Bandag Now ‘Fully Integrated’ into Bridgestone

Speaking at last week’s Bridgestone Truck Point roadshow, Bridgestone UK retread sales manager Les Lawrence and Bandag UK sales manager Ross Medlyn explained the latest developments in the continuing process of integrating Bandag into Bridgestone. While everyone agrees that the process of integration remains an ongoing project, Ross Medlyn specifically described the two operations’ current status as “fully integrated.” What this means is that Bridgestone and Bandag products are already being sold side-by-side, with the two ranges evolving to reflect the influence of the merger. It is also representative of what is and will happen in other European markets.

In pure business terms, the first significant fruit of the newly integrated businesses is the transfer of 8000 DSV trailers from Bandag Eurofleet to Bridgestone’s Megafleet network. However, looking at newly printed promotion literature shows the progress made in the company’s marketing strategy since Bridgestone and Bandag’s merger was officially completed on 1 June 2007. Across all five of Bridgestone’s commercial vehicle segments (long haul, regional, on/off road, bus and light truck) customers are now presented with Qualitread, Bandag and Bulldog options to complement Bridgestone and Firestone-branded new tyres. The retread department has also resolved to consolidate its retread offering and integrate some of its lesser known brands (namely its Truck Point and budget retread ranges) into the Bulldog line up over the coming months. The first phase of this means that in 2010 the current Qualitread, Bandag, Bulldog, Truck Point and budget lines will become just Qualitread, Bandag and Bulldog. The Kingsway retread brand has reportedly already been phased out between 2008 and 2009.

Another example of Bandag’s integration into Bridgestone can be seen in the range of treads that are now and will in future be on offer. For obvious reasons Bridgestone executives were reportedly uncomfortable with the Bandag patterns reportedly inspired by Michelin treads. As a result these Bandag products (and for similar reasons a number of Bulldog products) will now be replaced altogether by a newly designed application specific range of treads and compounds designed by Bandag.

There are also clear implications for the manufacturing side of the business. Prior to the integration, Bridgestone’s Qualitread treads were produced at the company’s manufacturing plant in Spain, together with some off-take from Marangoni in Italy. Moving forward, all Bridgestone’s pre-cured treads will now be produced at Bandag’s Lanklaar, Belgium plant. In addition Bulldog Remoulds, which was bought by Bridgestone in April 2005, last year became a Bandag franchisee bringing the number of Bandag franchisees in the UK to 9 (Republic of Ireland is home to three more). There was even the suggestion that, despite widespread consolidation in the UK retread manufacturing sector, Bandag’s UK network might actually expand.

As a result of the Bulldog purchase and the subsequent Bandag acquisition, Bridgestone’s retread market share has grown markedly. Taking the UK market as an example, in 2006 Bridgestone products occupied roughly 3 per cent of the million strong retread market. This year the figure looks closer to 18 per cent, which is particularly impressive when you consider that, due to the recession, the UK retread market as a whole was down some 20 per cent at around 800,000 units at the beginning of 2009. However, despite having increased market share six-fold in three years, the next target is an ambitious 25 per cent by 2014.

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• Bridgestone Europe Takes Full Control of Bandag EMEA
• Rifer Gomme Joins Bandag to Cover Eastern Italy