Industry, market impact production

An evaluation of brands has become a major factor in making decisions as to what tyre manufacturing plant to build and where. This is a subject for a separate presentation, but it does have an effect on how tyre companies today plan their new production facilities and where.Jacob-Peled

Very few tyre companies still believe that producing their own equipment will help them to maintain their own technology and save on CAPEX. In actuality, the opposite is true. When a tyre manufacturer has its own equipment production, he normally cannot enjoy the R&D results of an outside manufacturer who supplies to many other tire companies. If he tries to sell equipment to other tyre manufacturers, he will very often encounter strong objections because of the fear of the customer that his technology would be transferred to the parent company, who is his competitor.

There are many examples, but the most obvious ones are Continental with Continental Machinery (Conti is not supplying any longer equipment to other tyre companies other than Conti plants or affiliates); Mitas, which sold Buzuluk for exactly the same reason; Pirelli, who stopped producing equipment in Turino or trying to sell it to other tire companies.

An exception is Mesnac, which owns a tyre company – Sailun, but is keeping it rather quiet. Obviously by supplying advanced weighing and charging systems, they can potentially learn the formulations and recipes at their customer. It is the same for tyre building machines.

By Jacob Peled, Executive Chairman, Pelmar Engineering Ltd.

(Full text in PTA August/September issue)


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