TME expects the current production level of 3,000 pre-cure TBR retreads per month at the Telok Gong site to jump to a projected level of 4,500 by mid-2020.
TME Capitalise on Recent Investment
TME Tyre Retread Sdn Bhd are preparing to capitalise on their recent investment and relocation to a new operating facility, which has freed up additional production capacity and opened new market opportunities for the Port Klang-based retreader.
As a retreader, TME has only been active for three years, having been created when Edmund Teng left Kit Loong Commercial Tyre.
As of today, this leaves Teng with 11 years’ experience in the industry and an abundance of knowledge and skill to fall back on as he plans to take TME into the future following the move to the new facility.
Teng is expecting the current production level of 3,000 pre-cure TBR retreads per month at the Telok Gong site to jump to a projected level of 4,500 by mid-2020, representing 70 per cent capacity.
“Once we are fully up and running and operating smoothly we are projecting a monthly production level of 4,500 pieces per month. At full production we will be looking at 7,000 pieces, but we clearly would require the market demand to optimise and satisfy this production level.”
Despite having healthy current and projected production levels, one issue that consistently affects all retreaders and not just TME is that of casing supply. Teng opines that high-quality casings are becoming sparse.
“Retreading is going fine, but casings are becoming more and more a thorn in our side. We are currently being supplied from Japan using the typical Japanese brands (Bridgestone, Yokohama, Falken and Toyo) .”
As things stand TME currently has 38 employees in the operation with 15 accounted for by production. The rest of the team are split between logistics, storage, collection, warehousing and sales.
However, this is all set to change with the projected production increase as Teng revealed that the company plans to employ another 10-15 production staff, depending on production levels. According to Teng, the increase in staff numbers is an inevitability and a crucial step forward if the retreader wishes to cover the production expansion over its two shifts starting at 8.30am and 8.30pm respectively.
At present production is supported by the company’s 28-tyre autoclave, which Teng suggests is ‘the largest chamber in Malaysia’. Despite boasting a chamber of this size, Teng admits that plans are underway to purchase and install a second 22-tyre autoclave to further assist the production process.
The investments don’t stop there though, with an additional buffing machine being purchased to complement the array of new toys at TME’s disposal as they take a stride into the future.
In terms of TME’s other suppliers, Teng disclosed that TME mostly use tread from Maxrubber, Bright Polymer and GIIB and that he “doesn’t see much performance difference between the brands.”
Besides selling retreads, TME are also the exclusive distributor for the Chinese brands, Hawkway and Firemax in Malaysia, a business which has been performing well for Teng up until now.
Teng additionally touched on decisions that face all fleet operators all over the world when it comes to the age-old question of “retreads or Chinese new tyres”.
“Historically transporters have opted for Chinese tyres due to the price differential between retreads and new tyres. However, perhaps they weren’t aware of the mileage of Chinese new tyres. With 30,000 kilometres on a Chinese new tyre and sometimes having the ability to retread them, the question has always been ‘are you saving money?”
In an overwhelmingly competitive local market that is heavily affected by the issue of new Chinese tyres, pricing strategies will always be heavily compromised. Cost-cutting and efficiency strategies turning waste into a revenue streams are valuable methods for retreaders to remain competitive and protect themselves from aggressive pricing.
TME are additionally the Tech Tyre Repair distributor for Malaysia, with the company distributing across Malaysia to retreaders. With this distributor agreement, TME also provide Tech tyre repair training using the brand’s products, as well as on the correct method for fitting tyres.
Teng adds, “we promote tyres with Tech’s training to the transporters and fleets. We even sometimes co-participate with them at trade fairs.” In addition to participating in trade fairs with Tech, the retreader has also previously attended road shows and events organised by truck and bus exhibitions.
Teng’s strategy is based on the concept of ‘offering a full package that has quality at its core’. In the long term, this strategy will be supported and upheld by lowering costs in terms of production and automisation that will allow TME to charge cheaper prices and remain competitive against Chinese imports. The key to the success though will be maintaining the quality level that their clients demand whilst cutting costs.
TME轮胎翻新私人有限公司正在准备好好利用他们的近期投资，迁移至一个新的工厂。此新厂将为位于巴生的TME带来额外的生产能力和打开新的市场商机 。TME开始活跃于轮胎翻新行业才3年，它是Edmund Teng离开吉隆商业轮胎后才创立的。
他预期在Telok Gong工厂时每月3，000条的预硫化卡车轮胎产量，能在2020年中旬提高到4，500条 ，也就是其产能的70%。
谈到TME的其他供应商，他透露说TME主要采用马胶、Bright Polymer 及GIIB的胎面胶，并表示这些品牌在性能表现方面没有太大的差异。