Large machines move tyre market

The growth of domestic sales of agricultural machinery, especially those of higher potency, has created a promising market for the so-called "agricultural radial tires," whose structure is best suited to support these large equipment than the conventional.
This is possible because the radial tire housing wires are distributed in arches perpendicular to the ground and tire Center-oriented, with stability ensured by a steel strap located under the tread. The technology reduces deformations and, in addition to allowing the tire larger loads support promises to wear slower and fuel economy.
Such features may not be sufficient to lead farmers to a mechanic to change the tires of their tractors, combines or sprays used. But make the radial, more expensive than conventional tires, an increasingly common component in the big new machines acquired in pace accelerated in the Brazilian market, currently in a process of replacing what has been almost completed in the United States, for example.
With that, indicate the latest statistics of the National tyre industry Association (Anip), the production of radial tires in the country has already reached 31 thousand units between January and October this year, with a significant increase of 138.5% compared to the same time last year.
The Anip has no specific data on sales of the product, but informs that, in total, the commercialization of agricultural tires (conventional and radial) increased by 17.6% in comparison to 823.8 thousand units. Also points out that the agricultural and cargo areas pulled the growth of 9.1% of the total production of tires in Brazil, which reached 57.6 million units during the first 10 months of 2013, when sales reached 60.9 million.
Sales of radial tires, which until recently were fed only with imports, accelerated two years ago. Not by coincidence when the marketing of larger and more sophisticated farm machinery also powered ahead in Brazil, as remember Mark Aoki, commercial Director of the Division of commercial Japanese multinational Bridgestone's tires.
The company, which sells agricultural radial with the Firestone brand, reports that holds about 25% share in this market in the country. The company recently announced an investment of more than $ 14 million in its unit in Santo André (SP) to double production capacity to 60 units per day up to 2015. The production of radial on ABC paulista unit started in 2012.
According to Aoki, the useful life of an agricultural radial comes to be 50% greater than that of a conventional tire. Thus, the replacement of the product is made, on average, every two or three years, depending on the level of use of the machine. The expansion of production Crown the best year for sales of Bridgestone agricultural radial.
The American Titan, in turn, estimated that its sales of agricultural radial will be multiplied by six in 2013 and should increase over 5% in 2014. But the company does not reveal the number of units it has sold this year or the projection for next year. According to Luiz Antonio Marthe, Director of sales and marketing at Titan Tires in Latin America, the agricultural segment as a whole must register sales 35% bigger this year and will represent 75% of the company's revenue in the country, estimated at $ 950 million.
As Marthe, the radial-which are also a bit wider than conventional tires and have higher traction-power, may reduce by about 5% fuel consumption of a machine. Some automakers have also begun to use radial tires in average power equipment, which can lead to a significant expansion of the market.
In the next twelve months, the Titan plans to invest $ 35 million to expand by around 10% its production capacity of radial and optimize the process.
The Italian Pirelli also intends to devote 10% of total investments of approximately r $ 1 billion, which promises to Latin America until 2017 to increase by 30% its production of agricultural tires-and more than triple the radial-in the region, according to Gianfranco Sgro, Chief Executive Officer of Pirelli's operations in South America. Most of the contributions will be in Brazil.
The Pirelli radial agricultural manufactures in the country since 2009. The agricultural tires segment and for trucks represents 43% of the company's sales in Latin America.