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ARGENTINA
Argentina Faces Future Market Challenges with Quality Argument
three years. However, this is expected to increase due to the threat of Chinese tyres finding their way across the border. During 2015, about 2,000 tyres a month were finding their way into Argentina, which is a very small amount compared with the problem elsewhere in the world, but the figure is expected to increase.
The effect that this will have on the market has, as yet, to be ascertained. The import of Chinese tyres is officially banned in Argentina, although some companies have managed to obtain import licenses, and tyres do appear to be finding their way across the border from the neighbouring countries of Chile and Uruguay, which operate much more open economies.
The good news is that the Argentinian Retreaders Association ARAN has helped develop a Retreading Standard for the country (based on the EU Standard). However, it is currently impossible to implement or enforce due to the lack of testing facilities in Argentina. The Association is currently working together with Causer SA and the University in Rosario with a view to purchasing a second hand load and speed testing machine from Bridgestone. The Association says that it’s vital for the industry that this project gets off the ground, and we at Retreading Business had the privilege of attending the ARAN meeting where it was discussed how this should be funded. “Once this testing facility is in
Members of ARAN discuss the latest trends in the Argentinian retreading industry with Retreading Business
Argentina is currently a country that is undergoing a considerable amount of change. With the recent change of government and a more open, forward-looking approach, the overwhelming feeling is of a country that is optimistic and excited about the opportunities open to it, but one which is also apprehensive about the risks and challenges that come with it. Argentina, as many retreaders told us, is experiencing a moment of regeneration, and the Argentinian retreading industry is doing its utmost to prepare itself for an uncertain future.
There are currently about 300
status. The remainder are small shops doing very small amounts, many of which operate under the radar, avoiding taxes.
The market is also very fragmented with many brands being present in the market. The market leader is Marangoni followed by Vipal, but there is also Michelin, Bandag, Pirelli, Ruzi, Tipler, FATE, Grottaband and others. In addition to this there are a number of smaller compound manufacturers selling low priced compound to the unorganised sector.
According to figures supplied by Vipal, the Argentine retread market is currently worth
Historically, the closed nature of the Argentine market has meant that new tyres are priced very high in Argentina – a Michelin can cost USD 700 and a FATE USD 500, which in principle makes it very interesting for the retreading market. Certainly, the retreading industr y has been able to benefit from this situation. However, with Argentina being a major exporter of soybeans to China, there are those within Argentina, who fear that a ban on imports of Chinese products cannot last forever.
With this in mind Argentinian retreaders are fully aware that they have to improve quality standards within the retreading sector in order to put themselves in a position where they can face future price competition.
place, and we are able to implement our Quality Standard, it will be a major step forward for Argentinian retreading,” commented Association President Esteban Rappazzo.
Many retreaders in Argentina feel that now is a good time to invest. During our travels in Argentina we saw plants such as Neumaticos Malvinas Argentinas, who had just invested in a new buffer and builder and several others including Rappazzo’s own company, Unigoma, who were talking about completely modernising their facilities. Others, such as Bandasur (Neumaticos Huete) reported the beginnings of a PPK culture in Argentina, which also bodes well for the future.
Esteban Rappazzo
retreaders in Argentina, but only about 80 of these can be considered to be of professional
around 62,000 tyres per month, a figure which has remained fairly stable over the last two or
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