Sailun seeking to increase European, Middle Eastern sales

Established in November 2002, Sailun Co., Ltd. has been producing tyres for around 7 years. During this time the company has established a foundation in the market place, growing very fast in a number of areas. The company started off focusing on distribution agreements in North America, Europe and South America, but – as we saw from the establishment of a Sailun Europe subsidiary, which was announced in October last year – the firm is set on further expansion.

Currently the company is on the hunt for a tyre distributor local to the Middle East with the motivation and ability to drive the brand forward, hence the decision to exhibit in Dubai at this year’s Automechanika Middle East at the start of June. At the moment Sailun reports turnover of around US$40 million in this region, but the aim is for a new partner local to the Middle East region to work with the company to significantly increase this. Sailun representatives told Tyres & Accessories that the firm is already in talks with some interested parties, but it is far too early to share any details about this.

At the same time the progress of the firm’s European operation, which is headed up by Sailun Europe managing director Martin West, is said to be going “pretty good.” Following the official introduction of the European office at the recent Autopromotec in Bologna, Italy in May, the company is said to have received signals of interest from over 160 “interested parties”. At the same time demand in Southeast Asia and Australia is also said to be on the up, meaning there are great expectations that the company will be able to report strong sales growth at the end of 2011- 2012 financial year. All of this market expansion is structured with a view to the “gradual establishment of North America, South America, Europe, Middle East, Africa, and Southeast Asia” zones. These six large areas will be seen as marketing centres, providing market information collection, customer communication, service and new customer development.

Looking at things from a marketing perspective, in order to maximise the firm’s brand value, Sailun plans to continue to participate in major international professional exhibitions where it will display its latest products and technology as well as participating in international magazine advertising media publicity.

As far as Sailun’s tyre production capacity is concerned, the aim is for the firm to achieve an output of 2.6 million truck tyres a year and 10 million passenger car tyres annually. Currently truck/bus and passenger car radial production stands at 2.3 million and 7 million units a year respectively. The goal is to reach the higher level during 2012. In addition to general expansion plans, Sailun reports that the company has developed a new line in winter tyres in time for the next season. 1 million of these are said to be slated for production.

Related news:

• Wholesalers show new Chinese-produced tyre lines

• Sailun pleased with Canadian test showing

• Sailun Appoints New Truck Tyre Distributors