Road versus Rail? New direction in nitrogen inflation – PCL Sumitomo Tire now in SA
Focus
on
WA S T E T y r e s
Buy like the ‘Big Boys’ – Point S
Vol 20 • June 2014
Redisa in the spotlight – a year on
an Advanced Driving Course courtesy of BMW SA and SA TREADS
Sync - 10715 - Tread S.A
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Introduction • 1
Contents
A
the
One-on-One Point S – New way forward for Independent Retailers – Buy like the ‘Big Boys’.......................................................................2 Tyre T Rack – Turnover Doubles Since Joining Point S!........................4
Focus on Waste Tyres –REDISA in the spotlight – a year on...............................8
Industry News New direction in Nitrogen tyre inflation from PCL............................ 21 A new era in growth and style for Tyrexpo Africa claims Singex....... 30 Rotalla and Routeway enter the South African market....................... 30 Sumitomo Tires – Revolutionary performance now available in South Africa............................................................. 33
Talking Tyres Road versus Rail – Get back on track!............................................... 25
Goodyear News Goodyear Aviation Soaring to new heights in SA and beyond.......... 28
World News Reifen Show ready to Go!.................................................................. 34 Bridgestone to enter Agri market at Reifen 2014.............................. 34 East European production plant for Apollo Tyres.............................. 34 New dimension in tread depth reading from Continental................. 34
Competition, Subscription, Website .................................... 36
Front Cover Photograph: Gallo Images/ Getty Images/Frederic Neema Editor
Liana Shaw
Technical Consultant
Wray Shaw
Reproduction
Diane van Noort
note from
Publishers
Tel: Printing TYPO – Colour Printing Specialists Fax: Cell: Distribution Prestige Bulk Mailers E-mail: Advertising Liana Shaw Website:
Sky Publications cc PO Box 702 Douglasdale, 2165 (011) 658 0011 (011) 658 0010 082 851 6777 satreads@mweb.co.za www.satreads.co.za
editor
Ridding South Africa of the vast piles of scrap tyres occupying our landfills was always going to be a mammoth task. As the only government approved Waste Tyre Management Plan, Redisa certainly has its work cut out. Not only is the project expected to dispose of the historical piles scattered across the country, it is further expected to provide a regular collection and disposal service to the trade. Following a string of allegations that Redisa was failing to meet its obligations to the industry in this respect, we asked Redisa’s registered members to outline some of the problems currently being experienced, to which Redisa was offered the opportunity to respond. Our lead story on page 8 explores these alleged issues in greater depth, featuring a comprehensive response from Redisa who counters that considerable headway has been made in the fight against scrap tyres, contrary to market perceptions. Redisa further highlights the roll-out of its plan which has pledged to be 100% effective within five years. Speaking of the trade, in the March edition, we introduced you to a newcomer to the distribution arena – Point S – who in this issue, was invited to elaborate on their somewhat unique concept and approach to the market that has seen one of its members, Tyre T Rack Bloemfontein, more than double its turnover in only 12 months. If you are an independent tyre dealer looking to retain your autonomy whilst also being able to provide your customers with competitive pricing and quality product, Point S claims its particular offering could be of substantial interest. Currently, the Point S group of companies in South Africa stands at 24 members and 33 shops, whilst elsewhere in the world, Point S numbers 3000 outlets in 27 countries across three continents. This serves as proof, says the Group, that the concept is providing the independent retail sector with a fundamental solution to the historical challenge, that of competing against larger distribution networks, many of which enjoy the backing of a ‘big brother’ in the form of a new tyre manufacturer. Also in this edition, we introduce you to a new ‘nitrogen in tyres’ solution by PCL and include a brief coverage of Tyrexpo Africa held in Sandton, Johannesburg in March, which is now owned and hosted by Singaporebased Singex, which has vowed to take this dedicated tyre show to new heights in Africa. Stay warm….till we meet again in the Spring.
2
•
One-on-One
POINT S – NEW WAY FORWARD FOR INDEPENDENT RETAILERS
Buy like the
‘Big Boys’
How does an independent retailer balance the desire to retain his autonomy whilst also being part of a ‘Big Brother’ that provides that competitive edge in the marketplace? The Point S group of companies
Nico de Rouwe
Romano Daniels
(now 3000 retail outlets,
Please explain the fundamental difference
our members’ trading territories. Any new
in 27 countries, across 3
between the Point S concept and that of your
proposed Point S in their respective areas
typical franchise.
would first have to be approved by the
continents), could well be
The Point S retail concept – now more than 40
principal member. Should the member feel
years in the making - first emerged in France.
that the addition of another Point S store could
the answer, according to MD
It was founded along the lines of a ‘purchasing
jeopardise his existing business, we would not
Romano Daniels and Chairman
club’ that would offer independent fitment
pursue it further.
outlets competitive pricing in the market based on their collective power.
Does Point S operate on a royalty fee?
Unlike your typical franchise operation, the
Again, herein lies the fundamental difference
interesting couple of hours
Point S Group is not owned by a manufacturer,
between Point S and other distribution groups
wholesaler or investor. More important, it
in that royalty fees do not apply. Instead,
with the Point S management
can never be sold to an investor. It is entirely
members make a small monthly contribution
team who enlightened us on
member driven and each owning an equal
(R3 500.00) by way of an ‘admin’ fee which
share, with members making all the important
goes towards the running of the Point S
this fascinating concept whilst
decisions with respect to operational issues,
organisation, which incidentally, operates
funding and future growth.
according to its business model, as a non-
outlining their vision for this
Point S International also adopts a respectful
profit organisation.
growing group of companies
stance towards any new market, allowing its
Also unique to the Group is that as a Head
global members – who they recognise as being
Office, maximum value is transferred to the
familiar with their home market but providing
member and the head office only retains a
all the support to build a sustainable network.
small portion to cover its operating expenses.
Another important difference is respect for
Financials are presented to its members on
Nico de Rouwe. We spent an
in South Africa.
•
4
One-on-One
a quarterly basis which allows the members to have full access to the records. After 12 months in operations, all the members will earn a loyalty bonus and some will earn double their annual fees as a result of surpluses pay-out. These payments occur every year. How exactly does this work?
Tyre T Rack – Turnover Doubles Since Joining Point S!
The business model is organised around a specific set of ‘behaviours’ that we hope to promote in terms of purchasing as a collective agency. In short, you continue to operate as an independent but also belong to a group that is expected to conform to a set of practices and purchasing agreements decided upon by its members. All surpluses at the end of the year are divided among the members based on their level of commitment to the Point S business model and their ability to abide by the group’s desired behaviours. Importantly, we drive a % ‘share of account’ first and then gradually build from this point onwards.
❝
How many members do you currently have in South
We are looking to carve out
Africa? The current number stands at 24 members and 33 stores. Our approach to market is one of measured, targeted growth as opposed to gaining footprint at
a niche in the market
any cost. We are looking to carve out a niche in the market that protects our members’ operating rights and
that protects
territories. As such we take our shareholding model
our members’
very seriously. The Board of Directors – elected by
operating rights
proposals to the members who will then decide for
and territories.
❞
the members to run for a two-year period – will make or against a certain course of action based on a 66% majority. The Board is obliged to comply with members’ decisions irrespective of their own views. Following the Point S International team’s negotiations
with all the key suppliers, the representatives of Point S International join the local Board to customise and localise these international agreements with the local suppliers. This business model is not for everyone. However, if as an independent or a current franchisee, you are looking to compete in the local market whilst retaining your entrepreneurial flair and independence, Point S could well have a home for you. What kind of retailer would be deemed suitable to join the Group? As already mentioned, entrepreneurs looking to remain competitive whilst retaining their autonomy, would be the best candidates. Dealers flaunting multi-alliances would not be considered as this would be in violation to the members’ decision to keep the network pure. The culture we are building around the Point S Group will simply not allow for mixed affiliations. Members have also elected not to consider wholesalers as members
> top right page 4
According to shop owner, Armand Patricio of Tyre T Rack, Bloemfontein, his turnover has more than doubled since becoming a member of the Point S group of companies in 2013. Formerly part of the Tyre Rack group of companies which first began as a small franchise and wholesaling company in 2008, Patricio originally hails from Trentyre where he gained retail experience before joining the manufacturing sector as a member of Goodyear. His lifelong dream to run a distribution outlet materialised in 2010 after securing the necessary funds and premises in his hometown, Bloemfontein. “In a rural community such as this, people tend to buy from people they know,” claimed Patricio. “And it’s important for anyone entering the retail market to know the workings of the industry with respect to pricing, rebates, discounts and the like as well as to re-invest in his business on a continuous basis. “That being said, surviving as an independent without the backing of a ‘Big Brother’ in today’s market is near-impossible. Having realised this early on in my newly found career as a retailer I went on a fact-finding mission that would eventually lead me to Point S. I soon discovered that franchise models don’t necessarily work, as the so-called ‘big boys’ in the market are still able to secure more favourable prices. As a member of Point S you automatically qualify for the same deals as they do because you are seen as a Group rather than an individual store. “Being able to negotiate better prices on most brands on bulk buying, has given us that desired competitive edge in the market,” said Patricio. Another plus, according to Patricio, is that he has been able to retain his identity and continues to operate as Tyre T Rack Point S. He explained: “There are minimal requirements that new members are
One-on-One
•
5
< bottom left page 5 (businesses whose wholesale sales exceed 50%) as they could potentially threaten member profitability and area protection due to harmful cross territory trading activities in the marketplace. In the Point S system, no member should ever derive greater benefit due its size and affiliation to the group. How does the collective purchasing function work? Point S members are encouraged to open accounts directly with the Group’s preferred and listed suppliers, which in turn, are linked to a central deal that encompasses all aspects around purchasing such as discounts, rebates and the like. Best of all, the pricing structure is the same to all members irrespective of their size. Of course, the Point S concept does not take away the need for members to build and develop personal relationships with suppliers who are there to provide technical support, assistance with claims and so on, but it does relieve them of the burden of having to negotiate prices and deals on their own.
❝
Who are your preferred suppliers? Armand Patricio with his wife, Nicolene who also works for the company.
Our primary brand is our own Point S private label
Our primary
German
brand is our
expected to abide by. Essentially, you are still free to run your business the
manufacturer in Europe, which we purchase directly
way you see fit, with little interference.
from the respective factories as Point S International own
own Point S
“We also have a great premium product in the form of Summerstar which is
the brand – it does not belong to a manufacturer. This is
private label
competitively priced and well received by our customers.
followed by Continental, Goodyear and Pirelli to which we
“Plus, the Group’s policy to respect members’ trading areas provides peace
Summerstar.
have committed 60% of our total purchases. In particular,
of mind in knowing that no new Point S store will open within a specific
in line with the international approach, Continental South
range of my shop without my blessing. This respect for one’s territory
Africa is a strategic partner to our business and growth.
means that Point S members operate as a family with each one willing to
The balance is made up by a number of listed suppliers
provide assistance and advice to other members as they are not a direct
such as Cooper, Michelin and Falken in order to be able to
threat to their business.
provide our members with a multi-brand approach to the market across all
“There is a real element of trust in this Group,” added Patricio, “whereas I
categories. In Europe, Bridgestone is one of our top preferred suppliers.
Summerstar,
produced
by
the
leading
don’t necessarily believe this to be the case with other franchise groups.” Equally refreshing, according to Patricio, is the support he receives from
Tell us more about the Summerstar make of tyres.
head office at a fraction of the cost of other franchise groups.
Summerstar belongs exclusively to the Point S group. In 2013 alone,
He said: “The monthly admin fee that goes towards covering head office
sales of the Summerstar brand globally exceeded 1.2 million units.
expenses is decided upon by the members. Should we at any point require
The Summerstar 2 series product line-up includes passenger, light
additional funding, this would be proposed to the members who would vote
commercial and 4x4 tyre ranges. In line with our product strategy,
for or against it before making a final ruling. As such, the model provides
the Summer 3 series have been introduced with 17 new sizes (up to
members with peace of mind in that unexpected fees or charges cannot be
20 inch) was released for the passenger segment. In addition, a new
imposed at a moment’s notice.
tender was also commissioned for commercial truck tyres and a further
“Quarterly meetings with head office and other Point S members are a good
expansion of the 4x4 tyre range.
platform for us to voice our opinions and concerns. Best of all, we get
The Point S product strategy is fairly simple, each Summerstar tyre
heard. This member-driven approach is new to this industry and I would
has ‘Point S’ branded on the sidewall to ensure a higher probability
heartily recommend it to any like-minded independent.”
of customer retention and loyalty. As a result of the brand name being
Having more than doubled his turnover in only 12 months since joining
on the sidewall, the quality standard of the tyre is critical to the Point
Point S, Tyre T Rack Bloemfontein has high hopes for its future.
S group. Recently, Autobild (Leading Auto Magazine in Germany) rated
❞
•
6
One-on-One
the Summerstar as impressive because it was ranked 9th amongst 50
that provides both parties with sufficient time to ascertain whether the Point
tyre brands inclusive of all the top manufacturers across the world. After
S Group and its business model would best serve the interests of both
several rounds of testing and 15 brands remaining, their comment was
parties.
as follows, “In conclusion, we can say that the difference between the
What we like to refer to as a “friend of the brand’ must be convinced that he
best and the worst result is tight. Point S tyre rise surprisingly in the
fully understands the concept and what it entails, particularly with respect
Premier League.”
to adding value to his operation and maximising on profitability, which is the cornerstone upon which the model is built.
❝ The group is massive and
What role, if any, does Point S International play in the
We believe in creating maximum value for our members and we leverage
South African context?
this benefit to retain members rather than severe and strict contractual
Point S International’s commercial interest in South
conditions. Furthermore, we insist that each member builds his own trading
Africa is an extension of its global interest, namely to
name with the Point S brand. This allows the member more freedom and
grow the brand and achieve market penetration via
transfer the responsibility on The Point S team to ensure value creation for
private labels.
the group.
growing all
This is a unique market approach that focuses on building
the time. Just
customer loyalty and brand awareness in an unorthodox
What would be required in terms of signage, corporate identity and the
recently, 188
way, particularly as the Point S tyre - Summerstar will
like?
remain the exclusive property of the Group.
There is a minimum standard that stipulates the visibility of at least one
new independent
Overseas, the Group’s portfolio extends beyond tyres
dedicated Point S sign on the premises, aside from the Welcome Board
members from
to include batteries, brake pads and other underbody
listing trading hours, which is also required to carry the Point S logo. We
components, and this is certainly an intended direction
refer this as the minimum harmonization - the Point S colours are green
for our market as well, as and when our members decide
and blue and there is a minimum requirement in this regard as well,
the time is right.
although the harmonisation charter allows a retailer to ‘go the whole hog’
As far as their expectations go, they remain committed
if he so wishes.
with more than
to helping us grow the South African market, first by way
As most of our members are looking to build their own equity, the
300 shops.
of regional presence, before expanding nationally. We
member’s equity trading name takes centre stage, provided the Point S
Even more
have committed to growing by 10 stores per annum,
logo is incorporated, albeit less prominently. Ultimately, we want to be seen
which was achieved in 2013 and we are in line to
by both the suppliers and customer alike, as one group, one entity and
achieve this same target this year.
one business.
Where is Point S particularly active in the country at
Just how big is the Point S Group internationally?
this point in time?
The group is massive and growing all the time. Just recently, 188 new
With the approach being to develop regionally first, we
independent members from Canada came on board and USA with more
are looking to develop clusters within specific regions,
than 300 shops. Even more astounding last year alone Point S purchased
million tyres
supervised by Councils made up of individuals who are
more than 16 million tyres globally!
globally!
familiar with the market dynamics and pricing nature of
It is for this reason that we submit quarterly figures. Keep in mind that
those areas. Point S is very active in Kwazulu-Natal and
all Point S members, irrespective of the country in which they operate,
Gauteng presently, with other regions currently in the
qualify for product bonuses and benefits that are negotiated by Point S
throes of development.
International.
Canada came on board and USA
astounding last year alone Point S purchased more than 16
❞
As developing a strong regional presence is at the crux of our business
Add to this to our own private label in the form of the Summerstar, and
model we are not prepared to compromise our stance in this regard, in the
Point S suddenly takes on huge international significance.
interests of giving our business model every chance to succeed.
We are very excited to partner with like-minded entrepreneurs in South
With the direction for the Group firmly in place, we are adopting a
Africa who are looking for a sustainable way forward, by way of an already
conservative, calculated approach to growth and expansion, armed with a
tried and trusted business model which have
clear product, marketing and recruitment strategy.
been around for longer than 40 years, which will not compromise their
What is your approach with a prospective new member? Once eligibility has been established in terms of the criteria already mentioned, we usually embark on a three-month ‘trial’ period with them
model and sovereignty.
Competition • 7
With u your handcuffs are removed! We’re not a franchise. We’re the world’s largest independent tyre dealer network that is 100% member owned & driven. There is also no manufacturer or investor influence. This means you have the freedom, not only to retain your business’ name but also stock the brands you want to stock. Give Point.S a call today and set your tyre business free. YOUR TYRE SPECIALIST
INDEPENDENT TYRE DEALER NETWORK Contact: Dawie Pretorius
|
T: +27 11 892 0340
|
F: 086 403 1971
|
E-mail: dawie@point-s.co.za
|
www.point-s.co.za
8
•
Wa s t e Ty r e s
REDISA IN THE SPOTLIGHT
– a year on
It’s been over a year since we visited the somewhat contentious issue of waste tyre management, in particular, the implementation of the only government approved Waste Tyre Plan, Redisa. Since then certain allegations pertaining to the speed and manner of scrap tyre collections have arisen in the marketplace. In a bid to provide industry with answers, we conducted our own investigation into the matter. “We have yet to have scrap tyres collected from our store,” claims a dealer
spent a total of R926.00 to dispose of 940kgs of waste tyres, which equates
in Kokstad. “We have been contacted by Redisa on two occasions with the
to R1 per kg of my cost to dump tyres that the manufacturers and importers
promise that our area will be serviced soon, but nothing has happened to
are already paying for,” they argued.
date.”
Of further concern, and according to another KZN dealer, they now have to
Added another outlet in Matatiele: “We are still waiting for the collections
pay rental fees to store their scrap tyres, or are having to dump their waste
to begin. Redisa contact us from time to time to ascertain scrap volumes
tyres themselves.
but very little happens after that. Our question to them remains: ‘when will you begin collecting scrap tyres from our premises?
Another Redisa member, also from KZN, allegedly received a call from a motor dealership located directly behind his store regarding the scrap pile
“The tyre manufacturers have been paying Redisa’s levy for some time and
of tyres that was growing in size. He was concerned whether the dealer in
we cannot understand how one can impose a levy for a service that is not
question had sufficient insurance cover in the event that the pile of tyres
being provided? Surely if you pay for a respective service you can expect
caught fire, thereby also possibly claiming some of his new vehicles in its
to get it? Perhaps penalties need to be imposed for non-service delivery
path?
or alternatively, the manufacturers should be liable for a refund in lieu of contributions thus far made to Redisa?
“We would like for Redisa to stop worrying about furnishing the trade with certificates, counter flip charts and the like and concentrate on the real job
“Registered fitment centres in our area are receiving regular emails from
for which it was created,” suggested a third Durban dealer.
Redisa about how much they are doing and how they are going about it, but this means little to us. All we would like is for them to start collecting the waste tyres in our area.” According to another dealer in Durban, even sporadic collections only appear to take place after excessive pressure has been placed on Redisa to deliver. “In January and February of this year alone, we
In response to these allegations Redisa had this
❝
to say: “Redisa is making significant headway in the implementation of the five year plan.
All we would like is for
Implementation required considerable planning
them to start collecting the waste tyres in our areal.
❞
and infrastructure development, and it was envisaged that it would require a phased approach. “In terms of the plan, Redisa was required to start collecting passenger, 4x4 and truck tyres within 10 months of start, and this target was
Focus on TIASA
•
9
10 • Wa s t e Ty r e s
met. However, a phased implementation means that every tyre dealer will not have their tyres collected immediately: it means that as collections rollout, more and more dealers will be serviced. In addition, given the larger documented amount of waste tyres found in bigger cities, as well as the existing infrastructure available in these areas, it is expected that the main cities countrywide will be serviced as an initial starting point of the five year plan.” According to Redisa, the rollout of the Plan is as follows: from official commencement in July 2013 to April 2014, 23 462 tons of tyres had been remediated by the initiative, which they claimed meets the envisaged targets and the volume of recycling taking place is increasing all the time. It must be borne in mind that, they further claimed, that in order to ensure efficiency and practicality, collections must be co-ordinated with storage and recycling capacity, i.e. it is important to ensure that the collection of waste matches the ability to process the waste as far as possible and that development of waste collection and waste processing operate in tandem
which could possibly explain some of the dissatisfaction being experienced in other parts of the country. The TDAFA recently ran a survey among its members to assess service levels. A total of 453 survey returns came back, with only 6 percent of respondents saying that waste tyres were being
with each other.
collected sporadically but not according to a
❝
fixed schedule.
Redisa went on to outline their achievements to
As in any new industry
date:
In response, Redisa said that the plan had been
development, teething
officially operational for only a year, during
• 708 transporters have been registered with the Redisa plan. The emphasis is to try and
which time a significant impact has been made
problems were to be
promote small local business development,
in a number of areas across South Africa.
expected.
However, they argued, as in any new industry
❞
entrepreneurship and employment. • By 2017 Redisa is looking to create 10 000
development, teething problems were to be expected.
jobs – by end of 2014 at least 1 534 new jobs will have been created,
Collectors under fire
which is in line with the intended outcome.
There are further allegations being made that when waste tyre collectors
• 548 collection points are currently being serviced – more are being established all the time. • An accountable and transparent administration platform has been developed and implemented. • 1 641 tyre dealers (almost 100% of dealers nationally) have been registered.
do arrive at members’ premises, it is usually in small vehicles that are incapable of accommodating their total number of scraps, and in particular, truck tyres. Claimed Lombard Tyres, West-Krugersdorp, Gauteng: “There have been no collections for the past two weeks. When they do send a truck to collect scrap tyres, the vehicle is too small for the load and the drivers refuse to load tubes or tractor tyres.”
• Depots have been opened in Johannesburg, Cape Town and
Kilotreads in the Northern Cape said: “We need them to come with a truck
Pietermaritzburg. Additional depots will be opened in June in Witbank (for
and helpers, not a little pick-up with one driver, and we don’t see why we
OTR tyres), Mossel Bay, Durban and East London; in July in Bloemfontein,
should be helping them to load the scraps onto the vehicle.”
Kimberley and Port Elizabeth, followed by the opening of depots in Welkom, Richards Bay and Sasolburg. • Substantial investment made in Research and Development (Stellenbosch University and NMMU) to support methods of tyre rubber recycling.
A Midrand dealer further stated: “Our scrap bin used to be cleared on a daily basis, whereas now collections are in-frequent with collectors leaving behind more than what they collect.” “On the odd occasion that a collector is sent to our premises, and with excessive pressure having been applied, they arrive in a small ‘bakkie’ that
According to the RMI’s TDAFA, most of the collections currently seem to be taking place in Cape Town, Pretoria, Midrand and Johannesburg
is clearly inadequate for the task,” said another Durban dealer. Concurred a fitment centre in Blackheath, Johannesburg: “They have
E N G I N E E R E D TO G O T H E D I S TA N C E Truck and Bus | Dump Trucks | Scrapers | Loaders | Compactors | Graders Official Distributors in South Africa:
YTS YTS TYRE SALES
Johannesburg tel: +27 11 974 7732 | email: yts.sales@telkomsa.net Cape Town tel: +27 82 337 8699 | email: aeolus.cape@netactive.co.za
Wa s t e Ty r e s • 13
supplier’? We have raised our concerns with Redisa but have yet to hear
❝
back.” Added TIASA (Tyre Importers Association of South Africa): “TIASA members
Collections are in-frequent with collectors leaving behind more than what they collect.
are currently concerned with the state of affairs vis-à-vis the implementation of Redisa’s plan. We are continuously receiving complaints from our customers that no tyres are being collected but levies are being charged. In
❞ come to collect a few times but they arrive with a small truck that does not accommodate truck tyres, so they leave these behind, even though they are being paid to collect all the scraps.”
isolated cases where tyres are being collected, it seems that the nominated transporters are only selecting ‘good’ used tyres which could possibly be resold as second hand tyres to the informal segment. This is itself poses serious safety concerns for the consumer which need to be addressed. As industry, we have requested Mr Mark Gordon, Deputy Director General of
In response, Redisa urged its members to bear in mind that whilst waste
Environmental Affairs to investigate the option of approving second hand
tyre collection and disposal was at the heart of the project, so was
industry backed plan. This will only level the playing field for all, but offer
upholding its pledge to create jobs amongst South Africa’s previously
an alternate solution to Redisa for our members, who remain committed to
disadvantaged communities. They accepted that in some cases, vehicles
the responsible disposal of waste tyres and will continue to look for ways to
currently being employed could well be inadequate for the task, but asked
improve the current status, which we believe is seriously lacking.”
that industry bear with them in support of their long-term endeavours to make a meaningful contribution to South African society. Mutilated tyres another cause for concern? Another major concern raised by a dealer in Kwazulu-Natal was their
❝ We are concerned that unscrupulous tyre
collector’s reluctance to collect any mutilated tyres. “Could this be due to
collectors could sell seconds to pavement
the ‘value’ perceived of some of the scraps along the way to the collection
operators for a profit.
site,” he mused?
❞
“We are concerned that unscrupulous tyre collectors could sell seconds to pavement operators for a profit,” added one of the Durban dealers. “These pavement dealers have been known to regroove scrap tyres/casings, thereby making them appear as if a half-life still exists. If they are making sufficient profit from these practices, what is stopping them from illegally dumping the scrap casings?
When asked to comment on these somewhat troubling allegations, Redisa responded by saying that in terms of the re-grooving of tyres, technically this should not be possible as according to the Waste Tyre Regulations 2008, all tyre waste should be mutilated by the dealers. They added that Redisa had recognised the severe safety issues around the sale of re-
“What is of greater concern is that the collector expressly told our floor
grooved tyres, which the Redisa plan regards as waste tyres. “Waste tyres
manager that he was there to collect all casings, good, bad and ugly, and
are required to be mutilated and made available for recycling,” they said.
that if we did not comply with this request we would be ‘blacklisted as a
Another dealer in KZN said that although Redisa collectors had been collecting until the end of November 2013, collections had since come to a halt. When asked for a reason, the contractor allegedly said that collections were stopped due to non-payment on the part of Redisa. Other concerns being expressed by the trade relate to promises allegedly being made by Redisa personnel that ultimately do not materialise. Explained a Durban dealer: “We got a call from Redisa inviting us to attend their Roadshow in Durban, followed by lunch which was scheduled for 26 February. It is now 10 March and we are still waiting for the invitation to arrive which she claimed would be emailed to us right away.” Manufacturers add their voice With the new tyre sector footing the bill, there is clearly some concern from this segment of the market with regard to Redisa’s service delivery as well.
14
•
Wa s t e Ty r e s
❝ CTSA is paying the contractor, who is not part of the Redisa collection system, directly.
❞ Said Continental Tyre SA: “Since the middle of this month, all CTSA socalled rejected (waste) tyres are being collected and transported by an external contractor to Langkloof Bricks for recycling (to be used as an alternative fuel source). For this service, CTSA is paying the contractor, who is not part of the Redisa collection system, directly.
Offered Thomas Group of Tyre Companies: “Collections from all the major centres at least, are taking place,” they said. “We are also aware that Redisa have been in touch with owners of historical scrap tyres
“As per the Industry Waste Tyre Management Plan, we are allowed to claim
to arrange for their collection and delivery to recyclers. Although
a rebate of R0.88/kg excluding VAT against the levy paid for rejected tyres
collections remain slow in some areas of the country, progress has
when they are not collected by a contract company of Redisa. Insofar
been made over the last few months.”
as our dealer network is concerned, the collection of scrap tyres from Conti-Trade owned stores in Johannesburg is being handled by Redisa contractors, whereas the Fit& Go franchise stores are not.”
❝
Stated Goodyear SA: “Goodyear South Africa fully supports the intentions
Redisa confirmed that by the end of
behind the Redisa plan, which is currently the only approved industry-wide
the year, and as part of their roll-
scheme for used tyre collection, disposal and recycling. Our company is in full compliance with the Waste Act and the plan, and pays mandatory
out plan, they will be making a tangible
levies to Redisa. Therefore, we believe that Redisa should effectively collect
difference to over 50% of its members.
substantial quantities of used tyres which is unfortunately not the case
❞
yet. As a responsible corporate citizen, while paying levies for a service that should be provided exclusively by Redisa, we continue to collect and
Stated Bandag SA: “Bandag’s approach to this whole issue, that has a
dispose used tyres ourselves at additional cost. We are hopeful that the
somewhat chequered history, is really based on the task at hand. For
Redisa plan will very soon be fully effective.”
the record, we were approached for comment prior to print, and our
Added Sumitomo Rubber South Africa: “To date, neither our manufacturing
opinion is that there is a dual-sided problem here. On the operational
concern, nor by far the bulk of our registered dealer network has received
side, one needs to be cognisant of the fact that there is no precedent
a collection service from Redisa.”
in South Africa for a task of this magnitude. There is a murkier picture
By way of response Redisa confirmed that by the end of the year, and as part of their roll-out plan, they will be making a tangible difference to over 50% of its members, a proposal that some industry members are supporting.
that exacerbates the problem in the sense that so many tyres out there are historical in nature. Our feeling is that while Redisa should certainly accelerate their operations, and more importantly, their procedures, we are confident that things will improve with time. We remain of the opinion that it is still the best plan, and our reasons for saying this have been well documented in the past.
❝
“The other side of the issue concerns the visibility of the recyclers whereat
While paying levies for a service that
we believe, Redisa, have an even greater accountability, which again, needs to be given the time such a process deserves. To this end, we have little
should be provided exclusively by Redisa,
doubt that they will succeed. Let us all be practical as and industry and let
we continue to collect and dispose used
us buy-in to what effectively, is an environmental concern for our country.”
tyres ourselves at additional cost.
So what are we to deduce from all of this? Could the trade be harbouring
❞
unrealistic expectations with respect to Redisa’s service delivery – which after all, is documented to be taking a phased approach to the waste
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•
17
tyre problem – or is Redisa failing to meet its obligations to some of its
transparent approach,” they added, “this information will be shared with
members?
industry.”
What is becoming increasingly clear is that poor communication between
In the meantime, to address queries as to when particular areas across
Redisa personnel and its members could well be contributing towards
the country will be serviced, in February of this year, Redisa published a
much of the frustration being experienced by members who are claiming
geographical roll-out plan through to 2017 on its website: www.redisa.org.
that their concerns go unanswered and unheeded.
za. The company is pleased to report that it is currently ahead of target.
In light of this Redisa concluded that it was in the process of developing a comprehensive, independent industry survey to understand where particular issues are being experienced, and why they are being experienced, so that they can be dealt with effectively. “In line with our
❝ We remain of the opinion that Redisa is still the best plan.
❞ Disclaimer: The views and opinions expressed in this article are not necessarily those of the Publishers, Editor, or any staff member of SA TREADS magazine. Sky Publications can accept no responsibility for the veracity of claims made by contributors or participants to this story.
Tyrecor (Pty) Ltd 771 Cincaut Cresent, Saxenburg Business Park Blackheath, Cape Town
Tel: 0861 TYRECOR Fax: 086 530 2118
Industry News • 21
New direction in Nitrogen tyre inflation from PCL Having met Olly Shortland – Product Manager at Pneumatic Components Limited (PCL) at last months Tyrexpo Africa Show, SA Treads European staff writer John stone recently travelled to PCL’s UK base in Sheffield to learn more about the company’s activities within the South African tyre market. Olly explained that PCL is part of the Horn Group along with Horn Tecalemit (Germany) and Tecalemit USA brands and is a proven global market leader in the design, manufacture and distribution of tyre inflation and compressed air products. The primary reason for PCL exhibiting at the event was to support their South African distribution partner Automotive Equipment International (Pty) Ltd (AEI). Although tyre inflation is already well promoted in South Africa, PCL believe that the market is ready to benefit from their total unique form of Nitrogen tyre inflation system which is already firmly established in Europe in many tyre retail outlets and garages. Olly says, “With Sheffield being a famous global hub for engineering excellence. PCL is one of only two companies producing high tech digital tyre inflation technology and our future objective is to further promote our renown built-in inflation technology which is not currently available in South Africa. “PCL’s fully automated Nitrogen tyre inflation system comes complete with a special digital inflation head which provides ‘total’ automation with the added bonus of being able to preset the correct pressure required. In effect the system can inflate tyres without any human operation.” In association with AEI, PCL is particularly looking to concentrate on the mining industry in South Africa because it feels there is a definite market for fully automated nitrogen tyre inflation equipment in this tough, fast moving market. Such as the company’s all new, unique Nexus Compact Mobile Nitrogen Generator which can be fitted to mobile tyre service vehicles and is available in either 12 or 24 volts. It is quite simply the most innovative digital nitrogen inflation device within the global market and suitable for all types of nitrogen tyre inflation applications where space and weight are at a premium. It is small enough to fit into mobile tyre service vehicles yet powerful enough to inflate the largest of commercial vehicles. PCL has been established since 1938 and initially produced tyre pressure gauges. Over the course of the past eight decades the company has progressively emerged into a pioneering brand particularly in the ground breaking field of Nitrogen tyre inflation. With production facilities in Sheffield and in China plus established sales offices in India and America, PCL distributes its products in over 85 countries and deals with some of the largest and most prestigious businesses in the industry. For further details on PCL’s complete range of products and services visit www.pclairtechnology.com
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Bandag News • 23
How do you compare? The past seven years have seen Bandag reward excellence in on-site tyre management through the Bandag On-Site Awards. Those using our revolutionary online tyre
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ROAD vs R AI L
Get back on track!
It’s probably the last thing the truck and tyre industries want to hear, but we really need to accelerate the drive to get freight off the country’s roads and back onto rail By Colin Mileman
You don’t have to be a genius to comprehend the massive increase in load-hauling traffic on South Africa’s roads in recent years. Anyone who has spent a bit of time recently on the highways and byways knows that the volume of trucks has increased exponentially – as you would expect in an emerging economy that is also one of the most important on the African continent. A simply staggering number of trucks of all shapes and sizes are charging head-to-head hauling all manner of goods, from fresh produce to the trendiest threads, across the nation in the shortest possible time. Research from the CSIR indicates that the N3 has carried the equivalent of a previously anticipated 20 years of traffic in a period of just two years! It’s also abundantly clear that the road infrastructure is taking an absolute hammering as a result. We know that far too many of our roads are well beyond their designed 25-year lifespan and are no longer candidates for repair but need a total rebuild.
2 6 • Ta l k i n g Ty r e s
Photograph by asifthebes
Although we’re still far better off than most of our neighbouring countries,
However the rail infrastructure is in a much more deplorable state of disuse
according to the Automobile Association of SA the current road maintenance
and disrepair – a legacy of mismanagement and total neglect. As a result,
backlog amounts to well over R100-billion. The government should be allocating
government parastatal Transnet is splurging over R200-billion of taxpayers’
some R32-billion of its annual budget just to keep up, yet it’s spending less than
money on reviving the country’s rail network and rolling stock.
a third of that on the problem each year. It’s a compounding problem, and with ever-increasing road traffic and haulage comes more wear and tear.
On long holiday trips to the coast as a child I remember viewing the numerous cargo trains with a sense of awe, and counting the impressive number of rail
Admittedly it’s not all doom and gloom. Aside from the frustration of having
carriages and wagons being drawn by a couple of mighty diesel locomotives.
cross-country road trips regularly disrupted by roadworks, it’s evident that a fair
Now it’s even more surprising simply to see one in action.
bit of work is happening on many of the major routes. This is backed up by the numbers. Industry reports suggest that of However, in far too many cases progress seems to be made at snail’s pace
some 1,7-billion tonnes of cargo lugged around the country in 2012,
and numerous “under construction” sections – such as the N2 between Port
88,5-percent was transported on road compared to a mere 11,5-percent
Elizabeth and East London – appear to have changed little in the last three
by rail (or around 1,37-billion versus 205-million tons, respectively) – this
years. Similarly, the N1 seems to be in a perpetual state of repair and rebuild. It
despite the roads being heavily congested while rail has an overabundance
does make me doubt whether we will ever catch up.
of surplus capacity.
It would be fascinating to find out how many tyres are carving their way over
There’s no denying that the speed and flexibility of road freight beats rail any
and through the deteriorating tarmac – and leaving a trail of overloaded, worn-
day of the week. But it’s also clear that it’s far more expensive and inefficient
out and pothole damaged carcasses in their wake. The number of delaminated
– both in terms of direct costs to the service provider and the customer and
treads and shredded casings the trucks discard along our roads is simply
indirect costs such as the heavy toll on the road infrastructure. There’s also the
staggering – yet it’s one of the most costly contributors to fleet running costs.
important environmental aspect to consider.
So what is the solution? For many, the focus of getting hauled goods off the
So-called expert opinions vary dramatically on comparable cost and efficiency
road and onto the rail network is a critically overdue and urgently needed
calculations, ranging anywhere from 120-percent to nearly 10 times that
solution.
figure. But rail easily comes out top in terms of overall value.
Colin Mileman is a freelance motoring journalist, photographer and advanced driving specialist with over 17 years of experience in this field. As a former editor of Topcar and Topbike magazines, he’s as enthusiastic about cars and bikes as they come, and has extensive knowledge of all motoring-related matters, including the topic of tyres, having run the annual and highly regarded Topcar tyre tests for several years.
Ta l k i n g Ty r e s
Ultimately, a properly integrated rail system requires an intermodal
•
27
the focus to rail as an integral part of a comprehensive transport system.
network that provides accurate timing, prompt turnaround and reliable service delivery to a range of central hubs, supported by much shorter
Long-distance road freight will remain a core feature of the landscape,
road freight components linking the supplier with the end users. And all
but must be combined with new and expanded opportunities in the
of this is sorely lacking in SA.
short and medium-haul sectors to support the rail revival.
It also doesn’t help that South Africa (and southern Africa generally)
This means a partial shift in direction for the trucking industry – and
relies on an outdated rail network, using a rail gauge of 1067 mm and
the tyre industry alike – but it’s a bandwagon we all need to get on for
not the international standard of 1 435 mm – thus ruling out the option
the future!
of employing larger scale and higher capacity rail vehicles. Nevertheless, cost will ultimately be a major driver – and increasingly so as prices continue to soar. Research by Imperial Logistics indicates that logistics costs as a percentage of GDP in South Africa amounted to R339-billion or 12,5-percent in 2010 – and this figure has undoubtedly increased dramatically due to record fuel and tyre prices. The reality is that we need to find cost-effective and sustainable solutions for the freight industry (and the country in general) and shift
28 • Goodyear News
Goodyear Aviation Soaring to new heights in SA and beyond
Two distributors in the form of Safomar and Aerotechnic have been appointed to cater to the needs of the aviation sector outside of South Africa. Moreover, Goodyear is currently in negotiations with other potential airlines within the sub-Saharan region and South Africa, to become the supplier of tyres; discussions which the company hopes will be concluded soon. Established in Southern Africa more than 30 years ago, Goodyear’s
In addition, over a period of time Goodyear Aviation has supported,
Aviation Division – based in Germiston, Gauteng – supplies tyres for
sponsored and provided technical training to various flying schools
general aviation, business, regional and commercial aircraft throughout
such as the South African Flight Training Academy based in Heidelberg,
the region with a sub-distributor based at Wilson Airport, Nairobi,
Gauteng, and is now also looking to establish a close relationship with
Kenya.
the Test Flight Academy of SA (TFASA), with the establishment of AVIC International Flight Training Academy (AIFA), based in Oudtshoorn,
‘Goodyear Aviation Division aims to be innovative and supportive to the
which targets the training of around 400 pilot cadets per year, mainly
aviation business through its commitment to service, training, technical
from China.
support and the supply of a quality product throughout the sub-Saharan region,” said Peter Janse-van Rensburg.
Goodyear Aviation is aiming to strengthen its working relationship with TFASA through technical support, training and sponsorship, in the
In South Africa, National Airways Corporation (NAC) and Comair are
interests of providing future pilots with a greater understanding of the
the designated distributors for general aviation, business and regional
importance of tyres in the successful operation of airlines.
aircraft within our borders. Goodyear also supply aircraft tyres to airlines such as SA Airlink, SA Express, Air Botswana, Mex (Mozambique), Air
Goodyear has further pledged to sponsor the Goodyear Eagles
Namibia, RwandAir and the South African Air Force (SAAF).
Acrobatic team – which has had the honour of being invited to perform
Goodyear News â&#x20AC;˘ 29
at the Al Ain International Show in Abu Dhabi twice â&#x20AC;&#x201C; thereby enabling them to perform at air shows throughout South Africa
Retreading in Aviation
and Botswana, not only for sheer entertainment value, but also
Retreads play an equally big role in the Aviation industry with airlines
with the intention of fostering interest and potential careers in
using them extensively, due to the important cost benefits they provide,
Aviation among the underprivileged.
which in turn helps to reduce the tyre cost for the airlines. Goodyearâ&#x20AC;&#x2122;s retreading facilities feature an inventory management system, via a computer system that captures and monitors all tyres by size and serial number. Retreadable tyres have in-built retread plies to assist in the timeous removal of the tyre for retreading purposes and during the retreading process of the worn tyre, the tread is buffed off with a template controlled machine that removes the worn tread rubber and retread plies to the required buff line. Next, the retread plies which were removed are replaced with tread reinforcing bands and the tread rubber is applied to the casing. Should the tyre require repair, this is also undertaken before the uncured treads are cured to the specific time, temperature and pressure. Finally, all overflow rubber is removed after curing and the tyre undergoes visual inspection. In addition, Goodyear uses the shearography method of nondestructive inspection to search for weak bonds, separation and other types of defects. Once the customer information is verified, the maintenance release tag is completed and the tyre is shipped. Interestingly, the C130 transport aircraft of the SAAF, are fitted with retreaded tyres which are retreaded at the Goodyear retread facility in Tilburg, the Netherlands.
30
•
Industry News
A new era in growth and style for Tyrexpo Africa claims Singex The Tyrexpo Africa 2014 Show in Johannesburg
International and further broaden the horizons of
last week was not only another successful event
such events.
for the Southern African tyre market but also
“At the moment there are a number of possible
represented the beginning of a new direction
developments under our consideration including
in the show’s management. Previous bi-annual
expanding the exhibitions beyond just the tyre
events have been promoted by UK based ECI
industry and including the rubber market as
International but the latest exhibition was hosted
well, however, any new developments will be
by Singapore based Exhibition and Events
carried out without compromising the existing
Management Specialists – Singex.
‘community atmosphere’ of the shows.” Another
Having taken a controlling stake in the business
area of expansion being considered would
in 2013, this year’s Tyrexpo Africa Show was the
involve increasing the overall size of each event
first event that Singex had exclusively handled
and including the introduction of boutique/
and SA Treads exclusively interviewed Mr
hybrid style stands for each event.”
Aloysius Arlando – Chief Executive Officer of
When asked by SA Treads if there were any
Singex during the event to discover more about
plans to expand the Tyrexpo concept into other
the company and its intentions and aspirations for the future of the Tyrexpo Exhibitions and in particular – Tyrexpo Africa.
countries and Continents, Mr Arlando explained Mr Aloysius Arlando – Chief Executive Officer of Singex.
that Singex fully intends to look at eventually expanding into other regions including the
Singex is a wholly owned subsidiary of Temasek Holdings which is one
Middle East and South America, and possibly even Southern Africa, if
of Singapore Government’s Investment Arm but operates completely
the right venue and market opportunities were to arise. However for the
independently, specialising in the investment and ongoing growth of
immediate future the company will be concentrating on evaluating and
trade events. Mr Arlando explained that Singex’s main business objective
enhancing its existing events in Africa, Asia, India and the UK.
was in Trade Show Development plus they managed Singapore’s largest Expo Centre encompassing 123,000 sqm.
Finally when asked for an opinion on last week’s Tyrexpo Africa show, Mr Arlando stated, “The event has proved to be a very interesting and
He said: “Singex used their high profile presence at Tyrexpo Africa to
successful learning curve for me and all the Singex team and extremely
extensively monitor how such an important international tyre event
valuable for our future plans to take the Tyrexpo events to an even
operates in this period of ‘transition’ between ownership. It is our firm
greater platform on a global basis through a very structured dimension
intention to build on the solid concept of the shows built up by ECI
for growth and success.”
Rotalla and Routeway enter the South African market Making a return visit to Tyrexpo Africa this year was Chinese based
recently been opened in Dubai which further underlines the company’s
Contract tyre manufacturer – Enjoy Tyre with a modern, attractive stand
firm intention of establishing a growing presence as a new option in
that offered a representation of the company’s Rotalla and Routeway
quality tyre brands in South Africa.
private brands.
Taking centre stage on the Enjoy stand were the Rotalla RF10 4x4/SUV,
When SA Treads chatted with Jinyun (Dick) Wang – Director at Enjoy Tyre,
The Rotalla RF09 Light Commercial and Routeway RW105 truck patterns.
he pointed out that apart from introducing the Rotalla and Routeway tyres
The Rotalla RF10 is suitable for on-road and light off-road conditions
to the South African market in the 4x4/SUV, light Commercial and truck
and incorporates a number of features and benefits including spirally
market sectors, the company was also using the event to look towards
reinforced twin steel belts with wrapped nylon for impressive tread
appointing suitably ambitious regional or exclusive distributors for both brands in South Africa.
stability and enhanced durability. Allegedly, the pattern also guarantees excellent wet and dry braking performance and overall handling along
As part of a dedicated campaign to establish Enjoy Tyre as a competitive
with drive comfort and reduced tyre noise. The RF10 is currently available
player in the African and Middle Eastern markets, a satellite office has
in 17 sizes from 215/65R16 through to 255/50R19.
? • 31
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Industry News
â&#x20AC;˘
33
WHEEL SERVICE EQUIPMENT
Sumitomo Tires â&#x20AC;&#x201C; Revolutionary performance now available in South Africa
When leading Japanese business conglomerate, Sumitomo Rubber Industries, Limited (SRI), announced the acquisition of Apollo Tyres South Africa in 2013, subsequently renamed Sumitomo Rubber South Africa (Pty) Ltd (SRSA), the local tyre industry has eagerly anticipated the rich variety and advanced product offering that a company, such as SRI, would bring to the country. Headquartered in Japan, SRI is the fifth largest tyre manufacturing company in the world and is renowned for producing superior quality tyres in a number of renowned brands, including the iconic Dunlop brand, with which it has a proud and successful association since 1909.
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SRSA has taken strategic steps to introduce SRIâ&#x20AC;&#x2122;s first-class export brand â&#x20AC;&#x201C; Sumitomo Tires â&#x20AC;&#x201C; into the South African and African market and the company is confident that this brand will be well accepted having already proven itself in
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Patented digital camera tracking automatically adjusts to the height of the vehicle.
multiple factories â&#x20AC;˘ Strong in-field service from a well-established SRSA sales force â&#x20AC;˘ First-class Original Equipment standard used by car manufacturers as a tyre specification benchmark All these factors will make the brand a natural success with customers, they allege, and prove an efficient addition to a tyre retailerâ&#x20AC;&#x2122;s stable. For more information on this exciting new brand, visit the website: www.
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34
•
World News
Reifen Show ready to Go! Messe Essen, the organisers of the forthcoming Reifen Show 2013 in Essen, Germany have announced that preparations for the show which commences on the 27th May are right on schedule. At present there will be 660 exhibitors from 44 countries with overseas (non-European) companies accounting for around 70 per cent of exhibitors. At the show, Taiwanese manufacturer Maxxis will be launching its Energtra Meco3 new passenger tyre which incorporates an enhanced contact patch for improved handling and wet performance.
Bridgestone to enter Agri market at Reifen 2014 Bridgestone Europe has announced that it will be ‘breaking new ground’ at this year’s Reifen Show as not only with they be showcasing a full lineup of their premium truck and bus new tyres and retreads but also, for the very first time a premium agricultural tyre will be launched. The Bridgestone VT-Tractor pattern heralds the company’s emergence in to the Agri market and will join Firestone’s range of agricultural products in the premier and Maxi Traction sector for row crops and combines. Also on display will be the new generation of Firestone FS422 Steer, FD622 Drive and FT522 Trailer tyres plus the Bandag FuelTech M749 and R109 FuelTech patterns as well as the regional drive BDR-HT4
East European production plant for Apollo Tyres Apollo Tyres has announced its intention to build a new tyre manufacturing plant in Eastern Europe with a Euros 500 million investment for a ‘greenfield’ site. The facility is expected to produce 16,000 passenger car tyres (PCR) a day and 3000 truck and bus radials a day. No completion date has yet been announced. Apollo has also released its annual and final quarter results for its 20132014 fiscal year ending on 31st March, which show a healthy net profit of four per cent year on year.
New dimension in tread depth reading from Continental Continental in Europe has announced it intends to introduce an automatic tread depth reading feature to its eTis (electronic tire information system) which will become available for fitment as OE on all new vehicle models fitted with Conti’s TPMS (Tire pressure monitoring system).
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36 • Competition / Subscription
Congratulations!
to our previous competition winner
Click o Danie Herbst of Cash Connect, Hillcrest whose correct answer wins him a n w w set of 4 Summerstar tyres to the value of R5 000.00! w.satre to ads.co.
quarterly competition QUESTION:
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r!
an Advanced
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