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AFRICA
specify any time frame for entering these markets as growth hinges on peace in the region. The company entered into retreading in 2003, though the plant operation started the following year. When asked about the viability of the company’s high- end approach to retreading in the price sensitive Ugandan market, Abdullahi explained, “We have made lot of investment in our plant and it took us time to educate people about the concept, but now people have started coming to us despite the fact that we are a high-end player and
that there are others active in the Ugandan market,” he said.
captured by Chinese imports,” Colrat explained.
As part of the consolidation process, Bandag is also focusing on value-added products and services. “We have moved away from being recognised solely as a tread rubber supplier, as we are equally focussed on adding value to our customers. By offering fleet tyre maintenance and management programmes in addition to, on-site services and a 24x7 breakdown service we are able to engage with as well as retain our clientele,” he emphasised.
Bandag Southern Africa operates in the South African domestic market as well as in the rest of Sub-Saharan Africa. “We are doing well in the markets of Zambia, Malawi and Mauritius, and are recovering in
Zimbabwe,” he said.
Bandag Southern Africa recently unveiled ProWheel, an integrated tyre asset management system, which involves tyre tracking, tyre stock management as well as tyre performance reporting.
In line with its premium market positioning strategy Bandag Southern Africa recently also launched two new tread patterns in the form of BDR-HG and BDV2. BDR-HG is a long haul over-the- road drive application tread for truck, whilst BDV2 is a regional over the road drive application tread for buses. Both tread designs were launched in early 2015 and have received positive response from the market.
Abdullahi Ahmed of City Retread
Sudan worsened after splitting in 2011. “Once peace returns to both countries, we will consider growing in these countries as the potential is there,” he said. He declined to
Longlife to Consider Second Plant in Johannesburg
Bandag Embarks
on Three Year Plant Upgrade Programme
Despite the new tyre market being down due to restrained spending owing to the bad economy and the influx of imported tyres, the retread sector remains on a positive growth trajectory in South Africa. This is seen as reason enough for the
time. “It is the unstable economic scenario, which is holding us back,” he said. “We were thinking of selling the spare chamber some time back, but we are currently holding it with a view to having it online in the future.” Longlife is
Arwin Bhana owner of Longlife Tyres
When there is lull in the market, the major brands tend to focus on consolidating existing business and upgrading plants. Johannesburg based tread major Bandag Southern Africa (PTY) Ltd has also embarked on such a project. “We have grown substantially between 2010 and
early 2015, but now we are experiencing an overall market slowdown in Southern Africa,” said Laurent Colrat, Marketing Director, Bandag Southern Africa (PTY) Ltd. Bandag has grown at a rate of almost 10 per cent per annum during this five-year phase and has
now started a three year long upgrade programme. “The programme involves upgrading equipment, mixing, extruding and testing processes,” he confided. “It also involves a considerable investment,’ he added. Interestingly, although the TBR market in South Africa has been hit hard by the import of Chinese tyres, the retreading industry has managed to hold its ground. “About 1.1 million TBR tyres are retreaded in the South African market annually, while the new tyre market is pegged at 1 million units yearly. Around
50 per cent of the new TBR tyre replacement market has been
Laurent Colrat, Marketing Director, Bandag Southern Africa (PTY) Ltd.
retreaders for further expansion, not necessarily in the immediate future, but a few years down the line.
“We have conducted a feasibility study for a plant in Johannesburg, since we are also in the transport business serving fleet owners with depots in the city. If the customers want to have us there, it is merely a matter of time to build the structure,” said Dino Singh, Sales and Marketing Manager, Longlife Tyres.
The company’s Durban plant caters to an area 570 km from Johannesburg.
The Bandag partner based in Chatsworth, Durban has a spare autoclave, which could be transferred at Johannesburg in no
also in the transport business, having 25 trailers traveling up to Zimbabwe and back.
If the economy shows any sign of recover y in the next couple of years, the plans for the second plant will be on line. “We have 2,000 sq m of land and equipment for starting a new plant. It is only the economic downturn that is holding back our plan,” said Arwin Bhana, owner of Longlife Tyres. Retreading companies believe that the market is there in the country, even though new tyre sales have been stemmed. Casing quality is one challenge faced by the retreaders in South Africa mainly due to the presence of imported tyres, whilst more breakdowns on the roads are also hurting the
42 Retreading Business