News Archive

This section includes a representative selection of news items from the retreading industry from around the world taken from our latest issue 2008/2. To make sure you get all the stories from the retread market order your regular subscription now!

ABR Succeeds in Overturning Motorcycle Retread Ban
Bridgestone Merges Bandag Truck/Bus Tyre Sales
Ein Shemer Establishes New Materials Company
B&J Founder Emil B. Jensen Dies
Klaus Zimmerman Retires From Ellerbrock
China: Casing Legislation Continues to Impact on Retread Markets
China Retread Market Set to Exceed 10 Million Units
K & S Tire, Inc. Becomes 26th North American Marangoni Ringtread Dealer
Belle Tire Distributors Inc to Consolidate Retread Production
A Satisfactory 2007 For KRAIBURG
RICS Looks for Tread Rubber Partner
Rösler In Indonesian Co-operation
Midas Look to Increase Capacity
Bandag Dealer Network Expands in New Zealand

ABR Succeeds in Overturning Motorcycle Retread Ban

The Brazilian Retreaders Association ABR has succeeded in a legal action to overturn a 2004 Resolution passed by CONTRAN (Conselho Nacional de Trânsito), which banned the use of motorcycle tyres in Brazil. The ABR’s argument was based on the faction that the Resolution - CONTRAN nº 158/04 – was born out of a petition from ANIP (the Brazilian Tyre Manufacturers Association) and was carried out as a result of proceedings of which only ANIP was a part.

To make matters worse, the safety tests carried out by CONTRAN were subjective tests ordered by ANIP and were carried out on a test track owned by an ANIP member. The successful legal action taken out by ABR against CONTRAN in the Federal Court of Brazil, called for a declaration of nullity of Resolution 158/04 until new administrative proceedings had been carried out including new safety tests, this time carried out using approved testing techniques and with the participation of all interested parties, including the ABR.

The ABR’s lawyer Carlos Tagliari commented; “ As a result of this judgement, the motorcycle retread sector will be able to reenter the market under the secure knowledge that only after the completion of safety tests carried out under recognised norms will CONTRAN be able to raise this subject again. Furthermore, as all tests carried out on these tyres have concluded that retreaded motorcycle tyres, if adequately manufactured, are as safe as new tyres, we are confident that the sector now has nothing more to worry about”.

Bridgestone Merges Bandag Truck/Bus Tyre Sales

Bridgestone Firestone North American Tire has combined its truck and bus tyre sales and marketing divisions with Bridgestone Bandag‘s North American retread operations to form a new division of called Bridgestone Bandag Tire Solutions.

Bridgestone Bandag LLC Chairman, CEO and President Saul Solomon will lead the newly created unit, which will be headquartered in Muscatine, Iowa. Singh Ahluwalia will serve as president of the unit’s integrated sales and marketing group, and will report to Solomon. As part of the reorganization, Bridgestone’s GCR Tire Centers, plus its company stores operating under the White Tire Distributors brand, will be united with Bandag’s Tire Distribution Systems Inc. chain.

Ein Shemer Establishes New Materials Company

Ein Shemer Rubber Industries, the Israeli manufacturer of rubber based products (hoses, profiles, technical parts, rubber compounds and retreading materials) with more than 40 years of experience is now expanding its operations.

Located in central Israel, Ein Shemer Rubber Industries provides customers with a wide range of high quality, custom designed and off-the-shelf products, as well as production services for local and world markets. Subsequent to the company’s expansion in recent years and the need to be geographically nearer to the European market for better leverage of our distribution system, the company has acquired a retreading material plant, based in Europe.

Recently, a joint venture for retreading material’s production and marketing was established in Zvornik, in Bosnia- Herzigovina. The company is coowned by Ein Shemer Rubber Industries together with a wellknown local business man, Petar Jankovic, and is situated on a 6- Acre site with a planned staff of 50 employees. Supported by local grants, the new company will manufacture an array of products beginning with compounds, through hot and cold retreaded products to cushion gum. Sales are intended to commence June 2008.

Natan Vilner, Managing Director of Ein Shemer explained, “Ein Shemer has recently experienced substantial in many of the areas of rubber we deal with. For example, water and infrastructure (ES Rubber recently won a tender for supplying of rubber gaskets in a Belgian tunnel project). We are interested in implementing this positive development in the retreading world as well. An opportunity for establishing such a venture in Eastern Europe came about, precisely matching our strategy and I believe Ein Shemer will evolve in this field as well”.

Moshe Friedman, V.P. Marketing & Sales added, “Ein Shemer has seen an increase of more than 30% in company sales in the last three years and has set expansion goals for an additional 50% within the next 5 years, whilst entering new fields of business. The retreading material products are an important field for the company. Based on that, we decided to concentrate our efforts on finding a suitable plant outside of Israel, thus drawing us nearer to the European markets which we are active in, so as to increase sales”.

B&J Founder Emil B. Jensen Dies

E.B. Jensen, 99, founder of B&J Manufacturing Company of Glenwood, IL, passed away March 11, 2008 at his home in Boca Raton, FL.

E.B. was born in Denmark, coming to the U.S. in 1927. He experienced the hardship of finding sustainable work in a new country without family or the ability to speak English. A resourceful man, he and his wife Mae, had begun the E.B. Jensen Company by 1941. E.B. Jensen Company supplied equipment and accessories to tire shops, recappers, and vulcanizers. At the time, the tack tire rasp was the best available to retreaders. That changed in 1942 when E.B, joined by Mr. Roy Barnes, began development of a new rasp/blade combination under the name of B&J Manufacturing Company.

Mr. Barnes soon sold his ownership stake to E.B, while remaining an engineer for the company. Staking most of his tire shop profits to the new rasp development and testing, by 1945 the “regular” rasp and “standard” blade were available to the tire recapping industry. This revolutionary breakthrough forever changed retreading and is the foundation for the rasps still used today. Joined in the business by his son Wayne E. Jensen (Elisabeth) and Richard Persson (Lucille Jensen), B&J grew into a multinational company with manufacturing and offices around the globe.

What never changed was the drive to be the innovator in retreading equipment. Many of E.B.’s B&J products were years ahead of their time and served as a driving force for progress in the retread industry. Evidence of his mindset lives on today with a succession of new, patented products.

For his efforts, E.B. Jensen was inducted into the Tire Industry Association Hall of Fame in 1988. Philanthropic endeavors were and remain important to the E.B. Jensen family, with an emphasis towards less fortunate children and medical advancement. E.B. is survived by his wife, Mae, and his daughter, Lucille along with many loving grand and great-grandchildren.

Klaus Zimmerman Retires From Ellerbrock

After more than forty years of commitment as the head of Ellerbrock, Klaus Zimmermann has retired from work to dedicate time to his private life. Mario Marangoni, President of Ellerbrock’s Mother Company Marangoni Spa, and Giovanni Marangoni, President of Marangoni Pneumatici Spa, presented him with a plaque as an expression of their esteem.

From 1980 to 2005, Klaus Zimmermann was Managing Director of Ellerbrock, heading the company from the beginning of the partnership with the Marangoni Group until the takeover of Ellerbrock GmbH by Marangoni in 1992. During this period, his managerial role was always distinguished by great enthusiasm and detailed knowledge of the truck retreading market, both in Europe and abroad. He was widely recognised for his professional credibility and greatly appreciated as a partner by both customers and colleagues.

“Klaus Zimmermann”, declared Mario Marangoni , “has been an essential contributor to the current growth and success of the Marangoni Group Retreading Systems Division. I sincerely hope he has the chance to relax after the significant effort he put into his work, and at the same time I hope he will continue to feel attached to our business and have the desire to smell rubber again. He is more than welcome to visit us at any time”.

China: Casing Legislation Continues to Impact on Retread Markets

China does not allow the importation of casings for retreading. Indeed, only one retread plant in Qingdao has been able to get special permission from the government, which allows the company to import casings from Japan. Because of the current legislative situation the development of retread market in China continues to be heavily influenced by local casing availability.

It is no surprise, therefore, to discover that the public transport companies have the highest retread rates in the market. This is because the damage to tyre casings is lower in this area. The majority of long distance buses in China still do not use retreads due to safety concerns. As a result, the price for 11 R 22.5 and 295 R 22.5 casings is only around RMB 250, making casings relatively easy to come by. For haulage trucks, however, 11.00 R 20 and 12.00 R 20 are in much greater demand and the selling price has reached 400 to 450 RMB, with supply unable to meet demand.

Despite the above, it is pleasing to see the development of a casing trade in China, particularly in Guangdong province, where retreading has been most successful and where 7 of the country’s largest retreaders are located.

China Retread Market Set to Exceed 10 Million Units

According to figures released by the China Tyre Retreading and Utilization Association (CTRA), 9.6 million retreaded tyres were sold in China in 2006 and the Association expects this sum to have increased to over 10 million units in 2007.

Based on 2006 figures, the market is made up of around 4 million hot cure and 5.6 million precure retreads. Of the 4 million hot cure tyres, 40% are various sizes of agricultural, OTR and light truck tyres with the remaining 2.4 million units being TB and TBR tyres. Of the 5.6 million precured retreads 4.6 million are truck tyres with the remaining 20% being light truck and other tyres. The total truck retread market is therefore estimated at 7 million units, only a seventh of the size of the new tyre replacement market.

According to the CTRA, there are currently 15 large truck tyre retread plants in China with an annual production exceeding 100,000 units per annum each. These companies account for a total output of 2.32 million pieces, around two thirds of which is hot cure. However, in the overall market, it is precure, which has benefited hugely at the expense of hot cure in recent years.

Says Jiang Zhi Yun, CTRA President; “In 2006 precured tyres made up 60% of total retread production, the first time the percentage of precured retreads has exceeded hot cure retreads.

K & S Tire, Inc. Becomes 26th North American Marangoni Ringtread Dealer

Marangoni Tread North America has announced that K & S Tire, Inc. Alva, OK has converted to the Ringtread System. K&S becomes the 26th Ringtread plant in the network of North American Ringtread Dealers. K&S Tire, Inc. has four commercial locations in northwest Oklahoma; Alva, Woodward, Kingfisher, and Clinton. K&S has 10 commercial salesmen, 10 service trucks. Each location has full service capability and sells an array of new tyres to fit the needs of their customers. K&S also specializes in OTR tyres and service.

Belle Tire Distributors Inc to Consolidate Retread Production

It has been reported that Michigan based Bandag retreader Belle Tire Distributors Inc. is planning to consolidate retread production from three plants in the Detroit area into a new facility at the company’s headquarters in Allen Park. The new plant, which is scheduled to be ready by mid-May, is expected to result in the closure of existing plants in Detroit and Redfern and eventually also the plant at Madison Heights. Belle Tire Distributors currently produces 600 retreads a day from 5 plants, the other two being located in Toledo and Oakwood Village, Ohio.

A Satisfactory 2007 For KRAIBURG

Despite increasing competition and cheap imports Kraiburg has managed to hold its turnover and sales at a stable level. 2007 saw Kraiburg increase sales by around 4% to 83.4 million Euros, of which some 56.9 million Euros came from the retreading business division.

Initial results were also shown by the restructuring measures initiated last year in the sales organisation. To improve the operating result, the company had taken the decision to manage customer contacts in selected countries without commercial agencies directly via the field and indoor service team. This cost-saving measure has been welcomed by all Kraiburg’s retreading partners.

The EM sales unit was newly created at Kraiburg Austria in 2007. This business unit deals with the development and marketing of EM retreading plants and materials used for retreading. This Austrian company is one of the few providers to cater to all processes, i.e. precure, hotcure and Smooth & Groove methods.

Last year, the EM team succeeded in collaboration with a Russian partner in tackling its first major project. The retreading plant with a capacity of up to 1,500 tyres per year in the dimensions 24.00 R35 to 40.00 R57 is due to be commissioned in the autumn of this year. Further projects are in the pipeline.

Against the background of increasing competition within a stagnating Euro pean market, it once again proved difficult in 2007 to pass on the continuing increases in raw materials to customers. As reflected by the current development in the price of crude oil, this year too we can also expect further significant increases in the cost of raw materials, which again make price adjustments necessary.

RICS Looks for Tread Rubber Partner

RICS Sdn Bhd, the Malaysian manufacturer of cushion gum, repair rope, sidewall veneer and patches, is on the lookout for a local tread rubber manufacturer with whom it can co-operate, in order that the Sungai Buloh based company can continue its expansion. This was revealed by Lim Sum Teck, the company’s retread specialist, during an interview at the company’s offices in Kuala Lumpur.

RICS, which was founded by Mdm Chan Lee Khim in 1997, first entered the retreading sector in 2000. According to Lim, one of the company’s main claims to fame is the introduction of low temperature curing in Malaysia through the company’s trademarked RICS Cushion Gum 115. The company’s factory in Sungai Buloh employs 10 people producing rubber products for home and overseas. Export markets include China, Hong Kong and, indirectly, to Australia and Japan. More recently, success has been achieved in Turkey and the UK.

Says Lim; “We believe that export is the way to go. We have recently made inroads into a couple of European countries and our aim is now to develop”. In addition to the abovementioned retread products, RICS is also an agent for a wide range of rubber processing machinery, distributing equipment from Carter, Rutil, Barwell, NFM Iddon and Max Muller. The company also manufactures a range of tyre crayons, which can be supplied in designated colours for individual companies.

Rösler In Indonesian Co-operation

Rösler-Group from Dortmund, Germany is happy and proud to announce that the SPRsystem- facility (Schelkmann Precured Retreading System) in operation with Indonesia’s largest and most successful mining contractor, PT Pamapersada Nusantara, successfully produced its first earthmover tyre in the dimension 27.00R49.

The project started in Balikpapan (Borneo) in October 2007, and from now onwards the facility can be considered as officially handed over and the regular production of cold retreaded earthmover tyres can begin. Production will quickly reach a monthly output of 25 – 30 giant sized tyres (49’’ – 57’’).

The SPR-system, which is considered as a globally technically leading OTR tyre retreading system, has set another milestone in the establishment of high-quality cold retreads in the international coal and oremining industry.

Other SPR-system facilities exist today in Rösler’s headquarters at Dortmund, Germany; in Perth (Australia) in co-operation with Rio Tinto and in Zarafshan (Uzbeskistan), where the official production start is scheduled for April 2008. The projects for one or two similar facilities will start during the course of 2008.

Midas Look to Increase Capacity

Midas is looking to increase its production capacity by 20% by the end of the year and expects to double production capacity over the next 4-5 years. This was revealed by BF Varughese and Manoj Mathew of Midas during the recent Tyrexpo Africa exhibition.

According to Varughese, Midas’ production is currently running close to its capacity of 2200 tonnes per month and the planned addition of an extra 450 tonnes before the end of the year will enable the company to continue its overseas expansion. This, says Varughese, is necessary as a number of factors have combined recently to allow the company to increase its sales.

Firstly, tax rates in India have been reduced in many states, which have provided a good boost to domestic sales. Secondly, overseas sales have continued healthy growth. It is now four years since Midas started to develop sales in Europe and most of the company’s customers are now well established. Overall, Midas now sells to 14-15 countries in Europe, in addition to which the company has now also started to sell in the USA.

Finally, Midas has recently introduced a new OTR pre-cured tread, which the company hopes will provide growth in the OTR sector.

Bandag Dealer Network Expands in New Zealand

Bandag Manufacturing Pty Limited has announced a significant expansion of the existing network in New Zealand with the conversion of three Bridgestone New Zealand factories to Bandag.

New Zealand customers are currently serviced by two Independent Bandag Franchises; C.O Tyres and Tyre Retreaders. In the latter part of 2008, however, Bridgestone’s three retread factories in Auckland, Rotorua and Christchurch will be refitted with state-of-the-art Bandag retread equipment and the current retread process systems will be streamlined. The net result of this will be an enhanced network providing quality retread tyres and services.

Bandag’s National Marketing and Sales Manager, Greg Nielsen said “This is a positive move for the New Zealand retread market. The business model that is developing in New Zealand consists of a network of Bandag Franchised Dealers and Bridgestone for the benefit of the road transport industry".

Bandag Manufacturing Pty Limited is a wholly owned subsidiary of Bridgestone Australia Ltd., and has 35 franchised dealers across Australia, New Zealand, Fiji, Papua New Guinea and New Caledonia. Bandag manufactures pre-cure tread rubber and associated materials under licence to Bandag Incorporated at its Brisbane based tread rubber plant.