Eurotread and Kraiburg celebrate three years of growth

New Zealand-based firm Eurotread Ltd. has reported continuous growth in sales in the last three years. Managing Director Glad Rack has maintained the high quality standards of Bob Cranfield, the entrepreneur who started the business – and the close strategic partnership with his material supplier Kraiburg Austria, helping the independent Auckland-based retreader to turn over the equivalent of just under 1.9 million euros in 2011.

New Zealand may not be just around the corner in geographic terms but it is an extremely lucrative market for HGV retreads, boasting a total volume of some 130,000 units. Kraiburg, the retreading specialist, has been supplying Eurotread since 1999 with pre-cure retreaded materials from all three ranges (K_base, K_tech and K_plus) for tyres for heavy goods vehicles, light commercial trucks, buses and coaches. The New Zealand company only goes to other suppliers to source the narrow widths which are not stocked by Kraiburg. Three sizes account for more than three quarters of sales, namely the 11 R 22.5, 275/70 R 22.5 and 265/70 R 22.5.

Eurotread was started up by Bob Cranfield in 1994 and Glad Rack took over the company five years ago. In that time he has built up both the workforce and the customer base. Today he has a team of ten production and administrative staff and one driver. The sales territory extends over about half of the North Island which corresponds to a radius of roughly 200 km. The Eurotread team produced 14,000 truck tyre retreads in the past year, using something approaching 180 tons of Kraiburg quality materials.

The company has a market share of approximately 11 per cent in New Zealand, ranking fourth just behind the local Recamic dealer. The undisputed market leader in New Zealand is Dunlop South Pacific with Goodyear which has a good third of the market, followed by Bandag with around 25 per cent.

Investment in machinery

The aim of Glad Rack is to continue meeting the demands of his customers, the tyre dealers. He wants to make ongoing investments in his machinery and equipment in pursuit of this aim. Eurotread has recently bought a new buffing machine from Kraiburg which was delivered to Auckland end of July. Assembling and starting-up of the buffer will take place towards the end of September under the supervision of Kraiburg’s Technical Service. “We are delighted to see the growth of Eurotread and naturally we are very gratified with our long-lasting partnership and good relations”, said Holger Düx, head of Sales and Marketing, Retreads Division at Kraiburg. “Glad Rack knows how to cater properly for the demand for quality materials and is offering the market optimum value for money.”