Rubber Production To Grow, Michelin Says

Michelin & Cie., the world’s second-largest tiremaker, said it expects global rubber production to grow 40% in the next decade, averting a market shortage and a price surge, Bloomberg News reported.
Three-quarters of the expected output gain will come from productivity improvements by Asian producers, Managing Partner Jean-Dominique Senard told shareholders May 13 at the annual meeting near Michelin headquarters in Clermont-Ferrand, France, Bloomberg said.
Michelin said it still expects price increases to cover rising material costs, even after last month it raised its predicted negative effects on full-year profit to 1.8 billion euros ($2.6 billion) from the 1.5 billion euros predicted in February, Bloomberg said.
Michelin ranks behind Japan’s Bridgestone Corp. in global tire production.
The French tire maker is aiming to add the equivalent of a new plant globally each year to harness tire demand growth averaging 9% in emerging markets, Bloomberg said.
(Transport Topic, May 23, 2011)