Introduction - Background and Objectives

1.1 Tyres and retreading:

1.1.1 The purpose of this report is to make the reader aware of the importance of retreading:-
· Its Inherent Safety features
· Its Environmental Advantages
· Its Economic Advantages
· Its Applications and Marketing

1.1.2 Tyres are the most visible and important of safety features on vehicles. They have contributed significantly to the improvement of modern vehicles. They are vital items and as such, are highly engineered and the products of sophisticated design. The function of a pneumatic tyre is:
· To support the load applied to it
· To grip the surface it runs on, be that wet or dry.
· To provide the driver with faithful responses to his inputs (braking, accelerating, turning/cornering) and
· To be part of the vehicle's suspension system, protecting the vehicle's passengers and/or load from shock.

1.1.3 Tyres also have wide operational usage, as they have to perform in climatic conditions that can vary in Europe between -40C to plus 40C, and as such, they must perform in the dry, wet, heat, ice and snow. They also have to perform when the vehicle is fully laden or empty and where road handling will be greatly affected by the "use" and "road condition".
As tyres cannot be changed as frequently as clothes, and to suit changeable and variable conditions, tyres are always designed as a "middle course" product and so direct comparison between brands is often impossible. In fact, some brands use these factors in their particular branding such as the best wearing or the best rain tyre.

1.1.4 Tyres are used in many market sectors, not just for car and truck uses. They are used in Motor Racing, Van and Light Truck, Motor Cycle, Bicycle, Earthmover, 4x4 and Sports Utility Vehicles (SUV's), Taxi and Multi-Purpose Vehicles (MPV's), and many more. As such, tyre manufacturers often use the term that tyres must be "fit for purpose".
Whilst it would be cumbersome for this report to have investigated all market categories, for simplicity and clarity it is restricted to comments largely focused upon the Car and Commercial Vehicle (truck) categories. It recognises that varying market factors will apply to those disparate vehicle categories and that tyres are often marketed and sold as "fit for purpose".

1.1.5 To respond to so many different demands, a tyre has to be complex in its structure - it is composed of many different, highly developed materials each performing a specific role. In common with other composite, specialised structures, tyres have enormously long fatigue lives.

1.1.6 The very durability of a tyre's structure means that a well maintained tyre ends its life with its tread worn away by abrasion with the road surface, but with the main structure or "casing" intact. A logical response to this situation is to extend the useful life of the casing, with a new tread layer added in place of the worn down one. This process is known as "retreading", and has been performed for many years.

1.1.7 In retreading, a worn casing, which is of good structural quality, is accepted into a process which completely renews the tread of the tyre and sometimes sidewall rubber is added. The rebuilt tyre is then subjected to a "Hot cure" or "Cold cure" retreading process.

1.1.8 In "Hot cure", the rebuilt tyre is cured in a tyre moulding press. This press subjects the tyre to heat and pressure, forming a new tread into the uncured rubber, and creating a chemical bond with the casing by vulcanisation at about 160C.

1.1.9 In the "Cold cure" process, a pre-vulcanised tread, incorporating the tread pattern, is made by external specialists. This tread is applied to the casing and chemically bonded to the surface, under pressure, in a "cold" curing autoclave process at about 100C. Both processes produce excellent quality tyres.

1.1.10 Retreading offers significant environmental and cost benefits, due to the recovery of value in remanufacturing. Less materials, less energy and therefore lower costs are involved in producing another tyre, which has properties comparable to the original, will last as long again and, most importantly, has avoided the need to dispose of the original, worn out casing. (In the UK, close to half a million tonnes of used tyres have to be disposed of each year).

1.2 Retreading and Tyre Markets:

1.2.1 Purchase decisions for any product involve conscious and unconscious evaluation of quality and value for money or pure affordability. Tyres are a unique product in this respect. This fact stems from the importance of tyres for safety, the preservation of life, and the dire market consequences of failure to deliver this basic yet high standard.
Although tyres are largely regarded as a distress purchase, there are distinct and often subtle differences in purchase decisions for tyres in different markets. This study examines the rationale behind purchase decisions and demonstrates how retreads can compete effectively in certain markets. It also reviews trends in demand for retread tyres which are divided into two general categories - commercial vehicle tyres and tyres for passenger cars.

1.3 Retreaded Commercial Vehicle Tyres

1.3.1 Large tyres used in commercial applications are highly engineered for maximum performance and consequently their inherent recovery value becomes a visible and important cost sensitive driver. For example, some businesses cost the use of their tyres on analyses as specific as cost per millimetre of tread, others cost per kilometre of road usage. This is typical for most professional commercial vehicle fleets. Users of special tyres for activities such as aviation, measure their use in number of landings. Some agriculture and earthmover tyre users measure their use in hours.

1.3.2 Consequently, retreaded tyres have a strong market presence in these sectors and the practice of retreading is regarded as a routine procedure. The use of retreaded tyres in these sectors provides clear evidence that when the retreading and control processes are well run, the cost benefits are economically significant.

1.4 Retreaded Passenger Vehicle Tyre

1.4.1 For passenger car transport (including most fleets) however, the economic and environmental case for retreading is not analysed as it is for commercial vehicle tyres. Globalisation and new tyre production technology has caused a downward trend in new tyre prices, as access to low cost Far-Eastern and Eastern European labour forces has expanded to produce greater volumes of low priced products.

1.4.2 Internationally based new tyre manufacturers have been able to respond to this trend both by moving production to low cost countries and greatly mechanising European production, preserving their market share against the imported new entrants. This opportunity has not been available to retread suppliers, as they are reliant on local supply chains, and consequently their prices have been challenged.

1.4.3 In some cases the end customer may see similar prices of new tyre and retreaded tyre, but most retailers take the choice of pursuing higher margin business and promote the sale of cheap new budget tyres, guiding the prospective (uninformed) purchaser accordingly.

1.4.4 In addition, some of these new tyres, which represent appreciable portions of the market, are unsuitable for retreading due to casing life expectancy. Other factors such as the increase in the range and types of tyre sizes, dictated by vehicle manufacturers and their availability as new imports very early in their replacement life, further complicate the market for retreaded tyres. These factors dilute the stock of suitable casings available for retreading and sometimes oblige retreaders to target smaller, niche markets.

1.4.5 Retreaded car/passenger tyres are inherently remanufactured products. They suffer from a consumer quality perception problem common to many identifiable recyclates, which sets them apart from new tyres. This is despite the fact that modern retreads are subject to stringent tests that are the same as for new products, a fact that is not widely realised by private motorists and some fleet managers.

1.5 This Study

1.5.1 This study is intended to independently gather and consider the facts surrounding retreaded tyres to provide a first step for the retread industry to fight for greater use of retreaded tyres. It aims to gather solid evidence to investigate and address perceived barriers to retread purchasing, and to identify the marketable environmental benefits of purchasing retreads. In addition to research reports and more general literature on tyre use and retreading, six retread companies have been visited to gain a more detailed perspective of the process and key issues.
The visits included interviews with leading members of the Retread Manufacturer's Association (RMA) as well as audits of energy usage, waste arisings and material requirements. The following companies participated in this study.
· Bandvulc Tyres Ltd - commercial vehicle retreaders
· Bulldog Remoulds Ltd - commercial vehicle retreaders
· 'C' Tyres Ltd -car and commercial vehicle retreaders
· Kingpin Tyres Ltd - car retreaders
· Adco Distributors (NI) Ltd- commercial vehicle retreaders
· Technic Tyre PLC - car retreaders

1.5.2 The information from these companies has been combined with other evidence and used to analyse the cost and environmental implications of both the manufacture and use of retreaded tyres. The information from RMA members has also provided useful insights into current market trends, operational procedures, including collection and disposal options, and potential measures which could improve the sector's prospects. The report has reviewed information on safety, durability and the retread tyre market.

1.5.3 The final section of the report examines factors which will affect the longer term trends for the UK's used tyre disposal. The findings presented in this report will help to develop further initiatives including an RMA action to obtain large scale market development funding.