Bandag closing retreads unit in Belgium under consolidation plan

Dilsen-Stokkem, Belgium – Bandag Europe NV, part of Bridgestone Corp., has announced plans to close its tire-retreading products plant in Lanklaar, Belgium due to a decline in demand.

In a 12 Sept statement, the company said it had started the consultation process with the works council for the closure of the unit in the first half of 2025, affecting 111 jobs.

The move, it said, is due to a “significant decrease” in the European retreads market over the last 10 years, resulting in "overcapacity and uncompetitive production costs."

According to Bandag, demand in the European retreads market has dropped by 30% in the past decade, mainly due to the import of low-cost truck & bus tires from Asia.

The retreader said its sales have “continued to decline” in Europe, with costs further impacted by high energy prices and inflation in recent years.

In response to these challenges, Bandag said it had instigated a range of structural initiatives, including a “transformation plan” at the Lanklaar site, launched in 2021.

“However, since then, the market has seen an even sharper decline,” said Bandag, adding that the Belgian closure is part of a wider consolidation effort.

This programme, said the company, will see Bandag centralise ‘current and future production capabilities’ at a single location.

Specifically, the company said its site in Stargard, Poland, was considered “the only remaining option to ensure a future for the company’s retread business in Europe.”