FORT MILL, S.C. — Continental Tire the Americas L.L.C. (CTA) is reporting the volume of retreads produced by its network of ContiLifeCycle licensees in the U.S. over the past three years grew at double the pace of the market.
"Retread is a key part of our strategy in the U.S. market," Tom Fanning, head of truck tiress, U.S. market, for CTA, said, noting that the volume of CLC network-sourced retreads increased 2.5% annually from 2019-21.
"We continue to expand our ContiLifeCycle retread network to better serve our fleet customers across the country."
Conti estimated the overall U.S. retread market grew by 1.2% annually (compounded annual growth rate) over the same time period, CTA said.
Conti also noted that it has sold a retread plant in Commerce City, Colo., operated by its BestDrive commercial tire business unit, to CMC Tire, a Hurricane, Utah-based business that's been a CLC partner since 2015.
Conti's network of CLC-licensed retread plants stands at 21 in the U.S., including six operated by the company's BestDrive unit, and 18 in Canada.
CMC also has expanded its network of sales/service locations to 14 with the opening of sites in recent months in Cheyenne, Wyo., and Loveland, Colo., enabling the company to service fleet customers throughout the western U.S. more effectively, Conti said.
Globally, Continental A.G. recently projected its tire operations should generate double-digit sales and earnings growth for 2022, after reporting 68% higher pre-tax operating income for the year ended Dec. 31 year on 16.2% higher sales.
Conti's tire business reported operating income of $2 billion last year on sales of $14 billion, which yields an operating ratio improvement of four points to 14.4%.