Page 32 - Retrading Business N103 2022-4
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COUNTRY
REPORT - EGYPT
towards the percentage of casing rejections by Albayan as he needs to retread more tyres, but upon inspection. Also, Albayan recommends - all applications and on all drive and trailer axles and this has proved to operate well. Generally, the percentage of failures at Albayan factory is leveled as the minimum acceptable percen- tage among retreaders internationally. One of the important aspects in Albayan’s service is that the transporter is able to raise acceptable casings from his operating tires, due to the fact thatAlbayanoffersaqualityrepairservice. Sti- ll, the judgment of the end user towards retrea- ded tyre performance, doesn’t depend on the kilometres the tyre run, but depends mainly on the concept that the tyre doesn’t explode du- ring the guarantee period, and the Egyptian end user appreciates the longer guarantee period.
NEW TYRE MANUFACTURERS SCOPE THE MARKET
Mr. Youssef claims that the international new tyres manufacturers are monitoring the Egyp- tian retread market well. Bridgestone, for example, through their local distributor, started a retread shop more than ten years back. Yous- sef foresees that the two new tyre manufac- turers in Egypt will increasingly try to retread their new tyres through existing retreaders, before taking the step to start their own re- tread shops. In the meantime, he also adds that Chinese new tyres are currently not a threat due to the fact that Chinese tyres are conside- red among the higher prices in the market, also because the end user has started thinking more about buying high quality tyres and retreading them.
The Albayan company can be considered to re- present a milestone in the retread business in Egypt, and Mohamed Youssef’s determination for the success of the retreading concept in a tough market like Egypt, is an example that will help drive existing and future business within the sector into further positive development. Youssef comments on his journey as follows; “We have an Egyptian proverb that states, ‘Only the adventurer wins the amusement’. I am convinced with the concept of tyre retrea- ding, I love to do the business by myself, and I is a sticker cured to every retread produced by my factory that carries my mobile telephone number for any customer to complain direct- ly to me. I consider each and every tyre we produce to be one of my sons.”
CHANGE IN END-USER HABITS
Mohamed Youssef says that there has been a change in private sector end-user habits towards tyres in the last ten years. The extreme increases in new tyre prices, lack of availability, and the improvement in tyre maintenance pro- towards considering tyre retreading as part of the tyre life cycle. This, he says, has increased the demand for retreaded tyres.
the retreadability of new tyres as an important aspect to consider while choosing the brand of new tyre,” he added. “This is a great develo- pment. Sure, it’s late compared to other coun- tries, but at least it happened.”
One additional factor that has encouraged some private sector companies to consider tyre retreading with the Albayan factory is that the company offers a one-year contract with the contract for the year, even if there are increases in rubber prices and currency exchange rates.
TARGETING THE PUBLIC SECTOR
Albayan has moved towards a strategy of targe- - their tyre maintenance programmes. Moreo- ver, Albayan Factory is registered in the Indus- trial Development Authority, which needs an - ted in the Pharos factory in Egypt, and approved by the General Authority of Imports, this being an important requirement to penetrate the pu- mainly about the environmental and cost cut-
to offer trial tyres on an FOC basis on condition that there has to be a periodic follow up, and a retreading after the success of the test. Also, in the case of trial tests to be paid by the end user, Albayan offers a long trial that enables the end user to make sure of the quality of the retread, before settling the payment. Albayan do not sell tyres to end users through sub dealers, as they strongly believe that they should follow up each and every retread they produce to ensure quality and keep their reputation.
With regards to different applications, and how Albayan Retread Factory deals with them, Youssef says his factory serves container trans- - - vice due to overloading. As for concrete truck mixers, he provides them with his product, des- pite the fact that they don’t deliver casings and For tipper trucks operating inside a construc- tion site, he is conservative about offering his product, as in such applications tyres are sub- ject to cuts by rough objects, in which case the end user will often blame the retread.
One important aspect that Albayan uses as a selling tool is the “Guarantee” given to the cus- tomer, which is printed on the back of the invoi- ce and texted in the form of a contract, stating the rights and responsibilities of both parties. Albayan offers a gauarntee period on their re- treads, which Youssef claims exceeds all other retreaders.
Youssef mentioned the example of a big trans- - retread service. The transporter is conservative
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