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MALAYSIA
client according to their application, whether its long or short haul, but the majority of what we produce is with
“We only provide tyres at this stage. However, plans are underway to provide an outdoor breakdown service,
As the name Deauto Recycle & Retread Industry Sdn Bhd suggests, the company offers a recycling operation as well through their monthly collections of 3,000 to 4,000 pieces of domestic tyres. This produces approximately 200 tonnes of recycled rubber. Choon Seng laid out the recycling operation for us, “our recycling plant was operational at exactly the same time as the retread plant. We recycle somewhere in the region of 3,000 to 4,000 pieces per month. The process leaves us
happy with the current machinery and tools at our disposal, but also additional in a market that is so heavily impacted by Chinese tyres, we really don’t think it would be a prudent option.
“With the Malaysian market getting harder and harder with smaller retreaders emerging and lower quality new tyres affecting our market share, it is a difficult moment to consider investment.”
On the possibility of offering passenger retreads, Choon Seng highlighted the complexities
Eversafe.”
Apart from the retreads, Deauto has ventured into selling new TBR tyres, which they import. A natural question would be to
which we plan to launch in January to cover Peninsula Malaysia whilst outsourcing to external providers in other parts of the country.
wonder if there are plans to provide a complete service. Choon Seng soon gave us some insight into the retreader’s plans.
“Despite our plans it is difficult to find the staff with us requiring 2-3 employees that are driving light-trucks at any one time to deliver the service.”
with about 70% rubber and 30% steel from each tyre.
“The steel is normally sold to local ma nufacturers and the rubber to a variety of clients as we produce rubber crumb in a few sizes. 1-5mm, 16-20mm and 20-40mm.”
As talk moved to investments Choon Seng was keen to point out that Deauto were not looking to invest in state-of- the-art improvements.
“At this point, it’s difficult to justify investing in our current operations for a number of reasons. Firstly, we are very
behind providing this product. “Passenger retreads are incredibly complex. This is mostly down to the fact that you need to stock such a high variety of sizes, making it very complicated to provide a thorough service rendering to make it worthwhile.”
Deauto Recycle & Retread Indsutry started up 5 years ago
24 Retreading Business