Conti's Commercial Speciality Tires ‘a clear statement to the market’ – MD

Continental’s increased specialisation in the commercial tyre segment was discussed at the launch of its latest “third generation” coach and bus tyres, but this reorganisation, begun from 1 January, has wider implications for applications beyond TBR products. The managing director of Continental Commercial Specialty Tires (CST), Dr Michael Maertens explained that the manufacturer’s new business strategy, indicated by the restructuring of this business unit, contains initiatives for future growth with particular focus on industrial and off the road material handling, underground mining and tyres for a specialised application you may not have expected to have swift growth potential.

Primarily Dr Maertens explains the strategic thinking behind CST: “First of all, the new name ‘Commercial Specialty Tires’ is a clear statement to the market. Our renaming and restructuring of our business unit to CST is the foundation for future growth in the segment of commercial tyres. Secondly, it is the beginning of a change process to extend and enlarge our business and open up to new market segments. Thirdly, the renaming is part of our company’s Global Strategy 2025 aiming to intensify our competition with the top global players over the next decade, as well as fortifying our market-leading position in Europe and other regions of the world.”

Dr Maertens tells Tyres & Accessories that CST will “significantly extend and enlarge its product range and customer service portfolio” in the coming months. It seems Conti will seek to utilise its technology divisions in doing this, too: “Interdisciplinary execution of projects for various industry sectors will become a core competency that will help to extend our portfolio.” The focus for Conti, Dr Maertens explains, will be on “industrial material handling, OTR material handling and underground mining,” three segments in which Conti expects to increase sales.

Dr Maertens explains that the restructured unit will make Conti “enter large business fields,” broadening the range of tyres it produces. “Before, Industrial Tires was mainly linked to material handling,” he says. Now it will include all tyres but truck, passenger and two-wheel vehicles.

This strategy is designed to deliver an increasingly specialised experience for customers too, with products “designed to meet [customers’] particular needs. For our teams and employees the new strategy means new, exciting ways of interdisciplinary cooperation. Sales and customer service will work closely with product development to optimize portfolios. A different way of working and growth means personal growth of our people.”

While Dr Maertens clarifies that Conti is “not opening up a new Business Unit,” and is rather “implementing some structural changes,” he says that the Business Unit’s increased focus on developing “several specialised markets” will include a process of “searching and capitalising synergies with all other Continental divisions.”

Globally, especially in key markets such as the USA, China and Germany, Conti has increased its sales team headcount. “Thus, the growth of our Business Unit will be supported strongly by our corporate structure, by Continentals’ global footprint and especially by its R&D engineering and production capabilities.”

Port business growth

Conti is expecting some significant growth in a surprising specialist sector, Dr Maertens continues: “Remarkably, over the next 12 years, the global harbour business will double its capacity. According to estimates, it will increase from 600 Million TEU to 1.2 billion TEU in 2024.” (TEU are twenty-foot equivalent units, a standard unit for describing a ship’s cargo carrying capacity.

Conti believes it can provide significant cost savings to its specialist port sector customers: “At TOC Europe, Continental is about to launch a revolutionary technology especially developed for port operators offering better durability and faster loading times. Our new portfolio of tyres and its technology offer three key advantages: 1) Reduced rolling resistance, leading to increased speed with higher loading volume; 2) Protection against damage, resulting in less maintenance costs; 3) Minimised risk after minor damages (no corrosion).” 

In general though, CST is focused on product portfolio extensions and enlargements and providing specialised product packages for future business areas and opportunities. “Next up will be a new version of the underground mining product portfolio,” Dr Maertens continues, “increasing durability and safety while reducing overall costs for customers operating in the underground mining business.

“We are also very active in offering our customers efficient and environmentally friendly tyres such as our Continental LifeCycle, putting us in prime position to meet today’s markets’ and customers’ requirements. By reusing selected tyre casings the amount of energy and raw materials used in the tyre manufacturing process are reduced – which also lowers the price of the product. With customers’ help this large-scale recycling initiative will help to bring down the number of scrap tyres needing disposal as well as the emission of climate-changing CO2 – Continental’s LifeCycle protects nature and offers cost savings.”