Continental Tire the Americas said it is continuing to position itself as an innovative solution for new and lifecycle products as its new business unit, ContiLifeCycle, expands throughout the Americas in 2011. Recently, Continental’s vice president for commercial vehicle tires, Paul Williams, outlined CTA’s current and future activities for the retreading business.
Williams announced the ContiLifeCycle business unit has opened a precure tread manufacturing plant in Morelia, Mexico. “This plant is currently capable of producing roughly a half million flat treads per year. With its central location, the Morelia plant is going to help us better serve all our markets as we begin to develop additional products,” he said, adding that the plant would be expanded to produce more than 1 million flat retreads annually by 2015.
The sixth retread plant to open in Mexico, located in Córdoba, Veracruz, has opened and is building precure flat treads under the ContiTread label. Six more plants are planned to open throughout 2011, which will give Continental coverage throughout the country and represent an extremely positive result for Continental’s mono dealers in Mexico, Williams said.
In the U.S., CTA will continue the promotion and sales of ContiTread products through its cooperation with Marangoni Tread North America. These retread tire products are available from select tire dealers throughout the U.S. and are manufactured with RingTread technologies.
The response to Continental’s lifecycle solution in North America has been “staggering,” said Williams. “Even before we made any official announcement of our intent to offer the lifecycle concept in the US, we were fielding calls from all over the U.S. and Canada.” As a result of this incredible amount of interest, Continental is looking to engage partners as part of a ContiLifeCycle distribution network that will span coast to coast across North America, selling the treads produced at the Morelia facility.
“Our intent is to ensure that any fleet located across the U.S. and Canada can meet their tire needs with the ContiLifeCycle solution,” Williams explained. Continental will be the first to offer a completely clean distribution footprint where its dealers will not be competing geographically for ContiLifeCycle business, according to the tire maker.
The Andean region and Central America as a whole produce an estimated 16,000 retreaded truck tires per month. Continental currently holds an 18% market share for retreading in this region under the Renovallanta brand name, but the company is experiencing significant year-over-year growth. To meet this emerging demand, Continental Tire Andina S.A. is expanding with the opening of a new retread plant in April this year, Williams said.
Next, Continental plans to tackle the markets of Brazil, Colombia and Chile to spread its coverage of ContiLifeCycle solutions throughout Latin America, he added.
Continental named John Barnes as head of LifeCycle Activities and is implementing a full support organization in Mexico. Barnes, the CVT division’s former business development manager, has been overseeing the sourcing, construction and management of Continental’s new ContiTread retread plants in Mexico. He reports directly to Williams in this new role and is based in Continental’s headquarters for the Americas in Fort Mill, S.C.
With the retread organization growing throughout the Americas, Williams predicted that 2011 would represent a major milestone in offering complete solutions for trucking fleets that lower their overall driving costs. “You will definitely see our footprint grow throughout the Americas as we continue to support and expand the ContiLifeCycle this year. Retreading represents the future of Continental and what we can offer our customers,” Williams said.
