MGT Expands OTR Equipment Business

Italian OTR retreading equipment specialist MGT srl will be relocating its tyre division into new premises in Rovereto this month. The move, which will allow the company's burgeoning OTR equipment division to operate separately from its other core businesses, is a reflection of the current buoyant nature of the OTR tyre market and the success achieved by MGT since it entered the tyre market three years ago.

It is also a reflection of MGT's aims to expand its presence in the tyre sector considerably. Says Company Director Fabrizio Manfredi; "Since we entered the tyre equipment market our turnover has grown from 8.9 million Euros in 2004 to 13 million Euros in 2007. Our aim is now to expand our retreading equipment business to the point where it accounts for 30% of all our business".

MGT was actually founded in Rovereto back in 1997, the company's core business has been achieved in the area of automatic vending systems for DVDs. The technology used in the DVD vending equipment has since been applied in a range of drug dispensing machines for pharmacies and hospitals as well as in a tool dispensing machine. MGT's entry into the tyre sector came about as a result of a decision to look for alternative areas of investment, the company having recognised that there was likely to be a reduction in sales of DVD equipment over a period of time. With MGT being located in one of the geographical centres of Italian retreading, Manfredi had learned that there was a revival in the demand for OTR retreading equipment. As a result, MGT purchased the rights of a former equipment manufacturer and developed a new line in OTR retreading equipment from scratch. The company has also engaged retread equipment specialist Virgilio Gioseffi as a global sales agent to spearhead the development of MGT's retreading equipment division.

In developing its range of OTR equipment MGT has devised two different sizes of machine - the smaller versions being devised for tyres ranging from 33-51" and a larger version for giant tyres up to 63" in diameter. The company therefore produces two peeling, buffing and grooving machines - the One 51 and One 63 - and two builder/extruders - the Optima 51 and 63. An important feature of MGT's equipment range is that frame structure for both buffer and builder is the same, which means that the base units can be pre-assembled, allowing the company to react quicker to orders. There is also a very high level of commonality in the axis group and the electronic components (supplied by Rockwell Allen Bradley). A further key benefit is the fact that machines are all installed at floor level, meaning a pit is not required. MGT's system also uses the bead plate system rather than expandable hubs. This system, says Virgilio Gioseffi, allows for faster changing and is almost maintenance free.

MGT's first customers were OTR Tyres in the UK and Purcell Tyres in the USA. Since then, however, the company has achieved global coverage, having completed projects in places as far apart as Dubai, Africa and Peru.

One of the more recent developments has been at Wellrock Italia in Treviso, Italy, a joint venture between the well known OTR retreader Gomme Piave and Pneusmarca. Whereas Gomme Piave focuses on OTR tyres up to 35", the Wellrock facility, located adjacent to Gomme Piave's plant, specialises in giant tyres for the mining sector. Lucio Trevisan, Wellrock's Sales Manager says the introduction of the MGT equipment has speeded up production substantially.

In addition to its own machinery, MGT also has a agreement with Spanish autoclave manufacturer, Olmar and has also recently taken on global exclusivity for Shand Systems' Earth Scan non-destructive testing equipment. The agreement with Shand Systems includes an agreement allowing MGT to manufacture the Earthscan machine in Italy, a move, which will allow the company to supply the equipment at a substantially more competitive price.

Of particular importance to MGT's strategy is the company's flexibility. "Every year we will adapt our strategy to meet the demands of changing markets", says Fabrizio Manfredi. "If someone requires something different then we will look at it. Our aim is to provide specific solutions to problems in specific areas". One current area of development is in special giant curing press applications for OTR tyres. The press that has been developed by MGT is available in sizes up to 33.00 R 51.

"We believe there is great potential in the market for special applications in OTR tyres", says Manfredi. "Our aim is to exploit this potential whilst making sure that we are able to provide good quality products at a competitive price."

Issue 2008/2