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Retreading

We are setting up the first truck tyre retreading facility in Pakistan. Given that a large demand supply gap is prevailing in the country, the management of the Company has decided to bring retreading technology into the country. Retreading of tyres is being practiced commercially around the world and is an environment friendly and cost-effective solution.

Product Viability

All over the world, the tire retread market is increasing in popularity, with a growing number of companies accepting that the very nature of the way they do business has to change. It is generally felt there are a number of benefits to be gained from Tyre Retreading that takes into account the whole life cycle of a commercial tire, including a cost per kilometer analysis that promotes the option of retreading as very viable and effective for truck fleets. We believe that the future of successful and profitable tire retreading lies in being able to consistently provide an appealing value-added level of service and also gain more easy access to potential customers more efficiently. Hence, we are confident that we have the right insight into the market, and the expertise to create a facility of international standards to provide the most cost-effective solutions to the fleet owners of the country.

Raw Material Supply

The major Tyre Retreading supplies that contribute to the quality of Retreaded tyres are Tyre Casings and Tyre Retread. When a tyre loses a few millimeters of its tread it doesn’t have to be thrown away, but it has to be brought to a new life, as it still maintains its specific structural qualities unimpaired. Eliminating and replacing the worn out tread, the tyre can be given back features completely similar to the original one The casing represents approx. 70% of the total value of a tyre. To build a truck tyre 70 kg of rubber are needed for the production of which 100 liters of oil are needed. If the tyre is not retreaded after its first use, this amount of raw materials would be lost through disposal. Instead, by retreading, it is re-covered in great part, adding only a limited quantity of raw materials to replace the worn out tread.

Tyre Casings: The casings for the Tyre Retreading will be procured from the Transport operators after the first lifecycle. We have been supplying tyres to some of the largest fleet owners of Pakistan e.g. Daewoo Express, National Logistics Cell, Frontier Works Organization and many other fleet operators. Hence, we are coordinating with our already established clientele’ to have long term arrangements for the procurement of tyre casings.

Tyre Retread: In-order to maximise the casing retreadability, we will be using The Novateck Bands which only use Pirelli original tread patterns in order to ensure the perfect match with the casing even after the first life. This will guarantee performance and quality similar to the ones of new products.

Technology

Since the growth of a company depends primarily on its continuous technological innovation, the technology for Tyre Retreading will be bought from Akarmak who have been approved by Pirelli to provide the best machinery for our facilities.

Akarmak was founded in 1990 as the manufactures of machinery for Tire Retreading Industry. They have a complete machinery portfolio including high capacity CNC Controlled Buffers and Autoclaves that would enable us to build a complete tire retreading plant for Truck and OTR (Off—The-Road) and retreading. They have built many tire retreading plants and manufactured equipment’s within and outside of Turkey for over 15 years. They have proven quality standards in their products, and provide CE certificates with the machinery. During the installation and commissioning of the equipment, Akarmak’s trained personnel provides solid support, based on professionalism, reliability and experience.

Salability

We have planned to have multiple sales models so that business risk could be mitigated. We intend to have the
following types of sales models:

  • Locally procured casings; used tyres will be procured from the local fleet operators which will be
    retreaded and sold
  • Service model: retreading of tyres will be done by using the casings of the existing customers
  • Fixed Cost Per Kilometer Model : MSD Tire & Rubber Company will provide fleet solutions at fixed cost per
    kilometer model. In which, the company will be using the mix of retreaded and new tyres but the cost per
    kilometer will remain fixed for the customer
Cost- Benefit Analysis

Using retreads provide significant savings. Especially if we compare them with the cost of a new, low cost tire. What needs to be considered in this decision is that most Tier 3 and Tier 4 (low cost import) tires cannot be retreaded, and often have lower fuel mileage, may fail prematurely, and may not last as long (10-40% lower life). For this reason, it is imperative that drivers and fleet managers look at the Total Cost of Ownership of using a retread tire. When we prepare such a model, we realize that using retreaded tyres can bring down the total cost by up to 40%.