Tyres and the Potential for Carbon saving Wednesday 11th September 2013

1. Tyres and the Potential for Carbon saving Wednesday 11th September 2013 John Henderson Business Development Manager Solstor (UK) Ltd Living our values Together … with Integrity … taking Ownershipseeking Improvement … working with Passion

2. Structure Introduction to Solstor Background What process was followed? What is re-treading? Why use retread tyres? What was the outcome? Living our values Together … with Integrity … taking Ownershipseeking Improvement … working with Passion

3. A G Thames Group Living our values Together … with Integrity … taking Ownership seeking Improvement … working with Passion

4. The Solstor Road Map Solstor Created 1983 Primary Consolidation from Italy for UK Retailers 1995 1997 Valencia, Spain Ravenna, Italy Hub 1999 2000 Crayford Hub Opened Primary Consolidation from Spain for UK Retailers 2002 2003 Pan European Network created for major Ice Cream manufacturer Profresh Solutions 2004 Retailer store deliveries Commenced Eastern Europe operations 2006 2009 Yaxley Consolidation Hub Solstor Intermodal 2010 Felixstowe Import / Export Hub Boston depot 2011 2012 Solstor Polska 2013 Solstor General Cargo Solutions Living our values Together … with Integrity … taking Ownership seeking Improvement … working with Passion

5. 50,000 Pallets per Week UK Business Unit Delivering the most demanding supply chains Fast moving / very short lead time Volatile promotional / seasonal activity Diverse / remote supply locations Right first time / Intense focus on detail MultiTemp. Chill Produce Frozen Bananas Ambient Coverage from Dundee to Penzance Living our values Together … with Integrity … taking Ownershipseeking Improvement … working with Passion

6. European Coverage • 1000 loads per week • Multi temperature network : • Chill, Frozen, Produce • 17 countries currently served 60,000 tonnes of ice cream Every Year 200 million oranges Living our values Together … with Integrity … taking Ownership seeking Improvement … working with Passion

7. Customers Living our values Together … with Integrity … taking Ownership seeking Improvement … working with Passion

8. Environmental • Efficient supply chain design • Loadfill optimisation • Resource utilisation • Empty vehicle running management / minimisation • Intermodal Services • Tyre Compound Innovation • Driver training / Vehicle telematics • Fuel efficient vehicle and trailer design & selection Living our values Together … with Integrity … taking Ownershipseeking Improvement … working with Passion

9. Tyre cost at unacceptable levels Business committed to addressing this unsustainable trend Practice was to buy all new tyres Low monitoring of this process – leading to lack of cost control Type of work – regularly need to replace tyres Competitive market place Company interested in viable sustainability projects Early 2012 - Set up working group to consider these objectives Background Living our values Together … with Integrity … taking Ownershipseeking Improvement … working with Passion

10. Objectives and timescales clearly set Review of tyre practice from industry and advice from manufacturers Best practice collated and compared with requirements of business Considered at all time safety implications of any changes Clear specification as follows All retread tyres on trailers New tyres on tractor front axle, re-mix on middle and retread on back axle Key performance indicators (cost) and review process Inc inspection and road side support Pence per mile tyre cost Open book contract What process was followed? Living our values Together … with Integrity … taking Ownershipseeking Improvement … working with Passion

11. What process was followed? Living our values Together … with Integrity … taking Ownershipseeking Improvement … working with Passion

12. Initial inspection - A visual and tactile examination of the casing takes place, then a non destructive shearography scan is completed detecting separations in the carcass that would remain undetected by the naked eye. Buffing -Removes the remaining tread and sidewall rubber to predetermined dimensions by means of high speed revolving rasps and brushes and using computer-controlled machinery for exactness Preparation To locate any minute holes in the inner wall, the carcass is subject to a penetration detection process, high voltage electricity is passed through the tyre while it is rotated. If a minute hole is located, an arc will be produced which stops the machine and identifies the location for a repair to be made. Larger holes in the casing are filled with compound and patched to rebuild the integral strength. Finally, the prepared casing is sprayed with a water-based adhesive ready for the building process. What is re-treading? Living our values Together … with Integrity … taking Ownershipseeking Improvement … working with Passion

13. Building -The new tread is applied or stitched to the carcass using a patented computer-controlled process. A continuous strip of premium rubber compound is wrapped around the tyre while it revolves on an inflatable chuck. Curing -The tyre is placed in a hot, segmented, radial matrix or mould within a curing press. The tyre is heated for up to 95 minutes at 150 degrees centigrade whilst inflated to 200psi with the use of an internal bladder placed within the carcase. The new rubber is vulcanised and produces the exact tread patterns and depths required from the mould; The same process as used for the production of new tyres. Final inspection -This involves three further examinations. A visual and tactile examination, where the trained eye will spot imperfections in the tread pattern or sidewall. An inflation test where it is rapidly inflated to 110 psi over a five second period. Any imperfections in the tyre or weaknesses in the casing will cause the tyre to explode. Shearography, which can detect even minor separations or porosity, invisible to the naked eye but which would cause the tyre to fail during service. What is re-treading? Living our values Together … with Integrity … taking Ownershipseeking Improvement … working with Passion

14. Retreads are safe - manufactured and tested to the same criteria as new tyres. Alegal requirement in the UK since 2004 - mandatory across Europe. They are durable last as long as new tyres, can last longer, thanks to their unique design. The production process is flexible e.g. thicker sidewalls can be built in to reduce wear from kerb contact. Widely used - Almost every other tyre fitted within the UK Commercial Vehicle Fleet is a retread tyre. They save you money 20% cheaper than new budget tyres on average. When you add the additional cost-per-mile benefits, the savings are even more substantial. Good for the environment -uses less natural resources Why use retread tyres? Living our values Together … with Integrity … taking Ownershipseeking Improvement … working with Passion

15. Selected Vaculug - http://www.vaculug.com/ Full supply and service 3 year pence per mile contract Switch saved £100k per annum on a budget of £430k on tyres Enhanced control of spend and performance 53 tonnes CO2 saved in 2012 Each re-tread uses 75 litres less than a standard Zero landfill Important marketing tool What was the outcome? Living our values Together … with Integrity … taking Ownershipseeking Improvement … working with Passion