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April 20, 2016 01:00 AM

Speedways adding ATV capacity

Bruce Davis
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    Tire Business photo by Bruce Davis
    Brian Hubbard of Route 66 Tire and Rubber and Randeep Singh of Speedways Rubber Co. discussed Speedways' expansion into ATV tires, during the North American Tire & Retread Expo in New Orleans.

    NEW ORLEANS (April 20, 2016) — India's Speedways Rubber Co., a specialist in agricultural tires, is adding capacity for all-terrain vehicle tires at its plant in Jalandhar, India, to address what it sees as a growing market, especially in the U.S.

    Speedways, which makes agricultural, industrial and OTR tires and tubes, also is evaluating a move into tracks for agricultural vehicles and is modernizing the rubber compounding department at Jalandahar.

    Speedways has budgeted $68 million for the move into ATV tires, according to Randeep Singh, chief executive, marketing, for Speedways, speaking to Tire Business at the North American Tire & Retread Expo in New Orleans.

    Construction is nearly finished on the 100,000-sq.-ft. structure that will house the new manufacturing line, Mr. Singh said. Trial production has started ahead of a commercial launch later this year.

    Speedways likely will market the tires under the SWT brand name for the aftermarket, Mr. Singh said, while also exploring its options regarding OE supply to the leading ATV makers and possibly branding the tires with the vehicle makers' names. Route 66 Tire and Rubber Co., Speedways' primary distributor in the U.S., will take on the new line as well, according to Brian Hubbard, president of the Aledo, Texas-based distributor.

    Mr. Singh did not quantify Speedways' sales expectations for the new line, but said the company will pursue international sales as well, even though the U.S. is seen as the largest potential market.

    The line will launch in 10 sizes, in 10-, 12- and 14-inch rim diameters, Mr. Hubbard said.

    Speedways is finalizing tread designs for the tracks the company is hoping to have in production sometime next year, Messrs. Singh and Hubbard told Tire Business.

    The ATV expansion is the latest in a series of capital improvements at the headquarters. In the past year Speedways has opened a 250,000-sq.-ft. warehouse, and the firm is automating carbon black handling in its rubber mixing operations.

    The company also has shifted its production to low PH processing oils in order to be compliant with European “REACH” hazardous chemical regulations, Mr. Singh said.

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