SA Treads Dec 2011 by SA Treads Tyre Magazine

ITAC speaks out over anti-dumping debate First Apollo product hits SA market

Focus on triangle tyres

New products from Bandag and Falken Tyrexpo Africa to hit our shores in March

The 2012 Pirelli Calendar

Vol 17 â&#x20AC;˘ December 2011

Triangle sets benchmark in China

Sync - 10715 - Tread S.A

RETREADING DOWN TO AN ART Bandag’s exclusive Application Specific tread range has placed them firmly at the top of the retreading food chain. As kings of the retreading jungle, we’ve become accustomed to pretenders to the throne who try to copy our designs. What can’t be copied however is the superior tread quality that provides fleets in the Bandag pride, best in class performance and Bandag’s unrelenting commitment to premium quality and better CPK! That’s what we do. Tel: +27 11 439 6000, Fax: +27 86 682 7027, e-mail: info@bandag.co.za or visit www.bandag.co.za

I n t r o d u c t i o n • 1

Contents

note from

the

One-on-One with ITAC’s, Carina Janse van Vuuren . ...................................................

As we approach year end and the welldeserved Christmas break, we reflect on what has been a challenging year for the industry. The recession is far from over. If predictions by economic analysts are anything to go by, global markets could be hit by a second economic dip as a consequence of the current US and EU debt crisis, with further impact on the South African economy.

Focus on Triangle Tyres – setting a benchmark in China .....................................

Events SA Ploughing Competition – Launched at Nampo 2012 ......................

Manufacturing Apollo Tyres achieves level 5 bbbee scorecard ................................... Orion Engineered Carbons Golf Day...................................................... Bridgestone gives back to conservation . ..............................................

24 24 25

Retreading News Exciting new product line-up for Bandag SA..........................................

New Products First Apollo product, premium all terrain tyre, hits SA market .............. Falken Wildpeak arrives in SA ...............................................................

30 32

Conti Corner Customers confirm Continental rules in Bloemfontein .........................

Talking Tyres Safety Technology – Beating the odds ..................................................

Goodyear News Engineered in Europe; Built tough in Africa .......................................... Research proves Hi-Q is still South Africa’s favourite.............................

44 45

Trade Show Tyrexpo Africa 6 – 8 March 2012, Sandton Convention Centre, Jhb . ..

Dealer Profile Fit-Rite Mthatha clinches Dunlop Zone glory..........................................

World News Hankook share sale is Michelin ‘cashing in on failed partnership’ ........ Falken first tyre company on Google+ . ................................................. Apollo Tyres hi revenue grows by 50%.................................................. Emerging markets central to Michelin growth........................................

51 51 51 51

Competition, Subscription, Website . .......................................

Front Cover: Courtesy Goodyear SA Editor

Liana Shaw

Publishers

Sky Publications cc PO Box 702 Douglasdale, 2165

Technical Consultant

Wray Shaw

Reproduction

Diane van Noort

Printing

Tel: (011) 658 0011 T YPO (011) 658 0010 – Colour Printing Specialists Fax: Cell: 082 851 6777 Prestige Bulk Mailers E-mail: satreads@mweb.co.za Liana Shaw Website: www.satreads.co.za

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editor

Tyre manufacturers and retailers alike are feeling the pinch. To make matters worse, all hopes of a possible anti-dumping duty being introduced in the on-going quest to restrict the large volumes of tyres entering the country from China, were dashed on 23 September when the Supreme Court ruled in favour of ITAC in the case between the SATMC and ITAC. So where does this leave us? Given the seriousness of the issue and the need for answers from a direct source, we pay a visit to ITAC in Pretoria to speak with Senior Manager: Trade Remedies, Carina Janse van Vuuren. For her take on the anti-dumping petition and ITAC’s findings regarding this matter, turn to our dedicated interview on page 2. Coincidentally, my trip to China to visit the world’s fourth largest tyre manufacturer in the OTR sector, Triangle Tyres, takes place at around the same time as the drama surrounding the anti-dumping application unfolds. Which begs the question, ‘are all Chinese tyres made equal?’ The short answer to this question of course, is no, but it is one thing to hear it and quite another to see it for yourself. My personal experience of China, and my visit to Triangle in particular, are noted in our lead story on page 11 which chronicles the growth and mounting international success achieved by this Chinese manufacturing concern which is fast becoming a global giant. Also in this quarter, Apollo Tyres launches the new Hawkz AT in the South African market and hot on its trail, is the new Falken WildPeak A/T. We also showcase new products from retreading company, Bandag, which recently launched its new specific application tread - the BDR-AS – suitable for drive applications. Also unveiled is Bandag’s new mobile technology in the form of the ProTurbo Mobi, which is expected to up efficiency and make for more accurate recording, capturing and reporting of fleet data information. Last but by no means least….December is the issue in which you, a lucky reader, could win your very own copy of the Pirelli Calendar 2012 – now 47 years old – so don’t forget to enter our competition. You can enter online via www.satreads.co.za or fax on 011 658-0010. Happy holidays!

2 â&#x20AC;˘ O n e - o n - O n e

ITAC SPEAKS OUT OVER ANTI-DUMPING DEBATE One-On-One with CARINA JANSE VAN VUUREN On 23 September 2011, the Supreme Court

Court, while it obviously must be accepted as

of Appeal rendered judgement in the appeal

law, is a sad day for South Africa because it

brought by the International Trade Administration

means that ITAC no longer has to look at the

Commission of South Africa (ITAC) against the

question of whether an industry in an alleged

judgement of the High Court in the case of the

export-dumping situation (such as this) is

South African Tyre Manufacturers Conference

operated according to free-market principles

(SATMC) and others versus ITAC. The appeal was

unless a high initial threshold indicating this is

successful and the order of the High Court was

reached â&#x20AC;&#x201C; and that ITAC will not presume such

set aside and replaced with an order dismissing

a threshold easy, a view that is being contested

the application with costs, including the costs of

by ITAC.

three counsel.

We met with Carina Janse van Vuuren, Senior

In response, Dr Etienne Human, CEO of the

Manager: Trade Remedies ITAC, to get the

SATMC says that the judgement of the Appeal

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O n e - o n - O n e • 5

Confusion reigns over the anti-dumping debate that has been circulating

ITAC argued that it had duly and fairly applied its mind to this third country

in the tyre industry for years. Please could you explain ITAC’s role in this

option for calculating the normal value and decided for appropriate

matter and also outline what led up to the judgement?

reasons not to invoke it. ITAC argued further that it was not, contrary to

The case involves an application submitted by the SATMC to ITAC for

the contentions of the SATMC, obliged to investigate whether China was a

anti-dumping duties to be imposed on motor vehicle tyres imported from

market economy or not, as the Government of South Africa had officially

China. The SATMC alleged that Chinese exporters were dumping their

granted China market economy status before this investigation had been

tyres in South Africa and that, as a result, domestic

initiated. What it was obliged to do, was to investigate

producers were suffering material injury. Having

whether sales in China, by the 6 Chinese producers/

found that the SATMC’s application contained the

exporters who responded, had been made in the

required information constituting a prima facie case of dumping, material injury and causation, ITAC initiated a formal investigation. Following its usual procedures, ITAC published a notice of initiation and invited

ordinary course of trade. In making this determination,

❝

ITAC had, amongst others, investigated whether

The main ground for

government intervention existed such that prices could not have been determined according to free market

all interested parties to make submissions on the

challenging ITAC’s

principles, as it is required to do in terms of the ITA Act.

allegations of the SATMC. ITAC received responses

finding was that ITAC

Based on the information gathered by it, ITAC had come

from a number of interested parties including six of the major Chinese tyre exporters, who co-operated with

to the conclusion with regard to each of the 6 Chinese

had erred in its

exporters that cooperated with the investigation that

ITAC, providing it with information. The remaining

determination of the

their prices were set in the ordinary course of trade

Chinese tyre exporters did not respond.

‘normal value’ of the

and could therefore be used. With regard to those

Chinese tyres

ITAC decided to base its decision on the best (other)

ITAC conducted an exhaustive 15-month investigation, issuing its final report on 12 February 2007. Based on information it received and analysed, ITAC determined

❞

exporters that did not cooperate with the investigation, information available, as is provided for in its AntiDumping Regulations. The best other information

that tires were not being dumped by the Chinese

available for the non co-operating producers/exporters

exporters that had co-operated with ITAC. ITAC also

were the information provided by SATMC in their

found that, based on the information provided by the SATMC, tires had been dumped by the non co-operating exporters.

application because ITAC had no information from these non co-operating Chinese producers/exporters.

However, ITAC determined that there was an insufficient link between these dumped tyres and the injury suffered by domestic producer, or in

ITAC and the Minister of Trade and Industry opposed the review application

the parlance of the ITA Act, that there, were other factors that detracted

by SATMC as it had conducted a proper investigation in this matter. The

sufficiently from the casual link between dumping and the material

review application was heard in the Pretoria High Court on 7 and 8 June

injury experiences by the domestic producers of tires. ITAC therefore

2010. The High Court upheld the review and set aside ITAC’s determination

recommended to the Minister of Trade and Industry that the investigation

and the Minister’s decision. Presiding Judge Hartzenberg in his ruling did not

be terminated without the imposition of anti-dumping duties. The Minister

deal with all the grounds of review but only with SATMC’s main complaint,

accepted ITAC’s recommendation.

namely that ITAC had wrongly failed to investigate the market economy status of the Chinese industry. Judge Hartzenberg found that ITAC had

Subsequent to the Minister’s decision, the SATMC and four domestic

failed to properly consider whether to base its determination of the normal

producers of tyres in the Southern African Customs Union (SACU) served

value of the tyres of the Chinese exporters which had co-operated with

an review application on ITAC and the Minister of Trade and Industry.

its investigation, on the prices in a third country. The Judge found that the

Their main ground for challenging ITAC’s finding was that ITAC had erred

most important aspect of ITAC’s investigation “was to determine whether the economy of the exporting country is a free market economy or not”.

in its determination of the “normal value” of the Chinese tyres – the normal value, or the home market price, is one of two figures calculated by ITAC to determine if dumping is taking place. Specifically, the SATMC

ITAC and the Minister of Trade and Industry applied for leave to appeal

contended that, as a result of government intervention in China, the

against the judgement and the application was granted. Subsequently, ITAC

domestic prices of the Chinese exporters were not determined according

and the Minister of Trade and Industry filed an appeal in the Supreme Court

to free market principles and that ITAC should accordingly determine

of Appeal. The appeal was heard in the Supreme Court of Appeal on 7

their normal value on the basis of the prices of comparable tyres in a

September 2011. ITAC and the Minister argued in the appeal application

third country.

that the High Court erred in its interpretation and application of Section

6 • O n e - o n - O n e

32(4) of the ITA Act. The question raised by this section is not whether

information. Also bear in mind that just because a product is cheap, does not

the exporters accused of dumping operate in a free market economy or

necessarily mean it is dumped.

industry, but whether their particular prices in their domestic market are determined according to free market principles and, if not, whether this is

Pertaining to this particular case, South Africa’s granting of market economy

because of government intervention. Only if ITAC concludes that the prices

status to China in June 2004 necessitated making changes to ITAC’s anti-

of the exporters in their domestic market is not determined according to free

dumping methodology, in particular the determination of normal value,

market principles because of government intervention, may ITAC invoke this

moving away from prices in a surrogate country to actual domestic prices

section, thereby basing its determination of the normal value on the prices

in China.

of the product in a third country. ITAC and the Minister also argued that ITAC had conducted a detailed investigation, in good faith, of the question

Would you concede that human error can sometimes occur when making

whether the domestic prices of the co-operating exporters were determined

these calculations?

in accordance with free market principles. ITAC had rationally and reasonably

Notwithstanding the rigorous and evidence based approach to these

concluded that the price had indeed been so determined. It was noted that

investigations, the checks and balances inherent in the procedure as laid out

this conclusion was not inconsistent with ITAC’s determination of the normal

in our regulations, there is always the remote possibility that an error can be

value of the tyres of the non co-operating exporters on the basis of the prices

made. That being said, in this particular case, the Court did not find a problem

in a third country, namely Taipei. ITAC applied the Taipei prices to the non

with the way the investigation was conducted.

co-operating exporters only because they had failed to counter the prima

facie case the SATMC had made against them.

Criticism has further been levelled at ITAC pertaining to the calibre of staff used to conduct this investigation?

Is ITAC subject to auditing?

Yes, I’m aware of these allegations, however, the investigators that were used

The best checks to ensure that we are in fact operating in strict accordance

for this particular investigation, are very experienced – the lead investigator

with the rules and regulations, are court cases such as this one. Given the

has been with ITAC for 19 years. ITAC investigators work in teams of at least

nature of our work, we frequently find ourselves being questioned, because

two investigators, with a trainee possibly making up the third component.

the parties involved in these investigations and their representatives have an

It takes years to accumulate the knowledge and expertise to conduct these

active interest in the outcome of these investigations. ITAC’s decisions have

kinds of investigations and we would not entrust such an important task to

in some instances been challenged in court as a result. In our minds, losing a

someone who was ill-equipped for the job.

case based on a procedural issue would not be acceptable, as it would mean that we have somehow failed in our duties.

It has been maliciously implied that ITAC is far too incompetent to conduct these investigations properly but we would like to assure the industry

How would you define dumping?

that we adhere to our domestic regulations, which are based on the WTO

Dumping, which is a form of international price discrimination, refers to the

Agreements. Added to this, and as previously mentioned, we can only

practice of a firm selling the same good at a lower price in an export market

investigate what information is submitted to us. We cannot force anyone to

than in its domestic market. Dumping is not a prohibited business practice

participate in an investigation, it’s ultimately their choice. The court in this

and firms throughout the world engage in dumping to maximise profits or for

particular case has found that our investigation was conducted by competent

other reasons, including predatory intent.

investigators.

Dumping becomes an unfair business practice and actionable under

Some are suggesting that SA’s strong trading links with China may have

domestic and international law when it causes or threatens to cause material

played a role in the final outcome of this case?

injury to domestic manufacturers producing an identical or similar product to

While it could well be the case that SA’s has strong trade relations with China,

the dumped import, or retards the establishment of such a domestic industry.

this has had no impact on the outcome of this investigation. The investigations

Material injury is a technical term and refers to injury that is not insignificant.

we conduct are totally transparent, in accordance with our regulations and

It is measured in terms of declines in the prices, sales volume, profits, market

consistent with the WTO. We cannot be influenced by any such factors and

share, employment and other factors of domestic manufacturers. There

there is simply no room for us to be swayed one way or another. All we can

is therefore a necessary link between dumping and injury without which

do is carry out our investigations as per the required regulations and make

remedial action by national investigating authorities is not permissible.

the appropriate recommendation to the Minister.

To determine whether injurious dumping is taking place, we employ a well

What does require clarity, I believe, is that the South African government

documented method of calculation that is based on verified and/or verifiable

granted China market economic status in 2004. Prior to this date, China

O n e - o n - O n e • 7

8 • O n e - o n - O n e

was treated as a non-market economy by SA, as is still the case with the EU

separately - perhaps this is an area where the industry could assist by way

and the USA. Prior to 2004, a surrogate country was used to determine the

of funding to improve testing processes.

domestic selling price in China for calculation of the dumping margin but

It is important to keep in mind that our instruments result in a duty being

the new policy decision meant that the calculation method had to change

paid on imported products but only those that are imported through legal

accordingly, moving away from the surrogate country to actual domestic

channels and there is unfortunately always the possibility that products can

prices. Again, this was a policy decision by government, and in no way were

enter our borders illegally.

we biased in our investigation, as was born out by the outcome of the court case.

How many Chinese tyre makes are currently being imported into South Africa?

Would you care to elaborate on the investigation process and what it

I cannot give you an exact figure on the number of brands but in the

entails?

region of 357 000 000kg were imported during the first 9 months of 2011.

According to the Regulations, once a applicant/industry has appointed a

Kilogram is the unit of measurement in which imports figures are provided

consultant/lawyer/representative to represent them, all communication

by SARS.

relating to the investigation, will be directed at this representative. The process of investigation is lengthy and complicated, and it is acknowledged

How does the current import duty structure work?

that representatives can play an important role in assisting industry. We have,

Currently, import duties (normal customs duties) range from 15% up to

however, found that the practice of communicating solely with representatives

30%, depending on where the tyres are imported from. Chinese tyres are

has its downfalls as it can result in disjunction between ITAC and industry. We

subject to between 25-30% duty.

have since amended the practise in an effort to better communicate with industry, by also sending copies of correspondence directly to industry.

On that front, I understand that the manner in which customs duty is

Industry lodges an application, which if accepted by the Commission for

calculated is also problematic for the tyre industry in that it is calculated as

further investigation, is published for comment. Once the investigation is

a percentage of the price per kilogram (as this is the unit of measurement),

published, ITAC communicates with the government concerned, in this case

which can encourage under-invoicing on the part of exporters/importers

the Chinese government, informing them of the investigation and asking for

in order to lessen the burden of the duty. Again, we acknowledge that this

companies involved in tyre production to cooperate and submit the required

is a challenge which cannot be addressed by ITAC.

information. I must point out here that participation is a choice - there is no law that requires exporters or importers to cooperate with an investigation

Having said that, and at risk of appearing unsympathetic to the plight of

such as this.

the industry, we are participating with other stakeholders in taking an

Tyre manufacturers in the foreign country that are willing to cooperate are

under-invoicing, controls, customs duty, etc. – in the hope of arriving at

then paid a visit by ITAC investigators to verify the information submitted

a complete policy response package to all the challenges faced by the

pertaining to prices, costing, manufacturing process and so on. It is

industry. The dti is heading this initiative.

active approach in order to tackle the collective issues at hand – quality,

important to stress that we are not there in an auditing capacity, but to verify submitted information relating to for example their costs; the prices at which

Added to this, as stated above, we have also changed our practice of

the product sells for on the domestic market and the prices at which the

communicating only with the representatives of applicants, for fear of

product is exported. The exact same process is used in verifying information

creating the impression that we are unapproachable to industry.

submitted by local producers in SA and importers of Chinese tyres. In terms of the tyre industry, we would like to invite them (not that We have it on good authority that only a mere handful of Chinese tyre

they need an invitation) to submit a new anti-dumping application with

makers and local importers complied with the investigation.

us, should they so wish. We are open to them at all times and despite

As I’ve already stated, their cooperation is voluntary, however it is in their

contrary opinion, will do our level best to assist the South African tyre

best interests to participate. For those who do not participate, the import

sector any way that we can. Although the granting of market economy

duty is calculated using the information that is brought to the table by the

status had an effect in the manner in which the anti-dumping instrument

SA industry.

can be used, it does not mean that we are no longer capable of acting against China, as is evidenced by the other anti-dumping actions we have

What about the quality issue?

taken against China. All it means is that we need to play by the rules as

Quality/safety concerns are not addressed by ITAC through anti-dumping

laid out by domestic legislation, the international practice and within the

action but by the SABS, therefore this issue needs to be addressed

set policy framework.

O n e - o n - O n e • 9

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F o c u s o n T r i a n g l e T y r e s • 1 1

TRIANGLE – SETTING A BENCHMARK IN CHINA ‘There are nine million bicycles in Beijing..’ so go the popular lyrics made famous by soul singer, Katie Melua, and pretty much what I expect to see upon arrival at the fascinating Asian nation of China. To my surprise, the modern skyscrapers, flashy luxury cars and immaculately-kept streets and highways that greet me are a far cry from the China depicted in the song. It soon hits home that the face of China has changed forever, and in a span of only 10 years.

1 2 • F o c u s o n T r i a n g l e T y r e s

Lighting up the night skies – Triangle’s headquarters in Weihai.

A short connecting flight from Beijing to the coastal city of Weihai (recently

For this reason alone, I am intrigued to find out more about the company and

voted the most sought-after city in China to live in), takes me to another

its modus operandi. I’m particularly struck by its notable accomplishments

Chinese thriving metropolis and the headquarters of Triangle Tyre Co. Ltd.

in the export market, given China’s reputation for producing low cost

I’ve been invited to visit the Chinese tyre manufacturing giant for a close-up

products. Clearly, Triangle Tyres is not to be confused with dubious product

look at its operations and its new flagship ‘green’ TBR plant currently under

emerging from some of China’s tyre plants today. That Triangle’s products

construction.

have found favour with some of the world’s most discerning buyers is testament in itself that this Chinese tyre manufacturer must be doing

I arrive at what can only be described as a majestic looking building,

something right.

housing Triangle’s headquarters. The architecture is impressive as are the grounds which are neat and beautifully landscaped and maintained, much

In South Africa, we are hearing that the performance of their 29.5R25 at one

like the rest of China.

of the country’s top coal mines has been outperforming the competition with Triangle test tyres recording an average of more than 10 235 hours,

Moreover, the building is an accurate reflection of Triangle’s long standing

according to CFP’s Alida Mouton, Import Director of CFP Tyres, who are the

presence in the market. In contrast to the majority of the nation’s tyre

exclusive distributors for Triangle Tyres in southern Africa and the winners

manufacturing facilities which were only established in the last decade,

of the TDAFA Importer of the Year Award in 2010.

the Triangle Group boasts a rich history that dates back to 1976. But, suffice it to say that over the last 35 years, the Company has undergone a substantial transformation, from a wholly state-owned concern to one that is now preparing for a listing on the Stock Exchange. More important, the emphasis placed on producing a quality product has gained the respect of both the domestic market and the international community alike. Today, Triangle tyres are sold in over 160 countries, with the Company supplying OE tyres to almost 40 auto manufacturers throughout the world, among them, FAW, Dong Feng Motor Group, Golden Dragon and Yontong Auto Corp. Internationally, it has also established strategic partnerships with leading names such as Caterpillar, Volvo and Goodyear, an achievement that is largely responsible for its current ranking as the world’s fourth largest OTR tyre supplier.

1 4 • F o c u s o n T r i a n g l e T y r e s

Weihai – a modern costal city is said to offer a high standard of living.

Export performance is ever more astounding when one considers that

Of course, in order to satisfy our foreign clients, we have focussed not

exports were something that the Company embarked on chiefly as a way to

only on constantly improving the quality of our products but equally, on

recoup raw material costs back in 1990, according to Lin Xiaobin, Senior

acquiring all the required international certifications such as DOT, ECE,

Vice President and Director of the International Trade Management Center.

CCC and so on. On home soil, Triangle was awarded first prize by the State for ‘National Science & Technology Progress’ and is also one of only two

He claims: “Ironically exports have come a long way since the early nineties,

Approved State Level Tyre Engineering Facilities in China.”

particularly in the OTR segment, with foreign sales largely overtaking domestic use. Presently, close on 90 percent of our total OTR capacity is

Now that I’m here I also intend to find out more about Triangle’s recent

bound for markets outside of China. So I guess, you could say that exports

investment of an undisclosed sum in a state–of-the-art R&D Centre in

have become the new focus.

Akron, Ohio, the only Chinese tyre manufacturer to base its R&D Centre in

Artist’s impression of Triangle’s new green factory on the outskirts of Weihai.

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1 6 • F o c u s o n T r i a n g l e T y r e s

Board Chairman Ding Yuhua.

David Sun pictured here with client, Caterpillar.

the USA. Although not yet fully operational, I’m told that eventually the R&D

factory (measuring approximately 350 000 square metres and built with the

Centre will employ around 20 skilled engineers and scientists with the aim

capacity to produce 5,6 million truck and bus tyres, or 8 million passenger

of propelling Triangle Tyres into the future, not only as a worthy follower,

tyres) that is being constructed in Shandong Province will be powered

but as a credible industry leader.

solely on solar energy! By sticking to the guidelines of ‘low carbon, high efficiency, being green and environmentally safe’, Triangle sets key targets

Explains David Sun, Deputy Director of International Market Sales

in the construction of Triangle Industrial Park as green energy utilisation,

Department: “We are passionate about technology, hence why we chose

reduction of greenhouse gas discharge, integrated utilisation of water

to incorporate a geometric sphere in our company logo. Technology is what

resources, purification of smoke and gas, recycling of surplus heat, as well

will ultimately differentiate us from the competition.”

as information-based and automatic production.

And differentiate themselves they must, or else, stand the risk of being

Explains Sun:“We will generate reproducible and pollution-free solar energy

painted with the same brush as some of their less professional counterparts

for factory lighting and other daily functions so as to promote low-carbon

in the market.

production. Energy will also be saved (by at least 10%) via the adoption of first-phase low-temperature mixing technology, thereby upping efficiency

According to Lin, out of the myriad of tyre makers presently operating in

by 20% and further improving radial tyre quality.

China, only a handful (10-20), can be considered as serious players. “A new spray system will further purify odours to resolve the gas disposition Echoes Sun:“Chinese tyre plants that do not comply with international

issue in tyre production while new technology and devices will also be

manufacturing and distribution practices, and there are many, are not

embraced to recycle surplus heat and gas to eradicate gas and heat discharge.

only disrupting markets abroad, they are posing a massive problem to

And of course, water will be recycled during production to avoid wastage.”

respectable Chinese tyre makers such as ourselves, who strive to do everything by the ‘book’. The Triangle Group, for one, cannot afford for

And last, but by no means least, the Company will apply digital and visual

its reputation to be tarnished in the marketplace, nor can we afford to

control systems to all processes related to tyre production, together with

subscribe to the low cost practices to which they adhere. On the contrary,

a materials flow automatic management system to promote modernised

we need to go the extra mile in terms of employing the latest technology

management.

and equipment which is why we upgrade our facilities and equipment on a regular basis, importing machinery from world-famous companies in Italy,

With this impressive new facility nearing completion,Triangle will reach

Holland, Germany, the USA and the like. This is just one way to ensure that

yet another important milestone in its already successful path towards

we stand head and shoulders above less reputable operators.”

becoming one of the world’s greatest tyre companies.

Going Green

Having gained a basic understanding of the Company and its immediate

More impressive still, in China, Triangle leads the way in ‘green’

goals, now I am keen to find out more about its plans for the South African

manufacturing, so much so in fact, that the new US$465 million TBR

and African markets.

F o c u s o n T r i a n g l e T y r e s • 1 9

The new TBR plant currently under construction.

The first thing I discover is that all tyres manufactured for the African market are built to specific requirements and in collaboration with the Company’s distribution partners. Says Lin: “Our South African customers were very clear in their instructions to us to build tyres that are strong, durable and suitable for their market. In order to comply we elicited the expertise of industry specialists in 2008 to help us produce OTR tyres that could stand up to the test. Since then, we are happy to say that quality has improved tenfold, and the incidence of claims is virtually zero. The African market is extremely important for us, especially given recent developments in the EU/USA. Chinese products are meeting with stiff resistance by way of import tariffs and trade restrictions in these markets, so with trading alliances hanging in the balance, South Africa plus other emerging markets are taking on even greater significance for us.” This would explain the Company’s willingness to assist its partners in our region by way of quality, tailor-made product and competitive price. That being said, although Triangle Tyres are not the most expensive in South Africa, they are certainly not the cheapest. According to Lin, the Company recognises the role that competitive pricing can play in establishing a new brand, but eventually, he says, the product has to stand alone and the retail price has to reflect the costs associated with R&D and high raw material costs. He claims: “The price of natural rubber will continue to soar as brokers are basing the purchase price on their own desire for maximum profit.” Apparently, the brokers are often a tricky link in the chain in that they dictate market conditions. Unlike the tyre companies, they have the

Above: Triangle Industrial Park boasts an area of approximately 1,73million sqm. Below: Liana Shaw outside Triangle’s headquarters.

F o c u s o n T r i a n g l e T y r e s • 2 1

Ding pledges that Triangle will abide by low carbon manufacturing principles at a global tyre industry summit in 2009.

money to pay the rubber plantations in hard cash, placing them in the

among the world’s largest tyre manufacturers in the next five to 10 years

formidable position of being able to control the market. The same can be

(currently they rank 13/14).

said for oil and other commodities necessary to the production of tyres which are also commanded by brokers.

“We are proud of our proud history and many achievements along the way and are fully intent on reaching the 100-year mark, at the very least,”

As such, if credible companies such as the Triangle Group are going to

suggests Sun. “More important still, our goal is to transform the Company

continue investing in R&D and technology in order to elevate their world

from national to international status, an achievement that is well within our

ranking, they have to begin commanding realistic, market-related prices for

reach.”

their products. I went to China expecting to see an emerging market. Instead, I was Lin explains that in China, tyre makers all tend to be grouped together into a

confronted by a contemporary community that is built on a proud work

so-called ‘Chinese box’ and this creates a problem. “We are constantly striving

ethic and tradition, not to mention a unique culture that has catapulted

to extricate ourselves from this box which spells cheaply manufactured tyres

China onto the world stage in a very short space of time. That China has

that are simply being dumped at low prices around the world.”

moved with the times is no under-statement. This brave and hard-working nation has risen above extreme oppression to become the world’s second

What also becomes indelibly clear to me during my visit to China is the stock

largest economy, a place, which in my opinion, it richly deserves.

placed on suppliers and partners. Both are chosen with extreme care and caution and business will only be conducted once trust and respect has been earned. Triangle in particular, attributes much of its success abroad to its foreign distribution partners, among them, Cape Town-based CFP Tyres, with whom they have built and nurtured a close alliance for the last 11 years. So what’s next for this dynamic Chinese company? A great deal, it would seem. A number of new PCR plants are planned for construction in other Chinese provinces (again, each adhering to green manufacturing principles), radial tyres for the agriculture sector are ready for testing (an exciting development for South Africa as well) and as already mentioned, the Company is well on its way to becoming a listed company on the Chinese Stock Exchange. According to Lin and Sun, their long-term aim is to achieve a top 10 ranking

Triangle wins national science and technology first class prize in 2007 for its ‘Jumbo OTR Tyre Manufacturing Technology and Equipment’.

2 2 • E v e n t s

South African Ploughing Competition Launched at Nampo 2012 Nampo 2012 will be a year to remember. Graan/Grain SA, BKT and Tubestone are extremely proud and excited to announce that they will be introducing an annual Ploughing Competition of National standard, based on the renowned international World Ploughing Competition. The first international provisional Governing Board was set up at

Demonstration next year, and begin the official Ploughing Competition in

Workington, Cumberland, England, on the 5th of February, 1952. The

2013.

first official World Ploughing Competition was held in 1953, in Canada, with only a handful participants. Since then, the competition has grown to where it is today, with 58 countries partaking.

The Ploughing Demonstration will be hosted by esteemed World Ploughing Competition participants from Sweden, who will act as instructors. Two demonstrations will take place each day, after which, Nampo visitors will

The World Ploughing organization has several objectives, which clearly

have the chance to show what they’ve got on the field. All demonstration

defines what this competition is all about. They want to foster and preserve

entrants will have to complete an entry form at the Tubestone stand before

the art of ploughing and improve the skill of ploughing the land. This will

moving to the demonstration field.

also be one of Graan/Grain SA, BKT and Tubestone’s objectives as they feel that this is indeed an art and skill to be well-kept and passed on to future generations. Even though agricultural machinery, tractors and equipment has become very modern and advanced, the knack for proper ploughing

Graan/Grain SA, BKT and Tubestone will affiliate themselves with several sponsors to ensure only the best tractors and ploughs are available for the participants.

will prevail, as it is, an art.

The highlight of the demonstration event is the lucky draw competition

This is why the World Ploughing Competition has been so successful

which will form part of the occasion. All participants will be eligible for the

and popular over the years, they urge the development and adoption of

competition by completing the entry form, from which one winner will be

improved techniques and aids to man in all branches of agriculture. The

chosen by means of a lucky draw. The price for the winner will be an all-

competition also fosters a vigorous spirit of co-operation and enterprise in

expense paid opportunity to attend the World Ploughing Competition 2012

producing food for an increasing world population. This goal and purpose

during September, in Croatia.

is the same for everyone, thus encouraging a unique fellowship between

Graan/Grain SA, BKT and Tubestone are extremely enthusiastic about this

everyone involved, participants and organizers alike. Graan/Grain SA, BKT and Tubestone plan to present a Ploughing

new event and foresee a brilliant and exciting future for the South African Ploughing Competition, going Back To Earth.

2 4 • M a n u f a c t u r i n g N e w s

APOLLO TYRES ACHIEVES LEVEL 5 BBBEE SCORECARD Apollo Tyres SA (Pty) Ltd is pleased to announce that the company has recently achieved a Level 5 status, with a score of 80%, on the Broad Based Economic Empowerment Balanced Scorecard. “We are thrilled with our new BBBEE level 5 status achievement” enthuses Dr. Luis Ceneviz (CEO of Apollo Tyres SA) who goes on to explain: “The company has worked tirelessly to improve its status level. We wholly support the BBBEE initiative and take gratification in the fact that we are allowing people the opportunities to improve their lives in a positive and equitable manner.”

commitment and confidence in the SA tyre industry. Apollo envisages future

The company’s recent BBBEE achievement, as well as its financial

development throughout Africa, with a focus on economic investment and

investment in the Southern African market, sends a clear message of its

job creation.

Orion Engineered Carbons Golf Day Algorax trading as Orion Engineered Carbons hosted a successful customer golf day at Ebotse Golf and Country Estate on Thursday, 10 November. Braving the heat, the golfers enjoyed the American Scramble format played on this spectacular links course in Benoni. The golf day provided a relaxed and enjoyable networking opportunity, while allowing the company to express its appreciation to its rubber and pigment black customers for their support throughout the year. As from 1 August 2011, Algorax began trading as Orion Engineered Carbons, following the transfer of Evonik’s global carbon black business to a fully independent company, Orion Engineered Carbons. The new company owned by Rhone Capital and Triton Partners is the premium supplier of carbon black, generating long-term benefits for stakeholders while remaining committed to responsible business practices with focus on team culture, reliability and sustainability.

Photographed here is the winning fourball of (from the left) Phil Johnson (Masterbatch SA), Herman Steyn & Marius Scholtz (Dunlop Industrial Products) and Warren van Rensburg (Masterbatch SA). Also enjoying the day were Rob Macnab (West African Group), Harold Dlamini (Bandag), Pieter Delport (Polar Retreading Products) and Reg Michaels (Continental Printing Inks).

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BRIDGESTONE GIVES BACK TO CONSERVATION In addition to its world-renowned conservation programme, centred on the unique Cape mountain leopard which includes the use of infra-red cameras and GPS radio-collars to monitor leopard movements, the Cape Leopard Trust is also dedicated to educating and encouraging the youth who have a vested interest in the environment. Supporting this worthy initiative is Bridgestone South Africa.

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Mandy Lovell, Bridgestone SAâ&#x20AC;&#x2122;s public relations manager, and Winnie Theron, admin manager at Bridgestoneâ&#x20AC;&#x2122;s Cape Town regional office, recently joined an education and outreach camp organised by the Cape Leopard Trust in partnership with Cape Nature in the Western Capeâ&#x20AC;&#x2122;s beautiful Cederberg Mountains for Grade 7 learners from Elizabethfontein School. On arrival at the camp, the children were given a talk by Elizabeth on the wilderness area where she also talked about safety and dangers associated with this terrain. The next three days were spent animal tracking, viewing rock art/formations and stone age tools, telling stories around the campfire at night, hiking, studying flora and fauna as well as a geological outing for fossil hunting.

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â&#x20AC;&#x153;The importance of educating learners about nature and the conservation of animals and plants is wholeheartedly supported by Bridgestone and we are committed in our efforts to help ensure a healthy environment for present and future generations,â&#x20AC;? said Lovell.

Not all tyres are created equal.

Infinity tyres. Bred to be better. There are tyres. Then there are Inﬁnity tyres. Designed speciﬁcally to meet the demands of your customers’ lives, their unfailing safety, dependability and performance mean they’re the natural choice for every motoring situation.

2 8 • R e t r e a d i n g N e w s

Exciting new product line-up for Bandag SA In keeping with its ongoing quest to develop Application Specific treads,

Bandag

recently

released its latest offering, the new BDR-AS tread, at a launch that saw invited guests converging on the SAB Museum in downtown Johannesburg.

The event drew a large crowd of media, dealers and end users who gathered to hear all about the alleged benefits of the new tread design, in particular, some impressive results obtained after an extensive testing period with one of South Africa’s top transport companies. According to Monal Naik, Bandag Product Manager, with increasing competition, rising operating costs and a tough economic climate, regional fleets are looking for innovative tyre solutions that provide slow wear, excellent traction and a low cost of ownership. Says Naik: “Like every Bandag product, BDR-AS oozes quality. We believe it has arrived at the right time to deliver the perfect balance of high performance with low cost of ownership.” This was the thinking behind to BDR-AS being tested at one of Bandag Southern Africa’s Blue Chip Fleets, where it exceeded all expectations by providing this unique balance. The product development initiative extended over 12 months and traversed over 500 000kms of testing to deliver the next generation tread for the Regional Drive Segment. Ideally suited for regional drive conditions and featuring a staggered lug design

R e t r e a d i n g N e w s • 2 9

A sneak preview of Bandag’s creative new ad campaign.

to minimise tread squirm and deliver long even wear, Bandag’s test partner,

This ultimately means that Bandag fleets will now receive reports quicker

Elite Line Haul, had achieved well over 200 000kms on the test tyres which is

and findings can be used to implement required changes sooner rather

an astounding feat for any tyre, especially in a drive application.

than later. And of course, the biggest benefit of all will be the elimination of

Apparently, tread lugs are tapered for a bigger footprint and increased mileage

finger errors when capturing information manually.

as the tyre wears, while the centre tie bars allow for more stability and better

Features and benefits of the ProTurbo Mobi include: accurate and ‘fool’

handling. Plus cutting at 17.5mm, BDR-AS offers a lighter retread alternative

proof data capture using Bluetooth technology; quicker information

for the drive application and is the perfect complement to Bandag’s champion

processing; faster access to reports; wireless tyre pressure measurement;

products such as the BMS and BDV, both of which are considered the

wireless tread depth measurement; paperless process – environmentally

benchmark in their respective product categories.

friendly.

The BDR-AS is available in sizes 215, 225, 235, 245, 255 through any Bandag

Explains Naik: “Both these innovations come at a time when both the

Tyre Service Dealer around the country. The Bandag Application Specific

transport and truck tyre replacement markets are under tremendous

Range, all exclusively designed by Bandag, now caters for every conventional

pressure from a host of macro and micro economic factors.

truck tyre application from long haul and regional, to mixed service.

Bandag has identified solutions to these challenges and have every

New techno-savvy product offering

confidence that the Application Specific product range together with its

In addition and in the interests of providing added value, Bandag SA also took

value added services will assist both its franchisees and fleet customers to

the opportunity to introduce its new ProTurbo Mobi, mobile technology that will

overcome many of these current threats.”

now make for more accurate information capturing, measuring and reporting.

New advertising campaign unveiled

From this point on Bandag fleet consultants will be using handheld devices to

Also on display on the day was a sneak preview of Bandag’s innovative new

accurately measure mm and kPa as a report tool, using Bluetooth technology.

advertising campaign which consisted of ‘life-like’ pieces of art

Once the information has been collected, no data capturing will be necessary as the ProTurbo Mobi application will synchronise with the online database through the push of a button and a live internet connection.

On display were a Baobab Tree, Lion, Shark and Buffalo, all made from Bandag rubber and each bearing a unique message in terms of Bandag’s brand positioning and service offering. The images created are striking and inventive. Moreover the African theme paired with the concept of ART, signifies that Bandag SA is proudly South African and always strives for perfection in everything it does. John Laskarides, MD of Bandag SA concluded the day’s proceedings by thanking the guests for their attendance and pointing out that Bandag’s commitment is to continually develop new and better products, programmes and services that will increase the profitability and competitiveness of its franchise network while simultaneously showing significant cost savings to its fleet customers.

3 0 • N e w P r o d u c t s

FIRST APOLLO PRODUCT, PREMIUM ALL TERRAIN TYRE, HITS SA MARKET The new Apollo Hawkz range has landed in South Africa. With the weight of the Apollo name behind it, this new premium all terrain tyre for the SUV/ light truck 4x4 market, brings with it impressive credentials to take on the South African terrain in rugged style. The new Apollo Hawkz has allegedly undergone rigorous testing in order to furnish the African and South African SUV, bakkie and 4x4 markets with a tyre that delivers comfort, security and boundless adventure. In fact, benchmark testing against other leading brands which included wet grip and braking, dry lap time, sand pit, 43 degree gradient testing as well as level two and three obstacles, revealed that the new Apollo Hawkz not only delivers, but in some cases, even outperforms some top competitors. Says Gareth Passmore, Head of Sales and Marketing at Apollo Tyres SA: “Being ideally suited to Southern African conditions, these tyres have been researched and designed along global standards to keep you moving forward, whether you decide to stay on the road or choose to make your own path.” He further claims that the new tyre is designed to enhance mileage on tar and gravel, thereby proving ideally suitable for work or recreation. Allegedly the tyre boasts several notable features, among them, a sipe design that provides additional traction in wet weather, four wide centre grooves to aid water evacuation, a wear resistant tread design to enhance mileage and a continuous centre rib that provides precise steering and stability at speed, whilst also reducing rolling resistance. Ready for a challenge, it is said to focus on maximum traction and offroad performance without sacrificing your on-road experience. The tyre has reinforced 2-ply sidewalls for protection against damage, a special tread compound to ensure performance in on or off-road conditions, plus enhanced grip in mud, rock and sand conditions courtesy of the five-rib tread pattern with multiple tapered and zig-zag grooves. And to enhance grip and handling, it also has robust tread blocks with interactive sipes, making slippery terrain a walk in the park. Adds Dr. Luis Ceneviz, CEO of Apollo Tyres SA: “Initially we will be launching two Apollo products in the market, namely the Apollo Hawkz A/T for drivers favouring on-road and lighter off-road conditions, and the Apollo Hawkz R/T designed for more serious off-road conditions. Both tyres will be available from selected Dunlop Zone stores from November 2011.

N e w P r o d u c t s • 3 1

3 2 • N e w P r o d u c t s

FALKEN WILDPEAK ARRIVES IN SA Stamford Tyres has reinvigorated the all-performance sport utility and light

addition of a Bloemfontein

truck tyre market with the introduction of the new all-terrain, all-purpose

distribution centre.

Falken WildPeak A/T. Stamford

Tyres the

has

Initially offering eight of the most popular sizes, the range will be increased

reinvigorated

all-

to approximately 25 sizes during the next year. The tyre is on offer in

performance sport utility

today’s most popular original equipment sizes in metric and LT metric with

and light truck tyre market

choices of 15 to 18-inch wheel diameters, while the expanded range will

with the introduction of the

encompass up to 20-inch wheel diameters.

new all-terrain, all-purpose Falken WildPeak A/T.

Falken claims to be bringing an extensive performance advantage to the established light truck/SUV tyre market with the new WildPeak A/T, saying

Initially offering eight of the most popular sizes, the range will be increased

that the tyre features an aggressive stance for maximum traction together

to approximately 25 sizes during the next year. The tyre is on offer in today’s

with a symmetric five-rib pattern and rigid block designs that allow for

most popular original equipment sizes in metric and LT metric with choices

exceptional on-road response and optimised off-road handling. It also sports two stiff, extra-wide steel belts for stability. In addition, four wide, aggressive multi-angled grooves allow for maximum water, mud and snow evacuation,

of 15 to 18-inch wheel diameters, while the expanded

Falken claims the

Falken claims to be bringing an extensive performance

combined benefits of

advantage to the established light truck/SUV tyre

Add to that a durable rubber compound and Falken

market with the new WildPeak A/T, saying that the

this tyre are sure

tyre features an aggressive stance for maximum

to make it a popular

traction together with a symmetric five-rib pattern and

choice among consumers

response and optimised off-road handling. It also sports

while aggressive biting block edges provide unparalleled traction and control.

range will encompass up to 20-inch wheel diameters.

❝

❞

claims the combined benefits of this tyre are sure to

rigid block designs that allow for exceptional on-road two stiff, extra-wide steel belts for stability.

make it a popular choice among consumers. In addition, four wide, aggressive multi-angled grooves allow for maximum Following the launch of WildPeak A/T, the current range of high performance

water, mud and snow evacuation, while aggressive biting block edges

tyres available in South Africa is to be enhanced by the introduction of the

provide unparalleled traction and control.

all-new FK453CC, designed specifically for the modern performance SUV market, followed by the flagship passenger ultra-high performance FK453.

Add to that a durable rubber compound and Falken claims the combined benefits of this tyre are sure to make it a popular choice among consumers.

Meanwhile,

with

the

backing of the Sumitomo

Following the launch of WildPeak A/T, the current range of high performance

Rubber Group, Stamford

tyres available in South Africa is to be enhanced by the introduction of the

Tyres

established

all-new FK453CC, designed specifically for the modern performance SUV

a nationwide presence

has

market, followed by the flagship passenger ultra-high performance FK453.

with sales, warehousing and distribution bases in Johannesburg,

Durban,

Meanwhile, with the backing of the Sumitomo Rubber Group, Stamford Tyres has established a nationwide presence with sales, warehousing and

Port

distribution bases in Johannesburg, Durban, Cape Town and Port Elizabeth,

Elizabeth, soon to be

soon to be enhanced with the addition of a Bloemfontein distribution

enhanced

centre.

Cape

Town

and with

the

E+I 15442

D i s t r i b u t i o n • 3 3

3 4 • C o n t i C o r n e r

CUSTOMERS CONFIRM CONTINENTAL RULES IN BLOEMFONTEIN!

Louis de Villiers. Homsek Dairies

Continental’s latest new generation 2 truck tyres offer tangible customer benefits. This is not a marketing statement anymore as it has been proven at two transport operators in Bloemfontein. When any new tyre is launched, there is a certain amount of doubt as to the manufacturer’s marketing claims. So it offers the lowest overall driving costs… Really? That’s probably what transport operators thought when Continental launched its new generation 2 truck tyres in February this year. Continental made some bold promises, claiming that the new generation 2 truck tyres would make a real difference in lowering the transport operators’ overall driving costs. However the sceptics wondered if this would ever really materialise. After all, talk is cheap… But two Bloemfontein-based transport operators have proven beyond any doubt that Continental’s new generation 2 truck tyres truly are lowering their overall driving costs. Frans Pretorius, owner of FMJ Trust says, “We got 120 000 km’s with the old generation steer tyres; and today we’re achieving 160 000 km’s with the new generation steer tyres.” This is more than a 30% increase in mileage performance.

E+I 15435

Cpk (cost per kilometer) is the single most important factor for the company. “I keep a tight rein on costs – from fuel consumption to tyre prices and longevity. The new Continental generation 2 truck tyres are definitely the way of the future for us. They also have good casings, which bodes well in terms of retreads,” says Pretorius

FMJ stands for Frans Maartens Johan – Pretorius’ first names. The company, which operates Scania truck tractors, commenced trading in 1997. “I was in the construction business when I started the company; initially this was just a sideline,” Pretorius recalls. The so-called “sideline” took off; and today FMJ trucks transport a variety of cargo. “We move containers, grain, coal, manganese and palletised goods,” reveals Pretorius. The company employs 21 people, including 16 drivers and Pretorius’ wife, Rene, who is the financial director. Louis de Villiers, logistics manager at Homsek Dairies, is yet another utterly delighted Continental customer “We are very happy with the Continental brand,” he comments. Homsek Dairies operates a fleet of predominantly Mercedes-Benz Actros truck tractors, and it names amongst its customer base prestigious companies such as Woolworths and Pick ‘n Pay. Being in the dairy game (fresh milk deliveries can never ever be late); Homsek has to run a tight ship. “Our trucks go out in the mornings and collect the milk. It generally leaves our premises by noon the next day; milk does not stay here for long,” explains De Villiers. Owner of one of the biggest herds in South Africa, Homsek produces milk, cream, custard, drinking yogurt and milk in both fresh and UHT formats. Tyres were however a major snag – which amounted to downtime and costly delays. “We are going through a lot

C o n t i C o r n e r • 3 5

We got 120 000 km’s with the old generation steer tyres; and today we’re achieving 160 000 km’s with the new generation steer tyres. Frans Pretorius FMJ Trust

of tyres on the farm. Our single axles run on dirt and tar roads – and the tyres just didn’t last (the refrigerated units and Tautliners run exclusively on tar roads),” says De Villiers. This is understandable. The trucks need to travel to farms to collect milk. “We need the most kilometres out of each and every tyre – maximum life and kilometres travelled,” adds De Villiers. “We use retreads on the trailers that we use on the farm; otherwise we only use new tyres. We keep all our casings; we only produce retreads from our own casings,” says De Villiers. The trucks average 12 000 km’s a month while the longdistance trucks do 20 000 to 25 000 km’s a month. “They run as far as Cape Town and Johannesburg,” De Villiers notes. The trucks (and hence the tyres) spend a considerable amount of time off road. Because stoppages are a distinct “no no”, the company has opted for the new generation 2 Continental truck tyres. “In the past we went for the cheapest possible tyre; we were not brand loyal. We realised that this did not make sense. Recently we took the decision to purchase a tyre that would give us good mileage. We asked Tyre Corporation which tyre would best suit our application; they had no hesitation in recommending the new generation 2 Continental truck tyres,” says De Villiers. This recommendation was worth its weight in gold. “We are getting double the mileage versus the tyres we used previously. Furthermore, driver comfort has improved; the drivers tell us that they can actually feel the difference.

They particularly like the 385/65R22.5 – they reckon that a wider tyre means a more comfortable ride,” De Villiers explains. The Continental brand is more than up to the task of surviving South Africa’s roads. “On hot days, the tar is really hot here. But our Continental tyres last – and they don’t lose pressure because of the heat. I am also delighted with the durability of the Continental tyres. Recently one of our drivers hit a pothole smack on. He had a mix of tyres on his trailer. None of the Continentals failed; two other brands’ tyres burst instantly,” reveals De Villiers. Given the company’s positive experiences with the Continental brand, it comes as no surprise to learn which tyres Homsek Dairies will be purchasing in time to come. “As a result of our positive experiences, we have bought more and more Continental tyres. On front axles we are only fitting the Continental HSR2 – since it has been specifically designed for steer axles. The tread pattern ensures even ground pressure, which leads to wear being spread evenly across the face of the tyre, helping to maintain good adhesion, especially when cornering and braking. And there is no doubt that this buying pattern will continue in the future,” concludes De Villiers. The message is clear: Continental’s new generation 2 truck tyres rule in Bloemfontein!

3 6 • B a n d a g N e w s

More than 50 years ago, BANDAG came up with a better idea for RECYCLING tyres

In 1957, Bandag introduced a unique process that made tyre retreading reliable and economical. Today, the retread industry recycles millions of truck tyres every year. This achievement not only keeps tyres out of landfills and protects our planet, but through continuous innovation, today’s Bandag retreads also use less fuel and make trucking fleets more efficient. Maybe that’s why we’ve hung around for so many years. Do you still think RECYCLING is GREEN? We’d like to believe it’s BLACK... With Bandag, you don’t have to be a tyre expert. You just have to know one! For more information on how you can benefit contact Bandag today on +27 11 439 6000 or visit www.bandag.co.za.

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3 8 • P r o m o t i o n

Auto and Truck Tyres partners SHOPRITE on road to growth and expansion With a new centralised distribution

base,

warehouse

that

a has

doubled in size, a growing fleet of 197 trucks and some 337 trailers, and a newly built dedicated workshopcum-tyre bay, Shoprite Gauteng is experiencing massive growth. And there to assist the Company in its expansion drive is ATT

With an extensive geographic location to

Shoprite: “With our facilities increasing at a

cover, ranging from Gauteng all the way

rapid rate we felt the need to bring the control

up to the Zimbabwean border, Shoprite

and maintenance of our tyres in-house for

has been compelled to make fundamental

better efficiency, speed and control. Having

(Auto & Truck Tyres), tyre

changes in order to service its customers

worked with ATT since 1998 when they first

more effectively and efficiently. This included

assumed responsibility for our tyre bay facility

distributor of new tyres and

dividing the business up into sectors, with

in City Deep, we knew that they were the right

fruit and veg being one and dry groceries

people for the job. At that stage the business

the other. It also meant greater use of the

was split between ATT and another supplier,

also the world’s largest

central warehouse in Centurion to which

but that ended at the end of 2005 when ATT

an increasing number of suppliers are now

assumed total responsibility.

retreading plant.

delivering.

“They not only supply us with a premium

Says Dawie du Preez, Transport Manager for

Chinese brand, Fullrun, which is delivering

retreads and incidentally,

P r o m o t i o n • 3 9

Dawie Du Preez (Transport Manager - Centurion), Gawie Du Toit (National Transport Manager), Robert Beaumont (Managing Director Auto & Truck Tyres), Lizel Nicolau (Sales and Marketing Director Auto & Truck Tyres)

Mambwe Chisala (Site Supervisor Auto & Truck Tyres), Dawie Du Preez (Transport Manager - Centurion), Lizel Nicolau (Sales and Marketing Director Auto & Truck Tyres), Robert Beaumont (Managing Director Auto & Truck Tyres)

on c.p.k., but also guarantee two recaps

in the country, we have been allocated a

per new tyre purchased. In the beginning,

central person who is in touch with their

we were sceptical about fitting a Chinese

entire network nationwide. One phone

make to the fleet but it turns out that our

call to him is all that is required from our

fears were groundless. In some cases, and

side. He handles the call and sends out the

when compared with other leading brands,

necessary assistance.

Fullrun is not only delivering on mileage, it

Any doubts we may have once harboured

is out-performing competitor brands.”

as to ATT’s ability to provide a national

According to Du Preez, ATT’s service-

service, have been dispelled along the

driven motto coupled with its ability to

way. Entrusting your tyre replacement and

make speedy decisions and assist with

maintenance to a ‘hungry’ independent can

on road breakdowns at a fixed pricing

sometimes do wonders for one’s business.

structure, irrespective of the location, is an

It is definitely working for us.”

added bonus and the reason why Shoprite

Concludes Robbie Beaumont, MD of ATT:

has chosen to partner with this dynamic

“We take great pride in being able to

independent.

provide Shoprite and other national fleets

Explains Du Preez: “Should a breakdown

with a premium product and service and are

occur anywhere in Gauteng, ATT will

honoured to be associated with blue chip

personally attend to the incident from their

companies such as these. Their growth is

Johannesburg-based operation. Elsewhere

our growth.”

T a l k i n g T y r e s • 4 1

SAFETY TECHNOLOGY

Beating the

odds

We all know that the average motorist knows

precious little about their tyres. And that tyres aren’t even a blip on the radar in terms of care and maintenance. The answer – more tech?

the kennel, check. The geyser is switched off, check. The newspaper is cancelled, check. Let’s go …

By Colin Mileman I’m fortunate enough to be involved in various forms of advanced driving Forget about speeding for one minute. For a brief moment, let’s ignore

instruction, from on-road courses that focus on safety and fuel economy

the diabolical statistics regarding drunk driving. Or the startling number of

to high-performance track days that explore the fine art of power,

pedestrians killed on our country’s roads.

performance, speed and cornering ability.

It’s widely accepted that under-inflated tyres are responsible for a significant

Yet there’s a common thread that runs through every driving course – and

proportion of the tragic accidents and fatalities that occur each and every

that’s how little Mr and Mrs Average know about their tyres. In one year I

day – some put that figure as high as 75-percent!

can probably count on one hand the number of people that can correctly

And the problem only becomes worse during the high-paced, concentrated

of tread wear indicators, and are able to relate the value of 2,5 mm tread

periods surrounding the main holidays during Easter and, of course, now

depth versus 1 mm and less.

explain the sidewall markings on a tyre, can identify and explain the purpose

at Christmas. More tellingly, only a handful of people know what the correct tyre Everyone has endured a long, tiring and often frustrating year, and the

pressures for their vehicle are, and even less are aware of the fully laden

lure of the beach holiday seems stronger than ever. Bags are packed, kids

pressures. Which means they hardly ever – maybe never – check their

are loaded, presents are tucked discreetly away. The dogs and cats are in

tyres for pressure, uneven wear or any form of damage.

4 28 • TGaol ok di ny ge aTr y rNeesw s

Therefore, odds are that on your annual pilgrimage to the coast this year, you’re completely surrounded by cars, bakkies, 4x4s, buses and taxis loaded to the hilt, and driven at relatively enthusiastic speeds, that are ticking time bombs. Damaged, worn and underinflated tyres abound, and we don’t need a mathematician to work out the dangerous odds – the 14 000 road deaths every year says enough. Or does it – because the situation doesn’t seem to be getting any better … A total obscurity for the rest of the year, the traffic officials seem to come out of their slumber during the peak holiday seasons to make a rare highvisibility appearance, and enthusiastically relate how many millions of vehicles were pulled over and inspected. But in my experience, this never actually translates into any meaningful

❝ Damaged, worn and underinflated tyres abound – the 14 000 road deaths every year says

action. “Yes sir, I have a valid licence. And my car’s disc is up to date,

enough. Or does it – because the situation

and now I’d like to get on my way.” But do the lights and indicators work?

doesn’t seem to be getting any better …

Is everyone wearing a safety belt? Are my tyres in roadworthy and safe

❞

operating condition? Who knows! We really need to come up with an “Own your OWN safety” campaign,

encompassing. These include new rubber compounds and inner linings

or something of the ilk, that reminds people of the desperate need to do

that reduce the loss of air over extended periods.

their own, and regular, simple safety checks on their vehicle, and their tyres in particular. It’s one of the key principles behind the K53 licence

Some manufacturers have developed tyres with self-healing, or make

testing system, but it’s so extraordinarily cumbersome and laborious that

that self-sealing properties. The tyre boasts a special sealant contained

people forget it the moment they’re handed that prized driver’s licence

within an extra layer in the tread, which creates an airtight seal in the

card. Assuming it’s of the legal variety, of course …

event of a puncture. Additionally, there’s a nifty self-inflating tyre that uses atmospheric air to inflate the tyre automatically when in motion.

But what else can we do? In our high-tech age, technology naturally comes to the fore to lend a hand, and while it can be argued that it makes

Clearly it’s easier to develop and adopt most of these technologies for truck

people even more complacent, it’s an essential tool to make our roads

tyres first, as you have the luxury of size and weight compared to passenger

safer.

car tyres, where the parameters are smaller and the speeds much greater. Nevertheless, the technology will surely filter through to broader market

The tyre industry spends billions each year developing advanced solutions

segments in the years to come, and contribute to making our roads safer.

that boost the safety arsenal, and the likes of tyre pressure monitoring and run flat tyres (perfect in an ideal world, dubious for vast-and-sparse

But it will never completely replace the need to educate our motorists on

SA) are some of the latest and most laudable innovations.

proactive tyre care, informing them on how to use tyres within the limits of their intended lifespan, and emphasising the critical importance of

More recently, truck tyres have led the field with a raft of new

checking and maintaining the correct tyre pressures at all times. It’s the

developments that make the tyre safety circle even larger and more

only way we’ll beat the odds …

Colin Mileman is a freelance motoring journalist, photographer and advanced driving specialist with over 13 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.

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4 4 • G o o d y e a r N e w s

ENGINEERED IN EUROPE; BUILT TOUGH IN AFRICA Goodyear’s exciting new EfficientGrip tyre range offers the best of both worlds: high

performance engineering with the latest technologies from Europe, fine tuned to meet Africa’s uniquely robust and demanding conditions, and manufactured to international quality standards right here in South Africa. advanced,

“EfficientGrip meets all the criteria for strict

and braking qualities you’d expect from a

environmentally friendly tyre began in

Goodyear quality standards, but for the African

Goodyear tyre, yet also provides excellent

September and EfficientGrip South Africa hit

market we have adopted its technologically

mileage and reduced fuel consumption thanks

the streets in the summer of 2011.

advanced design elements and made changes

to its outstanding rolling resistance.

to the construction to create a more robust,

Environmentally-friendly

Commercial Tyres, Robert Harris, said the range

high performance, hybrid tyre that really works

Technologies are at the heart of the high

had been engineered in Europe “specifically

for our local customer requirements.

performance tyre. Simply, innovative materials

Local

production

Goodyear

Manager,

this

Consumer

and

and a new generation of tread compound help

for Africa and is being proudly built right here in Uitenhage, hence the logo of the continent on the sidewall of the tyre.

FuelSaving

TESTED TECHNOLOGICAL ADVANTAGES

reduce the amount of energy required to make

New EfficientGrip has all the great handling

the tyres roll. Plus it has a proven, significantly high safety element because of its excellent braking performance levels on both dry and wet roads. Adaptations for Africa’s challenging conditions have made the tyre even stronger than its European counterpart, to ensure better tread wear and mileage despite our more challenging terrain. Both independent and internal testing confirmed the superior performance of the EfficientGrip SA.

G o o d y e a r N e w s • 4 5

Research proves Hi-Q is still South Africa’s favourite Independent consumer research has

“This is an outstanding achievement

proved that Hi-Q is still South Africa’s

for which the entire Hi-Q network

most iconic tyre retail brand, voted

deserves congratulations. To have

recently as the Target Group Index

held number one position for two

(TGI) ICON brand in its category for

years in a row proves that South

the second consecutive year.

Africans truly believe that Hi-Q is

The Icon Brands survey measures

the leading tyre retail brand in the

brands across hundreds of sub product categories. Out of 450 categories,

country,” said Andrew Bowren, Hi-Q General Manager.

41 categories qualified, delivering 22 brands

“This is no flash in the pan – Hi-Q is clearly

which stood out as Icon Brands in their

the people’s favourite. It is totally independent

category. Fifteen thousand consumers were

research over which we have no influence.

surveyed representing more than 18 million

It covers a broad spectrum of South African

urban adult consumers across race, creed,

consumers who had personally bought tyres

income and language. The data was weighted

in the 12 months preceding the research, so

using the Statistics South Africa population

their experience in the tyre retail market was

estimates.

first hand and fresh. “Every Hi-Q store contributes to the fantastic iconic status of our brand every day. Motorists across the country know they can rely on the same outstanding levels of service, product and value from any Hi-Q store anywhere. Whether they need tyres, shock absorbers, exhausts or simply a free safety check on their vehicles, South Africans trust the flags of the ‘yellow and blue’ and believe that Hi-Q stores offer motoring peace of mind.” Aside from Tyre Retail, other categories researched in TGI’s ICON Brands survey include Motor Vehicle, Food Retail, Airlines, Appliances, Fuel Providers and Insurers.

4 6 • T r a d e S h o w

Make a date with Tyrexpo Africa 2012 6 – 8 March 2012, Sandton Convention Centre, Johannesburg As an opportunity to source new products, make business contacts and

“Tyrexpo Africa is utilised to raise our presence in the market, showcase

catch up with friends in the industry, there can be no better event than

new and existing products and interact with show visitors” says Pieter

Tyrexpo Africa 2012, which returns to the Sandton Convention Centre from

Kruger, managing director of Tubestone.

6-8 March next year.

According to Pieter, delegates can once again expect an impressive setup

Sponsored by SA Treads, the show has established itself over the past 7

from Tubestone, BKT and Nankang, with plans for a professional, yet

years as the focal point for the southern African tyre industry. A tyre show

comfortable and relaxing area for visitors. They urge visitors to stop by

for tyre professionals with a clear focus on doing business.

their stands, C01 and D01, where Tubestone, Nankang and BKT exhibiting

As we went to press, Tyrexpo Africa had already captured the support of

employees will be happy to supply more information regarding their

many leading domestic and international manufacturers, distributors and

products.

suppliers and was heading for a sell-out show.

Singapore based Stamford Tyres is another leading manufacturer returning

African companies committed to displaying their latest products and equipment include Tubestone, Tyrecor, Hofmann Megaplan, Rema Tip Top,

to exhibit at Tyrexpo Africa 2012 and will use the event to launch several new products in both their private brand, Firenza, and exclusive brand,

Chemvulc, Launch Technologies, Leader Tread, Nitralife, Wheelquip, Robert

Falken.

Bosch, Beltyre Africa and many more.

Taking centre stage will be the launch of the brand’s first 4x4/SUV tyre –

Charl de Villiers, managing director of Tyrecor, says: “Tyrecor is looking

the Firenza AT186 which will initially be available in sizes ranging from 15

forward to the upcoming Tyrexpo Africa 2012. We will be celebrating our 10

to 17 inches.

year anniversary and will make use of this opportunity to exhibit the brands

There will also be a combination of Falken brands which are exclusively

that we represent in Southern Africa. We have recently expanded our Infinity

distributed throughout South Africa by the Stamford Tyres Group. At the same

UHP range and will showcase many of these sizes to our loyal customers.

time the very latest Falken UHP pattern will be introduced, the FK453 which will

He continues: “Solideal Construction tyres and Starmaxx Agricultural tyres

become the new flagship pattern in the high performance sector. The FK453

will also feature in our line-up of products. Both these brands have received

will be available in sizes ranging from 16 to 22 inches and has a specially

great support since being introduced to the market and we wish to build on

designed tread pattern for super handling and performance on wet roads.

this. We would like to invite all our customers to join us at Tyrexpo Africa

Stamford Sport Wheels (SSW) will also be well represented and a strong

2012 and come and experience first-hand our quality brands and join in the

selection of their high quality alloy wheels will be available for inspection.

10th anniversary celebrations.”

Liana; can you include the following text as a separate panel; it’s designed

There will also be a powerful presence from international suppliers keen

to encourage your readers to keep up to date with the show between your

to establish or build on their position in the important southern African

December issue appearing and the show being staged in March:

market. Among the many tyre manufacturers already signed up are BKT, Stamford, Deestone, Nankang and Techking, who between them will offer

Keep up to date with Tyrexpo Africa 2012

comprehensive ranges of products covering passenger, truck, off-road,

Visit the ECI International website at www.eci-international.com for all the

construction, agricultural and industrial tyres.

latest news on Tyrexpo Africa 2012. As well as exhibitor details and show

Tubestone, the local distributor of BKT and Nankang tyres, will be one of the companies returning to the show next March. Tubestone is a hugely successful South African based company, dealing in the importation and

times you can pre-register for priority entry into the exhibition. Alternatively contact ECI’s sales director Rowena Suthers on + 44 1892 770777 or email eci.intl@btconnect.com

distribution of high quality tyres from BKT Industries in India and Nankang

Tyrexpo Africa 2012 takes place between 6-8 March at the Sandton

Rubber Tire in Taiwan.

Convention Centre, Johannesburg (SCC)

D e a l e r P r o f i l e â&#x20AC;˘ 4 9

FIT-RITE MTHATHA

Clinches Dunlop Zone glory Fit-Rite Mthatha was crowned the winner of the coveted Apollo Tyres Chairmanâ&#x20AC;&#x2122;s Award 2011 for top Dunlop Zone store in southern Africa in March, quite an achievement, when one considers geographic location and that owner, Quentin Lessing, is a relative newcomer to the industry. Quentin and his team were publicly applauded at a glittering gala dinner held at Sun City that comprised peers, customers, media and other high profile guests.

5 0 • D i s t r i b u t i o n

The Fit-Rite Team.

The prize was a 5-star all expenses paid trip to India for two, valued at a

An ex-Midas man, Lessing opened a small side-line store to Midas

whopping R50 000.00 But however much Quentin and his wife are looking

in 2003, supplying tyres. He took a calculated risk, sold his cars for

forward to exploring this ancient Asian land in grand style, Quentin says

collateral and figured that if new venture didn’t work, he was young

that recognition for Fit-Rite in front of his peers means a whole lot more.

enough to recover. Thankfully, his gamble paid off. Born and raised in Umthatha, Quentin was the local boy who everybody wanted to support.

Winning criteria set out by Apollo Tyres SA was measured on net turnover

In return, Quentin pumped all that he could back into the community by

growth, gross profit growth, adherence to terms, mystery shopper results,

way of charity events, golf days, education and the like.

ghost phoning results and the upkeep of Dunlop Zone store standards. Says Quentin: “Make no mistake the first five years of trading were Lessing puts it all down to brand loyalty. He claims: “Close on 90% of our

difficult. Getting feet through the door was a challenge, particularly with

total sales is made up of the Dunlop brand. We are extremely loyal to Apollo

nine opposition stores in the area, but eventually, and largely due to

Tyres SA due to the service and product quality they supply.”

the decision taken to allow the business to grow at its own pace, we managed to turn it around.

Added to this, he attributes his success to his dynamic team which is largely self-empowered through monthly allowances and incentives, and

“We were also very careful with our cash flow which is why it took us

Fit-Rite’s motto of ‘we’re in the service industry as much as we’re in the

four years to enter the truck tyre market. 30-day accounts were to be

retail industry’. In line with this, his counter staff are urged to spend time

avoided in the beginning. Even now we are very selective when it comes

with the customer in the hope of persuading them to buy ‘local’ and not

to servicing truck tyre accounts, for that same reason.”

simply on price, a formula that appears to be reaping dividends. Currently truck tyre sales make up about 35% of Quentin’s turnover, Adds Quentin: “Cheap imports are wreaking havoc on our business with

which includes attending to on road breakdowns on the behalf

price now becoming the general currency. We need to rise above that, and

of TrenTyre and Bandag. The poor state of the roads in and around

so are constantly finding new ways to add value to the customer without

Umthatha do not allow for massive volumes on high performance tyres

sacrificing GPs. We deliver fast turn-around time, offer free nitrogen as well as

, but Quentin says this too is slowly changing, which bodes well for his

a complete range of underbody services. We want to be seen as a one-stop

business, as entry-level sizes offer very little margin.

shop in our area. Despite the recession, and in only eight years, Fit-Rite Mthatha has “The mistake many entrepreneurs make is to fall prey to the seduction

grown at a level of around 15 percent per annum, an astounding feat

of materialism thereby bleeding their companies dry. I invest a lot in my

and proof that small businesses can weather the storm if they set their

business in terms of top-of-the-range equipment and staff. It’s the only way

minds to it.

a sustainable business can be built.”

W o r l d N e w s • 5 1

HANKOOK SHARE SALE IS MICHELIN ‘CASHING IN ON FAILED PARTNERSHIP’ Following the announcement that Michelin is selling its 9.98 percent share of Hankook, financial analysts have shared their view that the move amounts to ‘cashing in on a failed partnership’. Morgan Stanley’s suggestion is that the Hankook shareholding ended up being a mere financial investment after attempts to cooperate more broadly ‘repeatedly failed’. Michelin built its stake in Hankook between 2003 and 2008 and reportedly tried to establish a partnership with Hankook to develop distribution, R&D and manufacturing together in Asia. Looking at the numbers associated with the deal, the analysts suggest that Michelin could make greater than 300 million euros of pretax profits from the sale, assuming the stock was bought at an average price of 14 600 Korean won and is sold at a five percent discount of its current share price. The total cash inflow could be as much as

EMERGING MARKETS CENTRAL TO MICHELIN GROWTH

450-500 million euros, which Morgan Stanley points out is equal to

At its most recent Investors Day, held at the company’s Cuneo site in

roughly half the proceeds of the French manufacturers’ 2010 rights

Italy, Michelin confirmed its growth outlook for the coming decade.

issue. The result is a significant amount for the company to reinvest

The French tyre major anticipates the global passenger car and light

into capital expenditure.

commercial vehicle tyre market reaching 1.5 billion units in 2015, a

With Hankook shares at an all-time high and with the market likely to respond positively to news, the received wisdom of the analysis is that this is a good time to sell.

(www.tyrepress.com)

FALKEN FIRST TYRE COMPANY ON GOOGLE+ New social network site Google+ expanded its social net to include brands and companies last month, and Falken Tire Corp. staked a claim to being the first tyre company to inhabit the online space, according to Tire Review. The company has already garnered 320 000 ‘Likes’ on its Facebook page, and sees the addition of Google+ as ‘an extension of its consumer allegiance strategy’. The brand has been particularly vocal about its use of social

figure representing a 25 percent growth on 2010 figures. Looking further ahead, an additional 20 percent growth in the years between 2015 and 2020 is expected, with 1.8 billion tyres sold in this sector worldwide in 2020. Michelin notes that 70 percent of this volume growth should occur in ‘new’ markets, especially in China, already the world’s largest truck and bus radial market in terms of units sold. Delving deeper into Michelin’s plans for these new markets, executive vice-president of Corporate Development Laurent Noual outlined that the tyre maker intends to expand in new markets along two selected axes, namely by investing in these regions and by building up a presence in the Tier 3 or budget market. In the coming years, an additional 150 kilotonnes of production capacity will be added to Michelin’s plants around the

networks in conjunction with motorsport activities to such an end this year.

world; 70 percent of this will be in new markets, with greenfield projects

According to Google, Google+ Pages allow companies to specify a category

accounting for most of this. As for developing a Tier 3 presence, Noual

(local business, product or brand) and the note the kind of company it is.

calls this a necessary move for global leadership. The global Tier 3 market,

The pages can host video for face-to-face conversations between followers,

estimated to be 38 percent of the total in 2010, is expected to grow 26

as well as the creation of smaller groups within a main group.

percent in the years to 2020.

(www.tyrepress.com)

APOLLO TYRES HI REVENUE GROWS BY 50% Apollo Tyres’ consolidated revenues for the second quarter of 2011 saw

South Africa has also seen some growth but the local economic conditions

a healthy grow of 47%; and for the first half of the year by 51%. A large

continue to be a cause of concern. India grew by 57% riding on higher

part of the growth in the July to September period came out of Europe with

production from the greenfield Chennai plant and increased sale of truck-

a 43% increase in the top-line, compared to the same quarter last year.

bus radials.

(Apollo Corporate Brand & Relations)

5 2 • C o m p e t i t i o n / S u b s c r i p t i o n

Congratulations!

to our previous competition winner

Mr Deon Heyer of Elgin Couriers, Strand in Cape Town whose correct answer wins him a pair of Adidas SuperNova Riot 3 trail shoes or Adidas Adistar Ride 3 running shoes, as well as a set of Continental tyres.

quarterly competition QUESTION: How old is the Pirelli Calendar? ANSWER: �� Name: �� Company: �� Address: ��

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