Starco Group Bound for Growth in Asia

Known in Europe as the market leader for small tyres, Denmark’s Starco group is currently taking steps to also secure a foothold in Asia. One such step, for example, is Starco’s first time presence at this year’s Tyrexpo Asia, explained Brian Lorentzen. Evidence that the Danish company is pursuing a strong growth strategy can be seen from even a brief look at the company’s annual reports and the development of Starco’s turnover. For example, last year Starco generated a turnover of US$100 million, this year the figure will very likely be 100 million euros. This means that the leading company in the European market for small tyres will experience about 30 per cent growth within just 12 months. Over the last ten years the Starco group has even achieved an increase in its annual turnover by a factor of ten.

Today, 24 companies in 16 different countries belong to the Starco group and the company’s geographical centre clearly lies in Europe and the Western parts of Asia. The different business fields in which the group is active are divided according to product group. First of all, there are the six OE business fields: Internal transport (e.g. wheelbarrow and sack truck tyres), ATV and scooter tyres, domestic lawnmower tyres, agricultural machinery tyres, high-speed trailer and caravan tyres as well as tyres for self-propelled machinery. On top of this, Starco has also made the replacement market another major business field in its corporate structure. According to the company Starco holds a 50 per cent market share of the European OE market for small tyres, although in actuality some of these tyres are not that small any more.

Apart from the company’s own Starco brand, which is produced by various production partners in Asia, the Danish small tyre specialist holds the exclusive distribution rights for the Kenda brand from Taiwan (except for passenger car tyres) as well as for the Kinetics brand, which is Kenda’s second-line brand. The relationship between the Danish and Taiwanese companies is an enduring one; this past summer the partners Kenda and Starco celebrated the 25th anniversary of their cooperation and partnership. In addition to the vast assortment of different kinds of small tyres it supplies – a range that is difficult to find elsewhere – Starco itself also produces wheels. It operates a production facility in the UK where plastic wheels are produced (Starco DML Ltd.) and another facility in Croatia where the company produces steel wheels.

In order to be able to continue its pattern of strong corporate growth, said sales manager Brian Lorentzen, the Starco group will now focus more closely on the development of its trailer and caravan, implement and industrial tyre business fields; these were the segments where future investment will be concentrated.