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NEWS EXTRA
Salvadori Goes All-In
in the mines.
From this idea of interdependence between industrial fields, Salvadori has been able to establish a fresh partnership with an Italian company working in the mining engineering sector. Furthermore, a new project is underway, which involves the recycling of used conveyor belts.
Trade Shows
It is well-known that attending and visiting trade shows is important for any company to increase their brand awareness. In 2015, Salvadori exhibited in several different fairs, from Latin America to Asia and
Africa, and from the Middle East to Europe. In 2016, it confirmed its presence at the Reifen Essen show and the company is already thinking about Cologne 2018. Moreover, this year Salvadori took the opportunity to be a Sponsor at the OTR Conference in San Diego, organised by TIA, and for the first time it will exhibit at the MinExpo in Las Vegas. Salvadori knows that when there is passion, people will be able to achieve the goals they are seeking. This is why, thanks to an attentive management, to continuous market analysis and to investments in R&D, the Italian company feels optimistic about what the future holds.
Salvadori Srl is a family-run company that has been active in the tyre retreading business for over 30 years. The Italian firm, located in Rovereto, has been growing and expanding both its business and its product line recently, and now offers a product range of around 3,000 items, positioning itself in at least 100 countries. Following the idea that diversification is essential, Salvadori’s business covers five key sectors: tyre retreading, products for tyre workshops, conveyor belt tools, tyre recycling and rubber tiles.
Salvadori says it aims to be more than a company, promoting itself, as its catchphrase announces, as a team you can rely on.
“People are the ones who can make the different in competitive environments,” says the company. “This is why we have always aimed to have a highly qualified team of staff: trained for the job and speaking several languages. Its mission is to offer our clients quality products together with a quality service.”
With this in mind, Salvadori has continued to innovate during 2016, offering a number of new product lines.
In the limelight has been the new line of Salvadori branded envelopes, presented during the Reifen Essen show in May. The All-In line is designed in Italy and manufactured in Austria. It offers five models of inner envelopes, six models of outer ones, produced by using Compressed Mould Technology (CMT), and two models of Arc System Envelopes.
Salvadori says it will continue to distribute MAE envelopes, but due to existing agreements the company is not able to enter certain markets, where MAE has official distributors. Therefore, the company felt it was time to develop its own line of envelopes.
According to Paolo Salvadori, who is not only one of the company owners but is head of the Retreading Department, Salvadori’s company philosophy is that it is important to be able to supply a retreading shop
with all the tools it needs, from the beginning of the retreading process until the end.
Besides the All-In Envelopes, Salvadori has introduced a new line of OTR inner and outer envelopes (25”-45”).
“OTR Envelopes are a very peculiar product which can attract the attention of many customers,” says the company. “Much care and effort has been put into the development of the All-In line and the OTR line, with the aim to have excellent products which can compete, on equal terms, in the market place.” Several of the “old” products have been modified, re-adapted and improved: from the extruder gun range, which has 10 different variations, passing thorough carbide wheels, carbide cutters, grinding stones, brushes, gouges, and bead breakers to the recently renewed line of buffing blades.
On the other hand, the 2016 Catalogue also displays many new items: wheel chocks, round rubber pads, valves and screw-in spud, extensions, toric o-rings and so on. All the above concerns the tyre retreading and workshop sectors. However, also new is the focus Salvadori is giving to the conveyor belt industry. Most of the tools the company produces can be used to repair conveyor belts. Therefore, Salvadori has decided to invest in developing a line of tools specifically for this sector (Salvadori Conveyor Tools) thanks to the knowledge and expertise gained by attending a training course in Brazil. Salvadori Retread Key Account Manager Pablo Versini went to Brazil himself with one of Salvadori’s technicians to study the whole repair process and how to use the different tools. Having been part of this training session has helped in the creation of a new catalogue specifically for conveyor tools. In addition, the company’s activities in the tyre and the mining industries are closely connected, as the retreading of OTR Tyres helps mines save money. They also use some tyre workshop tools, as the bead breakers are used on site
Eversafe Rubber Plans South America Expansion
Eversafe Rubber Bhd, which is planning an ACE-Market debut, plans to grow its export sales by establishing its footprint in new overseas markets outside the Asean region, like South America, once its initial public offering (IPO) is realised.
According to its draft prospectus, in the financial year ended Dec 31, 2015 (FY15), the group enjoyed a 181 per cent growth in export sales due to growing demand for tyre retreading materials in the Americas.
The year also marked its first foray into Brazil, in which demand for its products is expected to grow progressively in the foreseeable future.
As such, the group plans to use its IPO proceeds, together with its own internally generated funds, to trademark its brand in several countries in the South American region. “We view the protection of our trademarks as an important step towards becoming an international player,” it said.
Besides exploring options to either set up representative offices and a warehouse or work with local distributors to help market and service its customers in South America, it is also looking at the feasibility of forming a joint venture with its South American customers to establish a tyre retreading plant there in 2017.
Financially, its revenue slipped 6.8% from RM80.8 million in FY13 to RM75.3 million in FY15, which resulted in its profit after tax declining by 11.1 per cent from RM6.55 million to RM5.83 million. Its FY15 earnings per share were at 2.4 sen, while its
gearing ratio was at 0.3 times. Overseas markets made up 55 per cent of its FY15 revenue, compared with 40 per cent in FY13.
In Malaysia, it said, it has a 22 per cent market share in the development, manufacturing and distribution of tyre retreading materials.
Its IPO involves the issuance of up to 78 million shares, 48 million of which will be public issues — whereby 12.5 million will be for the Malaysian public; 11.5 million for eligible directors, employees and persons who have contributed to the success of Eversafe; and 24 million will be for institutional and selected investors by way of private placement.
The remainder is made up of an offer for sale of up to 30 million existing shares to institutional and selected investors (six million) and bumiputera investors (24 million).
It is not known yet how much it intends to raise, but the majority or 67.4 per cent of the proceeds to be raised will be used for investments in new manufacturing lines and manufacturing automation systems within two years.
Some 10.4% will be used to establish intellectual property and overseas branding initiatives, while the remaining 22.2 per cent will be used to defray expenses related to the IPO exercise.
Mercury Securities Sdn Bhd is the principal adviser, sponsor, managing underwriter and the lead placement agent for the IPO. Source: The Edge
36 Retreading Business