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MALAYSIA
Victory was sweeter, the company said proudly as they were the first rubber compound manufacturer to win the “Brand Development Award” which was previously dominated by high-profile industry players such as automotive parts or glove manufacturers. However, Goodway explained that winning the award was not an overnight success. Their consistency in continuously working on brand development over the last 22 years is a display of Goodway’s persistence in making their presence
in this arena where growth and change happens rapidly. And the branding culture is seen across all boards in Goodway, leading to MRB’s acknowledgment and recognition of Supercool’s brand value which encompasses:
i. Utmost commitment to the safety of end users.
ii. Constant effort to enhance value for the end user in terms of cost savings and operational efficiency.
“We have been experiencing 10 per cent growth each year. This year our business turnover is RM 150 million, with the opening of this new facility, we expect a RM200
million business turnover next year,” said the Chairman of Kian Hon, Tan Yang Nam during the press conference.
Maxxis’ Partner Kian Hon Holds New Building Grand Opening
The tyre retread industry should be given a chance to go the extra mile, Goodway Integrated Industries Bhd head of sales and marketing Tai Qisheng said in an interview with a Malaysian publication.
Sometimes known as recaps or refurbished tyres, retreads are older tyres that have been recoated with a rubber veneer or tread. Tai said
whole tyre.
“Quality, cost-saving retreaded tyres will definitely benefit the trucking and commercial vehicle companies, which make up most of the users in the retread industry.”
Tyre retreading technology had improved tremendously over the years to improve safety standards due to the demand from its users, said Kian Hon Tyres Sdn Bhd managing director Sydney Tan.
“We need to clarify the public misconception towards retreaded tyres being second-hand and unsafe.” He said the safety of a retread tyre is as superior as that of a new tyre — or better in many cases. “Rubber compound manufacturers have invested millions into research and development of new compound based on the specific needs of the countries.”
“Government bodies such as PLUS, JPJ and the Malaysian Rubber Board have acknowledged the use of retreads where retreaders will acquire the MS-224 certification once they reach the requirement of safe retreading process.”
The company’s recent partnership with Maxxis International will see establishment of the new Maxxis Asia Education Centre in Penang to provide training and information on tyre retreading while educating its distributors on truck and bus radial. “Retreading prolongs the tyre life and in the long run, such tyres will help fleet operators to optimise their overall operation cost by providing them lower tyre cost per kilometre.” He added that evolution in the industry has been quite significant — with even major tyre companies such as Michelin, Bridgestone, Continental and Goodyear also expanding their businesses in retreading.
Kian Hon Tyres Sdn. Bhd., a reputable local partner of Taiwan’s Cheng Shin Rubber Ind. Co., Ltd., (also known as Maxxis International), held an official grand opening ceremony for its new building in Nibong Tebal, Malaysia. Approximately 1000 guests including Cheng Shin Rubber President Dr. Wally Chen, Global Sales and Marketing Director Lenny Lee, 37 Maxxis family members from overseas, dealers and media attended the event.
This new building marks a significant partnership milestone for Kian Hon and Maxxis in Malaysia and Asia market. The new 3-storey, 42,021sqft building will house Maxxis Asia Truck and Bus Radial Education Centre (MATEC), tread rubber production facilities for Maxxis and act as Maxxis’ Malaysian operation centre.
MATEC will serve as the knowledge hub for Maxxis family members, holding regular interactive training on tyre information and industry best practices. Besides, the tread rubber production line of maximum capacity 120,000 retreaded tyres
per annum is a USD 20 million collaborative effort aimed to provide green and total business solutions to its clients.
Chen commented that the new tread rubber production line and retreading operation represent a significant investment in green technology. He believes that these new efforts will reap benefits for Kian Hon, for Maxxis and for shareholders throughout the region. “Using resources in a smart, practical way benefits us all, producing more products at a lower cost for our customers and ultimately keeping millions of tyres out of landfills. This new facility underscores the commitment to ‘Earth-friendly’ practices shared by everyone in the Maxxis family,” added Chen.
Kian Hon and Maxxis operations from this new centre will be the benchmark for setting up retreading plants in Indonesia and the Philippines in 2013. Furthermore, marketing activities in the Malaysian market will also be used as case studies for implementation in Asia region.
Tai Qisheng
retreaded tyres are environmentally- friendly as each one helps to reduce the piling number scrapped daily. Explaining that the industry reuses tyre casings after going through a rigorous and safe retreading process, he said: “It is also a method to reduce the usage of crude oil and natural rubber due to the fact that it uses 70% less crude oil compared to a manufacturing of a new tyre.” Excessive rubber from the retreading process — known as flash — is also collected to produce other rubber goods. He explained this effort maximises the usage of rubber compounds.
Laying claim to being the largest rubber compound manufacturer in Malaysia, Tai said Goodway practises “responsible rubber compounding” and aims to upgrade the standard of the retread industry in Malaysia. Kian Hon Tyres Sdn Bhd managing director Sydney Tan said cost-wise, retreaded tyres cost up to 50% less than a new tyre due to the minimal usage of natural and synthetic rubber — using only seven gallons of oil compared to 22 gallons required to manufacture a new tyre. Tan said that the cheaper cost of retreaded tyres is also due to the fact that the tread layer is replaced, without the need to reconstruct the
Kian Hon’s Sydney Tan
22 Retreading Business
Malaysia: Green Tyres Potential Rising