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Marangoni: Active in Both Market Segments

In an interview with Tyres & Accessories Marco Mandrioli, the new sales and Marketing director at Marangoni Tread and managing director at Ellerbrock Reifenrunderneuerungs-Technologie GmbH, explains which recent market trends are iikely to affect the European business and how the Italian retreading specialist will respond to these new challenges.

 


Tyres & Accessories: 
According to market data the European truck tyre retreading business has lost some ground to new tyre manufacturers. What is the reason for this development?

Marco Mandrioli:
If we analyze the total European market -Western and Eastern Europe- in the long term this trend is confirmed. It is not so in the last few years. In 2005 the new truck tyre market decreased by about four to five per cent and the retreaded truck tyre market was practically stable. In the last few years we had a little reduction of the European retreading business in some specific areas only, like in Italy or the UK. 

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Tyres & Accessories:
According to your understanding what has been the most important change on the European retreading market during 2005?

Marco Mandrioli:
There are two significant signals: First, after about 10 years, the market of the retreaded truck tyre stopped decreasing; second the incredible increase of raw material and energy has significantly affected the profitability of the players in this business, forcing them to review the pricing up to two or three times per year.

Tyres & Accessories:
How detrimental are imports of low-budget truck tyres from the far east to the European retreading business?

Marco Mandrioli:
In addition to the poor quality of the majority of those imported products, the true issue is that they are not retreadable. This fact increases the lack of casings for retreading.

Tyres & Accessories:
Do customers make a mistake when they select cheap imports over European-made retreads?

Marco Mandrioli:
Yes indeed. Many medium, small and very small fleets are not accurately ana!yzing -or are simply not analyzing- the cost-per-mile of those imported non-retreadable tyres. They instinctively compare the cost of a cheap, new, imported tyre with a retreaded one, loosing the opportunity to get a good retreaded tyre that has characteristics and performance - and mileage - similar to a good quality European new tyre.

Tyres & Accessories:
What would be necessary in order to stop and turn this development around?

Marco Mandrioli:
In my opinion the players in the retreading business should act in two directions: Firstly, by promoting the high quaiity of the products with good Service offered together; and secondly offering strong support and training tools in order to communicate to the user the true advantages of using good retreaded tyres. Marangoni and Ellerbrock have promoted Ringtread technology through a network of qualified Ringnet partners for years - all in compliance with the 109 homologation. All over Europe these partners are interacting directly with end users in order to support them in making the right and most valuable choice.

Tyres & Accessories:
Are there market segments or markets that have been affected differently from others?

Marco Mandrioli:
In general the issue of cheap imported tyres is the same all over Europe, including the eastern countries. As a matter of fact the quality segment of retreading is not affected by this phenomena.

Tyres & Accessories:
Is there a future for both pre-cure and hot retreading in Europe?

Marco Mandrioli:
Both are certainly mature and consolidated technology. Even if we estimate that market does not significantly increase, l feel that there is a future for both of them, on condition that both maintain a high level of quality of the retreaded products.

Tyres & Accessories:
In terms of market share, how has the ratio between pre-cure and hot retreading changed in Europe during last year?

Marco Mandrioli:
Basically the total in Europe has not varied. The hot retreading market has slightly increased in the countries with a tradition in this segment while a significant increase of pre-cure market has been made in the Eastern European Countries.

Tyres & Accessories:
How is your Company reacting to such changes?

Marco Mandrioli:
Marangoni is the only retreader that has exploited both technologies on a large scale for more than 30 years, This is an important differentiating factor from other important market players that are focused on only one of the two available technologies.

Tyres & Accessories:
Does this mean that new tyre manufacturers have an advantage over other retreading system suppliers?

Marco Mandrioli:
Yes certainly when they are dealing with very large fleets. Marangoni Retreading Systems is directly involved in this business opportunity because it has a number of international agreements with some leading new tyre manufacturers, to supply them with the highest performing products and technology for retreading.




Source:
Neue Reifenzeitung 06/2006 (Retreading Special) 

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