Marangoni is to Expand its Presence in Former Soviet Union

We spoke with Mr. Luca Mai - Sales Manager E.M. (OTR) Tyres of Marangoni Pneumatici S.p.A. about its plans for Russian OTR market.

— Mr. Mai, could you tell us how and when Marangoni started its business in Russia.

— In 2003 we participated in Moscow Construction and Equipment and Technologies Exhibition. Our first target was to evaluate the Russian OTR tyre market, understand the potential and find an appropriate partner to introduce our products to the end-users.

— It means that you started to think of retreading OTR tyres before the global OTR tyre shortage?

— Yes, on the one hand, we came to Russia at the moment when everyone was interested in retreaded OTR tyres. On the other hand, the lack of new tyres leads to the lack of the casings appropriate for retreading.

—And how did you organize your business?

— We were lucky to find a Russian company which shares Marangoni philosophy of providing aftersale service and prolonging the tyre life. Our partner in Russia knows the peculiarities of local market, sells new OTR tyres and supports all customers with reliable and complete service.

— What are the peculiarities of Russian OTR market?

— The main point is that it is impossible to locate good OTR casings in Russia in the yard. All the casings I saw were scrap. The Russian mining companies always use the OTR tyres till the second steel cord. It took us about 2 years to collect the first OTR casings in Russia.

— How did you succeed?

— First of all, we had to change the mentality of Russian people towards OTR tyre retreading. As explained by our Russian partner, there was a compulsory OTR tyre retreading in Soviet Union times, called "navarka" and it was of a very poor quality. So, our first step was to overcome the skeptic altitude towards retreading. To accomplish it, we organized visits of representatives of Russian mines to our factory in Rovereto, Italy and started to supply the retreaded OTR tyres including European casings. Moreover, we proved that the mileage of a retreaded OTR tyre is about 80% while the final price is 50-60% of a new tyre. Consequently, the mines understand that the retreads allow to prolong the tyre life, solve the problem of recycling and save money.

— What are the current achievements of Marangoni OTR tyre business in Russia?

— Today our tyres are working on 5 big Russian mining companies. We started to receive casings for retreading on regular basis. This year we introduced 33.00 R 51 retreads which is the most popular size in Russia and already testing these tyres.

— What makes Marangoni different from other retreaders?

— The retreading business is already well established. There are several key players in the world. What I'm sure of, is that Marangoni is the acknowledged industry leader for both safety and quality. Marangoni retreaded tyres are enhanced by new European standards for the retreading process and the final qual

ity of tyres. Our retreading technology is very similar to production of new OTR tyres. We retread by hot vulcanization method and we select a specific rubber compound for the application of the mine to fit the particular operating requirements and conditions. That allows us to provide a warranty on our tyres.

— The tyres are now retreaded in Italy, are you planning to retread locally?

— It is well known that Russian tyre market is big and it is growing at a fast pace. It is a promising market for retreading. This subject is very interesting to Marangoni and we are planning to expand our presence in Russia. Since Marangoni has been a leader in retreading technology, the creation of Russian local industrial plant can be a part of Marangoni long-term global development and expansion plan which includes expansion of products, programs and manufacturing. We should be more responsive to our customers needs.

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