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QATAR & BAHRAIN
K Noufal of Cochin Star Tyres Trading LLC
well as lower volumes caused by the pricing situation.
The ongoing scenario is forcing the retreaders to shift their operations to new markets. “We know that if there is no growth in the next six months, we will be forced to shut down the plant. Moreover, we will not be able sell the equipment in this market. Who is going to buy the machinery, when there is no future in the sector?” said a concerned Noushad V A, Business Development Manager,
had been reduced to merely 100 tyres. “Now, however, the management has decided to order a new lot of premium Bridgestone tyres, which is a good sign and we hope to get them for retreading in the next six months,” he said. Top Tyres introduced the premium Supercool brand into Qatar but with market realities it has now changed to a cheaper Indian brand. According to Noushad, one of the key reasons for the difficulties being
Noushad V A, Business Development Manager, Top Tyre Co LLC.
sourcing from Delhi based Malhotra Tyres and selling in Qatar and the adjoining countries. “We have studied the OTR market for quite some time and our plan is to both sell and retread OTR tyres from the plant,” he explained. The company has already been selling two
containers in the Qatar market every month as well as tyre repair materials from Rema Tip Top. It has also introduced the Indian tyre patch brands Royal, Voltac and Pelican into the Qatar market.
Top Tyre Co LLC.
When asked for his views on the solution to the ongoing situation, Noushad said, “We will most likely shift the plant to some other country where the market is good, where people understand the viability of retreading and buy tyres that last longer and can be retreaded.” Top Tyre started its Qatar plant in 2002 and used to retread around 900 tyres each month about a year ago by the precure system but now production is down by two-thirds.
It is interesting to note down that larger fleets appear to be returning to branded tyres and replacing the low priced imported tyres. Key clients of Top Tyres like Qatar Aviation used to get more than 300 tyres retreaded every month, but recently its order
faced by Qatari retreaders is the fact that Qatar is a small country and trailers travel short distances of below 100 km one way. Retreading still holds ground in markets like Dubai due to trailers travelling much longer distances and fleets using premium branded tyres which are good for multiple retreading. “Moreover, Chinese tyre makers are improving their quality and some of the brands can be retreaded, which is also a positive sign for retreading,” Noushad added.
On the subject of where the plant could be shifted to if the market remains sluggish, Noushad said; “We are looking at countries like Kuwait and Bahrain but they are small markets and already have a few retread plants.”
SASCO Looks to Relocate Retreading Operation to India
Cochin Star to Open OTR Retread Plant in Doha
The Qatar Government is enhancing infrastructure in the country in preparation for the FIFA World Cup in 2022. As a result the market is gearing-up for OTR retreading with construction work in full swing in different parts of Qatar. Cochin Star Tyres Trading LLC is one company which is looking to capitalise on this trend.
“We have finalised the location in for an OTR retreading plant in the old industrial area of the Capital Doha,” informed K Noufal of Cochin Star. The plant, he explained, was expected to commence operations by February
2016.
In order to equip the plant Cochin Star has been scouting for equipment in the Middle East market. “We are keen to source the equipment either from UAE or in Qatar to avoid the shipment costs from India,” said Noufal. The company plans to retread OTR by the traditional hot process and has acquired an 8,000 sq ft plant with ample space for future expansion. “We have taken a bigger plant as we may expand the plant if volumes improve,” he said.
Cochin Star sells OTR tyres throughout the Middle East market,
price tyre imports, and it has become unviable for us to operate for quite some time,” said James K Chacko, Managing Director, SASCO Group. The Doha headquartered conglomerate has 29 companies with interests in real estate development, education, aluminium, catering, uPVC and pharmaceuticals, as well as retreading.
Before making the decision to relocate, the company had been
industry about five years ago and had continued to retread an average of 500 tyres per month. “The retreading operation was going well. Last year was especially good, and we decided to further expand the production with the second autoclave by ordering from a Coimbatore based company,” explained Chacko.
The Group says it will most likely shift its retreading business to India,
With conditions in the Middle East threatening to make retreading unviable, the Qatar-based SASCO Group is considering relocating its retreading business to India and discontinued production at its retreading plant in Qatar at the end of 2015.
“The market has become highly competitive due to the entry of low
planning for further expansion by ordering additional equipment. “We had ordered an additional autoclave but suddenly the situation turned for the worse and we put the shipment on hold,” Chacko stated. The company has one seven tyre chamber and had been planning to install an eighteen tyre chamber. SASCO entered the retreading
James K Chacko, Managing Director, SASCO Group
40 Retreading Business