The Next Level

Fresh from the success of pre-selling over 1 million winter tyres by August this year, Deldo has announced plans to further its interaction with the UK market, arranging to meet clients at next May’s Brityrex trade show. Tyres & Accessories contacted Deldo marketing manager, Rutger Veerman, and also learnt that the company and its key Chinese manufacturing partner, South China Tire & Rubber Company Ltd (Guangzhou) is investing in improving product production.

To get an idea of the scale of Deldo’s operation you need only look at the company’s annual turnover. In recent years Deldo have achieved an annual growth rate of approximately 10 per cent. Wanli remains Deldo’s best selling budget product, with a range of 160 (in 2007) passenger, light truck, SUV, 4×4 and truck tyres. Deldo is likely to sell 2 million Wanli products this year.

Deldo’s leading budget brands are: Wanli, Sunny, Roadstone, Minerva and Fortuna. With the exception of Roadstone and Minerva, which are produced in Korea and Europe respectively, these are all produced in association with South China Tire & Rubber Company (SCT). With this in mind, the news that SCT recently upgraded production is all the more significant.

In September SCT opened new production capacity with “the most advanced machines coming from the USA, Germany, Italy, United Kingdom and The Netherlands.” Dutch VMI machines were also installed recently.

According to Deldo representatives, the investments will boost the current capacity, and have a very positive effect on Deldo’s business in 2007. Deldo representatives hope the wholesaler and Chinese manufacturer can take product quality to the next level too and spoke of the companies’ communication with TUV Germany/Hong Kong. “With their expertise and specific knowledge we want to further improve the product quality,” Veerman told T&A. It also means new sizes and patterns are tested in detail at independent centres.

Deldo has been working with SCT since 2000 and company representatives continue to characterise the two companies’ relationship as “strong”. The 100 per cent Chinese government owned manufacturer’s 3000 employees produce a range of passenger, SUV, and truck tyres. The company’s annual production capacity will strongly increase. 70 per cent of production is allocated for export to Europe, North America and Australia.

With decades of experience in international tyre wholesaling and the capacity to stock over 2 million units at its central warehouse in Antwerp, Deldo is in a strong position when it comes to buying power. And, according to marketing manager, Rutger Veerman, the company aims to use this strength to pass on benefits to its customers.

As far as new market development is concerned, the company is focussing on developing its relations with Eastern Europe, Russia and the Nordic countries. Deldo’s Wanli and Sunny exclusivity covers all of Europe including Eastern Europe and Russia.

Deldo is very optimistic about 2007 and, in addition to attending six trade fairs (Salzburg, Amsterdam, Paris, Madrid, Bologna – and of course Brityrex in Manchester) the company will provide customers with a new marketing pack which its says will be very useful when it comes to promoting their brands in the shop.