Transcript Document

FUTINAL Conference
5-7 December 2006
Praia Grande/SP, Brazil
Michael Wolters, ICEM Chemical and Rubber Industry Officer
Contents
• Forecast: natural rubber (NR) world market prices,
demands and supply
• Non-tire rubber sector / newest developments
• Tire technology
• Strategic and economic approach of the mayor tire
companies
• Challenges for the trade unions
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Price of natural rubber (NR)
1000
500
0
2003
2004
2005
TSR 20
RSS 3
Sep-06
US$ per ton
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Forecast:
NR consumption (in m tons)
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10
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Demand
Supply
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4
2
0
1990
2004
2010
NR shortage in 2010 at the latest!
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Use of natural rubber
• Gloves and condoms:
• Truck tires:
• Passenger tires:
100 %
80 %
27 %
• The tire industry as a whole needs
60 % of all NR production.
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Non-tire rubber
products (examples):
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•
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Automotive hoses
Hoses assemblies
Automotive interior trim
Multiple V-ribbed belts, timing belts
Conveyor belts
Printing blankets
Sealing systems
Engine mounts
Vibration control
Air springs
gaskets
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More and more a mixture
between electrics, metal and rubber
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Tire technology I
Truck tire:
 Very wide tires (30-inch) instead of two tires on one axle
 Lighter tires which can be used longer (e.g durable technology
by Michelin)
 Less rolling resistance = less fuels
 Retreated tires with better quality
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Tire technology II
• Off-the road tire (OTR) demand is
strongly increasing, especially in the
mining sector
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Tire technology III
Passenger tire:
 Run-flat
 Multi air chamber
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Tire technology IV
New production technology:
 only 10 % of the former space
 only 1/3 of the former workers
 Examples:
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ATOM / Toyo tyre
BIRD / Bridgestone-Firestone
C3M / Michelin
MIRS / Pirelli
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Strategic and economic approach
of the mayor tire companies
1.
2.
3.
4.
5.
Bridgestone
Michelin
Goodyear
Continental
Pirelli
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Bridgestone-Firestone
• Net sales (9M/2006): 17.9 billion US$
• + 13,0 %
• Profit declines
• Since 2006 the Number one of all tire
makers
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Michelin
• Net sales (9M/2006): 15,2 billion US$
• + 6,4 %
• Profit decline
• Number 2 of tire makers
• New US retirement pension plan
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Goodyear
• Net sales (9M/2006): 15,282 billion US$
• +3,3%
• Profit decline
• Still severe financial problems
• A long ongoing strike in the US since 5th of
October 2006
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Continental
• Net sales (9M/2006): 13,7 billion US$
• + 6,9 %
• Profit decline
• Figure of employees increasing
(roughly 85 000)
• Closing of tire production in Charlotte, NC
(USA)
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Pirelli
• Net sales (9M/2006): 4,5 billion US$
• +9,1 %
• Profit decreasing
• Strong share in Latin American tire market
• IPO of ( a part of ) the tire business of the
Pirelli Group is still on the agenda
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Challenges for the trade
unions in Latin America
• Goodyear’s purpose of selling Engineering Products
• What will happen to Pirelli’s shares in future
• Looking for niche products in the tire sector
• Looking for a more global strategy to save the future of
the regional tire plants
• Being capable to discuss in an economic way with the
local management
• Be aware of impacts and changes in other parts of the
world (e.g. strikes, shifting of production to other places)
• Building capacity for a continuous process of exchange
of information, coordination of actions in FUTINAL.
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