is a brand of Bohle

EDITORIAL World Edition 1 I 2008 I May I 5th year

Dear Schwalbe Partner!

The economy began this year with quite some momentum and I therefore dare to think that we can look forward with optimism to the season. In this edition of the Schwalbe Profile, I would like to direct your attention to the 35 years long friendship between two family enterprises – German and Korean – so rare in today’s world. It was in 1973 when the founda- tion-stone for the Schwalbe bicycle business was together laid by my father, Ralf Bohle, and the High Road make the pace grandfather of today’s company in the Paris-Roubaix - directors of our production partner George Hincapie can be Hung-A (South Korea). In 1991 pro- seen riding second. He duction was shifted to Indonesia eventually placed 9th.

from where nowadays all Schwalbe (3): Foto-Roth Photos bicycle tires originate and over the years ultramodern companies in both Indonesia and Germany de- veloped in order to satisfy the Ultremissimo increasing demand for . From its inception the Ultremo represented an enormous leap forward in Schwalbe’s tech- Take a look at the article inside and while riding conjure an image nology and consequently demand exceeded supply by a significant multiple – the inevitable of the beautiful island of Java! result was delivery delays. Now that production capacity has been substantially increased, this year availability should be seamless. Sincerely, From the very first moment that the Ultremo hit the was formerly more well-known as specializing in market, demand outstripped supply. ”And each time tires for everyday use and touring – until the late we stepped up production the market demanded even nineties when the firm became known for its inno- more“, said Schwalbe’s Technical director, Holger vative MTB tire range. Schwalbe has, since 2002, Frank Bohle Jahn. This was clearly quite a surprise, because for become a recognized European brand leader between ten and twelve years the German tire brand within the bicycle industry.

5 tips on how to make Production partners for Schwalbe now spon- your Schwalbe Shop- 35 years: The family sors two ProTour System more attrac- firms of Hung-A and teams: Gerolsteiner tive. Bohle. and High Road.

PAGE 3 PAGE 4 PAGE 8 2 SALES Photo: www.photohein.com Photo:

Schwalbe rider Ronny Scholz (Gerolsteiner) and Bert Grabsch (High Road) in the Eroica GP, Tuscany, Italy. Ultremissimo larly inspired: ”The tire feels like a tubular. It’s alive, supple and flexible.“ In its latest test (9/2007), ”Tour“ magazine con- firmed that it gave a safe riding experience. ”Very good riding impression. Fully predictable, giving the feeling of a lot of rubber on the road“. And in an ear- lier skid test (2/2007) that measured wet grip, the In 1997 Schwalbe introduced its first profes- magazine awarded the Schwalbe racer a performan- sional racing tire – Stelvio. Subsequently, in 2001, ce of ”Outstanding“. it became the official tire sponsor of Team Gerol- steiner, which at that time was competing in cate- Enormous demand – but a fast increase in gory GS2. Over the next few years Gerolsteiner and production is incompatible with precision Schwalbe grew together, not least due to the close cooperation of their respective technicians. Require- Success led to an unusual situation. The high demand ments rose whereby today Gerolsteiner is one of the that was initially very pleasing also had its downside. most successful ProTour teams. Schwalbe also wan- It caused supply bottlenecks as the planned sales ted to be more successful and not merely one among forecast was rapidly overtaken by actual demand. many tire suppliers. “So the next generation of rac- Everything needed to accelerate and quickly: ing cycle tires had to become a hit at the first Technicians and production managers mobilized attempt”, stressed Jahn. within Hung-A company, Indonesia, with whom So was born the Ultremo that met the criteria Schwalbe has worked for 35 years and as joint ven- Cobbles and gravel roads: with three innovations: Unequalled 195 gram weight ture partners for the past five years. ”Unfortunately, Roger Hammond riding for a genuine racing cycle tire, a patented High Den- production capacities for high-quality products can- Ultremos on the Paris- sity puncture protection belt and a unique Triple not be multiplied simply by pushing a button. Quality Roubaix. Compound. is always our highest priority!“ proclaimed Jahn. ”It would be nice if the answer was simply to Outstanding grip, employ more workers, but a premium tire – exemplary handling consisting of multiple carcass layers, puncture protection belt and precise tread joint – can The new Schwalbe racer only be made by fully trained and competent delivered what it promi- operatives.“ sed. ”Ultremo comes The situation this season is much more closer than any other comfortable. ”We have substantially increased make tested to be- capacity and are absolutely certain that we can ing the complete completely fulfill expected demand“, assured all-rounder“, so jud- Holger Jahn. ged the German specialist maga- Ultremo: A genuine zine ”Roadbike“ (05/07). And Team competition tire at Gerolsteiner’s pro riders were simi- just 195 gram.

profile 1 2008 SALES NEWS 3

Tips for an effective Shop-System

A Schwalbe Shop will help to increase tire sales and simultaneously mean less time is spent advising customers. To make the Shop System more effective – here are some top tips.

Demonstrate professionalism – order creates confi- salesmen“ that allow customers to quickly under- Technical Information dence. Standardize product and price marking using stand tire treads and structures. Give customers an in 5 languages the new label kit (see news right). Position popular overview of which is the correct tube by using the tires in the customer’s grab zone. valve display. Let customers test for themselves the There is a new edition of Schwalbe’s Optimize the use of areas – customer orientate tire puncture protection of the Marathon Plus with the Technical Information: The 35 page book- presentation. ”Flat-less“ display. let is available in: English, Italian, French, - Top tire rack – the ”Reach“ zone: The right place Take a look at the Shop-System at least once a day German and Dutch. The 2008 updated ver- for ”exotic“ tires. Because searching above head - Only display Schwalbe products in a Schwalbe Shop sion offers even more technical tips and height is difficult, this is the last place that custo- as any other brands will just confuse customers. background information around and about mers will look. Always show customers products at their best by tires. The publication is available from - Middle tire rack – the ”Grab“ and ”Eyelevel“ zone: ensuring that the wrappers of wired on tires face your distributor. The very best place! High quality and fast moving to the front and are lined up. tires such as the Marathon Plus should be put here. - Pricing is a legal obligation and also helps cus- New Shop-System signage

This spring all owners of Schwalbe Shops received a mail-out from Bohle inside which was: New signage for shelves – small cards either preprinted with all the popular tire models, or blank. For the blank cards there were transparent stickers with the names of all tire mo- dels, sizes and prices. The new signage is not only simpler to handle than the former CD, at the same time it is of far superior quality – improving the appea- rance of the logo that enlivens the Shop System and making customers’ selection of tires so much easier.

High pressure The ”Grab“ and ”Eyelevel zone“ is the best position in the Schwalbe Shop-System. Fast moving and high quality adhesive rim tape tires like Marathon Plus should go here. Schwalbe has introduced a - On shelving: Folding tires on Euro hooks and on the tomers make a quick purchasing decision. Always new, high pressure adhesive first shelf, tubes, accessories and point of sale mate- make sure there is a price sticker! rim tape. The fabric, made rial. - Stay up to date: Always display the current range from high density polyami- - Bottom tire rack – the ”Bending“ zone: The and fast movers. Older tires should be placed in the de is light and extremely correct place for wide tires with distinctive treads, ”Bending“ zone or the stockroom. pressure resistant. The or tire alternatives to the high quality products in - Tire racks, hooks and shelves should always be high-quality adhesive pre- the ”Grab“ and ”Eyelevel“ zone. refilled immediately. Avoid having gaps. Well arran- vents slipping under ex- Encourage additional sales – offer customers help in ged and stocked shelves are good purchasing motiva- treme loads and tire changing. Place articles such as ”Easy Fit“ fitting tors! But take care: Never overfill the Shop System. high tempe- liquid and tire levers close at hand, not forgetting - Take an objective look at the Shop System each day. ratures. The high quality rim tapes and, as the customer should If it is clean, well presented and inviting then it is tapes that al- also be ready to invest in more safety and comfort, doing its job! so have a valve hole, measure two meters make sure that items such as the tire pressure gauge long – sufficient for any rim. The tapes are within reach too. are sensibly packed in a twin-pack set, Visually inform – sample rings are great ”silent suitable for dealers’ self-service wall.

profile 1 2008 4 TECHNOLOGY

Schwalbe brand tires originate from the family firms’ – Bohle and Hung-A – joint venture fac- tory in Jakarta (Indonesia).

German-Korean Friendship

The longstanding friendship and cooperation between the family firms of Bohle and Hung-A, a Korean manufacturer of bicycle tires, has grown ever stronger over the past 35 years. Capacities have recently been increased by well over 30 per cent in the Indonesian joint venture factory in order to meet rising demand and to be prepared for the future.

But after all, why Indonesia? Business relationships decision in the company’s history and at the same with Asia started as early as the 1920's. Bohle Com- time the beginning of the Schwalbe story“, said Ralf pany was created in 1922 by brothers Willy and Eu- Bohle. Delivery from Mr. Triyono: gen Bohle, the father of the today's chairman Ralf Besides natural rubber many Bohle. At that time the company exported bicycle Schwalbe: From Exporter to Importer other raw materials are nee- parts to India, China and Japan and back then bu- ded for tire production. siness trips were an adventure that could last up ”We were only ever concerned with the export of to one year. In 1955 the firm regained its export li- bicycle parts, then with the import of parts, later cense after a break caused by World War 2, and on exclusively with bicycle tires and never actually by the early 1970's the company had seven employ- manufactured in Germany. Nowadays in conjunc- ees. It was at this time that Ralf Bohle travelled tion with Hung-A, we run the factory in Indonesia to Asia in order to find import partners for bicycle in which we only manufacture Schwalbe brand tires“ parts and first came into contact with Korean bi- clarified Frank Bohle. He is a third generation Joint cycle tire manufacturer Hung-A. 1973 saw the first Managing Director responsible for Sales and Mar- importation of tires under the brand name Swallow keting and together with Andreas Grothe, Finance (”Schwalbe“) from Hung-A to Germany and from this Director, and brother-in-law Holger Jahn, Joint point Bohle soon concentrated completely on cycle Managing Director responsible for Technology and tires. ”In retrospect this was the most important Development, they head the company in Reichshof-

profile 1 2008 TECHNOLOGY 5

The third generations: Ralf Bohle GmbH Managing Director responsible for Technology & Development – Holger Jahn (right), and Yong Jung, Managing Director Hung-A.

Wehnrath, where approximately 90 employees take care of product development, marketing, sales and worldwide logistics. Subsidiaries in the Netherlands, Great Britain, Italy and France employ a further 40 people. In 1991 Hung-A and Bohle shifted produc- tion from Korea to a factory in Indonesia situated on the modern Hyundai Industrial Zone about one hour Jakarta by car from the center of the capital Jakarta on the island of Java. More than 2,000 persons are employ- A worker brings together the individual parts of a tire ed in this Hung-A / Bohle joint venture making it the on a building drum. largest employer in the area. In order to meet rising Indonesia consists of over demand for Schwalbe tires, the work of increasing 17,000 islands. Bohle and capacities began in the middle of 2006. Hung-A, a Korean manufac- turer of bicycle tires, manu- Capacity improved by one third facture in their joint factory in Jakarta, Java island. ”During the course of the past year we were already experiencing unprecedented rising demand, while we were in the process of increasing capacity“, said Holger Jahn. ”However bicycle tires are complicated products that require skilled manual work in the building process that bring together many individual parts, so capacities for these high-quality products cannot be increased simply at the push of a button.“ Vulcanization: ”Green“ tires are “cooked” for seven Increasing production took a good 18 months, minutes at 170º C at 13 Bar pressure. but by the end of 2007 it was finally achieved. Simply hiring more workers was no solution. ”The key areas production. Detailed below are the most important of building and vulcanization were the bottlenecks production stages: and so we had to strengthen these areas by skills- Mixing – this is where what is generally referred to training 400 new operatives and installing state-of- as the ”rubber compound“ is created. Massive mills the-art machines“, explained Jahn, who travels to mix together blocks of natural rubber with other Jakarta several times each year, staying for some tire ingredients such as Carbon Black or Silica, weeks. Altogether the firm had to adjust capacities chemicals, waxes and oils. The new, high perfor- at almost each stage of production, numerous ma- mance mixers now employed are automatically fed, Building: The Ultremo chines were modernized or purchased and additional so that no particulates can contaminate the atmos- tread is applied. workers recruited in order to substantially increase phere.

profile 1 2008 6 TECHNOLOGY

Tread extrusion – different rubber compounds are standard. Bohle even goes a step beyond this with an combined under enormous pressure, for example in-house, world-wide quality assurance system of its Triple Compound for the Ultremo. ”We are one of own. For example each individual UST Tubeless and just a handful of manufacturers worldwide, that folding tire are examined for run-out and air tight- have our own Triplex-Extruder to produce and ness. unite three rubber compounds“, said Jahn. Building – the components of the tire are brought Indonesia: A tropical country together on a drum-like machine – for example made up of thousands of islands Visual inspection: Special carcass, Kevlar bead, rim protection tape and attention is given to Evolution Triple Compound as used in the Racing Ralph. With more than 225 million inhabitants Indonesia has tires. Even today building is highly skilled manual work, the fourth largest population in the world. In land area which is supported by further machines and appli- the country is about five times larger than Germany cation devices. The number of drums was increa- although its area extends to over 17,000 islands that sed by well over a third and, in the course of the stretch out over 1,750 miles (2,800 km) from Malaysia expansion, all were updated to the latest genera- to Australia. About half of the population lives on the tion of machines. most economically advanced island of Java. However Vulcanization – a tire’s final production stage. the place that is most frequently visited is Bali, where The ”green“ tire is ”cooked“ in a heated press for each year more than four million tourists holiday on seven minutes at 170 degrees and 13 bar pres- this small island that lies east of Java.

Tube inspection: Each tube is inflated to 150 per cent of its volume.

The same the world Quality Assurance: Cyclic testing of tires. over: Cigarette break. sure, turning plastic india rubber into flexible rub- Indonesia lies at the heart of the booming ber. Using ultramodern, electronic devices this Southeast Asian economic region. Since the Asian procedure can now be controlled more precisely. crisis of 1997/98 its economy has grown at an annual ”Even if the technical facilities are perfect average of between four and six per cent. In addition there is more to making high quality bicycle tires the country is one of the three largest natural rubber than just good machinery“, stressed Jahn. ”As we producers in the world and having this important tire do not make cheap mass production tires, it is raw material at hand naturally played an important only possible to maintain quality in such a com- role in the choice of location. For centuries on Java plex product that has a high labor content with and many other Indonesian islands, rubber trees motivated employees. We therefore reward em- have been grown in enormous plantations. Each day ployees with above average wages and social se- trees that soar up to 40 meters high have their bark curity benefits. A good needs a soul, scored and the sap – Latex, the raw material for india it must be made with love, when riding it one rubber, tapped from the tree trunk. should feel its suppleness – only such a tire can ”In this location and with the extension to our Labelling: The wrapper con- inspire“, said hobby racing cyclist Jahn, who rides factory we are well prepared for the coming years. tains important information well over 4,000 miles (7,000 kilometers) per year. It is vitally important to create a pleasant working for the retail trade. Even with such passion there are no short environment for all – only in this way can our tires cuts: Quality is supervised in both Indonesia and become really good“, agreed Holger Jahn and Frank Germany following the ISO 9000 international Bohle.

profile 1 2008 SCHWALBE INTERNATIONAL 7 NEWS New Building for Bohle UK

(Great Britain) The demand for Schwalbe products in the UK has been rising steadily for several years. Thus, two years ago the decision was taken to re- locate the business from its home of the past 13 years in Condover near Shewsbury to a brand new, ”Force“ is Rossin's top bike purpose built facility 20 miles east along the A5 to Hortonwood, Telford. This state of the art distribu- Rossin chooses Schwalbe tion center of over 25,000 square feet will eventual- ly use a completely paperless system and the very (Italy) This famous Italian brand has signed a latest wire-guided, fork lift trucks with on board technical partnership agreement with the world- computers that will speed up both order handling Bohle UK’s new distribution wide leader in development and production of high- and efficiency. center measures over tech tires. Rossin will fit the 195 gram 25,000 square feet. Ultremo racing tire on their top of the line bicyc- les, adding to the performance of their frames the New Road teams start the 2008 advantages of the Ultremo’s triple compound and season in winning ways High Density Guard that is now considered the benchmark for racing tires. Thanks to this impor- (Great Britain) With the demise of the Team DFL tant agreement Gruppo Bici Srl, which owns the in 2007, Schwalbe sponsorship was transferred to Rossin brand, will increase their technical know- ”Science in Sport-Trek“ which is a UK, multi-discipli- how and improve the performance of their bikes. ne team competing in road racing, cyclo cross and They also chose the Ultremo for their youth cyc- MTB, when in 2007 they were top in the XC National ling team bikes, giving them the chance to use Points Series. However this year it is on the road the same materials as the professional team. where they have already scored several victories. www.gruppobici.com Ian Bibby not only won in the under 23 category, but also the polka dot ”king of the mountains“ jersey in the Girvan 3 day stage race run over the Easter weekend. Arctic Premier RT, the successor of Team Artic RT, ”Les Coursiers Verts“ choose Schwalbe have also been successful early in the season with (France) In addition to La Poste and JC Decaux’s over 5 wins already. rental bikes in Paris and Lyon another company has chosen Schwalbe tires exclusively: ”Les Coursiers Verts“ is the name of a new bicycle courier business formed by Julien Valon and Julien Legat of Saint Etienne in south-east France. The two friends wanted Orange-Power for the Euro 2008 football to create a business that combined their respect of championships: Delta Cruiser in orange. the environment with their passion for cycling. Their company delivers letters and packages in waterproof Orange Cruiser for Euro ‘08 sacks using MTB’s and soon, for parcels over 30 kg, trailers will be used. Their present range of bikes (The Netherlands) Following on from the euphoria of use a remarkable variety of Schwalbe tires includ- the 2006 Football World Cup in Germany are the 2008 ing: Nobby Nic, Marathon Supreme, Marathon Racer, European Championships. Holland will certainly need Stelvio and especially for the winter: Marathon Winter all of the support they can get because, in the first and Ize Spiker making – all in all – around 20 types stage, they have been drawn in the ”Group of Death“ of tires! And with great success: Since the business along with World Champions Italy and runners-up began they have won more than 40 regular business Les Coursiers Verts France. So hoping ”Orange Power“ will help: Schwal- customers and although the concept is new and un- use a wide range of be have created a special edition Delta Cruiser tour- usual, it has been well received by local firms – who Schwalbe tires. ing tire in orange along with various window displays appreciate this ecological form of transport – and by with the slogan: ”Hup Holland Hup“. the local media. And why Schwalbe? ”We have always valued performance and reliability“, both Juliens emphasized.

profile 1 2008 MARKET 8

In addition to Gerolsteiner (right) Schwalbe also sponsors Team High Road (left). PHotos: Foto-Roth PHotos:

Two ProTour-Teams on Schwalbe

Schwalbe has sponsored Team Gerolsteiner Along with Team Gerolsteiner, Schwalbe now also since 2001, during which time numerous tyres have sponsors Team High Road, the successor of T-Mobile. been jointly developed. ”We hope that this year a new main sponsor can be found“, stressed Doris Klytta. Michael Rich, ex-pro and product scout for Gerol- "For our customers’ sake we need to test steiner, added: ”There is a high identification with tyres at the highest level“, said Doris Schwalbe tyres. Our mechanics and Schwalbe tech- Klytta, who is responsible for Schwalbe nicians cooperate closely.“ The most successful sponsoring and PR. ”Because only under riders are Davide Rebellin, second in the 2007 extreme conditions like the mountain sta- ProTour points category and , ges of the or in the Spring third in the 2007 World Championship. classic races such as the Paris-Roubaix George Hincapie, twelfth in the 2007 Tour de are materials tested to their limits. We France, is now with High Road, as is three times 2008 need these results in order to improve our World Track Champion Bradley Wiggins. Bob Staple- tyres. Otherwise, if we don’t cooperate with ton is pleased about his new sponsor partnership. such teams how can we reach our goals?“ "The company Bohle is a traditional family owned Additionally both teams go to extraordinary company which primarily produces bike tires and lengths in the fight against doping. Team Gerolsteiner (High Road) wins they are 100% committed to our team. Their inno- chief Hans Michael Holczer is one of the instigators two stages at ”3 vative Ultremo tire is of the highest quality and uses of ”Movement For Credible Cycling“ (MPCC, Mouve- days of de Panne“. a patented fabric developed by Warwick Mills, which ment Pour un Cyclisme Crédible) and High Road boss also develops fabrics for Nasa. Along with Bohle's aim Bob Stalpleton has his riders tested by independent to constantly improve their product, they also make institutes more frequently and comprehensively than their tires look cool. They are a perfect fit with our any other ProTour team. new bikes." www.highroadsports.com EVENTS July 5 – 27, 2008 Tour de France Sept 4 – 7, 2008 EUROBIKE, Friedrichshafen, Germany, www.eurobike-exhibition.de Sept 22 - 23, 2008 OutDoor Demo, Bootleg Canyon, Nevada (USA) Sept 24 – 26, 2008 Interbike Expo, Las Vegas (USA) www.interbike.com

TUBE FRAGMENT

Internationally acclaimed and widely installed across twelve countries: The Schwalbe tube dispenser is enjoying increa- sing popularity – from Finland and Denmark in the north, through Hungary and Slovenia to Italy (see photo left) in the south. The tube dispenser allows specialist bicycle dealers to sell outside of opening hours and the novelty of the converted cigarette machine also attracts consumers. Moreover the dispenser is not just another sales and advertising aid, but also a public relations tool that is a positive help for regular and prospective customers alike. For more information plea- se consult your local distribution partner.

Masthead Editor: Ralf Bohle GmbH I Otto-Hahn-Str. 1 I 51580 Reichshof-Wehnrath I Germany I Tel. +49 (2265) 1090 I Fax +49 (2265) 7022 I E-Mail: [email protected] I Internet: www.schwalbe.com

Publisher: Vincentz Kundenmedien I Postfach 6247 I 30062 Hannover I Germany I Tel. +49 (511) 99 10-315 I Fax +49 (511) 99 10-309 Staff Editor: Claudia Müller I Layout: Angelika Hanke

Printing: BWH GmbH I © Vincentz Network GmbH & Co. KG

profile 1 2008