Continental Tire the Americas LLC is looking to expand its ContiTread distribution network in the United States -- and beyond.
Paul Williams, vice president for commercial vehicle tires, outlined the current and future activities of its new business unit, ContiLifeCycle, at a press conference earlier today. The company wants to continue to position itself as "an innovative solution" for new and retreaded truck tires as ContiLifeCycle expands throughout the Americas in 2011.
U.S. and Canada
In the U.S., Continental will continue the promotion and sales of ContiTread products through its cooperation with Marangoni Tread North America Inc. These retreaded tire products, manufactured with RingTread technologies, are available from select tire dealers throughout the country.
(See "MTD exclusive! ContiTread 'well-accepted' in marketplace, says CTNA.")
The response to Continental’s lifecycle solution in North America has been “staggering,” says Williams. “Even before we made any official announcement of our intent to offer the lifecycle concept in the U.S., we were fielding calls from all over the U.S. and Canada.”
As a result of this interest, Continental is looking to engage partners as part of a ContiLifeCycle distribution network that will span coast to coast across North America, selling the treads produced at its Morelia, Mexico, retread facility.
“Our intent is to ensure that any fleet located across the U.S. and Canada can meet their tire needs with the ContiLifeCycle solution."
Continental says it will be the first to offer "a completely clean distribution footprint" where its dealers will not be competing geographically for ContiLifeCycle business.
Mexico
In Mexico, Williams says the ContiLifeCycle business unit has taken a major step toward growth in the region by opening a precure tread manufacturing plant in Morelia.
“This plant is currently capable of producing roughly a half million flat treads per year. With its central location, the Morelia plant is going to help us better serve all our markets as we begin to develop additional products.”
According to Williams, the plant will be expanded to produce more than 1 million flat retreads annually by 2015.
The sixth retread plant to open in Mexico, located in Córdoba, Veracruz, has opened and is building precure flat treads under the ContiTread label. Six more plants are planned to open throughout 2011, which will give Continental coverage throughout the country and represent an extremely positive result for Continental’s "mono dealers" in Mexico.
“Continental offers the piece that these dealers have been missing, which is to have the complete lifecycle solution for truck tires available from their locations,” he says.
(See "CTNA to set up 15 retread plants in Mexico.")
South and Central America
The Andean region and Central America as a whole produces an estimated 16,000 retreaded truck tires per month. Continental says it holds an 18% market share for retreading in this region under the Renovallanta brand name.
To meet emerging demand, Continental Tire Andina S.A. is opening a new retread plant in April this year.
Continental has two retread plants in the area, says Williams.
"The Quito plant, which opened in 1994 and also produces new tires, and now, the Guayaquil plant, which will open in April to serve the southern and coastal regions, will be able to produce a combined 80,000 ContiTread tire products annually. The retreads, along with new tires, will be sold through our controlled distribution outlets, ContiTruckCenters, in the Andean region.”
Continental next plans to tackle the markets of Brazil, Colombia and Chile to spread its coverage of ContiLifeCycle solutions throughout Latin America, Williams says.
“You will definitely see our footprint grow throughout the Americas as we continue to support and expand the ContiLifeCycle this year. Retreading represents the future of Continental and what we can offer our customers.”
For more information, visit the Continental truck tires Web site at www.continental-truck.com.
