McGriff is a Bandag franchisee -- again

Oct. 24, 2002

McGriff Treading Co. is a Bandag retreader again. The Cullman, Ala., commercial dealer has agreed to give up its other retreading processes to join Bandag, five years after becoming a Michelin Retread Technologies Inc. (MRTI) franchisee.

According to President Barry McGriff, the company will be downsized during the transition. When all is said and done, McGriff Treading will have three plants instead of five. They only will produce Bandag precure retreads.

Six days ago, MRTI announced it would part ways with McGriff on Nov. 11 after failing to agree on contract renewal terms and conditions. McGriff was MRTI's first retreader, joining the program in November 1997.

McGriff says the decision to take his company in a different direction was an emotional one. But "it fits better with the future of our company."

McGriff says the company will continue its relationship with Michelin North America Inc. "We plan to be committed to sell Michelin brand truck tires." Earlier this week, the company inked a deal to become a Bridgestone/Firestone tire distributor as well.

McGriff says prior to the decision, the company was manufacturer-driven, when the goal was to sales and marketing-driven.

McGriff Treading is the 13th largest retreader in the United States, according to Modern Tire Dealer's "Top 50 Retreaders List." Its four plants produce 900 medium truck tire and 20 light truck tire retreads per day.

McGriff says the company's capacity will be reduced after the downsizing. That includes its intermodal production.

Some 40 jobs will be lost in the consolidation.

In addition to MRTI's precure and mold cure systems, McGriff also has discontinued its Oliver, Bandamatic and Marangoni precure systems and the Hawkinson mold cure system. McGriff also will stop producing MSR (McGriff Segmented Radial) mold cure retreads.

As part of the deal, Bandag has agreed to sell five of its Tire Distribution Systems locations -- four service centers and one retread plant -- in Alabama to McGriff. After consolidation, the company will have 11 commercial outlets in addition to its three retread plants.