ERJ Business Briefing: November-December
18 Nov 2024
Hankook completes Hanon deal... VMI 'strong' Q3... Sumitomo Riko upgrade... Freudenberg-NOK acquisition... China TPU tariffs... Bridgestone invests...
Tracking the latest announcements and new business developments in the global rubber and tire industries...
Hankook & Co. Group has completed its previously announced share purchase agreements (ERJ report) with Hahn & Co. for the acquisition of Hanon Systems. Under the deal announced 11 Nov, the parent of Hankook Tire now holds 54.77% of the shares in Hanon Systems, a Daejeon, South Korea-based manufacturer of automotive components and one of the world’s largest suppliers of vehicle thermal management systems. More to follow...
Dutch-based TKH Group has reported a solid Q3 performance by its smart manufacturing division within which tire & rubber machinery maker VMI is the largest contributor of sales and earnings. “Efficiency improvements continued to pay off in combination with the high-capacity utilisation at Tire Building systems, led to a continued strong result,” said group CEO Alexander van der Lof. “For the full year, we expect Smart Manufacturing systems to perform strongly, with organic turnover and EBITA growth compared to 2023.” More to follow...
Freudenberg-NOK Sealing Technologies has acquired Seal Aftermarket Products, a Florida-based, aftermarket company that sells automotive transmission kits and components. The acquired company will be integrated into Freudenberg Sealing Technologies’ aftermarket business Corteco. Read more
Japan-based Sumitomo Riko reported a 35.4% year-on-year increase in fiscal Q2 profits as both its automotive and general industrial operations grew during the three-month period. Overall, the rubber products maker posted operating profit of Yen17.3bn for the three months to 30 Sept, up from Yen12.8bn last year. Read more
India has imposed anti-dumping duties on thermoplastic polyurethane (TPU) imports from China. The country's trade remedies DG determined injury margins of 30-40% for Chinese supplier Miracll Chemicals; 40-50% for Zhejiang Huafon TPU and 60-70% for all others. Read more
Biesterfeld has recently signed a deal with US materials supplier Polytek Development for the supply of its rubber materials in Europe. Based in Easton, Penssylvania, Polytek manufactures polymers for mould-making and casting applications in the industrial and consumer goods sectors. Read more
Bridgestone on 8 Nov announced an investment to expand capacity and capability at its Bridgestone Pune and Indore plants in India to “reinforce the company’s premium-mass strategy.” The combined investment will be around $85m with expansion scheduled to start from the beginning of 2025. Read more
Pirelli has reported earnings (adjusted EBIT) up 4.3% year-on-year to €815.9m on sales 0.5% higher at €5,184.5m for the first nine months of 2024. In the third quarter, earnings increased 4.4% year-on-year to €276.6m, while sales edged up 0.8% year-on-year to €1,737m. Read more
Sumitomo Rubber Industries has posted a 2.8% year-on-year increase in sales to Yen874,9bn but operating profit 72.3% lower at Yen11.5bn for the first nine months of 2024. However, business profit – sales revenue less costs-of-sales and SGA expenses – increased 46.6% year-on-year to Yen61.5bn over the first three quarters. Read more
Hexpol is acquiring 80% of shares in Piedmont Resin Supply LLC, which it described as "one of the largest independent nylon compounders in the US." With sales of around $60m and a profitability on a similar level to Hexpol, Piedmont operates a "well invested" plant in Cartersville, Georgia that has further capacity to grow. The technical polyamide compounder employs about 60 people, mainly serving customers in the automotive, transport and furniture industries, added the Swedish group.
