ARTICLE FROM TYRE & ACCESSORIES
MAGAZINE ON TYREXPO ASIA 2004
The Newera Group had a very visible presence at Tyrexpo
Asia. The company celebrated its 35th anniversary at the
end of last year and it was anxious to emphasis that its
success was, in no small way, due to its business
partners. Speaking with T&A, general manager of Newera
Equipment in Singapore, Chen Chia Min said. “Even though
it is operating in an increasingly competitive market,
the company has performed well during the past few
years. Retreading in Malaysia has remained static and
numerous consolidations have taken place. Also, the
lowering of import duties has brought with it many
changes and compressed margins have forced the company
to review its operations, a process from which it has
emerged favourably.
Newera Equipment Supply was incorporated in 1968 in
Petaling Jaya, Malaysia, delivering products to tyre
shops and retreaders. The company soon established a
reputation for innovation and introduced the first
changer into the country later that same year. This was
followed in 1970 with the first balancing and alignment
machines. For the reatreading industry, automatic curing
machines in 1975 and, following the company’s relocation
to larger premises in the early 80’s, the first
computerised truck tyre buffing machine from Matteuzzi
in 1991. Also in 1991 Newera Engineering was established
to manufacture more regionally affordable tyre
retreading equipment. This was, at the time, considered
a major gamble as it represented a partial move away
from the tried and tested source of imported equipment
from Europe and the USA. However, it has paid off and
expansion into a new facility occurred in 2001. Newera
is now the leading manufacturer and distributor of
retreading equipment and the major supplier of tyre
machinery and related products.
What of the future, “Newera’s business plan for the next
five years would mainly be focused on areas of
geographical development”, said Chen Chia Min. “Having
said that, it must be emphasised that the company’s
resources would continue to be concentrated in the Asean
region and the area would remain a key area for further
development. One of the company’s projects is China, we
see a lot of potential and have spent a lot of energy
over the last few years learning how to do business here
and have set up an operation in Shanghai. Plans are
being made to build manufacturing capabilities in China
for both machinery and tread rubber. Newera has already
established a foothold in countries such as Sri Lanka,
Vietnam, Laos, Cambodia, Australia and New Zealand.
India will be a market for future expansion.
Kayel Rubber Products started life as a main distributor
for Michelin and diversified into retreading products 15
years ago. The company is one of the leading producers
of tread liners and other related products with a 20
percent market share in Asia. Export sales manager,
Simon Chan indicated that exports were going. Some 70
percent of total production is shipped abroad, while
approximately half of that figure is taken by Asia
countries, sales into South America and Europe are
beginning to improve. “Naturally”, said Simon, “we would
like to develop our customer base, especially in Europe
and would welcome the opportunity of opening discussions
with established agents for retreading products. In
conjunction with Newera, a factory will be opened in
Shanghai specifically to produce pre-cure tread for the
Chinese market. This is due to come on stream during
2005”.
