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.

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.
Retreading of tires have several benefits attached to it as it 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 to make tire retreading, successful consistency is the key. 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.

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 innovation is key for the growth of our company. We are looking forward to acquiring tire retreading technology from Akarmak, who is also doing business with Pirelli.
Akarmak was founded in 1990 as the manufactures of machinery for the Tire Retreading Industry. They have a complete machinery portfolio, including high-capacity CNC Controlled Buffers and Autoclaves. That will enable us to build a tire retreading plant for Truck and OTR (Off-The-Road) and retreading. They have proven expertise in manufacturing these retreating plants both within Turkey and also internationally. They have been to maintain their quality standard all these years. During the installation and commissioning of the equipment,Akarmak’s trained personnel provides solid support based on professionalism, reliability, and experience.

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

Using retreads provide significant savings. Especially when we compare them with the cost of a new, low-cost tire.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, drivers and fleet managers must look at the Total Cost of Ownership of using a retread tire. When we prepare such a model, we realized that using retreaded tires can cut down the total cost by up to 40%.