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SAUDI ARABIA
Al-Howail Plans Further Expansion
trucks. “We first use the tread on our trucks before using it in the market,” he claimed.
Meanwhile, Al-Howail also plans to commence OTR retreading in 2012. “We are planning to start OTR retreading at our biggest plant in Dammam. Machines have already been installed,” he informed. The OTR market is also shifting towards radialisation in Saudi Arabia. “Earlier, there were nylon OTRs but it is shifting towards radial and it has become easier to retread radial OTR,” Tariq admitted. If it is difficult to find suitable casings for retreading in a big tyre market like Saudi Arabia. Roads conditions, loads etc.,are also to be equally blamed. The smaller players are also not adequately equipped to make quality products and that impacts on market perception. “If small retreaders are low on the technology side then manpower is an equally big challenge in this market. It is not easy to find the right man for the
job,” Tariq complained. However, with the announcement of various ambitious construction projects by the Government, the industry should benefit in the years to come. “Retreading is going to get a big boost but it is equally important that retreaders should do a quality job and provide good service as well as equip themselves technologically to handle the job to make the concept better received in this market,” believes Tariq. Increasing rubber prices have already made tyre prices double in the last couple of years. Fleet owners are looking for ways to cut operational costs and retreading could do that but years of convincing have not made that much difference. “New tyre prices used to be Saudi Riyal 1,300 on an average couple of years ago but now the prices have gone crazy and are hovering around Riyal 2,000. This could disturb the budget of any well established fleet owner,” he reasoned.
Tariq Mamdouh Al Subale, Deputy General Manager, Al-Howail Company
Al-Howail is firming up its plans to set up one more plant in Saudi Arabia. One of the biggest retreading companies in Saudi Arabia has identified two sites for the proposed plant. The plant may be set up at Medina or Jeddah. “We have identified two sites Sakeka and Yauba in Medina and Jeddah respectively for the plant. Both the sites are near large construction projects announced by the Saudi government,” informed Tariq Mamdouh Al Subale, Deputy General Manager, Al-Howail Company. The Saudi Arabia government is building a new city called King Abdullah city. “It is a big industrial project and there is lots of potential for the upcoming plant with the large construction projects announced by the government,” said the young second generation Tariq Mamdouh.
Al-Howail operates in the mid-price segment and has the largest set up of precure plants across Saudi Arabia. The company has five plants and has a presence in almost all the regions of the large Middle Eastern country. The biggest and oldest plant in Dammam (East) was set up in 1984, followed by Jeddah in the West. The Riyadh plant is in the centre of the country, the Abhas plant covers the South. “Taubk is our newest plant, set up in 2010,
commencing operation in 2011,” added Tariq. The retreader intends to have a presence in all parts of the country by setting up its sixth plant. “Saudi Arabia is a big country and we feel that there is still some ground uncovered by Al- Howail,” Tariq said. Al-Howail is a diversified group having interests in retreading, manufacturing of white goods, construction and
real estate.
The combined production of all five plants is between 7,500 to 8,000 tyres per month. With retreading picking up in the kingdom the company is expecting a further hike in production in 2012. “We are expecting at least 20 per cent growth this year,” claimed Tariq Mamdouh. The company operates on one shift and could double the production at anytime with the current capacity depending upon the demand. Currently, Al-Howail has eight 22 tyre chambers in its five plants. When asked if all the chambers are operational, Tariq replied, “All eight chambers are not operational, some of them are kept spare for the upcoming plants.” Most of the Al-Howail plants have been equipped with Bandag machinery. Interestingly, Al-Howail entered the market with the Bandag product in 1984. But found the going tough as retreading was then a new concept in the Saudi market. “We discontinued with Bandag and shifted to a Malaysian tread brand. The product was good and reasonably priced. We still use it,” Tariq explained. Without naming the tread brand, Tariq informed, “We are now using Malaysian and Indian tread brands.” The company has its own transport business, owning about 50
Al-Rashed Opens Modern Goodyear Retreading Plant
Saudi Arabia is evolving as an interesting market for retreading with the concept finding its feet in one of the biggest tyre markets in the Middle East. Moreover, the perception towards retreading is changing and as a result global players are entering the market, opening retreading plants in joint ventures or in alliances with local partners. “Earlier the big fleet owners sold-off the old casings or simply dumped them. Although the market is
developing, it has some way to go before it matures to European or American levels.” believes Ahmed Khalifa, Country Sales Manager, Tyre and Rubber Products, Rashed Abdul Rahman Al-Rashed and Sons Co. Al-Rashed set up a state-of-the -art Goodyear plant in Dammam at the beginning of 2011. The sky-rocketing tyre and rubber prices have been forcing fleet owners to look for options that would control their rising overheads.
Early morning in Dammam