Page 34 - The Tyreman 2021 - 3
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retreading
TRMAM Analyses the Opportunities and Challenges for the Malaysi
Mohd. Azhar Mohd. Wazir is the Presi- dent of TRMAM, the Tyre Retreading Manufactur- ers Association of Malaysia, as well as General Manager of Kit Loong Tire Management. We managed to catch up with him recently to talk about the latest developments in the Malaysian retread sector and to analyse how the industry in the South-East Asian country was dealing with the challeng- es posed by the pandemic.
According to Azhar, the Ma- laysian retreading industry time of it during the Covid-19 crisis, especially during the - trol Order) when retreaders were unable to operate. This issues for many operators, and despite a recovery follow- ing the second MCO, produc- to government restrictions. - ed by increased raw materi- als and casing costs as well as by a general reduction in caused an overall slowdown in the market. Now, with cases on the rise, and a new lock- down implemented, hopes rest on a ramping up of the vaccination programme.
“All of these factors have meant that the retreading in- the moment,” says Azhar. “The balance between opportuni- ties and challenges is currently mixed. There are a lot of Chi- nese new tyres coming into the market, but there is a counter- opportunity arising from the fact that imports are expensive due to shipment costs. Trans- porters are looking at reducing costs, so some transporters
David Wilson, Publisher, Retreading Business
are looking more closely at retreading – so there is an opportunity.”
According to Azhar, his own company Kit Loong Tyre Management is cur- rently making the most of these op- portunities by sitting down with trans- porters to help them reduce tyre costs, and indeed, some are achieving this. “Transporters are being very selective, though,” says Azhar “Clients are taking their time to check the performance of retreads, although this is counteracted by the fact that Chinese tyre prices are continuing to increase due to materials costs. We need to make the most of opportunities in this scenario.”
One of the key issues facing retreaders in Malaysia at the moment is the dif- work in retread plants. With the Malay- sian Government looking to reduce the number of foreign workers, retreaders have little choice but to recruit locally. However, according to Azhar, despite some government incentives and de- spite high enemployment, most Ma- laysians are reluctant to take up hot, heavy duty work in retread plants, pre- ferring jobs in service industries. This, says Azhar, leaves retreaders with no option but to increase salaries. “The industry needs to promote itself more heavily through social media etc. to persuade local workers to join retread- ing companies, he says.
Mohd. Azhar Mohd. Wazir, President, Tyre Retreading Manufacturers Association of Malaysia (TRMAM)
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