Multinational autoparts giant Continental Group is investing more than £1million into the Bandvulc Tyres Ltd plant it owns in Plymouth as it predicts a strong sales recovery now lockdown is easing.
The mainly sells recycled and retreaded tyres for commercial trucks and lorries, serving about a third of the 海角视频’s supermarket fleets, and while it suffered a 10% dip in trade during the Covid year, partly due to “non-essential” retail being shut, it is seeing sales pick up strongly.
The growth in supermarket sales and e-commerce, and a booming construction sector, are seen as drivers for demand in recycled and retreaded tyres.
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This optimism is born out by Continental, which acquired Bandvulc from the founding O’Connell family in 2017, continuing to invest in the Plymouth operation.
“Since the acquisition by Continental there has been a lot of investment in plant this year, spending more than £1million on new equipment and processes,” said Tony Mailing, operations directors at Bandvulc, “Continental is investing in this business which is great for the local economy and employees.”
During the pandemic the company continued to service regional and national fleets and that while sales were hit during the initial 2020 lockdowns demand soon rebounded to the extent that .
Directors at Bandvulc, which also has a 24/7 breakdown service and tyre management division, called 2020 “challenging” but said the company was nonetheless “resilient” and it anticipates remaining profitable in 2021.
Mr Mailing said: “Through 2020 we saw a drop of about 10% on a normal year but we are lucky because we are very much supplying the supermarket industry, so through the Covid year we kept going.
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“Home deliveries have gone through the roof, that has been of some assistance for us. But the 10% dip was because some retail was closed.
“About 60% of our business is related to supermarkets, and it has grown as they have grown. The construction industry is booming, and that is a big market for us, building materials and removal of anything from site, these are strong markets for our products.”
In addition, Bandvulc is finding its position has been strengthened by Brexit trade issues which have hiked the price of imports, and Europe lagging behind the 海角视频 in Covid vaccine roll-out.
“As a 海角视频 manufacturer, with the changes from Brexit it has made importing more expensive,” said Mr Mailing. “With Covid issues in Europe, where a lot of tyre manufacturing plants have been hit by absenteeism, that has affected the inflow of tyres into the 海角视频. Nearly all of our production is to the domestic market, more than 90%.”
Mr Mailing added: “The second half of last year, when we came out of lockdown was extremely busy for us and the forecasting looks like that will continue.”
He said that the prediction is that if the 海角视频 fully unlocks, as planned, in June the firm will be busy and ready for a “full bounce back.”
“The expectation is we will continue growing,” Mr Mailing said. “We had a 10% dip but it is growth year-on-year and the expectation is that will continue.”
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Bandvulc, listed as as the 35th largest business in the South West by the Western Morning News in 2020, is celebrating its 50th year in 2021.
It was established in 1971 when the import of rubber from Malaysia began and the retreading of tyres started, turning out about 30 a week. Today Bandvulc is Britain’s biggest commercial retread tyre company, producing a tyre every 2.5 minutes.
About 400 people work from the Lee Mill plant, but since Covid arrived in the 海角视频 about 100 of them have been home working since March 2020.
That includes call centre and tyre management teams, so working on site are production staff and management, but only between 30 to 40 are at the location at any one time to ensure Covid safety.
Also owner Continental sees sustainability as key and Bandvulc’s reused tyres is a big part of that, with Mr Mailing saying: “Fifty years ago recycling was little known, but now we and Continental believe it will be growth area.”