Conti signs 3 U.S. LifeCycle retreaders; Canada next

FORT MILL, S.C. — Continental Tire the Americas' ContiLifeCycle retreading system has begun to take shape in North America two years after Conti launched the concept, with the disclosure recently of three licensees in the U.S. and the impending announcement of the company's first system adoptee in Canada.

The signing of G&G Tire in Plattsburgh, N.Y., Bergey's Tire in Sellersville, Pa., and Rovince International Corp. in Compton, Calif., brings to four the number of LifeCycle licensees in the U.S., along with Conti's own plant in Phoenix.

These five plants — the first licensee announced was King Tire Service Inc. Tire of Bluefield, W.Va. — offer a combined annual capacity of more than 250,000 units, according to figures released by Conti.

Conti launched the LifeCycle concept in March 2011, pledging to build a network of retreaders in the U.S. and Canada to help develop a line of proprietary ContiTread precured retreads, produced at a plant in Morelia, Mexico.

Of the new ContiLifeCycle system licensees, G&G Tire was the only one to convert its retreading capacity outright to the Conti process, replacing its former Bandag-system plant in Plattsburgh over the summer.

Concurrently, G&G Tire and Conti disclosed that G&G has secured distribution for its retreads in central New York via three commercial locations of the former Tallmadge Tire dealer group.

"Because Continental offered a dedicated team, it only took a few days to set up the new process and equipment," G&G Tire owner Kevin Bruno said. "We definitely have an advantage with Continental and have received positive feedback as far as mileage, traction and wear on the ContiTreads we produce."

Mr. Bruno said the plant is set up to produce up to 20,000 ContiTreads annually.

On the distribution front, principals at the independently owned Tallmadge Tire of Binghamton N.Y. Inc., Tallmadge Tire Service of Geneva, N.Y. Inc. and Tallmadge Tire Service of Cortland, N.Y. Inc. have begun distributing ContiTread retreaded truck tires produced by G&G Tire.

"We approached G&G Tire to be the manufacturer of the ContiTreads on our behalf," said Rich Damianos, vice president of Tallmadge Tire Service of Cortland, "and we can now offer these retreads to our customers, along with Continental new truck tires."

James Scheffer, general manager at Tallmadge Tire of Binghamton, said: "This will set us apart from the other commercial tire dealers in the area, to offer these retreads that emulate our flagship Continental new tire line. I see this as a great advantage for our future and I'm very confident it will be a benefit to us."

The three dealerships formerly were part of the second oldest General Tire dealer group in the U.S., formed in 1932. As such, they all have a long history with Continental products and an extensive base of Continental truck tire customers, said Pete Ufholz, president of Tallmadge Tire Service of Geneva.

For Bergey's Tire, a long-time Continental and General truck tire dealer, adding Conti-LifeCycle retreading capacity to its offerings complements the Marangoni Ringtread System it has operated since 2001.

Bergey's installed the ContiLifeCycle retreading capcity in June at its retread plant in Sellersville and has been selling the Continental-branded product process to customers from its six commercial locations throughout eastern Pennsylvania and southern New Jersey, according to Duane Bergey, vice president of Bergey's tire division.

The new unit can retread up to 400 truck tires daily, Mr. Bergey said.

Bergey's Tire has been affiliated with Continental—first through the General Tire brand—for more than 70 years, so it was excited about adding the ContiTread flat precure retreading line to its existing retreading business, Mr. Bergey said.

"The idea of offering a true life-cycle solution, from a truck tire's cradle to grave, was very important to us. Because we are now able to sell the Continental truck tire from the new tire directly into a retread, we feel this has been a great complement to our business which will help us grow," he said.

Like Bergey's, industrial tire distributor and retreader Rovince International Corp. added the Conti system process as a complement to its existing Marangoni Ringtread plant in Compton, serving the greater Los Angeles area.

Rovince International President Lionel Perera said adding the ContiLifeCycle process is a "perfect complement" to its business lines. Production at the plant began Dec. 1, according to Mr. Perera, who said he found that ContiTreads were "very competitive to other brands.

"With the ContiLifeCycle retread solution, we are now able to create more business by following the Continental tire through its entire lifetime. It's a good match."

The plant has the capacity to make about 200 retreads daily, he added. Rovince has 25 years of experience in retreading, Conti said.

Mr. Perera cited the quality of the ContiTreads and the mileage they deliver as key selling points.

"We have tested the tires with several fleets and found that they can definitely produce more mileage than other retreads on the market," he said.

Rovince is known primarily in the U.S. as an importer of activated carbon, but also sells truck and industrial solid tires at several Williams Tire Corp. locations. It imports and sells solid and pneumatic industrial tires and wheels from manufacturers in Sri Lanka, India and Taiwan; among its brands are APEX, Laugfs and TVS.

Paul Williams, Continental's executive vice president for truck tires–the Americas, said the expansion of the ContiLifeCycle system to the West Coast means that fleets in the region now have access to the fuel-efficient ContiTreads mandated by California regulations.

In particular, Rovince is making HDL Eco Plus and HTL Eco Plus ContiTreads, which are SmartWay verified under the Environmental Protection Agency's SmartWay program for low rolling resistance. This is especially important in California, Mr. Williams said, where SmartWay verification is required for many truck tires after Jan. 1.

At the same time, Conti disclosed it is adding capacity at its tread rubber plant in Mexico, for wide-base single truck tires, including the firm's HDL2 Eco Plus drive and HTL1 trailer tire. A multimillion-dollar investment there will yield capacity for more than 300,000 flat treads in 2013.

Elsewhere throughout the Americas, Conti is active in Brazil, Chile, Ecuador and Mexico with LifeCycle licensees.

In Brazil two shops began production in December with combined capacity of up to 7,200 tires annually. Conti expects to add five more licensees in 2013, Mr. Williams said.

In Chile the first LifeCycle licensee, Rio Puelo S.A, opened in January 2012.

In Ecuador the LifeCycle licensees, Renovallanta Durán and Renovallanta Quito, continue to ramp up production and service for fleets along the coastal and central areas of Ecuador. Output exceeds 8,000 tires a month. A third plant is planned this year.

In Mexico nine LifeCycle licensees are in operation with three more expected on stream this year.