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346

Demand for Private Brands Growing, Deldo Reports

Belgian wholesaler Deldo Autobanden is one of the largest operators in Europe, and amongst the more than 25 brands stocked at the company’s 60,000 square metre warehouse in Antwerp are four exclusive and two private brands – Fortuna and Minerva. The labels are aimed at the budget segment, an area where Deldo reports seeing significant growth during the last 12 months. In an interview with Tyres & Accessories, Deldo marketing manager Rutger Veerman stated the company has “noticed a growing demand in the European replacement market. Acceptance of Chinese products is growing, and we are benefitting from this.”

347

Destination Europe: More Chinese Products En Route to Europe?

Now President Barack Obama has stuck 35 per cent import duty on all passenger car and light truck tyres from China for the next three years what happens next? Chinese tyre manufacturers won’t want to sell fewer tyres each year. But US importers, consumers and manufacturers are equally unlikely to want to pay or absorb the additional costs. Tyres & Accessories spoke to a range of US, Far Eastern and Chinese companies and found that manufacturers are having to rely heavily on production flexibility, while traders are now setting their sights on one market in particular – Europe.

Stephen Wu, managing director of Chinese tyre trading operation, Best Choice International, reports that orders from the US stopped came to a virtual standstill in July. Their strategy is now openly towards producing more European market orientated products: “We stopped an SUV/LT project and waited for the decision. And we produced more European UHP tyre sizes, not US sizes.” Companies like Best Choice are now prioritising orders in other markets – especially Europe – where they aim to sell the most popular sizes, UHP and winter tyres. Best Choice is apparently interested in other markets as well, but Wu refused to give further details at this time. As far as Best Choice is concerned there is now zero chance of getting orders in the first year of the tariff, except in the 19-inch and over category. As a result competition is likely to be based on just two factors: price and delivery time.

348

Transense Signs MOU With Mesnac

Transense has signed a Memorandum of Understanding (MOU) with Qingdao Mesnac Co. Ltd, the parent company of the Sailun brand’s tyre manufacturing division. According to an official statement, Transense and Mesnac have entered into an agreement to combine their individual areas of expertise, for the purpose of developing Transense's patented tyre pressure monitoring sensor technology for the attachment or embedding of these sensors into tyres. Under the terms of the agreement Mesnac have agreed to an initial upfront payment and will pay additional sums for technology transfer/engineering support on an as required basis. Transense shares rose 17 per cent following the news.

349

Deldo Autobanden: “Sales have been Reasonably Good”

Deldo reported having a good Autopromotec with a lot of international visitors to their stand. “Our Italian team were kept extremely busy dealing with enquiries from perspective new and existing customers,” said the company’s marketing manager, Rutger Veerman.

“Up to now this year for Deldo has not seen the dramatic sales decline that was predicted by many due to weakening of the global economy,” continued Veerman. “In fact, our tyre sales have been reasonably good and there is even a slight improvement over the first months of the previous year. So, we would have to say that we are reasonably satisfied compared to what is happening with the automotive market generally. One obvious result of the international fiscal situation is the increasing demand for budget tyres.”

In addition to its premium labels, Deldo offers an attractive package of private brands Minerva and Fortuna and exclusive labels Wanli, Roadstone, Sailun and Rockstone. Each tyre program presents its own specific characteristics and size range which equates to total sales of over 3 million budget tyres annually. With a large sourcing network, daily communication with its many partners and the continuous development of its product portfolio Deldo holds a unique position in the European market. “Important assets for an independent wholesaler are client oriented service, continuous stock and supply, attractive pricing and just-in-time distribution,” said Veerman.

350

A focus on changing perceptions

Retreading has long been recognised by commercial fleet operators as a major means of saving on operating costs, yet in some quarters retreads are still seen as offering less than their new tyre equivalents. Putting a stop to these misperceptions through elevating public awareness of retreading’s economic and environmental benefits has been a major focus of the US based Tire Retread & Repair Information Bureau – more commonly known as TRIB – for almost four decades. Recently Tyres & Accessories spoke with TRIB managing director Harvey Brodsky about an industry that commercial vehicle operators simply cannot afford to ignore.

351

Chinese Exhibition Well Positioned for Growth

The fourth China International Rubber & Tyre Industry Exhibition 2007 (RTF), held between May 11 and 13 in the city of Qingdao, Shandong Province, was the largest in the show’s history. Sponsored by the Shandong Provincial Rubber Industry Association and organised by Qingdao Jinnuo Exhibition Co. Ltd., RTF has become China’s third largest tyre and rubber exhibition, attracting 120 exhibitors and 4,200 attendees from around the world. Some of the exhibition’s major participants included Lanxess, Sartomer, Daikin, Schill+Seilacher, NDC, U-Can, Instron, Berstorff, Mesnac, Triangle, Linglong, Doublestar and Sailun.

The key events at RTF 2007 included a number of high-profile conferences held in conjunction with the exhibition – the Chinese Rubber Industry Information Release Conference, organised by the Shandong Provincial Rubber Industry Association, and the Qingdao International Rubber-Plastics Conference, organised by Qingdao University of Science and Technology. These events attracted nearly 600 industrial industry professionals.

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