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The Retreading Of Truck Tyres

Whereas the incidence of car tyre retreading is slowly diminishing (in summer tyres this segment is virtually insignificant, in winter tyres market shares are falling dramatically and are approaching the ten percent mark), truck tyre retreading seems to be stable across Europe. But there are significant national differences especially regarding the incidence of retreading and the relationship between new tyres and retreads. Looking back over the last decade, not from the technological viewpoint but at the main players and their market shares, it was (before Michelin’s Recamic came on the scene) the Marangoni group (including Ellerbrock), which showed most growth. Kraiburg also showed positive development but the world’s no 1 in cold retreading Bandag showed signs of stagnation. If these three players have improved, strengthened or defended their market shares then there must also be losers, these being the new tyre producers who supplied the retreaders with materials for their business but especially the hot retreading. The four big players in the European truck tyre market (Michelin, Goodyear, Bridgestone, Continental) have tied up packages which should be regarded by the retreading specialists (like Bandag, Marangoni/Ellerbrock, Kraiburg) with some discomfort because the result is a lessening of their influence. New tyre manufacturers, retreaders and dealers find themselves as part of a package. The importance of retreaded truck tyres grows, while the importance of retreaders shrinks. The retreaded truck tyre is an integrated part of a very complex marketing concept. The retread is another item in a customer relation program, a marketing instrument, which is designed to lead to the sale of the next new tyre.

30th November 2001/by Tyrepress Editors

ECE-Regulations Still Under Discussion

In Germany, there exists a handful of proving laboratories examining tyres according to the ECE regulations, and most clients are retreaders. In February one of these laboratories, the Prüflabor Nord (PN, Bad Bramstedt), held an “Open Day”. “Day of Open Doors”. Proving authority for the retreading facilities in Germany is the Kraftfahrt-Bundesamt (KBA), which, up till now has evaluated 35 truck tyre and eight car tyre retreading facilities in conformity with ECE-R109 and ECE-R108. The proving process is not obligatory but on a voluntary basis. It might be another two years before the regulations become mandatory. The discussion of retreading experts with responsible persons from KBA and PN has shown that a lot of questions, which have been answered up till now through the actual ECE wording show it to be inadequate or bad. The planned ECE regulations need modifications very urgently, otherwise the whole retreading business is threatened. The rules are so vague that they constitute an open invitation to the “black sheep” of the retreading business to bring the whole industry into disrepute.

30th November 2001/by Tyrepress Editors

Improved Sales And Profit For Nokian

Nokian has released interim financial figures for the first nine months of this year. These show an increase in net sales of 7.4 per cent to 277.7 m Euro and an operating profit of 25.3 m Euro (11.9 m Euro for the same period last year). Net profit reached 9.1 m Euro (2.7 m in 2000). Nokian’s target for the year is to achieve a sales growth of around 10 per cent and improve on last year’s profitability.

30th November 2001/by Tyrepress Editors

Talking Together – Stahlgruber’s “7th Round Table Reifentechnik”

At the end of April the seventh round-table conference concerning tyres and tyre technology organised by the Tip Top Stahlgruber company took place in Munich. This year’s 91 participants came from many, varied backgrounds: There were tyre dealers, retreaders, material suppliers, representatives of associations (ADAC, BRV, DEKRA, TUV etc.), scientists and representatives of the vehicle and tyre manufacturing industries. Some of the highlights of the event included Hans-Jürgen Drechsler, deputy managing director of the BRV (Association of Tyre Traders and Non-Industrial Vulcanisers), speaking about development trends in the German retreading industry, which is characterised by a fall in sales, specially in the passenger car tyre segment, and a consolidation process among the companies in that sector. Furthermore Drechsler gave an overview about the actual status of ECE regulations 108 and 109 and their transformation into national laws. Other topics concerned the efforts in reducing tyre-surface-noise, the wrong tyre pressure as one of the main causes for serious accidents and last but not least the presentation of various non destructive methods of tyre examination. Due to the fact that the organiser of the meeting shortened the list of speakers, there was much more time left for intensive discussions; something which was appreciated by the conference delegates.

30th November 2001/by Tyrepress Editors

The Development Of Internationalisation – Kraiburg 2010

In the retreading business the name of Gummiwerk Kraiburg Austria, located in Geretsberg, is well known as one of the leading material suppliers for hot and cold retreading, as well as for supplying complete retreading equipment. In two further plants (Waldkraiburg and Tittmoning) a huge number of technical compounds for the automotive industry, compounds made from thermoplastic elastomers and recycling products are being manufactured. Since the middle of 1998 a fundamental restructuring process has been initiated. Under the name “Kraiburg 2010”, a new group structure that will prepare the company for the new challenges of the market in the 21st century, was introduced to the public a year ago. The strategic programme included investments of more than 15 million US-dollars in the tyre retreading materials sector. Direction and presentation of the company will undergo a complete revision. “Internationalisation”, the entering of new markets, was one of the key words of the programme. Reason enough to ask what has happened at Kraiburg the last twelve months: the company has established two new distribution organisations in Spain and Turkey. Furthermore, the European distribution structure has been divided into “profit centres”. With the “profit centre south” a new organisational entity has been created that is responsible for the markets in Turkey, Greece, Bulgaria, Romania, Hungary and Slovenia.

30th November 2001/by Tyrepress Editors

UK Retreaders Form Marketing And Communications Group

Members of the Retread Manufacturers Association have formed a group called the Marketing & Communications Committee, intended to promote the environmental benefits of retreading. UK car retread production has fallen from 7.2 million tyres in 1995 to an estimated 1.5 million this year. Truck tyre retreads have remained steady, at around the one million level over this period.

30th November 2001/by Tyrepress Editors

Romanian Acquisition For Michelin

Nomura International, which holds a “substantial” equity stake in Romanian tyre manufacturer Tofan, has announced the sale of parts of the company to Michelin. The French company has bought the Victoria car tyre plant, the Silvania truck tyre factory, a retreading unit, a number of warehouses and the Tofan-owned distribution network. The purchase price was not revealed but a number of tyre manufacturers are said to have been interested. Tofan will continue to manufacture agricultural and implement (brand name: Danubiana) tyres and this business will be expanded, says Nomura, which remains a significant shareholder.

30th November 2001/by Tyrepress Editors

How Kraiburg Regards the Future Of Retreading

Even before the dramatic changes in the worldwide economy after September 11th, the retreading business, as well as its suppliers, was facing hard times. Reduced demand, increased competition and price pressure characterised the depressed market. It was not unusual for material suppliers to experience a decrease in their third quarter results of around 20 percent. Uncertainty, pessimism and negative forecasts represented the collective mood in wide areas of the business. But Kraiburg, the Geretsberg (Austria)-based retreading supplier, is swimming against the stream and reports stable economic results and new strategic activities to meet future market challenges. Kraiburg’s turnover in 2001, up till end October, is just half a percent below the company’s performance for the first ten months last year. In addition, an agreement for a joint venture with the Bulgarian company Zebra was finalised in October. Since 1997 the Sofia based company Zebra has produced thin and light tread patterns which would have been uneconomic to produce in Austria. Kraiburg has invested around one million Euro in Zebra’s tread pattern production and 95 percent of the joint venture shares belong to Kraiburg. Within the next two years the Bulgarian production will be increased from 800 to 1,800 tons per year – using the same machinery and equipment.

28th November 2001/by Tyrepress Editors

Business As Usual At Cooper Tire

US-tyre manufacturer Cooper increased turnover during the first nine month by 17 % compared with the same period in 1999 to 1.3 bn $. This figure includes 123 million $ coming from Oliver, the retreading company which was purchased some months ago. It is said that Oliver has lost its biggest customer, forcing the company to search aggressively for new opportunities. Surprisingly or not: Cooper again managed an Operating Profit in the Tire Division of 10.4 % (last year 11.5 %) but there is the need for some restructuring in the non-tyre field.

7th December 2000/by Tyrepress Editors

Truck Tyre Retreading By Michelin

Michelin has long been established as a leader in the European truck tyre retreading market with its famous Remix process, but now the French company has turned its attentions to the US retreading market, where it is causing quite a stir. The size of the market is enormous; according to the Tire Retread Information Bureau, in 1999 there were 18.1 million large truck retreads sold, compared with 15.7 million new truck tyres, and Michelin has announced its intention to double its market share, from 10.2% to 24.6% by the year 2002. The company has done this not through using the Remix process, but by cold cure retreading, forming Michelin Retread Technologies Inc. (MRTI) and signing up licensees. By March, Michelin had 37 such franchisees signed up and expects this figure to increase to fifty by the year end. As a comparison, Goodyear has some 167 truck tyre retreading partners in North America. Michelin’s cold cure retreading process is called Recamic and it uses rubber produced by Michelin. Like Remix, Recamic is promoted as a premium product. For those retreading partners who may be looking for something a little cheaper, Michelin produces Newlife, a less expensive alternative. The article in May’s TYRES & ACCESSORIES examines Michelin’s commitment to retreading, both in Europe and outside, and looks at the retread market itself.

7th December 2000/by Tyrepress Editors

May results of German tyre retailers by BRV

The monthly census of the German tyre dealers association BRV showed the following results for May 2000: Compared to May 1999 the turnover of German tyre retailers decreased 0.9%. In the passenger car tyre segment the decrease was 5.4% and retreading business had to face a decrease of 9.6%. Only the light truck and truck tyre segment showed an increase (+ 2.7%).

7th December 2000/by Tyrepress Editors

New Industry Quality Standard Set By Goodyear’s OTR Retread Plant

Goodyear’s retread plant in North Bay (Ontario, Canada) is believed to be North America’s first Off-The-Road (OTR) tyre retreading facility to become ISO 9002 registered. The North Bay facility is Canada’s largest OTR retread operation.

7th December 2000/by Tyrepress Editors

Motorway Retreads Consultation Ends

Employees at Motorway Retreads have accepted that the proposal to move all car tyre retreading to the EWS (Environmental Waste Solutions) group’s Durham site (Colway) is the only commercially sensible decision. Staff numbers will be reduced, primarily through voluntary redundancy. Production of truck retreads will continue at Motorway’s Knighton site and sister company Waste Tyre Solutions will operate a casing inspection hub. EWS is the parent company of the retreaders Colway and Motorway Retreads.

7th December 2000/by Tyrepress Editors

Half Year Loss Reported By Nokian Tyres

Following Goodyear and Michelin, Nokian Tyres has released its half year figures. Sales rose 25% over the same period last year to reach 152.2 m Euro but operating profit fell from 5 m Euro to a loss of 1.5 m Euro. Net profit was also negative at -4.1 m Euro. One cause was increased raw material prices (rubber, oil, carbon black) up 8% over last year. Despite the loss, Nokian is broadly on track because, as a Scandinavian company, it generally makes huge profits in the second half of the year.

7th December 2000/by Tyrepress Editors

Keeping The Technic Name Alive

Last year the Technic Group – the world’s largest car tyre retreader – went into Receivership and it looked as if its assets would be sold off. However, the Technic name lives on, as the company has been purchased by Phil Blood and Lucia Farmer. Phil is one of the two original founders of Technic and Lucia is the widow of the other founder, the late Tony Farmer. Phil Blood could not say how many retreads would be made by the new company (called Technic Tyre plc) but he believes that there is a market for a quality retread. One thing is for certain; production will be a long way short of the 40,000-50,000 tyres a week which Technic was turning out at its peak. Phil’s comment on future production is “it will find its own level”. He admits that sentiment played a large part in rescuing the company with both he and Tony wanting the name of Technic to continue in the area. “Tony and I put ten years’ hard work into Technic and neither of us wanted to see it wasted” Phil commented. Some of the old Technic team are back working for the company, including Martin Gledhill and Ian Smith. Phil Blood emphasises that he is not employed by the company, he is part owner of Anguilla plc, the company which purchased Technic’s retreading assets. Bearing in mind Tony Farmer’s part in building up Technic, it was perhaps fitting that the first of the ‘new’ retreads were produced on March 1st – a day which would have been Tony Farmer’s 48th birthday. More about this in TYRES & ACCESSORIES’s March issue.

7th December 2000/by Tyrepress Editors