Do-It-Yourself

With the global OTR tyre market dragging on into yet another year of shortages, some large scale equipment operators are more than fed up – they are ready to take matters into their own hands. With supplies of quality new tyres remaining scant and some sources asking obscene prices for tyres, and given the impact the number of retreadable used casings available, or not available, has had on the retreading market, keeping one’s vehicles suitably shod at may times require a whole new approach. If you can’t buy a retread, why not buy a retreader….

Or at least partner yourself with a company possessing specialist knowledge in the retreading of OTR tyres. One such company who has done just that is mining giant Rio Tinto, whose vast open cast mines in the expanses of Western Australia make up 20 per cent of the global conglomerate’s assets and deliver more than 70 million tonnes of iron ore per year, as well as a number of other commodities in differing quantities. But operations on this scale cannot be maintained without earthmoving vehicles such as loaders and graders, not to mention the massive dump trucks synonymous with industrial mining – and to keep the supply of wealth flowing from the ground all of these vehicles require tyres.

When global demand for OTR tyres started outstripping supply several years ago Rio Tinto was faced with the choice of securing a guaranteed supply of replacement tyres, purchasing substitute crossply units that would keep vehicles running but reduce productivity, or scaling back operations for lack of serviceable vehicles. With the second and third options unacceptable, the company put together a ‘tyre taskforce’ and began the search for a partner who could solve their tyre supply worries and ensure not a single tonne of production was lost due to tyre shortages. They found the partner they were looking for in Derbyshire-based OTR Tyres Ltd. In December 2005, following site visits and numerous discussions, OTR Tyres and Rio Tinto entered into an agreement to build an earthmover tyre retreading facility near the Western Australian capital of Perth.

Construction of the new plant was completed within a year of the project being first approved, and was already producing retreads for Rio Tinto before its official opening on February 15. Although 100 per cent owned by the mining giant, the project could not have gone ahead without the specialist knowledge and experienced staff that OTR Tyres invested in the project, overcoming the significant challenge of not only seeing to the construction of a facility from scratch, including designing the factory and procuring equipment, but ensuring that skilled staff were available to run the operation. This is an ongoing responsibility for OTR Tyres Australia Ltd (a wholly owned subsidiary of OTR Tyres UK) as plant managers and operators, and 30 of the parent company’s employees have been seconded to Perth on an extended basis to work with local staff, some of who previously spent time in the UK gaining experience with their new British colleagues.

The plant will utlise both ‘slick and groove’ and pre-cured retreading methods, with the main tyre size the facility handles is a 57-inch rim diameter, a size that previously had only been successfully pre-cure retreaded in one other country, and in very limited quantities. Yet 57-inch retreads produced at the Kewdale retreading facility in Perth have been in service on Rio Tinto haul trucks in West Australia’s Pilbara region since January and initial reports on the tyres’ performance are encouraging. Initial tests, albeit based on a small sample group, indicate that the retreaded tyres will have a lifespan of anywhere up to double that of a new tyre. This could add up to substantial savings on operating costs, and in the opinion of Rio Tinto’s head of global procurement, John McGagh, retreading could provide an important component in Rio Tinto’s long-term management of its worldwide mining operations. “It is early days, but the initial trial results are promising. We are confident that the use of re-treaded tyres will provide Rio Tinto with a more secure supply chain for tyres and will extend the life of a valuable resource.”

The savings Rio Tinto will enjoy are not only those gained through extended tyre life. An estimated 2,500 kg of raw materials are saved with each tyre retreaded, and the plant’s location in Perth, close to many of Rio Tinto’s Western Australia mining operations, creates significant reductions in transportation costs. The exact savings may soon be known. OTR Tyres is conducting a project, based upon 6 sigma principles, to statistically verify the effectiveness of retreading. This project should be concluded in approximately 12 months’ time and the results obtained have the potential of challenging globally held views on the life cycle of OTR tyres. Should the results prove statistically conclusive, mining companies and other operators wishing to retain a competitive edge will have to seriously consider implementing a similar retreading programme.

When the Kewdale facility is running at full capacity approximately one thousand tyres will be retreaded each year. At the plant’s official opening in February OTR Tyres’ managing director Chris Skelton commented that “after many months of hard work, we are delighted to be starting production. The factory is a state of the art facility using the very latest technology and we believe that it will prove to be an excellent investment for Rio Tinto.” Mining operators around the world have taken note of Mr. Skelton’s words and are watching developments down in Western Australia with more than a hint of interest.