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Moscow Oblast produces around 75,000 retreaded tyres per annum
At the same time over the last year, almost all manufacturers have raised their prices in the range of 10 per cent to 20 per cent due to the obvious Michelin remains one of the largest players in the Moscow retread sector
Dmitry Grishin
RUSSIA
Moscow Oblast Remains the Locomotive of the Russian Retreading Industry
Moscow-based Russian Association of Retreading Businesses (ARB) was established in 2012 by several companies from the Moscow Oblast region of Russia. The Association is currently
Grishin in his Moscow offices.
Retreading Business: Does Moscow Oblast offer some advantages for the retreading business?
Moscow market?
DG: In total there around 30 companies in the capital region which are consistently engaged in the retreading of tyres. The biggest player is the Michelin plant in Davydovo city with a capacity of 50,000 tyres per year and the Protector Next plant in Dolgoproduny, the products from which are certified by Goodyear. The capacity of this facility is 15,000 tyres per year. Also we have PK-Raifen with a capacity of several thousand tyres per year near Podolsk city, which uses Bridgestone Bandag techonology. The rest of the companies are mostly small and medium-sized businesses, the production capacity of which ranges from several tens to a couple of thousand tyres per
traffic within the countr y, each ruble is taken into account, with the result that manufacturers have to pay attention to new solutions. Thus, amid a general decline in the market for automobile tyres in Russia, the segment of retreading in the next few years may not only remain stable, but also grow. In general, we can say that the crisis has not yet brought significant turbulence to the industr y.
RB: Are there any new projects in this area in Moscow Oblast?
DG: Unfortunately, no. At least if we are talking about projects with some noticeable capacity. There are certain declarations of intent from a number of European companies, but none
comprised of 16 companies located in different parts of the country and is mainly engaged in the retreading of truck tyres. According to the ARB’s President, Dmitry Grishin, the location of the office has not been chosen by chance, since a large part of the business is located in the Moscow Oblast and in the future this part of the country will probably account for major growth in capacity. We had the pleasure of interviewing
Dmitry Grishin: Absolutely. Moscow is not only the capital of Russia, but also an important transport hub. If you look at a map of the central part of Russia, you will see that almost all roads go from the periphery to the centre, and almost all freight traffic which is going to or from the borders of Europe, or to the largest ports, one way or another, pass through Moscow Oblast. There are offices of almost all transport
companies located here, which is critical for the business, because almost all the retreading industr y in Russia today falls on freight companies. More than 80 per cent of all orders are for the retreading of truck tyres, and all companies today are betting on the long- term cooperation with transport companies.
RB: Who are the main players in the
year. A distinctive feature of the Moscow market is that we have no manufacturer who uses hot retreading, which can still be found in the Russian provinces.
RB: Did the crisis affect the Moscow manufacturers?
DG: The impact of the crisis is largely mixed. Some manufacturers left the market; however, some new ones came too. It is important to understand that the crisis could change the way of thinking of Russian cargo companies, who are our main customers. A few years ago questions of effectiveness were not on the agenda, but now the situation has changed. At times of crisis and when there is a fall in cargo
of them have yet moved from the initial stage of negotiations. There is a certain problem with the supply of casings. Shipments from the domestic market are still inadequate. Russian companies rarely send tyres for retreading, and most of the casings that are offered, are not suitable for retreading because of the poor quality of our roads. Most of the casings have traditionally been imported from abroad. I cannot speak for the big players, but medium- sized businesses have traditionally relied on imports from Europe. Now in a devaluation of the ruble against the euro, this practice harms the profitability of the business. Of course, we could theoretically compensate for the devaluation
42 Retreading Business