Page 19 - RB-109-2024-2

not looked at Laos, Brunei, East Timor, Cambodia or Myanmar in this article due to either market size, low levels of industria- lisation or current political situations.
As you can tell from the above, the SEA market is complex. Local cooperation has developed in recent decades through ASEAN, which was formed in the 1960s to create a political and economic union of all SEA nations. However, uniformity across the region is clearly not one of its achievements; this especially becomes apparent when we delve deeper into the retreading market. As of 2024, Southeast Asia had only seven members of the global Retread Tire Association, meaning the region is massively underrepresented globally. This trend continues locally in most SEA countries, where retreading is often seen as more of a cottage industry than an essential pu- blic service. Most retreaders in the region are independent, family-run businesses, and more prominent global manufac- turers have difficulty establishing a foothold through ow- nership or partnership. Most SEA retreaders remain fiercely independent and exceptionally competitive within their in- dustry, often leading to poor cooperation regarding national representation or education on the values of retreading.
OVERVIEW OF OPERATIONS
Data is hard to come by in SEA, so a lot of anecdotal research and conversations have had to be undertaken to give us a
view of the market, and even so, it’s very much incomplete. Thailand and Vietnam are export markets of new tyres, ma- king information on local retreading difficult. However, we know from a few local contacts in these markets both the be- nefits and issues retreaders face.
It’s important to highlight the diversity in operations across SEA. For example, Thailand and Malaysia have roughly 50-75 and 80 tyre retreading factories, respectively, with Malaysia producing around 1.1 million units yearly. The focus is pre- dominantly on commercial tyres using pre-cure technology. In Vietnam, operators like Bridgestone’s Bandag have a foo- tprint, and with improving infrastructure and the broader ex- port market expanding rapidly, retreads are becoming increa-
FEATURE
REPORT
P.19