Recomer, the oldest tyre retreader still operating in Uruguay, is in Mercedes. It is marking its 60th year in the Uruguayan market. In a candid conversation with Mauricio Labadie, the director of Recomer, insights were shared about Uruguay’s current state and prospects of the tyre-retreading industry.
Retreading Sussess with Mauricio Labadie
Reflecting on the past year, Labadie noted that 2023 bore a strong resemblance to 2022, with the industry not witnessing a recovery to the highs of the past decade. The industry’s output has halved compared to the 2010s, though the decline in tyre retreading figures has finally plateaued.
Commendable Retreading Work
Labadie also touched upon the relationship between Uruguayan retreaders and the Uruguayan Extended Producer Responsibility (EPR) Law, expressing satisfaction but acknowledging the need for ongoing work. He praised the tyre sector, including importers and retreaders, for setting a commendable example for other sectors that still need to be developed or outside the EPR system.
However, Labadie lamented the industry’s neglect of environmental concerns, attributing the viability of the retreading business to the prevailing low cost of tyres, which overshadows environmental considerations. He argued for a cultural shift towards prioritising environmental care, a change that he believes is currently stifled by cost concerns.
Moving Forward: Retreading Focus
Looking ahead to the rest of 2024, Labadie shared an optimistic view for Recomer and the Uruguayan tyre retreading industry, buoyed by the prospect of a bountiful soybean and corn harvest following a year marred by severe drought. The drought significantly reduced transportation needs, particularly for grains, impacting the industry. Additionally, the economic situation in Argentina, a key commercial partner, has had a negative spill-over effect on Uruguay. Labadie is hopeful of normalising these external pressures soon.
Labadie’s response was measured when asked about the future role of ALARNEU (Latin American Association of Tire Retreaders) in the region. He pointed out the need for more practical commitment among the association’s members, which hampers the development of sector-supportive policies. Labadie sees this as a broader issue of weak employer engagement across various sectors, not just within tyre retreading. He hopes for ALARNEU to adopt a more significant role, especially with an upcoming meeting scheduled for June during the PneuShow in Sao Paulo, signalling a potential turning point for the association and the industry at large.
