News Archive

This section includes a representative selection of news items from the retreading industry from around the world taken from our latest issue 2009/4. To make sure you get all the stories from the retread market order your regular subscription now!

Rösler Tyres Are Now Operating in Dubai
Argentina to Implement Retread Certification Programme
Sherman Bus Crash Not Retread Related
Reiff Adds GT Radial
Robbins Purchases Ohio Plant
Kal Tire and OTR Create first Global Earthmover Service
Big Wheel Green Tyres Obtain MS224 Certification
Emilio Bolla New General Manager of Marangoni China
Tong Ta to Set Up New Factory at I-lan
Marangoni Merges its Retreading Businesses
JKJR Visits Sun Tyre Industry
AAA Buys Bob Sumerel Tire

Rösler Tyres Are Now Operating in Dubai

In August 2009 Rösler expanded its operations to the Middle East, joining forces with German Advanced Tyre Enterprises, also known as GATE, a Dubai based company.

GATE will represent Rösler in the Gulf Region, and in Saudi Arabia, Jordan, Iraq, Egypt, Sudan, Lebanon, Yemen, Algeria and Kuwait. Besides the distribution of tyres and flat proofing systems, Rösler and GATE's main focus will be on service.

Within the United Arabic Emirates a Rösler360 tyre management team will be available 24 hours, 7 days a week for, on site, maintenance and service. Preparations have been made to enlarge the Rösler360 services to the Saudi Arabian and Jordanian markets. This guarantees our customers, in the Middle East, the same high class standard Rösler is known for throughout the world. From November 23rd until the 26th, Rösler and GATE will be exhibiting together at the BIG 5 International Construction & Building Show, held at the World Trade Centre in Dubai.

Argentina to Implement Retread Certification Programme

The Argentinian Tyre Federation ARAN (Federacion Argentina de Neumaticos) has announced that it plans to implement a certification programme for retreaded tyres. The new technical regulation for the certification of retreads has been jointly developed by ARAN together with INTI (Instituto Nacional de Tecnologia Industrial), which will be the certifying authority.

According to the President of ARAN, Julio Cesar Larocca, the Association is now waiting for Argentina's Department of Industry to ratify and implement the necessary legislation.

Sherman Bus Crash Not Retread Related

An investigation into the bus crash in Sherman, Texas last year, which killed 17 people has concluded that retreaded tyres were not to blame for the accident. The report advises that the steer axle tyre, which was in fact a retread and illegally fitted, blew out due to an external injury rather than any fault in the tyre.

Sherman Police Sgt. Bruce Dawsey said, "In the final determination from testing of the tyre, it was proven that an external force was the cause for the tyre failure. An external force, not the tyre itself was the cause." However, this has not satisfied Attorney Thomas Brown. He represents most of the victims.

Brown said, "The fact that this tyre was retreaded and the manner in which it was retreaded is an area we have concerns about."

Just what those concerns may be remains unclear. The tyre was retreaded by Bandag agent Henise. Bandag spokesman, Dan MacDonald said the company had known all along that the retreaded tyre would not be to blame for the incident.

Brown though remains convinced that the retread tyre on the steer axle was vulnerable to damage and is holding Henise and Bandag both liable. The driver may also be prosecuted in the civil courts for negligence.

Reiff Adds GT Radial

Reiff has added GT Radial to its official purchasing list for casings. GT Radial is the only Chinese made brand that is purchased by Reiff.

Mr Dirk Rau, Production Manager for the Reutlingen operation summarized his experience so far as follows: The acceptance ratio for GT radial so far is 100%. The GT Radial casing is considered very robust and has a significant under tread which facilitates the retreading process. The shearography machine has accepted all casings. No specific issues with the buffing process have been reported. Reiff operates a Bandag franchise state of the art retreading facility. The annual production volume is over 40,000 retreaded truck tyres. All casings are inspected with a SDS shearography machine that can detect any minor internal separation and all inspection data is recorded on their main frames. Reiff uses ultra modern automatic machines for buffing the tyres after inspection. The building is done on Bandag-AZ builder extruder and curing is made in four completely new Bandag electrical autoclaves. Reiff operates to ISO 9000 and use TUV Automotive in Munich for endurance testing of retreaded tyres to meet ECE 109 regulation requirements.

Reiff runs a significant number of tyre centres and has successfully sold GT Radial truck tyres for several years. Worn GT Radial casings are now coming back regularly for retreading.

GITI Tire Europe is working closely with Reiff in further evaluating the retreadability of GT Radial casings. GT Radial casings are built to be retreaded one or more times depending upon user conditions. GITI Tyre is China's biggest manufacturer of radial truck tyres and is ranked no 6 in the world of radial truck tyre production and exports to over 100 countries worldwide. In Europe the GT Radial brand has rapidly gained a high market acceptance for delivering high kilometres coupled with best reliability and retreadability.

Robbins Purchases Ohio Plant

Muscle Shoals-based Robbins LLC has purchased a factory in Ohio. The Ohio plant was formerly owned by a Canadian rubber company that recently went bankrupt.

Robbins also owns plants in Georgia, North Carolina and Muscle Shoals, Alabama.. "We're very excited about the future," said Steve Soucier, president and CEO of Robbins. "This deal gives us a lot of synergy with the other sites. We can mix and match our production schedule with the other plants."

The value of having an outlet in the northern part of the country was another reason for the acquisition.

"This gives us the ability to develop a foothold in the Ohio area, where the rubber industry really got its start," Soucier said. He said the Ohio plant could increase the company's capacity by up to 35 percent. "The plant has more capacity than we're going to utilize. We'll probably run that facility at about 50 or 60 percent of its potential," Soucier said.

He said while the company has plants across the country, the headquarters will stay in Muscle Shoals. "We are headquartered here in Muscle Shoals and we plan to stay here because of the history, and the manufacturing site is just down the road," he said.

Stanley Robbins founded the company, originally called Robbins Tire and Rubber Co., in 1921. The company changed owners many times but continued to be based in Muscle Shoals.It is now owned by Grey Mountain Partners, a private equity firm based in Boulder, Colorado. Soucier said the plant capitalized on an opportunity to grow.

"There are probably a lot of people in the local plant that would ask 'Why are you not trying to grow locally?' but you have to take the opportunity when it comes," Soucier said. "You have to take a little risk for the future."

Kal Tire and OTR Create first Global Earthmover Service

OTR Tyres and Kal Tire of Canada have announced that they are joining forces to create the first Global Earthmover Tyre Service company.

OTR Group MD, Chris Skelton, said: "OTR is very pleased to announce that Kal Tire - the world's largest earthmover tyre dealer - has made a majority equity investment in the OTR Tyres Group. This investment represents the most significant global transaction in the earthmover tyre service industry, as it sees the creation of the first truly global earthmover tyre service company.

"The deal is the culmination of lengthy discussions between OTR and Kal Tire where the focus has been on how both companies can work together to provide a better service offering to our customers on a global basis.

"Customers operate across continents and expect world class standards in service and health and safety wherever they are operating. Tyre suppliers have a global product offering, but it has not been possible to get a global service offering to go alongside this, until now.

"We have now taken a significant step towards being able to achieve this. If a customer has a mine in South America, Africa and Australia it will be possible to have the same standards of health and safety, tyre service, training, tyre monitoring and reporting across all mine sites - thus making the attainment of global best practices more achievable."

"OTR Tyres are one of the world's leading earthmover tyre specialists with state of the art retread manufacturing facilities in the UK and Africa. Renowned globally for their commitment to health, safety and training OTR continue to lead the way with the development of earthmover tyre products and services." Kal Tire was established in British Columbia in 1953 by Tom Foord to serve the logging industry.

The retail/commercial business has grown consistently over the last 56 years with operations across Canada and today has 164 company owned branches, 49 independent associate dealers, 10 truck retread plants, 2 OTR retread plants and 4 distribution warehouses providing car, truck, industrial and small earthmover tyres.

Big Wheel Green Tyres Obtain MS224 Certification

Big Wheel Green Tyres has announced that it has successfully acquired SIRIM MS224 certification, a seal that re-affirms the quality of the retreaded tyres that it produces. Pang, the plant manager said, "Even prior to the MS standards being introduced, our factory had already been practicing the requirements of the MS224 certification." For example, BWGT practices Standard Operating Procedures (SOP) throughout the factory where the instructions are in every section and displayed prominently. In addition, the operators are thoroughly trained, tested and supervised prior to handling any tyres. They are required to know by heart for example, the marking methods for tyre injuries, the type of tools required as well as the work processes. And of course, they are periodically evaluated based on the SOP.

"We are committed to not only providing our customers with the best retreading materials but also to reassuring them that every one of their tyres is meticulously inspected and handled. The next time you are looking for a retread, look for this label", Pang exclaimed. Shaped like a capsule, the new tyre label proudly displays the use of high quality Goodway Supercool™ retread materials supported by testament of Big Wheel disciplined processing. Therefore, you know this 'capsule' will provide your business the peace-of-mind.

Emilio Bolla New General Manager of Marangoni China

Since July 2008, Emilio Bolla has been the General Manager of the Marangoni Group Shanghai branch.

Marcello Gambarini, who held this position throughout the phase involving the exploration and preparation of the Chinese market, will return to Italy, where he will continue to supervise activities in China and follow the Group's development in Asia.

Bolla has previously worked for important manufacturing companies, holding positions as Project Product Manager, Sales and Marketing Manager and General Manager, acquiring profound knowledge of the Chinese market after having managed local branches for several years. His qualified technical background and in-depth knowledge of the market and the language will help further strengthen Marangoni's position as a leading supplier of retreading technology and solutions.

Marangoni China has in recent months started supplying the Chinese market with its Unitread treads, retreading materials and machinery. The offered product range integrates local production with Marangoni technology and imports from other Group units in Europe, Brazil and North America. China, at current growth rates, may become the second largest truck tyre market in the world.

Tong Ta to Set Up New Factory at I-lan

Tong Ta's second generation successor, Wu Wen Hsin, believes that if a company is unable to progress every day, it will not be able to compete even during good times.

With this in mind, Wu has completed a monorail system in his plant to improve the production process and to increase product quality. Tong Ta's factory is a threestorey building due to land constraints. Three-storey factories are very rare in Taiwan, and he could not find any example for reference on how to design the layout for each floor. Thus, Wu has had to work closely with designers to find a suitable "mobile line" so that the tyres can move up and down from each floor base on the "mobile line". It took him a whole year to finish restructuring the plant. Today, the production line is designed according to an overseas design, which improved the overall production flow and working environment.

"With a production capacity of 300 units per day, our turnover is now three fold compared to 10 years ago. Unlike the other retreaders that keep on investing heavily in advanced imported equipment, we have been able to produce high quality retreads with reasonable prices using basic and locally made equipment," he said.

Apart from retreading light truck, trucks and OTR bias and radial tyres, Tong Ta is the only retreader in Taiwan which retreads solid tyres. Wu saw this opportunity when he visited the Tyrexpo Asia exhibition in Singapore two years ago, and he decided to try it out. This has impressed the government, and he managed to get NT 1,300,000 from the government as a support fund.

Who are their customers? Wu replied that majority of their customers are dealers, only a very few are direct customers. The retreading industry has a certain regional constraint which resulted in it having a fixed marketing coverage, making it difficult to sell across the region. The sales coverage is normally within the 100 km of where the plant or the office is located. However, a good and well established infrastructure in Taiwan makes it easy and convenient to go from north to south, and south to north.

This is why Tong Ta has a marketing point in south Taiwan in addition to its main market in the north. Despite the global economic downturn and the economy slowing down in Taiwan, Wu has set up a new factory in I-lan industrial area, which is located in the northeastern part of Taiwan. The construction of this 10,000 sqm new factory started last year, and will be completed soon. Wu said, the plant is expected to be ready for production in October.

"As a leader, one has to be persistent if one thinks that this is the correct course of action. Of course it must also be able to meet the needs of customers. It doesn't matter what the product is, what one needs to do is to continue to develop, to try one's very best to meet the market's needs and one's product improvement will ultimately gain the market share. The rubber wicking pads that we developed are the bestproven example. We improved the rubber wicking pad quality according to the market requirement, and the Singapore plant that used to import rubber wicking pad from Italy has decided to buy from us," said Wu proudly.

What are the challenges that are faced by the Taiwanese retreaders?

Wu pointed out that the main challenge is the severe competition among the retreaders. Another challenge is the difficulty of getting talented people to join the industry. "This is why we always try to improve our working environment, as we believe that a good working environment will enable us to attract young and talented people. I would say our factory is the cleanest factory in the whole of Taiwan." According to the trend Master Dr. Kenichi Ohmae, in 2055, China's production value will be 10 times that of Japan's production value. This is why Wu believes that the future market will be in China, and he is keen to copy Tong Ta's production flow and method in China and hopes to duplicate this successful model of a five person small Tong Ta retreading plant in China.

In the past, China's tyre market was mainly dominated by new tyres. But, the quality of new tyres manufactured there was not very good and so not suitable for retreading. However, today, their improved technology has enabled them to produce better quality tyres that can be retreaded. Wu believes that now is the right time to invest in China.

"We have plans to produce and export rubber compound to China, and we are also looking at the possibility of setting up a rubber compound manufacturing plant there."

Marangoni Merges its Retreading Businesses

In response to market changes and the rapid evolution of manufacturing and distribution operations, Marangoni has adopted a medium-term strategic plan with the aim of strengthening the Group through the reorganisation of the company structure, with greater focus on the area that in strategic terms has always represented its core business: retreading.

This operation involves the merger by incorporation of Marangoni Spa and Marangoni Tread Spa into Marangoni Pneumatici Spa, which will be renamed Marangoni Spa and take the role of parent company effective as of 1 October 2009. Marangoni Spa will therefore shift from being a holding company with a strategic function to a parent company with an industrial function, and will directly manage certain businesses, such as retreading materials and technology, direct retreading and production of industrial tyres.

The Marangoni Group will consequently have a more streamlined organisation, aimed at ensuring more direct control over industrial activities and more effective commercial management of the business areas.

Marangoni SpA will retain all existing holdings in other Group businesses, such as Marangoni Tyre SpA (production and distribution of new car tyres), Marangoni Meccanica SpA (production and distribution of machinery and technology for the tyre industry), Pneusmarket (multiple brand tyre distribution). The headquarters in Rovereto will also manage the Group's foreign businesses, such as Marangoni Tread North America, Marangoni Tread Latino America and Ellerbrock. Massimo De Alessandri, CEO of Marangoni Spa, declared: "The Marangoni Group has in recent years demonstrated its capacity to cover vast segments of the tyre life cycle in an integrated manner, with a specialist approach and consequently with the ability to develop excellent solutions."

"Our strong point is certainly the product: the businesses relating to retreading, the production of machinery and even the new tyre sector, where we manufacture and distribute excellent tyres that meet the needs of an increasingly demanding market."

"Our operations follow the entire life cycle of the tyre, covering business areas that are homogeneous and wider ranging than those managed by our competitors, even companies that are much bigger than us."

"Consequently, we have always worked to ensure our relative smaller size is a competitive advantage, in terms of flexibility, promptness of response and innovation. The new company organisation should be seen as a further step in this direction. We will strengthen our direct presence in the key sector of our business, simplifying our processes, bringing the brains and the brawn closer together."

After more than fifty years of activity in the tyre sector, the Marangoni Group is one of the few in the world to adopt a complete approach to the tyre business. Its highly integrated operations in fact cover the entire life cycle of the product, in different market sectors: design and production of machinery for the tyre industry, development of retreading materials and technology, new tyre production - for both industrial vehicles and cars - and industrial scale retreading. The products are marketed through branches and distributors in many countries around the world, in addition to the direct distribution network in Italy. The final phase is represented by the production of clean energy through the thermal processing of used tyres. Few other companies can boast the same experience, capacity and knowledge in the management of the tyre's life cycle.

JKJR Visits Sun Tyre Industry

The Malaysia Road Safety Department (JKJR) recently visited Sun Tyre Industry Sdn Bhd in Seremban as part of its nationwide "Your Car Is Only As Safe As Your Tyres" campaign. Sun Tyres Industries was the first recipient of the prestigious product certification licence, Malaysia Standard MS224:2005, specification for Retreaded Pneumatic Rubber Tyres for Commercial Vehicles. The company is the largest tyre retreading operation in Malaysia producing in the region of 30,000 tyres per month.

" The poor condition of tyres contributes to 10-15% of road accidents annually in Malaysia and we want to take immediate action to minimize it. We are happy to be able to work together with the tyre industry to help enhance the awareness of tyre safety", said Datuk Suret Singh, Director General of Road Safety Department, speaking at a press conference before an organised visit to the factory.

There will be training sections at tyre shops so that their staff will be able to educate the public on the safety aspects of good tyres. Hopefully, Suret said, with this awareness, errant tyre traders will stop selling re-grooved tyres to the public.

Re-grooved tyres, he explained are actually old and bald tyres painted over with black paint, after which new grooves are cut into them. They look exactly like a brand new tyre, except that the tread thickness is reduced because of wear and tear and the regrooving process.

" Car owners will be fined RM300 if they are found using regrooved tyres from 1st November onwards", he added. The price of re-grooved tyres in Malaysia has dropped from RM 40 to RM 15 since the campaign started at the beginning of July.

The press conference and factory visit helped the media to understand the difference between re-grooved tyres and retreaded tyres, and also deepened their understanding of the retreading process.

AAA Buys Bob Sumerel Tire

Bob Sumerel Tire, the one of the top tyre retailers in the USA with 12 commercial only outlets, five commercial-retail outlets, plus 30 retail outlets and six retread plants has been bought out by the AAA Group based in Cincinnati. The AAA Group is a subsidiary of the American Automobile Association.

Bob and Todd Sumeral will remain at the helm of the business, but have been quoted as saying that this creates the opportunity for the firm to become much more aggressive in its activities and that they expect to expand the commercial division considerably in the coming months.

Craig Sumerel will serve as president of the company, which will operate as a subsidiary of AAA Allied Group. Sumerel will report to James Pease III, AAA Allied's CEO and chairman.

The added service is a clear attempt to broaden AAA's offerings, which include travel, insurance and roadside assistance, and increase membership. Customers who do not require roadside assistance, for instance, can schedule regular maintenance services, from oil changes to tyre rotation.

"We're going to be able to expand our automotive service from the roadside to the garage," said AAA spokeswoman Elaine Zeinner. "This will be another option for our members."