Continental Seeks The Way To Increase Their Share Capital
Financial Times reports that the General Director of the Continental Dr. Karl-Thomas Neumann is going to discuss with the Supervisory Board a proposal to raise the share capital.
Board meeting scheduled for next week, after its end in the end of the July the decision on the integration of Continental and Schaeffler companies is to be presented.
The proposal to raise the capital may be seen as «an alternative to a junction with the Schaeffler”, notes the FT.
The publication also says that the recent plans for Continental to get control over a combination of the two companies through a junction with the Schaeffler, which has now 90% of the shares of Continental, were not highly acclaimed by the Schaeffler.
Schaeffler now will negotiate with its partners to postpone the payments on loans for two years. In the current conditions, the company must begin paying the first tranche of 500 million euros in January 2010. At the same time, Continental should be «in a hurry with the junction, or to increase the share capital», because the tire company should also pay 800 million dollars in August this year, and another 3.5 billion in 2010.
In doing so, Deutsche Bank analysts continue to express their support for Continental, noting that the company is growing despite the combination of adverse circumstances: «The heads of company have done a great job to fix the structure of company expenditures».
As reported by German business publication WirtschaftsWoche, Kuwait Investment Authorities (KIA) are considering investing in a Continental company.
The article, entitled «Continental: Automotive supplier is negotiating with Royal Investment Fund, the Emirate of Kuwait on possible investments» states that «Kuwaiti investors contacted Dr. Karl-Thomas Neumann in the last few days».
Investors also had a meeting in Hanover with the Prime Minister of Lower Saxony, Christian Wulff, to discuss the political prospects for potential investments.
The Rate Of Export Growth Of Chinese Tires Was Lower Than Expected
Analysts of China Research and Intelligence (CRI) have noted that Chinese tire export continues to grow, but not at the expected rate.
In April 2009, the production of tires in China grew by 13.7% compared to the same period last year - up to 58.51 million units. According to the new figures, released by China Research and Intelligence (CRI), between January and April 2009 185.6 million tires were produced - 0.2% more than last year. In light of the difficulties faced by the suppliers of auto parts, including tire manufacturers in the past year some growth is likely to be observed. At the same time, CRI analysts noted that export volumes were «not so promising».
In the period from January to April, China exported 81.31 million tires at the total cost of 2.01 billion dollars (at 23.3% and 21% less compared to last year accordingly). In April, export amounted to 23.16 million tires (less than at 19.2%) at the cost of 580 million dollars (less at 16.1%).
Recalling the global economic crisis, it should be mentioned, that China suffered greatly because of export-oriented economy. Due to the import decrease in the USA, lots of Chinese manufacturers experienced problems, as the USA is the main importer of the Chinese goods, which buys almost 40% of Chinese export-oriented production. And the situation in tire business is the same, so it is not surprising, that Chinese tire export grows less, than it was previously expected.
In the Michelin Green X Challenge Porsche And Acura Have Won
The fastest cars can be the most environmentally friendly, as the Acura and Porsche team proved in the Michelin Green X Challenge race.
Acura from the De Ferran Motorsports team ranked first in the prototypes class, and the Porsche from the Flying Lizard Motorsports team was the best in the category of GT2. Michelin Green X Challenge was held in the American series of Le Mans (ALMS) at Lime Rock Park.
De Ferran Motorsports’ Acura was the first car, which managed to win three Michelin Green X Challenges. At this time the team managed to win at the spectacular track with length of 2.48 km on the slopes of the Berkshire mountains.
«Michelin Green X Challenge Award is of the great importance for our team and for Acura, - said the pilot of a prototype, and the owner of the team Gil de Ferran. - Acura and the team have done a great job to get this award. The efficiency of fuel consumption is very important in this race, and the Acura was rightfully the first ».
«Michelin Green X Challenge is a special race for us - said Patrick Long, the pilot of the Flying Lizard Motorsports’ Porsche. - ALMS is currently the most environmentally friendly racing series in the world, and we have the opportunity to learn how to combine the speed and economical fuel consumption. We wish to express our gratitude to the Porsche company, which has given us a great engine and car. We are happy to win this award for the second time».
The award was presented by Carl Simon, the representative of the Environmental Protection Agency, United States (EPA).
«During the race we could see the entire families as the audience, and young sports enthusiasts were able to see the impact of efficient engines, cars and tires on the environment», - said Silvia Mammone, the head of the Michelin sports management department.
Wooden Tires - A Goal For The Future?
Perhaps in the future car owners around the world will enjoy the tires partially made of wood, which will cost less, have better traction quality and help to save energy and fuel.
Researchers studying wood-production from Oregon State University (OSU) made some interesting discoveries relating to the potential use of microcrystalline cellulose (MKTS), which can be easily obtained from almost of any type of plant fibers. Including MKTS could partially replace silika as a filler in the production of tires.
According to a new research, this approach would reduce the energy required to create a tire and reduce the cost of the tire, the temperature of the tires will grow more slowly than the traditional. Preliminary tests has shown that these tires have a traction level on wet or cold surface, which is comparable with the performance of conventional tires. In the hot weather «wooden» tires provide even more economic fuel consumption.
«We were struck by the advantages offered by the new material», - said Kaichang Li, Associate Professor of wood-production and Engineering University of Oregon College, who supervised the project, along with the graduate student Wen Bai.
Cellulose fibers have been used in manufacturing of some products made of rubber, such as belts, hoses, but tires have hot been in this row yet, mostly made with the use of the carbon soot and silika. At the same time, soot is being produced from increasingly expensive oil, and the process of obtaining silika is the high cost of energy. The materials both are very dense and improve fuel consumption while driving.
In the search for new types of reinforcing fillers, which would have been cheaper, more accessible, easier and more from renewable sources, the experts called on the OSU microcrystalline cellulose - a type of crystalline cellulose with a very good organization structure. It is produced using low-cost process of acid hydrolysis of the most common and renewable natural polymer - cellulose - which from 40 to 50% of the world’s forests contain.
Time will show if it will be a success.
