Bandag Europe NV (Bandag), a leader in retread solutions, has announced plans to close its retread production facility in Lanklaar, Belgium, by mid-2025. The decision comes as the European retread market faces a decade-long decline, resulting in production overcapacity and rising costs, rendering the plant uncompetitive.
The European retread market has seen a significant 30% drop in demand over the past decade, largely driven by the influx of low-cost truck and bus tyres from East Asia. This trend has impacted Bandag’s sales, leading to a surplus in production and rising costs, worsened by high energy prices and inflation.
In recent years, Bandag has made efforts to address the market downturn. In 2021, the company launched a transformation plan for its Lanklaar facility, aimed at boosting efficiency and reducing costs. However, despite these initiatives, the market has continued to contract.
After a thorough review of its operations, Bandag concluded that centralising production at its facility in Stargard, Poland, is the only viable option to secure the future of its European retread business. This consolidation is intended to streamline production and restore the company’s competitiveness.
The Lanklaar plant currently employs 111 workers, all of whom are set to be impacted by the closure.
Jan Deneir, Plant Manager at Bandag Lanklaar, addressed the decision with an emphasis on transparency and employee support. He stated, “Bandag’s management is conscious of the potential impact of the envisaged closure. We intend to manage the process with respect and consideration for the impacted employees. We aim to conduct a constructive and transparent dialogue with the social partners throughout the information and consultation process.”
In the event of the closure, Bandag has pledged to develop a fair social plan and assist affected employees in finding new employment opportunities. Deneir added that psychological support would also be available for those in need.
Despite the challenging market conditions, Bandag remains committed to retread solutions, which are seen as a sustainable choice for fleets and commercial vehicles. Retreading is one of the earliest examples of a circular economy, helping to reduce waste and extend the life of tyres.
By consolidating production in Poland, Bandag hopes to refocus its efforts on delivering high-quality, sustainable retreads and regaining a competitive edge in the market.
