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SOUTH AMERICA
Marangoni Latin America Opens the Door to Retreading Business Magazine
unites the two: the increasing "inflation" of the raw material costs.
RB: How are the branches of the Group related?
The link between the group's units in different areas (geographical and or market) where it operates, is exercised by
the holding company, Marangoni SA, through substantial common functions (R&D, HR, etc.) and control. The main settings are made for the strategic direction of the divisions (the technology and material for reconstruction of tyres, new tyres, distribution, technology and energy) and aligned with the specific regional strategy.
RB: How is the Marangoni operation in Latin America faring?
The Group's activities in Latin America still represent a relatively small slice of the total Marangoni Group activity in the world. The industrial and commercial activities carried out in Brazil and Argentina represent little more than 15 per cent of the Group's overall sales, but certainly have a major role in the light of prospects in the near future. This part of the world, with its potential for development, is creating great expectations in all sectors to local companies, and especially to multinational companies with activities here. Virtually every industry has experienced an impressive growth phase over the past five years, especially when compared with the difficult situation that the traditional economies are experiencing.
RB: Does this mean that the Group intends to invest in Latin America?
The Group has invested a lot in the South American continent, specifically in Brazil, but it certainly should be investing in the promising markets of "emerging" countries where we focus our attention and investment;
RB: Does the Group intend to expand its operations elsewhere in the world?
The Group has been in operation for many years and through its policy of internationalization is already present in virtually all continents. After striking presence and success in Europe and the Americas, the main challenge ahead is China: A country and market that is very complex, but that has absolutely unprecedented dynamics of evolution. Until now, China has generally been seen as a platform for export production, depending on content and cost of manpower, it appears today in all sectors, as the new commercial frontier. This is an area of the world where Marangoni wants to be present at the time of the great boom for retreading (with a potential almost six times larger than the huge Brazilian market) and where today the Group is already present with its own commercial structure and is close to negotiating to have its own local production, primarily for the domestic market.
RB: What can we expect from Marangoni in 2011?
2011, for the Marangoni Group should represent two scenarios: the European scene and the one outside of Europe. On the European scene we will certainly monitor the market recovery, confirming the position of market leadership. In other markets outside Europe, the market is still seeing growth. To these two scenarios we need to add one that
Industrias Vermar is Mexico’s leading supplier of tyre repair materials and tyre/wheel equipment and accessories. The company, based in Guadalajara, is a family business run by the three brothers Ramiro, Alvaro and Juan Vertiz Marchebout. Established in 1975, the company developed as a manufacturer of wheel weights, tyre repair materials and valves and now employs 500 people through its 36 regional stores located throughout Mexico. Vermar also owns 120 small trucks from which the company supplies 95 per cent of the tyre shops in Mexico. According to Director Ramiro Vertiz Marchebout, the key to the company’s development came in the early 1990s, when the opening
compressors.
According to Commercial Director Alvaro Vertiz Marchebout, Vermar exports patches and weights to around 30 countries worldwide including Canada, USA, Cuba, Haiti, Central America, Venezuela, Ecuador, Chile, Argentina, Spain, Israel, Poland and Turkey. The company is now looking to expand and has recently been looking at China, where the company has good and long-standing contacts, and Russia. Vermar also recently exhibited at the Autopromotec exhibition in Bologna.
The company is now looking to continue to increase its sales by 10- 15 per cent per annum. This, according to Ramiro, will be largely achieved by opening up new
40 Retreading Business
Industrias Vermar: Mexico’s Tyre Repair Specialists
of Mexico within NAFTA forced the company to develop its own network of stores rather than sell through distributors. At that point the company also developed a wider range of products including equipment and tools.
For retreaders Vermar manufactures a full range of tyre repair materials (the company has produced materials for both 31 Inc and Bandag de Mexico in the past), supplies cushion gum and cement as well as Robbins envelopes. The company also assembles air
markets around the world. However, the company is also looking at new projects within Mexico, an example being a four year project to develop electronic chips for use in truck tyres. A test involving 400 trucks is currently being carried out with FEMSA (Coca Cola). According to Alvaro Vertiz, the aim of the project is not only to provide fleet management services but also (and primarily) to help fleets monitor which of its drivers are stealing tyres from their vehicles.