GOODWAY Rubber Industries Sdn Bhd, the largest retread tyre manufacturer in the country, hopes to achieve a 25% increase in turnover for this financial year, said its managing director Tai Boon Wee in Kuala Lumpur .
Speaking to reporters after launching the Road Safety Campaign sponsored by Goodway in collaboration with Puspakom, Tai said that last year, the company's production capacity was equivalent to 13,000 tonnes of rubber.
Goodway expected to increase its production of retread tyres to an equivalent of 20,000 tonnes of rubber this year, he said.
The company, which is eyeing a KLSE second board listing, exports 70% of its retread tyres and it hoped to raise this figure to 80% next year.
According to Tai, Goodway tyres were 40% cooler in temperatures while running on hot highways, thus it were much safer and gave more mileage.
It is made of specially formulated premium rubber compound and proven to be safer and lasts longer than other retread brands. he said.
Goodway operates from its factory in Nilai, Negri Sembilan.
The company exports its tyres to about 50 countries worldwide, with the revenue derived from this product range amounting to RM150mil a year.
Though Goodway is highly export-oriented, 70% of its raw materials are sourced domestically.
The potential for the retread industry globally was tremendous, with the North American market alone worth about US$2bil, said Tai.
Recently the company signed technical transfer agreements with two Indian companies to contract manufacture the Supercool retread tyres.
Goodway also has presence in China and Australia in the form of marketing and service outfits.
Tai said the company hoped for a 25% increase in turnover this year due to the superior quality of its retread tyres.
Our lorry tyres sell at below RM200 each. Hence our tyre users make a lot of savings since new tyres sell at more than double the cost of retread tyres, he said.
He said that previously, commercial vehicle owners in Malaysia were not aware that there was an option in selecting the rubber to be used for retreading.
However, the situation was changing today and fleet owners had begun to specify their choice of retread rubber.
This had a positive impact on Goodway's growth and coupled with its aggressive expansion plans into China, Thailand and the Philippines, the company expected to see its turnover growing further, he added.
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