prices and transportation costs as reasons for the increases.
GPX opens new Texas warehouse
MALDEN, Mass.-GPX International Tire Corp. has opened a 143,000-sq.-ft. leased warehouse near Houston.
The warehouse is in the Fairbanks Industrial Park.
``This new facility almost doubles our existing location and is a great location to better serve our customers,'' said Bob Arnold, regional manager for GPX. ``...We are positioned to service both existing and new GPX dealers significantly quicker in the Southwest (U.S.).''
GPX was formed last year by the merger of Galaxy Tire & Wheel and Dynamic Tire Corp.
Next in TB...
Tire Business' annual Global Tire Report, in our Aug. 28 issue, looks at the worldwide tire industry with manufacturer rankings and updates. The report also will include:
* New DOT codes issued;
* Financial analysis of the top tire makers;
* Worldwide tire plants;
* A look at challenges facing Cooper Tire & Rubber Co.;
* The top 75 tire manufacturers worldwide;
* An analysis of the North American industry; and
* Investment summaries.