News Archive

This section includes a representative selection of news items from the retreading industry from around the world taken from our latest issue 2010/2. To make sure you get all the stories from the retread market order your regular subscription now!

£3.9 million Grant Boost For Michelin
Kenya's Kingsway begins Retreading
Duobeili Delivers 200th Retread Line
Marathon to Expand Ringtread System in South Africa
Indag Targets Export Growth
Georgia Bill Calls for Ban on Retreads
Marangoni Announces A Further Increase In Prices
Bridgestone Opens Retread Tyre Unit
Pelmar Engineering Acquires the Alliance Tire Retreading Plant
Vulcaflex Launches Banflex at Recaufair
Shamrock Marketing Inc., Export Achievement in the Global Marketplace
Bridgestone Bandag Builds Brazilian Brand
Reiff Celebrates 100 Years

£3.9 million Grant Boost For Michelin

The Department for Business, Innovation and Skills (BIS) has agreed a grant of £3.9 million for Michelin Tyre plc in order to safeguard manufacturing jobs and significantly increase productivity at the company's plant in Stokeon- Trent, North Staffordshire, announced Regional Minister Ian Austin.

Announced at a conference held at BIS by Lord Mandelson, the Grant for Business Investment (GBI), supported by regional development agency Advantage West Midlands, will support a project to extend Michelin's current premises, install new equipment and modernise the production process. This will enable the company to retread a new generation of Michelin Durable Technology (MDT) truck tyres and improve its existing processes.

Ian Austin, Regional Minister for the West Midlands, said: "This announcement is fantastic news for Stoke on Trent and a vote of confidence in the plant and the local workforce. "It will help develop and sustain manufacturing skills in Stoke, and shows the Government is committed to manufacturing, ensuring that businesses and workers have the support and tools they need to compete and prosper."

Mick Laverty, chief executive at Advantage West Midlands, said: "Michelin is an international company at the forefront of excellence and innovation, with a strong commitment to training employees and involvement with the local community. "We have a key role to play to support regional businesses with the finance they need for competitiveness and today's announcement is great news for Michelin, for Stoke-on-Trent and for the manufacturing industry in the West Midlands region."

Peter Marsh, Plant Manager at Michelin plc, said: "I am delighted to announce this planned significant investment which would secure the long term future of our Stoke plant. "We will be able to upgrade the factory to re-manufacture the latest generation of Michelin Durable Technologies truck and bus tyres, and so offer the customer products with even greater performance and economy in use."

Kenya's Kingsway begins Retreading

Kenya's bus and truck owners will soon have the opportunity to reduce the amount of money they spend on tyres by nearly 60 per cent once Kingsway Tyres' proposed retreading factory is fully operational.

The tyre distributing and retailing firm's Managing Director Manoj Shah disclosed that the company was in the process of setting up a 20,000 square foot facility in Nairobi's Industrial Area where fleet operators can send in their wornout tyres and have them retreaded. "An average retread lasts 60 per cent of the life of a new tyre; with the process that we are introducing, we are guaranteeing 90 per cent of the mileage of a new tyre which is almost like a new tyre," he asserted. The factory which will have a capacity to retread 12,000 tyres a year is expected to be ready by May 31.

A tyre for a bus or truck on average cost between Sh40,000 and Sh50,000 which forces many operators to go for cheap and substandard tyres thereby polluting the environment and leading to road carnage in the country. "We have seen many road accidents in the recent past where a lot of people have been killed because many of the buses are using tyres which are not designed to be used on them," he said. Although he acknowledged that exact figures of poor quality tyres in Kenya are not available, he estimated that they probably account for between 30 to 40 per cent of those sold in the market. "We are educating our customers that sometimes by paying more initially, they can save a lot of money in terms of downtime and safety and of course we are promoting the concept of cost per kilometre," he said.

At a press briefing celebrating the company's 50th anniversary, Mr Shah said they were in the process of penetrating regional markets where they hoped to introduce the company's tyre centre and retreading concepts.

"We are going to be in Tanzania and Uganda before the end of the year and we are also conducting feasibility studies in Rwanda and Burundi so by the time the Common Market (Protocol) comes into play, we will be ready with our plan to go into the regional market," the MD added.

He anticipated that the implementation of this and other measures would enable them to grow their market share from the current 25 per cent to 35 per cent in the next five years. Currently, the company, which pioneered tubeless tyres for trucks and public service vehicles, has 16 branches in Kenya.

Duobeili Delivers 200th Retread Line

March 2010 saw the 200th precured tyre retreading line from Duobeili being delivered to a client in Shandong, China. The particular significance is that this product line has become the base model approved by the Chinese government.

Over the past 10 years Duobeili has occupied a high-end market position amongst strong competition in the pre-cured retreading equipment sector due to its advanced concepts in technology, quality and service. Currently, there are more than 30 companies dealing with pre-cured tyre retreading equipment in China. "95 per cent of them don't have professional technology research and development or a professional after-sales service team. The only thing they have is low value-added and low-end equipment'', commented Zhu Shi Xing, the general manager of Beijing Duobeili Tire Retreading Equipment Co.Ltd, "Our annual research and development costs account for 10 per cent of sales. We also launch 2-3 sets of new equipment annually and adjust the product structure to meet the demands of a dynamic market.''

Since 2006, the tyre retreading market in China has seen large scale rationalization with almost a third of the country's old retreading companies going out of business. Duobeili says its clients can achieve pretty good market efficiency in every area due to the company's " turnkey" service. "On the base of providing hardware devices and in aspects of technology and market research, Duobeili provides a comprehensive solution for each client", says Zhu. "Specific market research for our customers allows us to adjust the production process constantly, keeping the products in tune with the needs of the local markets".

Research from the Duobeili marketing department indicates that the company has contributed significantly towards improving the make-up of the Chinese market. The next step is to explore overseas markets.

Marathon to Expand Ringtread System in South Africa

Marathon (Leader Rubber's subsidiary company) are set to dramatically increase the presence of Marangoni's Ringtread System in the South African market with the addition of three new dealers and a plan to strategically develop the brand to eventually achieve coverage throughout the country. This was revealed by Marathon's Managing Director Brett Sproson during an interview at the company's headquarters in Johannesburg.

Marathon is currently in the process of commissioning Marangoni equipment for the new plants (Ringtreaders, Shearographies and Buffers), which will give the distribution company a total of four customer factories - three in the Johannesburg area and the fourth in Pietermaritzburg. All four plants are existing Leader Tread (Marathon sister company) dealers who have upgraded their facilities to add the Ringtread range at the premium end of the market. According to Sproson, the company is now looking to add new dealers, initially targeting the Cape Town area. To aid this process Marathon organised a dealer seminar to present the Ringtread concept, arranged to coincide with the visit of retreaders to Johannesburg for Tyrexpo Africa. Roberto Santorum and Danilo Pasotti, respectively Regional & Oversees Sales and Business Development, Directors of Marangoni were both present to explain the benefits of the Ringtread System. This was combined with a gokarting event for Leader Tread's dealers.

South Africa's existing Ringtread dealer is Dynamic Tyre Solutions, whose owner Troy Marais acquired Leader's existing Ring Tread plant at the end of 2009. Marais then integrated the Ringtread machinery into his existing factory and now runs three production lines, Ring Tread, Leader Tread and a salvaging operation. The company currently produces 4300 retreads a month, of which 6- 700 are Ringtread product.

However, Troy Marais is convinced that the Ringtread proportion will grow. Says Marais; "The market in South Africa is split into two segments - price and cpk. Ringtread is clearly targeted at the cpk oriented part of the market, which is growing at the moment. Those who have tested the Ringtread product have been very impressed as in certain applications it performs better than new tyres. Indeed, in some tests Ringtread significantly outperformed leading brands in mileage.

One of three new facilities, meanwhile, will be located at Auto and Truck Tyres, South Africa's largest independent retreader. A&TT owner Rob Beaumont has invested in new machinery to increase the capacity of his plant. The target market for Ringtread product will be cpk oriented fleets, particularly fuel companies and bus companies who need an aggressive tyre that can both perform and provide integrity. Marangoni's shearography equipment is intended to help dealers to provide the necessary integrity, reducing the risk of tyre failures and consequential damage to fuel tanks, vehicles etc.

Says Brett Sproson; "Tyre testing and the training of dealers and sub dealers will be vital in getting the message across about the benefits of the Ringtread product. We will be investing in both these aspects. Our ultimate aim is to develop a RingNet like in Europe with Ringtread dealers in most major centres."

Indag Targets Export Growth

Indag Rubber are aiming to achieve 300 tonnes of exports within three years, thanks in part to increased activity at overseas events and aided by a significant capacity expansion at the company's production facilities, scheduled for completion in April, which will see capacity rise from 850 to 1400 tonnes pcm.

According to VP Marketing, Ashok Aggarwal, Indag, who terminated their co-operation agreement with Bandag in 2006, an agreement, which had made them unable to market their products outside of India, have already developed a strong base in Nepal as well as in Kenya, where a franchise network is being developed. The company's aim, says Aggarwal, is now to develop further in Africa, as well as to establish footholds in the UAE and Turkish markets. Indag is also looking actively at the Australian market in which to develop contacts.

To develop its export business Indag has developed a specific premium quality export brand, ZOMA, which the company says is manufactured from superior raw materials and pressed at a very high temperature, resulting in a product that gives high performance in terms of mileage and tread life. According to Ashok Aggarwal, the ZOMA range is available in 120 different patterns and sizes. However, in cases, where the consumer needs a bespoke pattern, this can be achieved with a three month lead time. Indag does not currently manufacture its own machinery but collaborates with 2-3 local Indian suppliers including Rajmahaal in order to supply complete packages.

Georgia Bill Calls for Ban on Retreads

A bill in the Georgia House of Representatives that seeks to ban the use of retreads on state vehicles that respond to public safety emergencies has elicited a strong response from the Tire Retread & Repair Information Bureau (TRIB). Georgia House Bill 981 would expressly ban the use of retreaded tyres on state emergency vehicles. There is no word how this bill would impact the use of retreads by county or municipal emergency vehicles.

In a recent letter to state representatives, TRIB Managing Director Harvey Brodsky said, "On behalf of the entire retread industry and especially our many retreader members in Georgia, we believe there is no basis" for the ban, "since the safety of retreaded tyres on all types of vehicles, including fire engines and other emergency vehicles, has been proven over billions of miles for many years."

Specifically, House Bill 981 states, "Retreaded tyres shall not be used on official state vehicles which may be used to respond to public safety emergencies." Brodsky went on to write that retreaded tyres "are safely used by school buses (including in Georgia), fire engines, commercial and military airlines, companies such as FedEx, UPS and the U.S. Postal Service, race cars, taxis and many other types of vehicles worldwide.

"There is even a Federal Executive Order (13149) mandating the use of retreaded tyres on certain federal fleet vehicles." A ban on retreads "will cost Georgia taxpayers unnecessary extra money, while at the same time will not help the environment."

If approved, H.B. 981 will go into effect July 1, 2010.

Marangoni Announces A Further Increase In Prices

Following the continuous rise in the costs of raw materials, Marangoni SpA expects a further increase in selling prices in the second quarter. The increase will involve all tyre retreading materials, marketed through the Retreading Systems division and all the retreads marketed by the Commercial & Industrial Tyres division. Further increases in the list prices of tyres for fork lift trucks are also possible. "As much as Marangoni is continually committed to reducing the impact of the growing costs of raw materials, the continuation of this phenomenon - which over the last year has led to a doubling in the cost of natural rubber and a considerable increase in the cost of all petroleum derivatives - we are unfortunately forced to shift at least some of these costs to the price of our products", declared Massimo De Alessandri, Marangoni Group CEO.

"We don't yet know the exact amount of the increases that will be applied", De Alessandri added, "however they will substantially be in line with those made and implemented in the first quarter of 2010 and that, in Europe, involved an around 7% rise in the selling price of our products. Certainly we will do what we can to limit such rises to the minimum possible. We want to maintain our traditional competitiveness in a market that is showing the first signs of recovery after the bad recession of the last two years".

Bridgestone Opens Retread Tyre Unit

Bridgestone has opened a retread tyre centre in Thailand using specialised technology to help promote the adoption of retreaded tyres in Asia.

The 130-million-baht Bridgestone Bandag Retread Center (BBRC) was recently opened at Thai Bridgestone Co's tyre plant in Saraburi's Nong Khae district. The centre started producing retread tyres early in 2010 at the plant, which has a production capacity of 44 units per day. BBRC is targeting truck and bus tyre customers. It will provide products and services using processes developed by Bandag, the US retread specialist that Bridgestone acquired in 2006. BBRC said its retread and solutions business aimed to promote effective environmental business management and reduce tyre-related costs for transport fleets and other customers by providing a complete package of new tyres, retread tyres and tyre maintenance services. The centre will conduct training for retread shop technicians in both BBRC's own branches and franchises.

Emphasising the efficiency and economy of the Bandag process, BBRC has plans to expand its network of retread franchises and promote its retread and solutions business.

Thai Bridgestone managing director Masahiro Higashi said retread tyres could have major environmental benefits when compared to new tyres. The retread process significantly reduces CO2 emissions generated in production. It also reduces the number of tyres scrapped by maximising the life-cycle of a tyre. Bridgestone anticipates that the retread and solutions business will significantly grow in Asia. To prepare for the growth, Bridgestone is constructing a retread materials plant in Thailand.

According to the firm, Bridgestone Bandag Manufacturing Thailand, a Thai subsidiary, is investing about 5.2 billion yen (1.91 billion baht) in a new plant in Chon Buri for the production of pre-vulcanised tread rubber for retread tyres. Construction of the new plant started last July and production is expected to commence this November.

The plant has a planned maximum production capacity of 30 tonnes per day by the second half of 2013.

The new production base will help the company increase sales of its retread products as well as develop its solutions business throughout Asia.

Pelmar Engineering Acquires the Alliance Tire Retreading Plant

The Alliance Tire retreading plant in Hadera, Israel has been purchased by Pelmar Engineering Limited. Pelmar intends to sell it complete as a package including technology, to those customers who wish to enter into tyre retreading or expand their existing facility.

The plant is a Marangoni "Ring Tread" facility, using the advanced ring tread system. It is complete with all machinery from inspection to final testing and was used primarily for radial steel cord truck tyre retreading and repair. The plant is capable of using both precured rings and flat treads.

The plant capacity is for a minimum of 40 TBR tyres per day, using one autoclave. By adding an additional autoclave, the capacity will reach 80 tyres per day at one shift (3 curing shifts).

Mr. Eldad Eilam, Pelmar's Technical Manager, advised that the equipment is in very good condition since Alliance used it only for a short time before the company decided to stop manufacturing of new bias and radial tyre production in late 2009.

Alliance has not ceased production of industrial, OTR and agricultural bias and radial tyres. They only ceased the production of PCR and TBR tyres at the end of 2009. Pelmar has only purchased the PCR and TBR equipment.

Vulcaflex Launches Banflex at Recaufair

Vulcaflex, the Brazilian manufacturer and supplier of repair materials has launched its own range of pre-cure retread materials under the Banflex banner at Recaufair in Sao Paulo. Banflex is designed to give maximum protection to the casing whilst maximising the mileage returns. The decision to launch Banflex came after a great deal of market research and development work by Vulcaflex's R&D department.

The selection of tread patterns was made in response to the needs of the retreaders and the fleet operators and the first patterns launched are the FX G8 and FX CB for crossply tyres on trailer and drive axle positions in sizes that cover most pick up and van sizes. The line is already being extended with radial patterns : FX 250, FX, FX ZE1 and FX DE2, covering a diverse range of operations.

Vulcaflex claim that the treads offer excellent mileage properties. With almost 20 years of market, the Vulcaflex is certified to ISO 9001 and manufactures its products in Brazil for export to some 25 countries. With more 180 employees (an increase of 50% in two years), the company is looking for routes to develop its production capacity by the 2010 end, with a target of producing some 500 tonnes of tread in 2010.

Shamrock Marketing Inc., Export Achievement in the Global Marketplace

Shamrock Marketing, Inc. was recently presented with a United States Department of Commercial Services Export Achievement Certificate, in recognition of accomplishments in the Global Marketplace. Congressman John Yarmuth, of the 3rd District of Kentucky, presented the certificate to Shamrock's Economic Development and General Manager Doug Conley, Jr. at a U.S. Commercial Services breakfast and export seminar.

"With the changing landscape of the domestic market combined with excellent opportunities in foreign markets and the U.S. Commercial Services tools that enabled us to be more competitive, we decided to actively allocate resources to export growth." says Conley. "This award is the initial recognition of our efforts and success so far. Although the majority of our business remains in North America, we will continue to put resources against expansion into new markets, identifying potential business partners in new markets, and continuing to grow our customer base in these new markets." Shamrock has been providing curing envelopes, curing tubes, sealing rings and other consumables to the tyre retread industry since 1992. Shamrock's product innovation and continuous efforts to improve and introduce new products has helped it grow both domestically and internationally. Recent product introductions include a new Rubber Sealing Ring System, Large Base One-Piece Envelope Valves, an expansion of their OTR Envelope and Curing Tube offering, and an improved Surelock type Sealing Ring available in 12" through 35" diameter size range. "Utilizing technological advancements in production and fine tuning existing products allows us to become more efficient and continuously improve our products. All of this benefits our customers by providing them with the best product at the best price."

The recent focus for Shamrock has been the expansion of its product lines to now include new and used retreading equipment, tread products and other miscellaneous tools. They continually look for new production partners as well as new product supply partners domestically and internationally. Expanding their customer and distributor base in the Latin American and Asian markets is their focus in the coming years. Shamrock is headquartered and operates out of its 40,000 square foot facility in Louisville, Kentucky, USA.

Bridgestone Bandag Builds Brazilian Brand

Bridgestone Bandag has recently improved its position in the south of Brazil with a number of new retreading and sales outlets. Bridgestone Bandag Tire Solutions (BBTS), brings one of the biggest world-wide manufacturer of tyres in as the world's leading retreader with BBTS.

In partnership with the Brazilian Mallon Group the company has gained three new outlets - one in the city of Mafra/SC, one in Canoinhas/SC and another one in União da Vitória/PR.

So now BBTS operates with 19 outlets in Santa Catarina and 11 in Paraná, all specialized in the supply tyre management services for trucks and buses.

"This development is more than just a gain in market share. In reality, what is happening is a consolidation of our brand. That is creating a consistent coverage and spread of our services to the Brazilian transport sector, creating even greater opportunities for our partners", affirms Ricardo Drygalla, marketing manager for BBTS in Brazil.

From BBTS viewpoint these two states are full of potential. According to DENATRAN (National Department of Transit), the State of Santa Catarina is fifth of the country in terms of truck numbers, with 117,000 vehicles, and eighth in bus numbers, with about 15,000 units. The State of the Paraná is third in trucks, with 205 thousand vehicles, and with some 30,000 buses in operation.

On a city basis an analysis of DENATRAN data and taking into account only vehicles registered in the 300 main towns of Santa Carina, Mafra is 21st in trucks, with 1,160, and 20th in bus, with 130 units. Already Canoinhas is 23rd in trucks, with 1,150, and 21st in bus, with 108. Evaluating the 400 main cities of the Paraná, União da Vitória is 26th in trucks, with little more than 1,200 vehicles, and 65th in bus, with 62 units.

Beyond being strategic markets, the States of Santa Catarina and Paraná are seen by the BBTS as excellent options for testing products. The last four launches by BBTS had been tested exhaustingly by fleets headquartered in the region. "We find that the two States offer a load sector and a highly professional transport sector, with companies organized and wanting to be involved in the development of new products.

"Moreover, the mix and the fleets of the region have the characteristics essential to carry out these tests. They give us an opportunity to test tyres on roads whose characteristics are not representative in the segment or a fleet without additional costs of maintenance. Certainly we will not otherwise be able to acquire the understanding of our products that we have. Therefore, it is key for us that we partner with fleets with vehicles in good condition and who operate in a professional way" says Drygalla. In a BBTS outlet the fleet operator will find tyres, brake services, suspension services, lubrication, services for electrical systems, accessories, fleet management solutions and retreading services for trucks and buses. This is the harvest of the fusion between Bridgestone and Bandag in 2007. At the time the US$ 1 billion deal was considered an unknown union in the world-wide tyre industry. "The merging with Bandag opened a new segment for Bridgestone and gave rise to BBTS. Today, Brazil is the biggest market of retreaded tyres in Latin America, with an average annual movement of 7,5 million retreaded tyres.

The automotive sector presents a great potential of growth and is a basic element of the strategy of the company. The national goal of BBTS is to reach 150 outlets by the end of 2011 end", explained the vicepresident of BBTS Brazil, Alfonso Zendejas.

Reiff Celebrates 100 Years

One of Germany's largest retreaders, the Reutlingen based Reiff Group, is celebrating its 100- year jubilee in 2010 and to celebrate the company's management board, Eberhard Reiff, Hubert Reiff and Dr. Immanuel Kohn invited guests to an evening gala held on 19 February at the "Alte Reithalle" in the Hotel Maritim in Stuttgart. Guest of honour at the event was the state of Baden-Wuerttemberg's new Minister-President Stefan Mappus.

In his presentation Minster- President Mappus congratulated the company on a "magnificent performance over the space of three generations" and recognised the strong reputation that the company had built for itself over the years.

Reutlingen's mayor Barbara Bosch also commented that one of the strengths of entrepreneurs from Reutlingen and therefore also a strength of the town itself, was the ability to continually overcome the challenge of necessary structural changes.

The Reiff Group, said Frau Bosch, was an example of this. The Reiff Group employs over 1500 people in 14 companies throughout Europe, of which the company's retreading activities are only a part. In further recognition of the Reiff Group's achievements, Company Chairman Eberhard Reiff was presented with the Bundesverdienstkreuz in January 2010.