GLASGOW, Ky.-Brad Ragan Jr., the majority owner of RDH Tire & Retread Co., Cleveland, N.C., acquired the assets of another off-the-road retread firm, MSA Tire of Ky. Ltd., in Glasgow, on Jan. 1. The transaction provided Mr. Ragan with a full, mold cure earthmover operation, complementing the cut tread and band-lug processes offered by RDH. ``This gives us a complete system in earthmoving,'' Mr. Ragan said.
Using the equipment acquired from MSA, Mr. Ragan started a new corporation, BR Retreading, housed in the building formerly occupied by MSA in Glasgow.
The new company will service the area's mining operations.
BR Retreading will operate as a separate corporation from RDH, of which Mr. Ragan owns 68 percent.
MSA would have ranked as the fifth largest OTR retread company in North America in 1995, using 4.20 million pounds of tread rubber, according to TIRE BUSINESS' annual retreader ranking, which appears on page 14 of this issue.
RDH ranks as the eighth largest OTR retread firm, consuming 2.4 million pounds of tread rubber.
Mike Shill, former owner of MSA, will remain with BR Retreading on a consultant basis, Mr. Ragan said.
Acquiring the MSA assets was a ``good opportunity, because there are not many plants like this,'' Mr. Ragan said, referring to the full cap earthmover molds, which are no longer being manufactured.
To have such molds made would cost a fortune, he added.
The deal also included a Marangoni retread system as well as some spare molds.
Mr. Ragan said he expects BR Retreading will provide mold cure retreading for RDH.
He anticipates the two companies can save on tread rubber costs, due to the increased volume of the combined businesses.