Tyre Retreading, a Viable Option?

A paper presented at the TRACCON- AFRICA 2013 CONFERENCE

TRANSCORP HILTON HOTEL20TH NOVEMBER 2013

Introduction

• In the Nov 08 2013 edition of Tyre Review, Al Cohn wrote under Understanding Retreads, “ With more than 85% of commercial fleets retreading their tyres multiple times,…it is obviously in the fleets’ best bottom line interest to maximize the number of retreads of each and every tyre casing“

TreadSidewall

Flipper

Belts 1-4Shoulder wedge

Innerliner Carcass

Apexes 1-3

Chipper

Chafer

Beads

Wedge

TRUCK TIRE COMPONENTS

RETREAD

• Retread, also known as "recap," or a "remold" is a re-manufacturing process for tires that replace the tread on worn tires. Retreading is applied to casings of spent tires that have been inspected and repaired. It preserves about 90% of the material in spent tires and the material cost is about 20% compared to manufacturing a new one.

APPLICATIONS

• Some applications for retreaded tires are airplanes, racing cars, buses and delivery trucks. Use of retreaded tires was common historically, but as of 2008, it was seldom used for passenger vehicles. About 17.6 million retreaded tires were sold in North America in 2006.

PROCESS

• There are two main processes used for retreading tires, called Mold Cure and Pre Cure. Both processes start with the inspection of the tire, followed by non-destructive inspection method such as shearograph to locate non-visible damage and embedded debris and nails. Some casings are repaired and some are discarded. Tires can be retreaded multiple times if the casing is in usable condition.

PROCESS• Tires used for short delivery vehicles are

retreaded more than long haul tires over the life of the tire body. Casings fit for retreading have the old tread buffed away to prepare for retreading.

• Pre cure• Previously prepared tread strip is applied to

tire casing with adhesives. This method allows more flexibility in tire sizes and it is the most commonly used method, but results in a seam where the ends of the strip meet.

• Mold cure• Raw rubber is applied to the tire casing and

it is then placed in a mold where tread is formed. A dedicated mold is required for each tire size and tread design.

• Bead to Bead molding• In this subtype, retreading is also applied to

the side walls. These tires are given entirely new branding and stamps.

STEEL WIRE18%

CHEMICALS14%

SYNTHETIC RUBBER

9%SILICA

4%

NATURAL RUBBER

34%

CARBON BLACK

19%

OILS2%

TRUCK TIRE COMPLEXITYWHAT IS IN A TIRE ?

REGULATIONS

• Some jurisdictions have regulations concerning tire retreading.

Europe• In Europe all retreads, by law, must be

manufactured according to EC Regulation 108 (car tires) or 109 (commercial vehicle tires). As part of this regulation all tires must be tested according to the same load and speed criteria as those undergone by new tires.

REGULATIONS

• The Land Fill Directive of 1999 banned tires in landfills in 2003, and banned shredded tires in 2006.

United States• The Department of Transportation requires

marking of a "DOTR number" which shows the name of the retreader and when it was retreaded.

REGULATIONS• Africa• South Africa has a very robust retreading

activity, with SABS regulating the standards to control over 60 factories round the country. Mozambique, Malawi, Lesotho, Botswana , Zimbabwe are also doing good retreads

• Tanzania, Kenya too has reasonable retreading activities.

• Nigeria standards on retreads is being updated. It was last reviewed in 1975

Understanding Retreads

With more than 85% of commercial fleets retreading their truck tires multiple times and a typical retread costing approximately one-third to one-half the price of a new tire when you supply your own casing, it is obviously in a fleet’s best bottom line interest to maximize the number of retreads for each and every tire casing. The casing is clearly a valuable asset.

Understanding Retreads

Today’s retreads are produced to exacting standards with state of the art equipment. Retread manufacturers utilize different technology and processes in producing a retread. From a fleet perspective, it is important to understand the various retread processes and how they affect the final product when it is time to make your retread tire purchases.

Understanding Retreads

• The best advice for every fleet when it comes to choosing your retread supplier is to visit their retread and tire repair facilities and see first hand the process involved with retreading your valuable casings.

RECENT DEVELOPMENTS

• Until relatively recent times, retreading has not really been a sector of the truck tyre market that has been the center of attention for most new tyre manufacturers in Europe.

• Michelin is one of the key manufacturers to have a long term retreading policy.

• Goodyear has retread operations• Bridgestone had its Qualitread operations

RECENT DEVELOPMENTS

• Conti had agreements with retreaders.• Pirelli did have a retread operations in UK • However, the market had been changing, and

in recent times, apart from Michelin, the likes of Goodyear, Bridgestone, and Conti had taken definite steps to secure their retread markets.

• Today most new tyre manufacturers all offer whole life package to the market in house.

RETREAD UPDATE• Added cost savings for fleets and improved

technology have boosted the retread market. • At a time when virtually every business owner

seeks ways to outsmart a tricky economy, one smart option continues to gain well-earned attention – retreading truck tires.Not only are retreads environmentally friendly, they're also a proven way to lower a fleet's total cost of ownership as part of a defined tire program.

RETREAD UPDATE• Retreading is certainly not new, but the act –

and materials – continue to evolve. The result is that retreads remain a significant part – almost 50% – of the U.S. truck tire replacement market.

• As new technologies continue to improve retread quality while keeping costs low, the retread market has either remained robust or at least rebounded to pre-recession levels from a market low in 2009.

RETREAD UPDATE• Even when the new-tire market declined last

year, retreads continued to show a steady compound growth of about 4% since 2009, making the retread market appear resistant to extreme swings in the economy.

• “Retreads that are enabled to perform similarly to new tires offer a great cost of ownership,” says Paul Will iams, executive vice president for truck tires at Continental Tire the Americas, “because as new tire prices have increased, the relative cost of retreads has decreased.”

RETREAD UPDATE• One of the biggest reasons for the retread

market’s strength is its popularity among fleets.

“Fleet acceptance of retreading has always been good,” says Bill Sweatman, president of Marangoni Tread North America. “Tires are the third-highest operating cost for commercial trucking fleets, only behind wages and fuel, so they are important assets that need to be managed.

RETREAD UPDATE• “Over the last few years, many things have

changed that make retreading more important than ever,” Sweatman says. “The quality of retreads today has never been better and trucking fleet maintenance managers recognize that the economic advantages of a well-managed tire program that includes retreading is essential to obtaining the lowest operating cost.”

Retread, viable option?• “Retreading continues to be a great solution for

fleets that truly understand the total cost of tire ownership. What we have seen in the market is that more and more fleets have to look at every solution possible to try to reduce their costs. Cost-saving options like retreading and running fuel-efficient tires and retreads are naturally going to garner more attention in today’s high-cost environment.”

Retread, viable option?• “Retreading is a great strategy to help reduce

a fleet’s overall tire costs,” adds Maryann Kotlarich, commercial tire public relations director for Michelin North America.

Retread, viable option?

• Continental’s Williams agrees: “As fleets become more adept at managing their costs, they are simultaneously becoming stronger in the main tenance of their casings. We also see that fleets are now marrying their new and retread tire programs together. This means they are looking to gain advantages in leverage, but also in performance, by relying on the same patterns and compounds across their tire program.”

Retread, viable option?

• Sweatman says there’s another reason fleets are making the retread choice: “Retreading also means recycling and making an important decision that is environmentally responsible. Retreading quality worn truck tires consumes less natural resources, and it’s estimated that the U.S. saves in the neighborhood of 200 million gallons of oil a year.”

Retread, viable option?

• Marangoni’s Sweatman sees this trend as a natural progression.

“Premium radials are meant to be retreaded,” he says, “and as maintenance procedures have improved so has the opportunity to get more useful life out of tires. Casing-inspection technology, application-specific treads and spliceless precure technology have all helped to dramatically improve retreading performance.

Retread, viable option?

• “Technology used in the production of retread materials and in the manufacturing of the retreads themselves has steadily improved, so today’s retread performance is comparable to, and in some cases superior to, that of a new tire,” Tire manufacturers are reporting the implementation of several new technologies that improve retread quality.

Retread, viable option?

• “Manufacturers include a huge amount of their new-tire technologies in retreads,” “But Continental uses the same tread designs and compound technologies, which makes perfect sense in the eyes of the customer. Fleets don’t change application between taking off the new tires and fitting retreads. So if the new tire, which has been tried and tested, meets the fleet’s needs, then fitting a retread with the same pattern and compound is also going to work. This is where the biggest technology change is coming from.”

Retread, viable option?

• “Fleets are looking for a retread supplier that can deliver equal or better performance, across all measures, to new tires,”

“Asset management, cost-per-mile, down time reduction and road service response time are some of the key performance metrics that fleets consider when choosing a retread supplier.”

Retread, viable option?• All the elements that factor into the

selection of a new tire, such as mileage, fuel consumption and irregular wear performance, are the same needs for the retreads. Their service needs also are the same, whether discussing a replacement tire provider or a retreader. Fleets need a quality retreader who offers the 24-hour service they need to avoid or mitigate costly down-time.”

Retread, viable option?

YES, RETREADING IS SURELY A

VIABLE AND BEST OPTION FOR YOUR TRUCKS TODAY, TOMMORROW AND EVEN DAY AFTER.

PREMIUM TYRE SERVICES LIMITED

• Vision• To be a World-Class company that sets

standards in producing High Quality and affordable retreaded tyres using best-of-breed equipment and best-grade materials in viable factories across Nigeria delivering above-standard return-on-investment for its shareholders.

PREMIUM TYRE SERVICES LIMITED

• Mission• To partner with suitable Nigerian investors

and deploy a large group of factories in viable locations across Nigeria to retread suitable tyres in the shortest possible time. All factories will be planned, established, staff trained and supported in all respects by a strong and modern management holdings company to ensure strict adherence to world-class practices.

PREMIUM TYRE SERVICES LIMITED

• First factory located in Inuwa Abdulkadir Road, Kakuri Industrial Area, Kaduna

• Commenced operations in July 2013• Retreaded over 1000 tyres in the first 10

weeks of operation, and our satisfied Customers cut across construction, petroleum, haulage and bussing operations

• High quality repairs to damaged tyres

PREMIUM TYRE SERVICES LIMITED

THANK YOU FOR YOUR TIMESOLOMON DOGO

MANAGING DIRECTORO: +234 62 290 991M: +234 802 940 1567E : sgdogo@premiumtyreservices.comA: sgdogo@gmail.com