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KENYA
Shabeer Hamza, GM, Mombasa World Royal Tread
both Nairobi and Mombasa, both plants together averaging 1,500 retreads each month with the Nairobi plant retreading 1,000 – 1,100 tyres and Mombasa about 500 tyres.
Kingsway are keen to point out that these days new Chinese tyres are priced lower than tyres retreaded by the Recamic system. New Chinese tyres tend to cost around 16,000 Shillings while Recamic retreads cost 20,000 Shillings. Kingsway Recamic numbers are 22% of the total volumes, with the rest being
also planning to carry out a feasibility study with a view to getting into OTR retreading. “We have to see if it is indeed profitable to get into the off-road retreading sector, and if the volumes make any sense, we will certainly make a foray,” he emphasised. However, he refused to commit any time line for this project.
Kingsway Tyres, together with Michelin, set up the Recamic Plant for Michelin Retreading back in 2011, which was the first of its kind in Kenya. Combining state-of-the art
Gautam Ghai, Chief Sales Officer, Kingsway Tyres Limited
from a local importer. “Supercool is expensive but our clients are satisfied with brand as it gives more mileage,” says Shabeer Hamza, GM, Mombasa World Royal Tread. However, due to the presence of low price tyres in the market, Mombasa
World Royal Tread also uses low end tread in order to maintain competitive prices. “We are also importing a cheaper Indian brand to cater to the price sensitive customer,” he said.
retreaded with Treadsdirect rubber with whom it has worked for the last 15 years. Tier 1 casings are retreaded by the Recamic process while the majority of Tier 2 casings are processed using Treadsdirect rubber. In addition to its retreading interests Kingsway also has a thriving new tyre business selling premium brands like Kumho, Apollo, Michelin, BF Goodrich, Techking etc. The new tyre business also brings in customers for retreading. For instance, if it has 100 new customers, about 20 out of them will return for retreading also. “Retreading is no more a standalone viable business unless you play with large volumes,” he pointed out. Kingsway operates in the market with TMS also and has no plans to get into any kind of price war at the moment. “We have the capacity and we could double the volumes any time but we have no plans to play the price game to raise volumes,” he stressed.
Nairobi headquartered Kingsway is
machinery with highly skilled manpower in ultramodern plants, the technology enables it to provide quality retreaded tyres and related services to customers at an affordable price.
Despite low volumes, Kingsway sticks to quality as the initial tyre rejection rate is high at its retreading plants compared to units owned by fleet owners, where rejected lots are also retreaded.
Meanwhile, Kingsway has also announced the opening of its 22nd service centre, opened in Kericho on 12th March 2016. The new service station will serve growing business interests and established entities in the region such as Finlays, Sasini, KTDA and Unilever among other tea factories. The new Kericho branch features an alignment area and three service bays. Also available at the station are a wide range of tyres for passenger vehicles, 4x4s, matatus, trucks and agricultural vehicles.
Multiple Hauliers Switches to Leader Tread
Multiple Hauliers (EA) Limited is easily the most visible transport and logistics fleet on the African highways and is considered the largest privately owned fleet in Africa. Conceived in the 70s and set-up and established in late August 1982, it has territorial presence in Kenya, Uganda, Tanzania and Rwanda, covering nearly 50 million km annually.
The large 1,500 fleet, easily identifiable by its blue and orange stripes representing the company’s brand, comprises a mixture of general cargo trucks, skeletals for carrying containers, bulkers for carrying bulk cement, and tippers for ferrying goods such as clinker, soda ash, and gypsum as well as fuel and gas tankers. The entire fleet is fitted with the latest tracking systems, enabling constant monitoring from a central control room in Nairobi.
Multiple Hauliers is one of the most up-to-date transport fleets in Eastern Africa, and its
own fully-fledged
retreading facility
services the company’s
vehicles. “With such a
huge fleet, it has
become vital to run the
operation with
maximum return on
investment. Therefore,
we switched to South
African tread rubber
brand Leader Tread
eight months ago,”
said Kandhavelu, Plant
Manager, Multiple
Hauliers retreading unit.
He further said, “We have been using treads from other suppliers but have now opted for Leader due to cost considerations as market conditions are challenging in the Kenyan market, and companies are force to cut overheads.” The company orders 2-3 containers comprising 18,900 kg of tread rubber, envelopes, curing tubes, patches, bonding gum etc. each month, and sources bonding gum from Indian suppliers Treadsdirect and Forbros. The plant has two operational electric chambers, which are of Indian and Brazilian origin.
Multiple requires 700 new and 1,400 retreaded tyres each month. “Our tyres run on average for four years and our tyre policy is based on the Double Coin brand. Our tyre inventor y comprises of 40 per cent new tyre and 60 per cent retread,” he explained.
Kandhavelu, Plant Manager, Multiple Hauliers retreading unit
Mombasa Retread Relaunches as Mombasa World Royal Tread
One of Mombasa’s leading retreaders has made the decision to rename itself as Mombasa World Royal Tread. The decision follows as yet unresolved differences between the partners and a market
slowdown which has seen production half to the current level of 400-500 units per month.
The retreader has retreaded tyres since 2012 using Goodway’s Supercool brand and currently buys
54 Retreading Business