Standard Retreads and Kraiburg celebrate 5 years of cooperation in Ajman

Austrian retreading materials supplier Kraiburg sees the market for HGV retreads in the United Arab Emirates (UAE), and in Dubai in particularly, as offering “unequalled” opportunities. For retreading businesses standing one’s ground in such a limited sized market when competing with a large number of rivals was hard enough when the economy was still booming and much trickier in the current climate against the backdrop of the financial crisis. Against all the odds, Kraiburg reports that Standard Retreads can now look back on a “five-year success story.”

The latest milestone was the business’ relocation from Dubai to the neighbouring emirate, Ajman, and the opening of a new retreading plant there. The new production facility was officially opened at the end of March in the presence of Abdulla Saeed Al Nuaimi, member of the ruling family of Ajman, and Thorsten Schmidt, vice president of Kraiburg Austria, which is said to have been “a source of encouragement and support to its exclusive partner Standard Retreads from the outset.”

There are differing opinions on exactly what is going on in the UAE economically, but all agree that the construction-dependent emirates such as Dubai have experienced a very significant downturn. Kraiburg’s view  is that the term “recession” doesn’t cut it when it comes to describing the current economic situation in the UAE. “It would be more accurate to describe the goings-on there in recent months as a complete collapse, with some 90 percent of all public building projects (including the famous man-made palm island project and plans for the second airport) having been shelved altogether or at least put on hold,” Kraiburg marketing manager Holger Duex wrote in an official statement commenting on the matter. What is clear is that what was once a hive of construction activity with 30 per cent of all the cranes in the world concentrated in the region, is now virtually paralysed with shock. Some say that many cranes have deliberately been left standing – for “psychological” reasons, to at least give the impression that building work might resume here shortly.

With a downturn of this magnitude in the economy, in a region where double-digit growth rates were previously the order of the day, this has grave consequences for the 24 retread firms in the UAE. If construction sites stay closed, business in this lucrative segment will virtually grind to a halt.

Standard Retreads – Kraiburg Austria: ‘a win-win model’

In the five years of its existence a close partnership developed between Kraiburg and Standard Retreads: “The entire market presence of Standard Retreads is focused on us, its Austrian partner”, reflected Thorsten Schmidt, adding: “The name Kraiburg has become an established brand in the UAE. Vice versa, we contribute towards this win-win model by monitoring their production quality standards, carrying out regular checks and audits at Standard Retreads.”

Sudhir Kumar, production manager N. Srinivasan and sales manager Ravi Kumar, the three founders of Standard Retreads, bring many years of experience to the company and know the meaning of quality and service and the absolute necessity of these ingredients when it comes to being set apart from aggressive competitors (almost all of the material processed comes from India and the Far East). A customer base heavily dominated by end-users (including international firms like Cemex) is said to be proof that they have succeeded in their mission.

During a walkabout in the new production facilities, immediately following the official inauguration, both the official dignitaries and the end customers who travelled in for the event were described as “visibly impressed by the applied technology, the organisation and the perfection with which the products are made at Standard Retreads.”

Related news:

• Kraiburg Showcases Premium Pre-cured Retread Technology

• Kraiburg Launches 70 and 80 Series All-Season Treads

• Kraiburg Survey Finds Partners “Very Pleased”