Vipal gives Nova Prata factory an export focus

Brazilian retread materials manufacturer, Vipal used Autopromotec as the platform to announce that it is re-purposing one of its Brazilian production plants. At the same time the firm launched a couple of new treads. The 25th edition of the show coincides with the fact that Vipal itself turns 40 this year, making it something of a multi-celebration for the company.

Perhaps the most important news for European and other export markets is the Brazilian company’s decision to repurpose one of its three manufacturing sites to focus exclusively on products destined for international exports. “This is an important decision that Vipal is taking regarding the foreign market. Thus, we will be able to provide all the required structure to serve with excellence over 90 countries around the world," said Plinio de Luca, Vipal's sales and marketing director say before the show.

While in-depth details of how Vipal plans to repurpose its manufacturing operation are not year available, speaking to Tyres & Accessories, Vipal Europe manager Alessandro Bottesini Campos shed more light on the move. According to Campos, it is the company’s production facility in the city of Nova Prata in the south of Brazil (also known as factory number two) that will take on the export role: “Until this decision, we had in the three factories a mixed production of a couple of products used in domestic market and export because some patterns are used in both the domestic export markets.” The point that because of this internal logistics were relatively difficult as different products from different factories had to be brought together in order to fill export containers. And when you consider that the factories in Nova Prata and Feira de Santana are some 3000 kilometres, you can see why this is a challenge and why a dedicated export factory makes sense.

According to the company, Nova Prata outputs around 3000 tons a month in pre-cured treads. While the concept has been already, the process of turning the manufacturing sites focus solely to the export market cannot simply happen overnight and by all accounts it will therefore be a step by step process. The fact that all patterns sold exclusively in the foreign market are already produced in Nova Prata makes this process a lot easier and is likely to be one reason why this particular plant was selected as the Vipal export production base. As far as the patterns produced for both domestic and foreign markets are concerned, the company reports that it is duplicating the necessary moulds right now, but this of course takes time.

All in all the export factory strategy is expected to contribute to Vipal’s strong showing in key markets such as Spain, Bosnia, Croatia, the UK and Portugal, where the company reports that it already has a 15 – 25 per cent market shares, taking into account Vipal and Ruzi brands.

Vipal supplies over 90 countries across all continents, with its main markets being Europe, Latin America and the United States. To meet the specific needs of each location, which range from technical requirements to cultural, geographical, and legislative differences, the company invests in developing particular products for better performance in different regions. “In addition, we also have our own authorized retreaders, permanent regional teams, and distribution centers in strategic locations to provide full support to international customers,” company representatives said in a statement issued before Autopromotec.

Nowadays, Vipal has Distribution Centers in Spain, Germany, Slovenia, Australia, the United States (one in Florida and one in Virginia), Mexico and Colombia, besides three plants in Brazil. Vipal also has branches in 8 locations: Spain, Germany, Slovenia, Australia, the United States, Mexico, Argentina, Chile, Colombia and Vipal Overseas (Sub-Saharan Africa and Asia).