New CEO looks to build upon Bandag legacy

Muscatine, Iowa - Bridgestone Americas Holding Inc. (BAH) purchased Bandag Inc. to build upon “the great Bandag legacy” and enhance its revenues and product portfolio, Saul Solomon, chairman, CEO and president of the new Bridgestone Bandag LLC told reporters in Muscatine.

Solomon joined BAH Chairman and CEO Mark Emkes and outgoing Bandag Chairman and CEO Martin Carver at a press conference celebrating the closing of BAH's $1050 million acquisition of Bandag.

“We view this as an alignment of the two leaders in the commercial tyre industry,” Solomon said, “We'll be able to package what we call a total tyre offering, which is a streamlined way to manage the customers' needs through the entire tyre life cycle.”

He said he and his team plan no employment changes but hope to “take advantage of the talent pool” in Muscatine.

Solomon said BAH recognises the importance and strength of the Bandag retreading system brand and wants to continue that name in the marketplace.

In the US truck tyre market so far this year, Mr. Emkes said the replacement tyre market has been soft during the first half, but he anticipates the fourth quarter to pick up and alluded to the fact that the boom in corn growth this year for ethanol production should jump start the transportation industry. In the original equipment market, truck tyre sales are “off” because of new emission standards for Class 8 trucks that caused many fleets to pre-buy new-and less expensive vehicles-in 2005 and 2006, Mr. Emkes said.

Bandag and BAH also are going to look at each other's technology very quickly, Mr. Solomon said. “Both Bandag and Bridgestone have great R&D capability, and we look forward to exchanging what Bandag knows and what Bridgestone knows, something we could not do in this period before closing.”

Any decisions on spending for research and development will be based on the company's profitability, he noted. “We hope this takes off, and if it does, then we're going to reinvest in the business,” Mr. Solomon said. “The future hopefully is bright and the market will dictate it. We're looking forward to that.”

From Tire Business (A Crain publication)