Leader Rubber Company Plans for Expansion on Back of Successful 2009

South African tread rubber manufacturer Leader Rubber Co is reporting a growth rate of 9% during 2009, achieved despite the global economic crisis. "We have not been affected by the retrenchments in the market", commented Managing Director Brett Sproson, speaking during an interview with Retreading Business at the company's Johannesburg headquarters. "It could be that the soccer world cup has had some effect on the local market, thanks to the development of highway and rail systems in advance of the tournament and the transporter looking for a more economical option than using a new tyres in these hard times. However, we have a strong dealer base in South Africa and we are thankful for the growth".

The growth comes at an opportune moment for Leader who have a number of plans to expand their business.

Of particular importance are plans with regards to the development of the company's diverse range of brands. Currently Leader has three tread rubber brands, Leader Tread sub-divided into a standard and "Plus" range, Black Star and Dacapo, aimed at the OTR market).

As outlined elsewhere in this magazine, Leader is looking to actively develop the Ring Tread brand as a premium product. Although the development of Ring Tread is still at an early stage, the company has initial plans to be operating three factories in the Johannesburg area and a further plant in Pietermaritzburg.

The Black Star range, initially introduced as an alternative brand so as to avoid the overcrowding of the network for the Leader Tread brand, is also being targeted for growth as part of a plan to assure that company has an effective footprint across South Africa. Black Star has different tread patterns to the Leader Tread range but has the same quality levels and pricing.

In addition to Leader's range of tread rubber, the company is also pushing hard on its range of consumables. A new brand of repair patches has been introduced along with Marangoni inner and outer envelopes. Another key aim for Leader is growth in the export market, an aim, which until now had been thwarted by capacity issues. Up to now Leader has focused on Africa and Middle East as the main export markets in addition to some success in Spain, Greece and Israel. However, the company is now looking to step up its export marketing with a view to growing this section of its business.

In order to be able to meet the demand for continually increasing quality and more capacity, Leader has also announced investments in its manufacturing facility. A new mixer was scheduled for installation in April as well as a new precured tread sanding line. "Says Sproson; "These investments are intended to have both a capacity and a quality impact. The new mixer has a 4- blade rotor compared with our previous 2-blade machine. This will help us improve the blend of our rubber and ultimately help us serve our customers better", he added.

Issue 2010/2