MUSCATINE, Iowa-Bandag Inc. announced it would not renew the franchises of Tredcor (Pty.) Ltd., a large franchisee in South Africa that accounts for 2 percent of Bandag's total worldwide sales. Those agreements were to expire June 27. According to Bandag, Tredcor, a subsidiary of Contred (Pty.) Ltd., also produces and sells its own precure rubber, which it also uses to produce retreads, thereby competing with Bandag.
As a result, Bandag said it did not believe Tredcor could ``commit its best efforts to the manufacture, sale and service of Bandag retreads,'' and would replace the lost distribution with other independent franchised dealers.
Federal Tire in China venture
HONG KONG-China Tire Holdings Ltd. has announced that its 70-percent-owned subsidiary, Dalian CSI Rubber Co. Ltd., has agreed to form a joint venture with Federal Tire Co. of Taiwan to establish a bias-ply tire factory in Dalian, China.
The partners will invest $25 million in the venture, which will be 51-percent owned by Federal Tire. The plant is to make a variety of bias-ply tires with an annual capacity of 500,000 to 1 million ``sets,'' according to China Tire Holdings.