In an unprecedented event held in Nashville, company gathered independent retreaders to reinforce the strategy for growth in the North American market

Vipal Rubber held between April 8 and 10 in Nashville, Tennessee, the first edition of the Independents Day, a meeting that was a milestone for the company’s new moment in the North American market by gathering independent retreaders from different regions of the USA and Canada to strengthen relationships, share strategies, and present the evolution of its local operation. With a name taking back to one of the most symbolic dates in the United States culture, the event was conceived to value the spirit of pride that characterizes the independent segment and reinforce Vipal’s position as a strategic partner to these retreaders.

“We have intensified our investments to strengthen Vipal Rubber’s presence in the United States and consolidate our leadership in the independent tire retreading market. We are expanding our operations here, including the increase of local production at the Madison plant, further stressing our commitment to our North American clients”, says Felipe Henzel, Commercial Director – International Markets and Two-Wheels Division for Vipal Rubber. In total, nearly 80 people were present at the Canopy by Hilton Nashville Hotel, in a schedule combining a lecture by David Stevens, managing director of the Tire Retread and Repair Information Bureau, about the retreading market, and strategic discussions, visit to the company’s plant in Madison, Tennessee, as well as a networking night in the traditional Nashville Broadway.

Partner to independent growth

Throughout the meeting, Vipal stressed its commitment to strengthening independent retreaders and highlighted its ambition to be solidified as the main partner for this segment in the United States, supported by continuous investments in local production and structure and expansion of portfolio. “Independent retreaders have a relevant role in a market that is vastly dominated by major chains, and our goal is to support them so they can compete on a high level, with access to full solutions, technology and support, without giving up on their autonomy,” highlighted Antonio Brito, Vipal’s Manager in North America.

The company presented its strategy as a house of brands, integrating Marangoni, Vipal and Ruzi into a complementary, more efficient portfolio. The new organization eliminates overlaps and allows partners to find their ideal solution for every application, ensuring they operate in the same level of major groups, preserving their autonomy and competitiveness. “We offer the most complete portfolio in the segment, encompassing different technologies, from ring to flat systems, and we are organized to help our clients grow, with a dedicated commercial team and local investments in production, logistics and presence”, says Leonardo Oliveira, Commercial Manager of Vipal in the United States, Canada and the Caribbean.

Marangoni concentrates ring system solutions, which stand out in high-demand applications, such as long-haul transportation, heavy loads, and operations in extreme conditions, with gains in performance, mileage and standardization. Vipal, on its turn, has products with consolidated technology and proven performance, that position the company among the top global manufacturers and efficiently meet the demands from fleets and retreaders. Ruzi expands the portfolio competitiveness by offering an alternative with excellent cost-benefit ratio, focused on the maximum use of casing and applications that require balance between cost and benefit. Together, the three brands allow Vipal Rubber to deliver a full, segmented offer, capable of catering to different operation profiles with consistency and competitiveness.

Growth and consolidation in the United States

Present in the USA since 1992, the company took a strategic step in 2019 by acquiring an industrial unit in Madison, Tennessee. With over 161,450 square feet and production capacity of approximately 650 tons per month, the plant caters to the US market and also exports to Canada and the Caribbean.

Currently, the company is accelerating its Made in USA strategy, expanding the local production for the three brands, strengthening the supply security and its proximity with the United States customers. In total, 59% of our tread portfolio is already manufactured in the USA, a figure expected to increase in the coming months. While 100% of the Marangoni ring tread portfolio is manufactured in the United States, about 40% of our flat treads are already manufactured in US territory.

At the same time, it acknowledges common challenges to the segment, such as competition with major global players, the expansion of imported, lower-quality tires, and transformations in the economic environment – factors that bring Vipal even closer to the reality of independent retreaders.

Also, the integration between Vipal Rubber Corp. (VRC) and Marangoni Tread North America (MTNA), another topic addressed in the meeting, reinforces the perception of an increasingly unified operation in the United States and represents an important progress in this strategy. The acquisition of Marangoni’s operation in North America expands synergies and consolidates the company’s operation as a robust vendor, with strong local presence. “To make our operation more efficient, we are in the process of consolidating the companies Marangoni Tread North America (MTNA) and Vipal Rubber Corporation (VRC), creating a single company, VIPAL RUBBER, which will also allow to unify customer service and strengthen the VIPAL RUBBER brand in the USA,” states Henzel.

Global leadership with local operation

With presence in over 90 countries and operations in the five continents, Vipal is one of the main global manufacturers of rubber for tire retreading. Combined, its physical facilities have 2.4 million square feet, with installed capacity of more than 44 million pounds/month. The company leads the Latin American commercial tire retreading market, with more than 280 authorized retreaders and 44% market share in Brazil – the world’s second largest market in the segment. Currently, the United States are the leading market in the tire retreading segment, followed by Brazil and Europe, reinforcing the strategic relevance of the region.

Featured Image: Company’s keep a plant in Madison, Tennessee, reinforcing partnerships and the commitment to strengthening the independent retreading market in North America (Photo: Nashbox Studios)

Tagged: Retread Market

Vipal Rubber Expands Production in the USA and Consolidates Focus in the Independent Market