Titan Works to Address Giant Tyre Concerns

According to Bloomberg, Titan International Inc.’s bid to break into the oversized tyre market has hit a roadblock after tyres installed on trucks hauling Canadian oil sands lasted just 1 per cent as long as expected. In a telephone interview with the news service, Titan CEO Maurice M. Taylor Jr said the company has halted production of the four metre tyres used on dump trucks in order to install pressure-monitoring devices. A number of tyres failed after 100 hours of work on the 400-ton trucks used to haul oil-soaked sand for Royal Dutch Shell Plc and other energy companies in Alberta, a far cry from the minimum expected lifespan of 10,000 hours, he said.

Taylor, who in March said expanding into oversized tyres would triple sales to $3 billion in five years, blamed the early failures on local dealers who set air pressure too low, raising internal temperatures and causing steel belts to separate. “The tyre dealers up there demanded a 7 per cent to 10 per cent kickback, but I refused to pay it,” Taylor said. “If you don’t give them some money, they let a little air out of your tyres, and no one sees it.” Taylor did not reveal the dealers’ identity.

Production of oversized tyres was paused at Titan’s Bryan, Ohio plant during the second week of August. The company plans to resume their manufacture by the end of August, Taylor said. Later in the month the company CEO is scheduled to visit Shell and other oil-sands producers in Canada to discuss the tyre failures – important business, considering purchases by oil sands customers account for half of the company’s giant tyre sales.

To prevent a repeat of the tire failures in Canada, Titan is installing sensors on each unit at a cost of $2,700 to warn customers when air pressure is too low, Taylor said.