SANTA ROSA, Calif. (June 17, 2002) — Bandag Inc.'s Tire Distribution Systems unit has broken ground on a multimillion-dollar 30,000-sq.f-ft. retread plant/commercial tire center in Santa Rosa that will replace a 38-year-old facility nearby. A similar-sized facility is being planned in Spokane, Wash., for later this year, a company spokesman said.
At 300-plus units-a-day capacity, the new plant will be at least 50 percent larger than the output of the existing unit when it opens later this year—probably late October—with 25-30 employees, a TDS spokesman said. The site will be a full-service location, he said, offering service bays for cars, light trucks, large trucks, buses and heavy construction equipment.
The construction of the new plant follows the opening of three new ones in the past year. The Santa Rosa operation originally was a Downey Tire Centers location prior to 1999, when Bandag bought the dealership and merged it into the TDS network. The new plant will supply TDS outlets in Ukiah, Santa Rosa, Petaluma, and Martinez, Calif.
McDevitt & McDevitt Construction Corp. of Santa Rosa is the general contractor for the project. Local news reports put the value of the project at $5 million.
In Washington, ground-breaking is slated soon for a retread plant/commercial tire center in Spokane to replace one there originally opened by Sound Tire Inc., which was one of five dealerships Bandag bought in 1997 when it created TDS.
According to Bandag's 2001 annual report, TDS opened new retread plants during 2001 in Anchorage, Alaska, Springdale, Ark., and Salt Lake City, along with relocating four commercial tire centers to new facilities and closing six locations, including two retread plants.
All told, Bandag invested $9.4 million in capital assets, including $5.1 million for new manufacturing equipment, in fiscal 2001, according to the report.
TDS reported $398.9 million in sales last year, with retreads accounting for $224 million and new tires $91.5 million. TDS' sales in the first quarter of 2002 fell 2.3 percent to $80.9 million.