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VIETNAM
construction of the main highway that is due to connect the north and south of Vietnam. Toan Tah is located near to Ho
Vietnam in order to attract business from both the north and south of the country. Like most retreaders in the
more people. The number, though, will depend on the productivity of the current staff, since the staff are paid by piece rate.
Toan Tah procure all of their retreading equipment from China, merely due to the fact that European machiner y is too expensive for the underdeveloped Vietnamese retread market. This move, therefore, will also open up the opportunity for a machiner y upgrade, but it is still too soon for them to move to European equipment, meaning that these new purchases will still be from
individual truck drivers. One of the main obstacles for the retreader is the fact that the Vietnamese government does not allow bus companies to use retreaded tyres.
However, this has not stopped Toan Tah from tr ying to find willing parties to work with them and the government to change the current ruling.
With two and a half years in the business, it occurred to Retreading Business that we must ask why and how Toan Tahcametobeinwhatisa turbulent retreading industr y at this time. The answer was
Toan Tah will be shortly relocating to the centre of the country
Toan Tah produces 1,500 retreads per month
Chi Minh City (Saigon) and employs ten people, who work one shift lasting from 8 am until 5 pm in the evening.
Currently, the retreader is producing 1,500 retreads per month, however it expects this to expand when it moves premises to the centre of
country, it cuts the treads from old tyres, since they are usually in decent shape. Due to the make-up of Vietnamese roads, it is normal that the sidewalls are damaged, meaning that the treads are spared somewhat. This process allows retreaders like Toan Tah to stay competitive
against cheap Chinese tyres. Following the aforementioned relocation, Toan Tah expects to increase production to 3,000 retreads per month, which would represent a huge increase. This increase would undoubtedly be aided by the fact that they would be the only player in the centre of the country, with no direct competition. Obviously, once the production increases they will be looking at employing
Toan Tah utilises treads from old tyres in the retread process
China.
Toan Tah currently uses a single 12-tyre autoclave to manufacture these 1,500 retreads per month. You may be thinking right now, “What about the casings, though?” Well, the retreader uses some customer owned casings, whilst also having to procure some extra casings to fulfil these production levels. Nowadays, the company retreads all brands, including premium Chinese tyres.
The retreader’s main client base consists of truck owners and traders. At this stage, Toan Tah does not retread for bus clients as most of the customers are
simple. Good profits. Toan Tah make approximately 25 dollars per tyre after the retreading process.
These profits are undoubtedly helped by the use of treads from old tyres and the procurement of cheaper machiner y from China, allowing retreaders in the form of Toan Tah to charge a more competitive price.
48 Retreading Business