Page 15 - CTB n3 - 2013/3,

RETREADING
Retreading: The Competitive Scenario
According to a recent report by the European Tyre & Rubber Manufacturers’ Association (ETRMA) retreads account for around 44% of the replacement truck and bus tyre market in the United Kingdom. This is the second highest percentage in Europe and compares favourably with key markets like Germany and Scandinavia (both around 40%), Southern Europe (30%) and Eastern Europe (25%). Only France at 49% has a higher retread/new tyre ratio and France, as we all know, is dominated by Michelin, who have always followed a strong multiple
considerable influence over the retread market. The largest retreader by some distance is Michelin, who manufacture retreads using their Remix and Encore processes at their modern factory in Stoke-on-Trent. Goodyear, however, also has a sizeable retread factory of its own as does Bridgestone via their Bourne, Lincs based subsidiary, Bulldog Remoulds. Bridgestone, of course, is also the owner of the Bandag pre- cure retread process. Most of the other major truck tyre manufacturers sub-contract their retread production to the larger retreaders, Pirelli and Hankook
trend towards total fleet management provision by retreaders is highlighted elsewhere in this month’s magazine.
The next major sector is
taken up by the two main franchised pre-cure
retreading networks,
Bandag and Marangoni
Ringtread, which together
account for around 15%
of the market and consists
of a number of medium
sized and smaller
retreaders generally operating on a regional basis. The Bandag network has traditionally been a very tight franchise so Bandag retreaders will offer only Bandag products. In addition to Bulldog, who produce Bandag pre-cure retreads alongside Bridgestone’s own mould cure range, the Bandag network consists of Caledonian Tyres (Scotland), Adco (Northern Ireland), GB Bandag (North East), Top Treads (Yorkshire and North West), Eurotreads 93 (Midlands), G&S Tyres (South East) Invicta Tyres (South East) and Red Dragon Retreads (South Wales).
The Marangoni network, which is a looser franchise consisting of independent retreaders and whose
members often also manufacture retreads using other tread suppliers materials in addition to Marangoni’s own Ringtread products has seven main members – Freeway (north East), Alba Tyres (Scotland), Alterever (East Yorkshire), Tuf Treads (South Wales), Direct Tyres (North West), and Followgold (South East).
The remainder of the UK market, is main up by one medium sized independent, Truck Tyre Specialists based in Weston-super-Mare and a number of smaller independent retreaders such as Trendy Treads (Telford), Kingpin (Wem), PB Tyres (Milton Keynes) and EKS (Cookstown, N. Ireland).
State-of-the-art tyre building inside the Bandvulc Tyres factory in Ivybridge Devon
life policy with regards to tyre management.
However, the retreading market in the UK is highly consolidated, with three quarters of the market in the hands of the five biggest retreaders (there are around 25 truck and bus tyre retreaders in total). The market is also dominated by the hot cure retreading process, which takes up
working with Vacu-lug and Giti with Bandvulc. Continental is the one exception. Their long term offtake relationship with Bandvulc is now coming to an end due to Continental’s decision to supply their main Western European markets from a new, purpose built retread plant in Hannover.
There are two large independent

An ultra-modern buffing machine at Vacu-Lug’s factory in Grantham
as much as 80% of retread sales.
So what are the options open to UK fleets wishing to follow a retread policy? Well, the market can be usefully split into four groups – new tyre manufacturers, large independent retreaders, franchised pre-cure retreaders and small independents.
The major new tyre manufacturers have a particularly strong position in the UK and are able to exert
retreaders in the UK – Bandvulc, based in Ivybridge, Devon and Vacu- Lug, based in Grantham. Each of these produces significantly in excess of 100,000 retreads per annum (mostly hot cure) and in recent years have developed their businesses from being simply retread producers to being complete fleet management providers, offering a full range of new and retread tyres and fleet management services. The
This clean and modern retreading factory is Eurotreads 93’s Bandag facility in West Bromwich