SPR licensees begin production

It is almost 20 years since the Rösler Group bought the Schelkmann patents for the pre-cured retreading of OTR tyres. Today this German company has reached a position on the European and global retreading market where the Schelkmann procedure is itself used as a product, a product that appears to be in strong demand. During the past two years the Rösler Group has emphasised the commercialisation of Schelkmann licenses, obviously a good means of generating cash through licence fees, but also very attractive to the German group; together with the licence comes a production plant using Rösler technology and a subsequent demand for Rösler pre-cured OTR treads. As of March there are six Schelkmann production entities operating worldwide, one of which is Rösler’s model plant in Dortmund, the company’s location in Western Germany.

The difficulties operators face whilst attempting to obtain giant OTR tyres these days are well documented. Thus it only follows that many companies are trying to get involved in this sector; news about increased capacities or plans to build a new OTR tyre facility are published almost daily. And thus it is also only understandable that retreads – in particular larger than 35 inch – are becoming increasingly interesting to mine operators as they try to keep their dump trucks and other machines rolling. With regards to smaller sizes, the retreading of OTR tyres is lagging somewhat behind as competition budget products from low-cost new tyre manufacturers based in the Far East is too intense. However, the Rösler group does not consider the commercialisation of Schelkmann licenses as merely a measure for contributing to company margins on a short-term basis. What is even more important, says Paul Rösler junior in an interview with TYRES & ACCESSORIES, is their attempts at a “long term persuasion” of potential customers. Should the Rösler Group succeed in this, the Schelkmann procedure will become a well-established technology globally, one that will even be able to compete with products from the new tyre industry and which will be able to ensure an ongoing return.
A company desiring to commercialise a technology as complex and costly as the retreading of giant OTR tyres is well advised to operate a model facility where it can show potential customers around. A mine operator interested in buying a Schelkmann license does not necessarily have a retreading expert amongst its employees. In the course of the ongoing negotiations between the Rösler Group and a potential licensee, a visit to the model factory helps allay any concerns. Before the company started to produce pre-cured OTR tyres according to its own Schelkmann procedure within the new ”Hall No. 9“ in Dortmund, the Rösler Group operated both retreading processes under the same roof. Thus within the same facility Rösler produced its pre-cured Schelkmann retreads as well as its “Rodos” brand mould-cure retreads; furthermore it also produced its new “Winstone” radial tyres, which are based on a newly built casing supplied by a leading tyre manufacturer producing in Europe. This somewhat confusing alignment of different production processes under one roof didn’t especially help in the convincing of mostly inexperienced mine operator employees about the respective merits of the Schelkmann procedure. Consequently, the decision was taken to establish the model factory in Dortmund and invest a seven-digit sum into it. So, to some extent this decision has also helped with product marketing, because in the end, when potential customers actually have the chance to see the various stages of the seemingly complex Schelkmann procedure for themselves, a picture really is worth a thousand words, Mr Rösler continues.
That the investments in Rösler’s new model factory have paid off, or rather, are paying off, can be seen from the level of positive news the company has recently been able to report about the signing up of new Schelkmann licensees. The Australian mine operator Rio Tinto, for example, has been retreading giant OTR tyres in its Schelkmann retreading facility since January 2008. This facility was built under the guidance of OTR Tyres Ltd. from the UK, itself a Schelkmann licensee for more than five years. Two more Schelkmann production sites will be up and running in March in Indonesia (PT Pamapersada) and Uzbekistan (Qizikumshina). Together with another licensee in the Czech Republic, there are currently six licensees worldwide producing “Schelkmann Pre-cured Retreads”. By the beginning of next year there will be a seventh licensee in Kazakhstan.
On top of these the company anticipates another two to three new licensees per year, says Paul Rösler junior. Potential markets for SPR particularly exist in South America, Russia or the CIS states and in India; these have been identified as the regions with the greatest potential. Demand could also come from Australia if the mine giant BHP Billiton does in fact take over Rio Tinto; BHP only recently submitted an offer to acquire its competitor for more than 100 billion euros, Mr Rösler continues.
Because the three new licensees in Australia, Indonesia and Uzbekistan have begun their operations this year, the Rösler Group is looking forward to an increased demand for their Schelkmann treads and other retreading materials. In 2008 Rösler will experience a “positive development of tread quantities” – a growth of about 40 per cent is predicted, which will of course increase the capacity utilisation in Dortmund.
It is in particular with the larger sizes, from 35 to 57 inch in diameter, that the Schelkmann pre-cure retreading process offers a price advantage of up to 40 per cent compared to new tyres produced by benchmark companies such as Michelin or Bridgestone. Furthermore, as the managing director adds, these retreads offer “a quality comparable to new tyres as well.” When one climbs further down the size scale the price advantage becomes smaller in comparison to products from the new tyre industry. This is why the Rösler Group is expecting “a future” for its giant OTR retreading process and is prepared to maintain investment in this market. Thus, for example, the Rösler Group currently is the only company worldwide able to retread giant OTR tyres above 51 inch using pre-cured treads. One year ago Rösler was even able to retread a 57 inch OTR tyre according to the SPR process in its own facility.
The Schelkmann pre-cured retreading systems is – from a certain perspective – ready for mass production and, since its acquisition by the Rösler Group has only been “optimised and advanced.” Major advancements have mostly taken place in areas where technological set-up has been adapted to changing market requirements (like the change from bias-ply to radial technology) as well as improvements in the safety of the production process.
The Schelkmann process, developed by the German inventor Wilhelm Schelkmann (who today is 94 years of age) and protected by numerous patents, can most readily be distinguished from other processes because of several important singularities that affect quality in a positive way. First, during the Schelkmann process vulcanising presses use a pressure six times higher than that used in the production of new giant OTR tyres. This has the affect of improving the quality of the rubber. Furthermore, vulcanising time for the tread is minimised, which in turn reduces the danger of a reversion or – in other words – of over-vulcanisation. Second, the Schelkmann process preserves the casing where the tread will be applied as casing and tread become joined at a temperature below 100 degrees Celsius. These relatively low temperatures reduce the danger of tread separation between tread and casing dramatically. By the way: At Rösler’s own Schelkmann model production site in Dortmund about 85 per cent of the casings retreaded are premium casings and are almost exclusively radial tyres. And last but not least, the Schelkmann process calls for the use of only quality compounds in the production of new treads. Based on several well-established standard compounds, the individual needs of different licensees are catered for. Compounding does not take place in Dortmund itself but with renowned quality producers in Germany, the managing director point out. The tread patterns in turn are all developed in-house to remove the risk of duplication.
The Rösler Group from Germany has about 200 employees, three quarters of which are employed in the retreading business (Schelkmann, Rodos and Winstone). The annual turnover of the Group including the flatproofing system “Zeus” (Polyfill, Liquifill, Triofill) is stated to be above 40 million euros.