Kraiburg “Satisfied” With 2007 Figures

With a turnover of 83.4 million euros in 2007, Kraiburg Austria recorded an increase of around four per cent on the previous year. The company’s mainstay of sales remains its retreading business division, accounting for 56.9 million euros.
This stability has been achieved in spite of the increasing competition due to material providers from overseas and cheap truck imports from the Far East. Positive results have begun to show through from 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 retreading partners.

EM undertakes first major project

The EM sales unit was newly created at Kraiburg in 2007. This business unit deals with the development and marketing of EM retreading plants and materials used for retreading and is one of the few providers to cater to all processes, i.e. precured, hot cure and Smooth & Groove methods. Last year, the EM team succeeded in collaboration with a Russian partner in tackling its first major project. A 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.

Rising raw material prices make price adjustments necessary

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