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retreading had an impact on the market? “It is difficult to say. Perhaps for some. However, Continental and Goodyear simply cannot make enough retreads so they still need independent retreaders.” That is a question that is in serious doubt in Germany as Continental has drawn business away from some retreaders already.
Allied to the tyre manufacturers developing retreading, they have, in some places been noted as having contributed to the casing shortage in some sizes. With Michelin, Bridgestone, Goodyear and Conti all drawing back in their own casings, is that having an impact on the casing market?
“Is there a casings shortage? Yes and No,” said Frank. “Profile Tyre Center is sitting on top of its clients and we are pulling in our customers’ own casings for retreading, so in that sense there is no shortage. However, we do need to top up the availability and in some sizes there is strong competition for casings, so in that respect, yes, there is an issue. But we can work with reputable casing dealers to find the right raw materials, and Profile Tyre Centers can always ensure us of a steady supply of well managed casings and we always have the opportunity to develop.
“The tyre manufacturers do have an impact on profitability and there is a point where what can be earned is limited and at that point the end is visible. But we fight the pressure from the tyre manufacturers through a united front in Profile Tyre Center and via independent retreaders. So, there will still be a future but even if the manufacturers take the lead it will only make life difficult as they will never completely dominate the market. However hard they try to build their retread business, the independent retreaders will always be more flexible, more capable of responding and have better support than a tyre manufacturer can offer. “We have to have a good casing policy. We don’t sell to casing dealers. We need to manage our casings and keep them away from the dealers. We try to explore the costs of the casings and work out how we can improve the cost per kilometre and we have a multi-brand offer, rather than just a single manufacturer retread.”
Of course, in selling tyres to truck operators the leading tyre manufacturers all sell on whole life tyre costs, and there is now a raft of good quality second tier tyre manufacturers who also compete in the truck tyre sector. When all else is equal, those manufacturers are going to need to use partnerships with independent retreaders to equip them with the goods to compete. Is that a market opportunity, do you think? “Certainly, there is growth potential in co-operation with these tyre manufacturers, and the future may hold more chances for partnerships, especially with multibrand policies through Profile Tyre Center.” Explains Frank Schouten.
“As for other opportunities,” Frank adds. “If new tyre prices climb again, there will be growth in the retread sector. Higher prices for new tyres always create opportunities for the retreaders. However, only those who are producing quality end products will be able to develop and grow. The market has moved away from the cheap and nasty retread. It expects its retreads to look like new tyres, which is why at FRAPA we pay so much attention to detail to ensure that every tyre looks its best when it leaves the factory.
“There are issues to contend with. For example the quality of the casings that we receive. They are taking longer to repair, they are needing more attention due to increased damage due to road conditions. Plus, a retread today is much more technically advanced than it was in the past. That requires skilled technicians and high quality buffing and building equipment. The casings are an issue. When we use Profile Tyre Center sourced casings we don’t have any issues as the tyres have been properly managed, but as soon as we have to buy from the dealers the quality drops.”
With a production of between 15 and 20,000 retreads per year Frank Schouten believes that FRAPA is in the right position to have a long term future in retreading with Profile Tyre Center providing its customer base.
FRAPA delivers and collects using this custom built tractor and trailer unit
Car Tyre Retreading by Reifen Hinghaus GmbH - King Meiler
The Hinghaus facility showing the swap bodies at the loading bays and the containers to the side of the site
Reifen Hinghaus is a retreading company well into its 6th decade. It specialises in the manufacturing of retreaded tyres for passenger cars, SUVs, light commercial trucks, racing cars and trailers. During Retreading Business’s recent visit, mainly winter tyres were being produced, which accounts for approximately 60 per cent of the entire production volume. Reifen Hinghaus manufactures approximately 20 per cent summer tyres, where there has been a tendency for growth in the market, and the rest consists of the production of all-season tyres and racing tyres for a few special brands in the motorsport sector.
A great misfortune struck the company about four and a half years ago, when the production halls were destroyed by a major fire. Thus the company was faced with the choice of either using the old facility or rebuilding ever ything
equipping of the new production hall, the role of the authorities, which limited the usability of the original production premises, also contributed to an overall weakening of the business at that time.
The expansion to the present-day company, which is a far cry from the old image of a backyard retreader, and the fact that the present-day company is so successful, is thanks to the new location and the previous utilisation of the site by the logistics company. With modern offices at the front, and the connected generously laid-out hall, which is surrounded by more than 60 loading docks at three of the outer walls, no-one would expect to find a retreading production site in such a location, if it were not for the logo of Reifen Hinghaus displayed over the entrance and on the banners lining the front of the
TRM tyre builder keeps the tyre building process quick and efficient
24 Retreading Business
at a new location. Initial difficulties, driven by the community in which Reifen Hinghaus had consistently demonstrated healthy growth in the past, favoured the decision to move to a logistics centre in the industrial area, which just happened to be empty. Apart from the loss of time and money, brought on by the conversion and
company’s premises.
When taking a look at the outside, no heaps of tyres are seen lying around, no mountains of antiquated installations. In fact, from the outside, nothing can be seen that would be indicative of what is to be found inside. Wilhelm Hinghaus says: “Initially we did ask ourselves what to do with all the loading docks.” To