Hercules to Open Middle-East and SE Asia Offices

Hercules International boss Joe Recchia has told Tyres & Accessories that Hercules’ visit to the inaugural Reifen China exhibition is not about instantly accessing domestic sales in China, but rather establishing a foundation on which to build in the months and years ahead. Recchia’s plan is to grow Hercules’ export business from an international to a global player.

Up till now, Hercules has been a large manufacturer active in numerous markets all over the world – 93 at the last count, up roughly a third from the approximately 75 nations the company sold tyres to in 2006. But now the Canada-based operation is planning to turn global by establishing regional offices in a number of key markets in 2008. On the subject of China, Joe Recchia is clear that there is not much prospect of competing with Chinese manufacturers in terms of price, so the Hercules has plans to take the OE route to market. Recchia didn’t go into details of exactly which manufacturers he was referring to, but did say that the plans are expected to be underway in the middle of 2008. Hercules’ international intentions look set to focus on one of two of its private brands (perhaps even both), but Rechhia would only go as far as saying that they represent totally different distribution channels.

Speaking to Tyres & Accessories, Joe Recchia gave details of how globalisation plans are already well underway. First up was Hercules Latin America earlier this year. Founded by virtue of the company’s acquisition of TDI, the Latin America regional office is actually based in Miami, but will seek to take advantage of Miami’s strong geographical position in relation to both the Latin American and Caribbean markets. Next up are offices in the Middle East, South East Asia and Europe. The opening of the Middle East office is scheduled for February 2008 and looks like to be based in Sharjah, Dubai. Then in March the company plans to open another office in Singapore. In both cases the relevant staff have already been recruited.

The opening of Hercules’ Dubai and Singapore regional branches will be followed by the opening of a European office. Plans for this subsidiary have not been confirmed, but Recchia told T&A that they could come about either organically or by virtue of acquisition. Similarly the exact location of this company has not been finalised, but it looks likely that the European office will be based in Germany because of its position in the centre of Europe and because of the size and influence of Europe’s leading domestic market. Certain companies are already said to have approached Hercules with buy out enquiries.