Page 39 - RB-88-19-1

UNITED ARAB EMIRATES
Sun City Plans to Install Hot System
such a competitive scenario. The retread operations survive on quality, prices and all out servicing.
It is ironic that most of the retreaders have existential issues, they are themselves, in a way, responsible for killing retreading by selling Chinese tyres in such a vibrant market. Almost all the retreaders are engaged in the business of new tyres to support their retread operation, where they survive on negligible margins. They are killing one business to thrive in the other, and in both Chinese tyres play their part. “We are selling around
25 brands of Chinese tyre along with Bridgestone.”
Interestingly, prices of international brands like Bridgestone are consistently going down, but Chinese tyre prices are firming up on improving quality. “A few premium Chinese brands like Sailun, Boto and Longmarch are good for one retread while other brands are no good for multiple usage,” believes Shafi.
Shafi Mohammed, Marketing Manager, Sun City Renew Tyres Manufacturing LLC
The retreading scenario is tough in the UAE but some well-run businesses ae thriving. Smaller operations source tread rubber locally from the Tolins site at Ras Al Khaimah, which offers rubber at competitive prices in a reasonably good quality. Ajman based Sun City operates on one 8- tyre autoclave, retreading about 400 truck tyres each month by the precure process and outside contracting an additional 100 casings for the hot process. Production surged by another 100 tyres to about 600 tyres during the summer.
“We serve the six Emirates of the UAE except Abu Dhabi, as prices are very low in that market due to the number of retread plants in the oil-rich Emirate. “We retread at AED 325, whereas prices in Abu Dhabi are low - in between AED 250-270,” said Shafi Mohammed, Marketing Manager, Sun City Renew Tyres Manufacturing LLC.
On reasons for the slowdown in the UAE market, Shafi replied, “Most of the construction projects are already completed, and the remaining projects are in the final stages of completion. The transportation sector is in slowdown mode with no hopes of the government announcing new projects, with oil prices having crashed globally.”
With the market for conventional hot retreading firming up, Sun City has plans to introduce the hot process as well but has shelved plans at the moment due to the ongoing tough market scenario. The company prefers to get the hot retreading outsourced. “We have plans to get into the hot process also, but the cash liquidity scenario is pretty tough at the moment, so until conditions improve, we have to remain content with running the
cold process only,” he said. Once the market improves, we are likely to install three hot presses for mould cure retreading.
Sun City offers a pick and drop service for tyres throughout the UAE as no one drops tyres in