Kossan Rubber Industries Bhd (April 15, RM3.66) Maintain buy at RM3.68 with a target price of RM4.12: Kossan aims to gradually increase its production capacity by 67% to 25 billion pieces per year in the next four to five years, with production lines catering to a production mix of natural rubber, nitrile and surgical gloves. Kossan is the third largest domestic rubber glove producer (after Top Glove Corp Bhd and Supermax Corp Bhd) by installed…

NOKIA, Finland—Nokian Tyres P.L.C. plans to add a third factory in Europe, probably in eastern Europe, to meet the expected rising demand for its products, according to a top executive. Hannu Teininen, Nokian vice president of sales and logistics, said company management has approved funding for a third plant, which will be built “whenever it is needed.” It would take about two years from committing to the project to initial production at the site, he…

SINGAPORE—The secretary-general of the International Rubber Study Group predicts strong global demand for tires through the coming decade. “Following two years of disappointing economic growth, in response to the European sovereign debt crisis, the weak U.S.A. economic recovery and budget issues, plus the economic slowdown in China, our latest forecasts point to a period of sustained growth and strong demand for new vehicles and tires through the coming decade,” said Stephen Evans, principal guest at…

Rubber climbed as data in the U.S. yesterday showed companies in the world’s largest economy were expanding capacity, potentially boosting demand for the commodity used in tires. The contract for delivery in September, the most-active by volume, gained as much as 1.3 percent to 283 yen a kilogram ($2,992 a metric ton) before trading at 281.3 yen on the Tokyo Commodity Exchange by 10:41 a.m. local time. Orders for U.S. durable goods climbed more than…

NOKIA, Finland—Nokian Tyres P.L.C. plans to add a third factory in Europe, probably in eastern Europe, to meet the expected rising demand for its products, according to a top executive. Hannu Teininen, Nokian vice president of sales and logistics, said company management has approved funding for a third plant, which will be built “whenever it is needed.” It would take about two years from committing to the project to initial production at the site, he…

Rubber demand in China, the world’s largest auto market, may be unchanged this year as consumption by the heavy-truck sector slows while tire output for passenger vehicles climbs, according to Hangzhou Zhongce Rubber Co. Demand for tires for large trucks will slow this year as the country shifts from heavy industries to a more consumption- driven growth model, Chairman Shen Jinrong said in an interview in Qingdao yesterday. China’s tire industry will use 3.25 million…

SINGAPORE/MUMBAI (Commodity Online): Natural rubber prices may remain depressed on expanding global rubber stocks which is expected to improve margins for tyre makers as natural rubber accounts fo 50-60% of raw material costs, according to Macquarie Equities Research. Macquarie’s Soft Commodity team suggests that rubber price will stay lacklustre due to an expanding surplus in 2013. “Our Global Oil & Gas team‟s forecast of US$106/b 2013 Brent oil price vs US$110/b in 2012 also gives…

KUALA LUMPUR: The Malaysian Rubber Board (MRB) is planning to launch a second edition of strategies for the local rubber industry within the next few months in view of the new challenges and prolonged issues in the thriving industry, according to director-general Datuk Dr Salmiah Ahmad. The local rubber industry has shown tremendous growth over the years. In 2011, the industry contributed RM39.8bil in terms of export earnings, 200% higher than RM13.27bil in 2000 reflecting…

Bridgestone remains the world’s most valuable tire brand, according to new brand valuation research by Brand Finance. The annual Brand Finance Global 500 showed that while Bridgestone suffered some slippage from 2012 and Michelin gained some ground, the Japanese tiremaker’s lead brand retained its top spot. Bridgestone placed 254th overall on the global rankings, down from 2012 placement at 235th. The brand was valued at $4.5 billion, up slightly from 2012’s $4.4 billion valuation, earning…

Struggling with downturns in various European tire markets and segments, Groupe Michelin is making moves to reduce production and inventory levels, according to various reports. Currently, Michelin passenger tire plants in Europe are reported to be “operating at 75% of their capacity, while those making truck tires are only operating at 60% of capacity,” according to Les Echos. A recent deal with labor unions has given Michelin the ability to be more flexible with its…