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NEWS EXTRA
year the market has been maintaining the same level that we have seen in the past,” Soriano affirmed.
Gabriel Fuma added, “Chinese tyres have been impacting all markets. With no tariffs in markets such as Guatemala and Panamá, it has been a struggle. Nevertheless, 2018 has seen better results with the Chinese price picking up, signifying brighter prospects for the industr y.”
Soriano added, “A lot of work needs to be done here in Panamá to develop the market. It has been very badly hit by Chinese tyres. With no regulation, no association and no positivity in the market, it is difficult to see how we move ahead.”
This outlook on the market can be backed up by the fact that Panamá concurrently only has three retreaders through the country, with all three of them also having a new tyre business. As for Vipal, the company presently sell patch lines and materials to some clients. “Saying that, it is not all doom and gloom. The market can be recovered, but some detailed work will need to be carried out to save and ultimately turn around the situation,” he explained.
El Salvador, meanwhile, has also been badly affected by the impact of Chinese tyres. wasn’t alone in its struggles being badly affected as well. Regardless of this, Vipal has managed to pick up 30% of the market through its sole client Llafrisa, who is the market leader in El Salvador, making 1,600 tyres a month. The company aims to reach 2,000 units per month by the end of the year.
On the planned production increase, Soriano said, “a working group has identified fleets in this country that would like to use retreads, thus aiding this possible production expansion.”
The Costa Rican picture is a little bit brighter with the market reporting 5 to 7 per cent growth in the past year, after being severely hit by the Chinese tyre phenomenon that saw production drop by nearly 50 per cent from an average production level of 2,000 tyres
per month to the 1,200 that we see nowadays.
Vipal as an operation have two clients in Costa Rica: one is a distributor for their parts and accessories, whilst the other is a retreader, which manufacture 800 retreads per month, representing roughly 20% of the Costa Rican market.
Soriano spoke firstly about the market, “there is more of a green mentality in Costa Rica, which is obviously a great first step. This is supplemented by the fact that Costa Rica is in the process of setting into motion a retread association to support the domestic market through information, promotion and identifying what tyres and patterns function well in the market.
“Furthermore, the government is supporting the association, as is evident by the restrictions imposed against Chinese imports. This association model in Europe is what we would like to see used to help aid growth in Central American markets,” said Soriano.
Looking at the complete picture across the Central American markets, Soriano explained to us that they are all at a similar stage in terms of education in retreading issues. Considering this, the company works with all its clients to develop its businesses to support them and give them any possible helping hand.
Soriano summarised, “We work closely with our clients and their clients. We know their necessities and the products that they require. All this has led to us to offer additional training programmes and a philosophy that is aimed at beating our competitors in terms of three crucial pillars: ecology, economy and technology. Not only this, customers have noticed an important difference in mileage in retreading with Vipal.”
So how can retreading recover in these key central American markets? As with many things in life the answer is not necessarily a one-stop solution. It is more likely to be through a mixture of measures that are internally and externally driven, with the key impulse coming from an association driven approach that actively promotes retreading,
simultaneously backed up by a Government that imposes restrictions on tyre imports. When will the markets see this? Time will tell. But with Europe
moving against Chinese imports recently, it will be interesting to see how other global markets move following this news.
Basvulk Announce New
Partnership to Strengthen
Vipal Network in Bulgaria
Basvulk, Vipal
Rubber's exclusive
distributor of repair
products in the
Bulgaria and
Macedonia regions,
has announced a
partnership with
HARI 72, from
Dimitrovgrad in the
province of Haskovo,
in Bulgaria. Among
the main activities
developed by HARI
72 is the sale of new
tyres and wheels for
light, heavy and
special duty vehicles,
as well as mounting, demounting,
balancing, and tyre vulcanisation.
As a result, the
companies are now
serving the southeast region of Bulgaria, including the cities of Dimitrovgrad, Haskovo, Harmanli, Svilengrad, Lyubimets, Simeonovgrad, Galabovo, Stara Zagora, and Chirpan. The initiative will also allow HARI 72 to receive all necessar y assistance from Vipal Rubber's Network to ensure its best position in the market. Basvulk's CEO, Stoyan Gogov, celebrated the new partnership
announcement: "Basvulk is the exclusive distributor for Vipal Rubber's repair line in the region and has been doing a great job in promoting the brand. This partnership with HARI 72 not only widens Vipal Rubber's product offering, but also strengthens customer service in these regions, enabling them to offer the highest quality products," said Gogov.
58 Retreading Business
Bosselmann Boss Truck Shops Partners with Bandag
US-based truck servicing network Bosselman Boss Truck Shops, Inc. has announced that it has partnered with the Bandag business of Bridgestone Americas, to provide Bandag retreads at all Boss Truck Shops locations throughout the country. Bandag operates the largest network of retread repair and service facilities in North
America with more than 200 retread manufacturing plants and 1,700 points of service.
“Our fleet customers are looking for more profitable and sustainable way to operate their business. Together, Bridgestone and Bandag are helping fleets maximise their total tyre program in a competitive market while also offering long-term