Marangoni calls for reductions in hours for all 350 Rovereto employees

Last week, Marangoni asked unions to approve a restructuring plan and proposed investment of 2.7 million euros into its retreading operations. According to Tyrepress.com’s Italian sister site PneusNews.it, the proposal includes a major revision of the Rovereto location’s truck tyre retreading operation. Marangoni Group ended 2011 with 7.9 million euros of losses, which are said to be mainly due to financial charges and the tax burden.

PneusNews.it reports that last week (15 – 19 October), Marangoni’s management met with union representatives to negotiate a 12 month layoff period and therefore a marked reduction in working hours for all the 350 employees at the company’s Rovereto headquarters. This is being framed as matching production with demand and the availability of casings. Up to 70 positions will see their hours reduced to zero and it is not clear whether or not there will be work for them at the end of the period. According to the company, this decision has not yet been taken and in fact is not currently the subject of discussion. Instead this is something that is expected to be considered at the end of the period.

“The situation has become very critical, not only because of the decline in demand for truck tyres that, depending on the market and segment recorded negative rates of 20 per cent or more, but because of the ever increasing shortage of basic components needed in retreading – ie good quality tyre casings that have been well maintained and offer good retreadability,” Marangoni’s union negotiators are reported to have said.

The deepening of the financial crisis has indeed caused a sharp drop in registrations of new trucks and therefore in the OE tyre demand to fit these vehicles. At the same time replacement demand is also said to have fallen. This has forced fleets and carriers, already heavily affected by rising fuel and operating costs in general, to adopt different methods of extending the first life of their casings, which also has the knock-on effect of making the casings less retreadable.

The one ray of light in this situation comes from the East as those working inside Marangoni’s Rovereto headquarters believe tyres imported from ‘Asia’ now offer better prospects for retreading than before. With an estimated market share of around 20 per cent of replacement sales Chinese produced tyres are said to be offering a solution – contrary to what happened in the past – that makes Chinese and Asian tyres a potential resource for retreading industry.

2.7 million euros of investment being proposed

Marangoni’s investment of 2.7 million euros in its retreading operation is said to include interventions to improve processes, technology and products. The investment includes the acquisition of machinery and adapting to new processes, environmental improvements, information technology, research and development and staff training.

The unions are considering the proposal, which, if approved, will have to go to the Ministry of Labour for final confirmation. While considering the company’s offer to invest a positive signal asking the company to Rovereto guarantees and details on the restructuring plan.

On the subject of reports relating to a potential tie-up between the Italian company and an Asian producer, Paolo Maria Fincato, director of development and public relations, said: “We have had relationships and cooperation with tyre manufacturers around the world for years and even now several negotiations are underway with potential partners in the various sectors in which the company operates.”