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NEW ORLEANS REVIEW
Eduardo Nava, Vice President, Pre-Q-Galgo Corporation
Nicaraguan Retreader Renaltek Starts OTR Retreading
Nicaragua based retreader Renaltek forayed into OTR retreading about seven months ago. The plant, based in the Capital Managua, currently makes around 800-1000 truck tyres each month. Renaltek is the only retreader in Nicaragua that retread OTR tyres. “We know there is a market untapped in the OTR segment in Nicaragua,” says Harold Hemandez, Vice General Manager, Renaltak at the North American Tire & Tread Expo in New Orleans.
Nicaragua, being a small Central American nation, has only four retread plants, retreading around 4,000 to 5,000 tyres per month. “We started in 2007, and only two retread companies were there at that time,” he informed.
Retreading has an image crises in the Central American country and the concept of retreading has yet to find firm ground in the market. “The bad perception about retreading is due to earlier bad experiences. We are educating people about retreading and how it is good for them,” explained Hernandez.
The price sensitive Nicaraguan market is also flooded with Chinese tyres. “We could say there is no retread culture in Nicaragua and, in addition to that, Chinese tyres are posing a challenge to the fledgling retreading industry,” he said. The firm uses Renova tread from Peru for OTR retreading and Bandamatic for truck tyres.
Harold Hemandez, Vice General Manager, Renaltak
Galgo Shows High Profile in New Orleans
Mexican tread maker Bandamatic is expanding its distribution network in the US market. Currently, the company has two distribution centres in Los Angeles and Houston and another one is in the pipeline. “We are planning to open one more distribution centre in the Northern part of the US in 2016. We have not decided on the location as yet, but we will soon
take a decision on it,” said Heriberto Romero, President, Bandamatic Inc at the North American Tire & Tread Expo recently.
The company has over 100 customers in the US market and the market is growing ever y year. “We are adding customers in the US almost ever y month and growing at the rate of 10 per cent annually,” he claimed. The
Galgo Pre-Q showed an impressive profile at the North American Tire and Retread Expo in line with some of the expansion and investments the company has made in recent years.
Eduardo Nava, Vice President of the company’s US operations pointed out the investments made in the company’s new distribution centre in Tula, opened in 2014 (and covered in an earlier issue of Retreading Business
“The new distribution centre is built on a 5,000 sq m plot with built-up space of 3,500 sq m with scope for future expansion, “informed Nava. “The new facility improves efficiency levels
52 Retreading Business
and helps us to better understand the differing needs of different markets we serve around the world. We now have a presence in 60 countries around the world,” he added. Galgo has also hiked capacity to meet increasing demand from its surging global market. “We have hiked the Tula plant capacity by around 25 per cent in the last two years,” said Nava. Meanwhile, Galgo has applied for SmartWay approval for its new Super Single Trailer Wide (STW) pattern for trucks for the American market with the Environmental Protection Agency (EPA) in the US. The SmartWay Technology Programme verifies the low
rolling resistance of retreaded tyres, which helps reduce fuel consumption. “The new STW pattern has been tested and the results have been submitted. The product will most likely be approved in the next quarter by the EPA, and once approved they will be launched in the US market.
Galgo Pre-Q’s two tread patterns - Trailer Axle (TA) and Drive Performance (DP) have already
been approved by the EPA and STW is the third one on the way subject to approval.
Galgo’s Pre-Q tread started rolling on the American roads in the 1990s’. “We opened our sales and distribution centre in 1998 and since then we have been expanding our presence in the US market. We now have around 100 customers in the US,” said Nava.
Bandamatic to Expand Distribution in US and Hike Tread Making Capacity
Heriberto Romero, President, Bandamatic Inc (second from right)