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NEWS
Trentyre’s Empowerment Trust Increases Black Empowerment
In a bold move towards empowerment and broad-based development, national tyre and service supplier Trentyre has put its money where its mouth is and made shareholders of all its non- managerial employees.
the Trust with a robust foundation and fund its first empowerment initiative, the details of which are still to be finalised.
“The Trust’s acquisition of the shares was financed by loans from Goodyear South Africa and Trentyre.
multi-brand supplier of new and retread tyres, related products and services to the truck, agriculture, passenger, construction and mining industries. The company has a national footprint, with on-site services in the mining, commercial transport and construction industries, and its 52 branches and 12 retread factories strategically positioned in all eight provinces. “Trentyre is regarded as one of the largest service and product providers of its kind in South
Africa’s commercial tyre market,” said Sowerby.
“Its offer of a national service proposition, backed by the powerful Goodyear brand, already gives the company a key competitive advantage in the market. Now, from a preferential procurement point of view, Trentyre’s B-BBEE status will definitely set it apart from its competitors – not only as a credible B-BBEE supplier, but also from a service excellence and footprint point of view.”
Marangoni Retreading Systems Consolidates in Central Europe
The Marangoni Group may be under pressure, having recently closed its Anagni new tyre plant, the latest in a series of measures aimed at consolidating the Group’s operations. However, focussing on the retread sector, the company has been able to expand its presence in the Baltic states and the Ukraine throughout the summer of 2013, where it has strengthened its partnerships with two key operators in the truck tyre service and distribution sectors. Tallinn, Estonia, based retreader Oscarrehvid OU has recently installed an ITT 3000 Sfera shearography machine, which helps the Estonian firm produce some of the highest quality retreads in the local market.
increasingly improved service with much reduced lead times.. The Ukraine is another market in which Marangoni Retreading Systems has recently strengthened its presence, where this year two retreading plants have started operations using the Ringtread system, one located in Donetsk and the other in Kharkov. These two plants, equipped with Leonardo 2500 series electronic buffing machines, are operated by 100 Shin, a company based in Luhansk.
Operating on the Ukrainian market through a network of 15 stores, 100 Shin is one of the leading operators specialising in truck tyre distribution and service. As the company’s owner,
Oscarrehvid OU has six stores located on arterial roads throughout Estonia. The company has identified Ringtread and its partnership with Marangoni as an opportunity to offer its clients an
Mr Andrey Vinnik declared, “by adopting the Ringtread retreading system, 100 Shin will further develop its retreading business, an important part of the package of services offered to Ukrainian fleets”.
The initiative comes in the form of the Trentyre Empowerment Trust, a broad-based ownership scheme that has acquired ordinary shares in Trentyre comprising 30 per cent of the total issued share capital of the company. All permanent, non- managerial staff members have been made beneficiaries of the Trust. Nigel Sowerby, Trentyre Operations Director, said the chief aim of the new share structure was “to drive sustainable and profitable growth, together”, in compliance with the country’s Broad-Based Black Economic Empowerment (B-BBEE) and Mining Charter requirements. “We really want to create a sense of empowerment and of real participation in the ownership of Trentyre for our people,” he said. “We firmly believe that this plan not only supports South Africa’s call to develop and empower historically disadvantaged people, but will also secure Trentyre’s place as a leader in our industry and provide exciting opportunities for both our employees and our business.”
In defining the Empowerment Trust’s aim with the strap line ‘Developing our future. Together’, Trentyre has laid out its vision to be the first choice provider of tyres and services to the commercial and OTR (Off-the-Road) sector in southern Africa, at a sustainable profit.
The deal has also significantly improved Trentyre’s B-BBEE rating – from a level 6 to a level 4 – which, in turn, is good news for its mining, government and other fleet customers’ preferential procurement policies.
According to Sowerby, an upfront investment of R250 000 will provide
A portion of the dividends, which are based on Trentyre’s performance, will initially go to repay that loan and the balance will be invested in further empowerment programmes, such as skills development, in accordance with B- BBEE codes. No funds will be paid directly to employees,” he said.
“Clearly, if the business performs well, the loan can be paid back quickly. It’s a good incentive for employees, who all play key roles in the success of the business and who can now enjoy a direct benefit.
“The Trust’s income will be used for empowerment projects, including education funding and similar investments in personal development. We want our people, especially black employees, to feel encouraged to achieve higher levels of competence, self-sufficiency and subsequent advancement within the company.”
Trustees, include Prof Vivienne Lawack (Executive Dean: Faculty of Law, NMMU/Nelson Mandela Metropolitan University; an independent trustee and Chairperson of the Board of Trustees); Julia Modise-Simelane (Group Human Resources Director - Goodyear Tyre and Rubber Holdings, and also a Director on the Trentyre Board); Lyndon Ownhouse (Finance Director - Magister Projects, and also a Director on Goodyear South Africa Board); Busi Nzo (Financial Planning & Analysis Manager - Magister) and Paul Sherman (Director Compliance & Ethics – Goodyear Tyre & Rubber Holdings).
A subsidiary of Goodyear Tyre & Rubber Holdings, Trentyre is a
6 Retreading Business