LONDON—Continental Tire Group officials rolled into London Feb. 22 to show off the recent acquisition Bandvulc and explain some of parent company Continental A.G.'s plans for the retread tire sector.
Acquired last summer, the Ivybridge, England-based truck tire retreader is seen as representing a "missing piece in the jigsaw" for the German group—a relative newcomer to this sector.
Embarking on a strategy to offer a "full life-cycle package" to the tire market, Conti opened a retread plant for truck and bus tires at its site in Hanover, Germany in 2013. The $10.6 million, 100-employee facility is designed to link retreading with recycling operations at the site.
Then came the acquisition of Bandvulc—now a wholly owned subsidiary of Continental U.K. Group Holdings Ltd.—in July 2016. The United Kingdom company employs around 460 people and has an estimated turnover of around $75 million, generated largely in the U.K. and Ireland but also from accounts in Europe.
In addition to the retreads production unit in Devon, Bandvulc says it has a large fleet management operation with 1 million wheels, three distribution facilities and five service centers.
As much as 70 percent of Banvulc's sales comes from its service operations, which manages more than 130,000 vehicles. The fleet portfolio covers a large number of major retailers, supermarkets and logistics companies and will complement Conti's own fleet strategy, according to David Smith, Continental Tyre Group managing director.