Continental forecasts global retread growth

Updated Jan 14, 2013

Finishing out 2012 with significant growth in the Americas retreading market, Continental Tire the America’s Commercial Vehicle Tire Business unit detailed some of its plans for expansion of the ContiLifeCycle retreading solution in the region.

According to executive vice president Paul Williams, the ContiLifeCycle concept continued to experience high growth in the region throughout 2012, with additional expansion planned throughout 2013. “The demand for our ContiLifeCycle retreading solution, and our ContiTread flat precure treads, has grown dramatically. In response, we have added 18,000 square feet to our tread manufacturing plant in Mexico in June. The addition of a complete new line of equipment including a new double press, extruder and finishing will be complete in first quarter 2013,” Williams said.

“The new press also allows us to begin production of ContiTreads for ‘super singles’ including our HDL2 Eco Plus drive and HTL1 trailer tire. Following this expansion, we are forecasting to produce over 300,000 flat treads in 2013 and that we can successfully meet the demand of the entire Americas region for ContiTreads for the next five years,” Williams explained.

The ContiLifeCycle solution, in addition to adding several licensees in the U.S., has incredible potential in other markets of the Americas, Williams said. These markets include:

Canada: The country’s first ContiLifeCycle licensee is expected to be named in early 2013.

Mexico: Nine ContiLifeCycle licensees are currently producing ContiTread retreaded truck tires throughout Mexico, where Continental has focused on building a network with comprehensive coverage, Williams said. In August 2012, Circulo Llantero opened a new licensed dealership in Hermosillo, Sonora to serve customers in that state as well as the peninsula of Baja, California. The first licensee scheduled for 2013 will be General Asociados, located in Mexico City. Three additional licensees are expected to open in 2013.

Chile: Chile’s first ContiLifeCycle licensee opened in January 2012 in Lampa, Región Metropolitana. Owned by Rio Puelo S.A., the facility receives casings from fleets all over the country and retreads them with ContiTread products. “Rio Puelo is a true example of the ContiLifeCycle philosophy, as this facility not only retreads tires, but also provides service, monitoring and support to fleet owners and drivers throughout Chile,” Williams said.

Ecuador: The two ContiLifeCycle retread facilities, Renovallanta Durán and Renovallanta Quito, continue to ramp up production and service for fleets along the coastal and central areas of Ecuador. Through Continental’s network of ERCO Tires and ContiTruckCenter , the ContiTreads are delivered to more than 120 truck fleet servicing locations throughout the country. Renovallanta Quito is now producing approximately 8,000 tires per month with Quality Certifications ISO 9001:2008 and INEN 2582, Williams said. A third plant is planned in 2013.

Brazil: Two new ContiLifeCycle licensees have opened in Brazil in December, both owned by the São Jose dealership. The first in Camacari, Bahia, began production on Dec. 1 and can produce up to 7,200 retreaded tires annually, while a second location in Fortaleza, Ceará began production later in December. “We just introduced the ContiLifeCycle concept to Brazil in June 2011 but have experienced great results. With an expected five additional licensees in 2013, our goal is to expand coverage throughout Brazil, which is the second largest market for retreading in the world,” Williams said.

The ContiLifeCycle growth owes its success to a positive reception from both fleets and dealers throughout the Americas, who have responded enthusiastically to the concept, Williams concluded.

“We will continue our philosophy of making ContiTread products to match the tread designs and performance of each of our new tires, adding additional products to our retreading portfolio and making them readily available to fleets throughout the Americas region,” Williams said. “We expect to see continued growth for Continental and the ContiLifeCycle throughout 2013.”