Page 30 - RB-75-15-4

Leandro Rigon (left) and Aldo Bastos
BRAZIL
Vipal: Leandro Rigon and Aldo Bastos
is important to create a path to government.
The second approach is to measure the carbon footprint of retreading. This will be important to help us maintain and grow retread numbers in the future.
RB
How is the retreading industry becoming involved in the concept of fleet tyre management in South America?
LR and AB
In South America fleet management is mainly focused on new tyres. At Vipal we work closely with many fleets, carry out tests and show how to make tyres perform better. We do have the tools for fleet management packages, and these are used in Brazil but not in other markets. However, we are continuing to develop software for fleet management, which we would like to implement more extensively next year – however, it is still early days in this regard.
RB
You have achieved some success recently on an international basis in the city bus segment. Tell us something about this.
LR and AB
Yes, we are now on our third generation of urban treads and we have been very successful around the world including achieving some success in the European market. Recent successes include with Bogota Transport in Colombia and with Brisbane City Council in Australia, where our DVUM3 tread is being used on a 100% basis. The city bus segment is providing substantial business for our retreaders.
RB
What are your growth aims on an international basis?
LR and AB
In South America our market positions are stable, and we already have a good share here. Nevertheless we continue to invest in increasing our network to provide more coverage in some areas of Brazil. In other Latin American markets we have recently opened three new dealers in Mexico and one in Honduras.
In the USA our focus is now on the west coast. We have been traditionally stronger in the south and east, but the recent opening of our new warehouse in California means we are now looking to achieve growth in that area. We believe there
is good potential to grow in the USA. We also have a good position in Turkey thanks to our agent Tatko, and there are now seven Vipal branded outlets in that country. Our business in the Middle East and Africa is also growing. We are very strong in Tanzania through Nastyre and also have good positions in Kenya, Ghana and Saudi Arabia. It’s been a good year for us in Africa and the Middle East.
In Europe we are widening our reach. We now have a warehouse in the UK and this is allowing us to reach some smaller retreaders. 60% of our business in Europe is still focused on Spain, Italy, Portugal and the UK, but our warehouse structure in Europe, with our four facilities in Spain, Slovenia, Germany and the UK, gives us good opportunities to reach all the different parts of Europe. In this respect, we believe we have the best set-up of the overseas brands importing into the European market.
Our aim wherever we go is to show that we are a manufacturer of high quality products. Our Vipal brand is therefore marketed as an exclusive product, making up 70% of our sales. We also market our second brand Ruzi aimed at independent retreaders.
RB
What other main points can you tell us about your current strategy and investments?
LR and AB
One of our main aims over the past two years has been to take advantage of our facilities in Nova Prata, including our Research and Development Centre and the training facilities offered by UniVipal. For example, our R&D facilities have helped us meet the challenge posed by the Smartway Programme in the USA, which is becoming more important, both in the US and the North of Mexico.
In terms of investments we have been investing in a new manufacturing facility in Rosario, Argentina, which we expect to be up and running during the first half of 2016. The equipment for this new facility is already in place, and we are now only waiting for the offices to be constructed. The new plant will manufacture pre-cured treads both for the Argentinian market and for export. Cement, cushion gum and patches will continue to be exported from Brazil.
For some time Vipal has been able to claim a position as the leading supplier of retreading materials
again, and when this happens, the retreading industry will grow.
In Mexico we have seen a reduction
across the whole South America. However, in recent years, it has steadily increased its influence in both North America and Europe, with increasingly developed distribution structures, and in now also making headway in the Middle East and Africa. What is more, the company is in the unusual position of being a significant manufacturer of both retreading materials and repair materials (most companies are either one or the other). It is several years since Retreading Business visited the company’s manufacturing base in Nova Prata, and whilst we were there we took the opportunity to drop by the company’s offices in Porto Alegre, where we discussed the company’s latest developments with Sales Director Leandro Rigon and Director of International Operations, Aldo Bastos.
Retreading Business
Can you give us an overview of the current state of the retreading industry in the various Latin American markets?
Leandro Rigon and Aldo Bastos
In Brazil we have a strong culture of retreading and a number of local new tyre producers, which means the industry is capable of tracking casings to the end of their life cycle. In 2014/15 figures showed a small 4% decline, but we are forecasting a recovery for 2016. The political situation in Brazil is currently slowing down recovery. Once we have a stable situation we believe the economy will invest in infrastructure
in retreading with retread sales being replaced by new tyres. Here the retread ratio is only 37%. Chile is experiencing a similarly tough situation with a shrinkage of the industry being caused by the influx of cheap new tyres.
Argentina and Colombia, on the other hand, both have strong retreading cultures with retread ratios of approximately 1:1. Argentina has better quality roads than many countries and has applied import taxes to protect local production. Colombia is also doing very well with a real sense of optimism in the market. In July we met with our Colombian network of Vipal Authorised Retreaders and many of our customers were saying they were increasing their capacities and asking for help with investments.
RB
What are the keys to securing the future of retreading in the region, given the different levels of retreading culture in different countries and the continuing effect of cheap budget tyres on specific markets?
LR and AB
There are two approaches we are following. One is to push for government incentives through local trade associations. Central to this is the role being played by Alarneu. The next meeting of Alarneu will be held during the Fenatran show in Sao Paulo in November, and no doubt this issue will be high on the agenda. The role of local associations
30 Retreading Business