When Magna Tyres Group officially commenced production at its Obo Tyres plant in Hardenberg, the Netherlands on 11 January, Obo general manager Peter Schrijver told us that high levels of efficiency, lower transport costs and lower import duties make it “very cost effective” for Magna Tyres to manufacture in Europe. He also said that Magna had placed a further order for 23-, 26- and 29-inch presses and would undertake measures to effectively double capacity. Just over half a year on, the company has completed its first expansion in Hardenberg. According to Magna Tyres, OTR tyre production capacity is almost twice what it was at the start of the year.
A complaint often voiced by European retreaders is that their margins have been squeezed flat by imports of new tyres, especially products from China. But while many players have redirected excess capacity to Europe in the hope of claiming market share from retreaders, one tyre company has embarked upon a different approach. Instead of shipping its entire product range halfway around the world from the Far East to Europe, Magna Tyres Group has begun making some of its tyres within our region – and has teamed up with a retreader to do so.
Production of Magna tyres will soon begin in Europe. In January, the Magna Tyres Group will officially open its own facility in the Netherlands. A factory has been set up at the Hardenberg site operated by Obo Tyres, the retreader acquired by Magna Tyres Group in late 2016. The company states that from January, the Netherlands will host the manufacture certain products in the Magna range.
While spent revellers slept or nursed New Year’s hangovers and the well-meaning scribbled out resolutions they’d struggle to keep for a week, let alone a year, on 1 January Obo Tyres began something more significant. The first day of 2017 was also the Dutch retreader’s first as member of the Magna Tyres Group. The acquisition of Obo was announced shortly before the festive season got under way, and the new arrangement enables Magna, a specialist in the field of new off-highway and truck tyres, to offer its range as a full lifecycle portfolio. The benefit to Obo Tyres is measurable in terms of access to new markets, improved casing supply and the opportunity to develop new and qualitatively superior products.
Netherlands retreader Obo Tyres has appointed Peter Schrijver as its new commercial manager. The company said his appointment would further stimulate the growth of the company. Schrijver starts in his new position at Obo Tyres BV on 1 October, 2016, having worked previously for Apollo Vredestein for 29 years.