Good year for OTR tyre supply ... coming soon
Staff reporter, 6 June 2012
SOME good news for users of heavy earthmover tyres, still hamstrung by supply shortages that go back nearly a decade, is that Goodyear is investing $US250 million to expand off-the-road (OTR) tyre production by 2014.
Announcement of the expansion at the Nippon Giant Tyre (NGT) facility at Tatsuno, Japan, follows Goodyear’s buyout of NGT JV partners Toyo Tyre & Rubber Co and Mitsubishi Corporation to give it 100% of the company and tyre plant.
Goodyear said the NGT upgrade and expansion would help it increase global OTR supply and, on a regional basis, support growth in its Asia Pacific OTR business, primarily Australia, “which is one of the world’s largest markets for OTR tyres”. The plant upgrades would utilise new manufacturing technologies and processes.
“Goodyear’s OTR tyres are in high demand globally,” said Richard J Kramer, Goodyear chairman and chief executive officer. “This expansion in Japan is aligned to our strategy roadmap, as it will enable us to use market-back innovation to grow in one of our targeted market segments, the global OTR business.”
Goodyear Asia Pacific region president Dan Smytka said the investment would enable NGT to manufacture a full line of 57-inch tyres, “as well as 63-inch tyres at a future date”.
“The time is right for us to increase our presence in OTR in Asia Pacific,” said Smytka.
Goodyear began production of 63-inch OTR tyres at its plant in Topeka, Kansas in late 2010. The company also produces OTR tyres in Brazil, Colombia, Germany, Luxembourg, India, Indonesia, Thailand, South Africa and Turkey.
The timing, while welcome, would be questioned by Australian mining OTR tyre consumers. CEO of major Australian mining contractor Macmahon, Nick Bowen, said this week supplies of heavy earthmover tyres remained extremely tight and costs were high. The $A50,000 tyres (each) used on 218-tonne-payload dump trucks, for example, were still causing delays to the deployment of equipment.
“There was a response [from the big tyre manufacturers to the mining earthmover tyre supply crisis], but it wasn’t enough,” he said.
“We’re not expecting any real change in the situation.”
Also in the June 6 - 12, 2012 edition
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- ASIA DESK
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- EVENTS
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- EXPLORATION
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- FINANCE
- BC looks afar for corporate evolution
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- FROM THE CAPITAL
- Iron ore profit forecasts defy market pressures
- GOLD
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- Ambitious Eastern Resources’ 6-year plan for 500,000oz pa
- Ausenco named for Minas Rio project studies
- ‘Brown Sugar’ sweetener for Aust Bauxite
- Bell Copper’s Mexican project in default
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- Driller dies in ground fall
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- ENK to drill again at Zambales
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- Russian court rejects Flinders appeal
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- Yellowstone climbs to TSX listing
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- MINING IT
- MICROMINE introduces Pitram in Spain
- The A-E of gaining control
- PEOPLE
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- PROJECT WATCH
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- SOUTH AMERICA
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- UnCUT
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- UNDERGROUND
- Too big to fail
- VIEW FROM THE WEST END
- Show me the money
