Reconstruction of Automobile Tires by Cold Welding on the Tread

Opportunity Snapshot

Investment Opportunity

The method of cold welding of tires is preferred than the hot welding as it is possible to weld the same tire up to five times.

The method of cold welding of tires is preferred than the hot welding as it is possible to weld the same tire up to five times. Each welding procedure guarantees practically 100% run of the new wheels. Тhе technology of welding is simple, it does not require large areas and special conditions.

Currently, the demand for freight transport is growing every year. A large number of trucks and buses need good quality and inexpensive tires. Often, when the time comes to "change shoes", the owners of the trucks are horrified by the amounts that they have spent for new tires.
For example: the price of a new wheel 315 * 80 * R22, 5 is about 2500 UAH. Standard "wagon" has 10 wheels. The amount of the "change shoes" costs are 25000 UAH. And if a person owns several cars, the tires replacement is a "headache" for him.

The service of retreading by method of cold welding makes this car owner to reduce big part of this funds - up to 50% of the cost of new tires.

The cost of welding on one tire is about 25% of the cost of new tire. The selling price is about 60% of the new wheels price. Profit speaks for itself.

To run the line needs to purchase equipment (China), deliver and pay custom costs. This process takes about 1,5-2 months. Commissioning and development of technology takes 2-3 weeks. In the beginning, the raw materials will be supplied from Russia. Manufacturer of the raw materials: a United Kingdom company (supplier of raw materials for the company «Nokian»).

In the future we plan to work directly with the raw material producer. The importation of the Chinese cheep raw materials does not make sense because of poor quality.

The equipment allows welding of tires with size from R16 to R22, 5. The line productivity: in order to two shifts work, 8 hour a day and 6-day working week (one day for preventive maintenance) is about 900 tires per month. A shift consists of 3 employees.
Payback period of up to 6 months. since start-up.

Interested investors can contact us on Merar.

Looking for similar investment opportunities