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CANADA
Ironhead Rubber Technologies Get Behind the Independent Retreader
Ironhead Rubber Technologies is a business that has been dynamic in its approach to the industry. As the name suggests, the initial concept was more than just retreading, but rather was a project to establish turn-key retread plants and develop its own line of retreading systems to support the independent retreader. However, things did not go to plan, and, after establishing the first plant at Mississauga, the equipment manufacturer withdrew from the partnership. Undaunted, Ironhead looked at the market again and made the strategy decision that they
to around 30,000 units per year and capturing a good share of the market in Ontario. Expansion plans saw a second plant being acquired at Bowling Green in Ohio. That second plant faces a different set of dynamics, and, although not quite as successful as the Canadian plant, it is making its mark in the Ohio market.
Ironhead is a partner to China’s Sailun Jinyu. This gives the company a quality imported tyre brand that is building its reputation in both car and truck sectors globally. This connection with
Sailun also gives Ironhead a consistent supply of high quality materials that enables the retread plants to produce quality products, though not all rubber for Ironhead comes from China.
Rob Ulias, Vice President of Sales and Marketing at Ironhead says, “We do have plans to develop our retread supplies. We manufacture to wholesale rather than direct to customers.
However, we see the future of retreading as being much more than our own plants. There are some 100+ independent retreaders still operating in North America and we believe that Ironhead has the product and the strategies to help those independents stay independent and also make a
profit, a real profit.
“We are working with Sailun and we are going to be their global partners in developing the brand worldwide. We know how the big tyre
companies sell tyres through
lost. They do not have the sales teams and the support teams partnering the retreader when he goes to his clients. They treat retreading as just another line they sometimes sell. Here at Ironhead we want to turn the clock back and
The preparation will be familiar to all retreaders
Ironhead’s Rob Ulias
would look at more conventional suppliers of equipment. The quality of the retreads they were making was good, and the company decided on a strategy that was built around their own quality retreads. The consequence of this was Ironhead’s own plant at Mississauga building its production
national accounts, and we know how those national accounts work – and it is not always for the benefit of the retailer.
“For example, one of the big tyre manufacturers may sign up national accounts and deliver thousands of tyres to those fleets through their retail partners, but the tyres are sold at a very low price with the resultant low margins for the participating retailers. Moreover, the profit on sales on the national accounts will often be in credit. A retailer may have thousands of dollars in sales credit through the national account, but he can’t readily liquidate that credit. The tyre companies will use it to tie a retailer into their sales strategy, or they will buy off the credit at a reduced rate.
“When a retailer sells Sailun, he gets a good price for a good quality tyre, and he makes a cash profit on the sale. So, we can support the retailer with new tyres at a profit. “The retread sector is dominated by the big players, for sure, but increasingly we hear how little support the retreader gets, and this is where we want to take Ironhead. “We can supply retread materials to independent retreaders and offer them a quality product that they can make a profit on. But it is much more than supplying materials. It is about support and being there for the retreader. This is something that the big players have
put faith and trust and relationships back into the sales mix. When Bridgestone took over Bandag that familiar face of the industry was replaced by remote sales teams and
targets and dictat. That is not what the independent sector needs. That is where we see our future in retreading. We want to put personality back into the sales teams. We want to have our guys out there working with our retread clients and truly helping them build their business. The more we talk to people the more we understand that this is more than just about selling rubber. It is about the personal touch. Ironhead is in the position to make this work and we are focussing on making this our strategy to support the independent retreader in a way that we all make a profit and we are all happy in this business.”
Quality is a much used phrase, and Retreading Business has seen an improvement in quality wherever it has visited retreaders in recent years. Ironhead has a policy of doing its utmost to make sure that its retreads are to the highest quality. Certainly, the examples shown at New Orleans this year were almost indistinct from new tyres. Ulias comments, “We have a client in Elizabeth, New Jersey. The focus on quality is beyond compare. No, overbuffing is allowed, no staple marks, no paint flaking, the tyre has to leave the
Tyres come into the plant for inspection at Mississauga
64 Retreading Business