News You Can Use

RTA NEWS YOU CAN USE
September 26, 2013

THE FOLLOWING MAY BE OF INTEREST TO RTA SUPPLIER MEMBERS WORLDWIDE
AS WELL AS TO SELECTED OTHERS

It is being sent anonymously at the request of our member who wishes to not be identified at this time. If you are interested in learning more and being contacted by our member, please send your replies to info@retreadtire.org and we will immediately forward them to him. I can tell you that I have known this member and his company for many years and have the highest regard for his skills and especially for his  Integrity.

Harvey,

I am collating information on the retread industry and would like to tap into your knowledge and experience.  In particular, I am exploring whether it makes sense set up a retreading facililty in Sri Lanka to tap the export market.  Provided below are some of my preliminary questions.

 i.  Size of the global retreading industry and rate of growth

 My limited information indicate that US is the largest market followed by Europe.

 ii.  Details of countries exporting retread material

 iii. Details of countries importing retread material

 iv.  Challenges you see for retread industry

 Besides global uncertainity, I see that export of cheap tyres from China as a potential challenge. What are other challenges that you see?

 v. Location of retread plants

 The cost of manufacture is high in the US and Europe. In spite of that there are lots of retread plans located in these continents.

 Is there a strategic advantage from an overall cost saving perspective to have these plants locaed in Asia and then exports to these markets? If yes, is there a movement in this direction?

 Typically, retread plants predominately seem to located in-country and service in-country requirements.

 vi. How would you rate Sri Lanka as a location for setting up a retread plant predominately to service the overseas export market.

 vii.  Do you believe there would be interest for US retreading companies to be interested setting up a retread plant in Sri Lanka to service export markets if there is a local partner.

 Any other comments you have in this regard would be helpful.

 Thanks in advance for your kind assistance. We are looking forward to your reply.

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THOUGHT FOR THE DAY

Focus forward