Federal Tyres Looks to Middle East Markets

Taiwanese tyremaker Federal Tyres has entered into an agreement with Dubai-based tyre distributor Al Saeedi Middle East to import tyres into the United Arab Emirates, a market into which more than six million tyres are imported each year.

Federal Corporation president Chen Da stated that not only have the levels of imports entering the UAE been growing annually, but the country is also an important re-export hub for global tyre manufacturers. “So we believe it is time to strengthen our presence in the UAE as well as in other GCC (Gulf Cooperation Council) countries in association with a strong local partner. In Al Saeedi Middle East, which has more than two decades of excellent track-record in the UAE tyre business, we have found a strategic partner.”

Al Saeedi Middle East managing director Kuttan Malattiri expressed his confidence that Federal Tyres could quickly make its presence in the UAE market. “The UAE imports around six million tyres per year and approximately 65 per cent of these are re-exported to various countries including the CIS, the Middle East and Africa, India, and Eastern Europe. By using the UAE as a re-export hub, Federal Tyres can also expand its market reach in this fast growing region to emerge as a leading brand.”

Malattiri added that the overall automotive market in the UAE is set to grow by 11.4 per cent during 2007.