Vipal Eyes European Markets

“It is our objective to expand and consolidate operations in the European market in 2006. So participating in this trade show is of great importance in strengthening relationships with retreaders, distributors, truck drivers and fleet owners. Our competitive prices and ease of logistics make us competitive in Europe. But the quality and diversity of our product line is what really makes the difference.“ – Borrachas Vipal vice president Joáo Carlos Paludo obviously has a clear ambition about his company’s success in the European marketplace and it seems that the Brazilian retreading and tyre repair specialist is ready to successfully achieve its giant leap over the Atlantic ocean.

Borrachas Vipal has been active in the European market for about 10 years. But it wasn’t until this year that it set foot onto the continent with subsidiaries. As vice president Joáo Carlos Paludo explains, during the spring Vipal which is based in the in southern Brazil at Nova Prata established two distribution centres in Europe that serve all European customers. One of these centres is based in Spain, the other one in Slovenia and is mainly directed at the Eastern European markets, according to Mr Paludo. Apart from this the retreading material, tread and tyre repair manufacturer recently opened a sales office in Valencia in Spain. Further sales staff are based in Turkey and in Portugal. “Due to the two new distribution centres we could manage to increase our business in Europe by 80 per cent in 2005,” the vice president told Tyres & Accessories in an interview during the Reifen show. By virtue of products that have been developed especially to meet European demands the Brazilian company hopes to gain even more ground compared to competitors.

“We are supplying a very good quality at a reasonable price.” Already today there are many important, big customers in countries like the UK, Germany, Italy, Bosnia, Serbia, Portugal of course Russia, Ukraine and others. In the UK for example Borrachas Vipal serves the market through one importer.

Despite all expectations that are connected with the European market Vipal has to acknowledge that “the USA is and will remain the most important market for us for the time being.” In the USA Vipal opened its own warehouse facilities and a sales/distribution subsidiary in 1992. Just two years ago, a second warehouse was established to meet the market’s demands.

As far as Vipal’s Reifen Essen stand was concerned, the company put the launch of a new tread right at the top of the agenda. The “VZA-B” was manufactured in Brazil like all of Vipal’s products. As a tread for super single truck tyres it will help to replace twin tyres on the driving axles of heavy trucks. With a base measuring 295 millimetres the VZA-B is said to be ideal for medium and long distances. Next to this innovation the Brazilian producer of pre-cure retreading has launched other treads that are going to be sold on the European market. In Europe Borrachas Vipal exclusively sells truck tyre treads although the company is currently working on treads and tread bars for the retreading of OTR tyres. These will be available exclusively in the European markets in the near future.