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AUSTRALIA
An overview of the NBR Tyres retreading plant
extra staff and an extra driver. If we can keep these contracts moving forwards into the future, we see this level of production stabilising.”
However, despite the increase in production and business, Yates worries about the uncertainty that these new contracts bring. “Hopefully, we can keep them happy and they can stay. Unfortunately, we don’t have the capability to supply a service option. St. Mary’s only has six fitters and we don’t have a new tyre division, meaning we miss out on the opportunity to go for corporate fleet accounts.” Following the contract wins, NBR Tyres has invested in a new air compressor and a new diesel generator to run their second autoclave to help them save on costs. These purchases mean that the company makes savings, with the generator running at about 80% capacity to save on fuel. This, combined with fewer breakdowns, leads directly to less production stoppages. In terms of direct retreading investments, the company’s last investment was five years ago with the purchase of an Italmatic buffer, and 2008 marks the date that their second autoclave was installed.
James Yates has some intriguing thoughts on the challenge of competing against Chinese new tyres from the point of view of an independent retreader. “The biggest thing that impacts us is the price of new tyres and whether the response to these products is positive. Another big challenge is to explain the benefits of the retread to tyre service outlets and end users. Since we don’t have any
salesman, this challenge becomes even tougher,” Yates added.
“We keep customers by price. Since, we use our own cushion gum, liner etc, we are able to keep our prices low due to the lack of outsourcing. For example, since 2011 our prices have gone up $5, meaning that we have been able to stabilise our pricing, which is once again thanks to the prices and materials from Malaysia. It also helps that our claim rates are less than one per cent because we have learned from various little issues that have cropped
up over the years.”
As for expansion, James Yates admits that “expanding would have to be a good investment for Nam Bee in Australia.” He also revealed that the company has no plans to offer new tyres, because the sales in their retreads and materials would decrease significantly.
Regarding scrap tyres, Yates explained that they have looked into doing more in this sector, but conceded that it would have to be a “small scale operation that they would offer to customers.”