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COMPANY NEWS
meet the needs of these developing markets. Overall, I would say that Galgo is being successful in growing in Europe. If you ask what our targets are, I would say that is difficult to be specific about. We are building step by step to ensure that we have a bigger share of the market. We need this solid base in order to be able to grow.”
As a Group how
important is
retreading to Galgo? "Retreading materials are our main business," says Francisco. "About 58 per cent of our production is for the retread sector. The balance involves rubber automotive parts, inner tubes, rubber flooring, gaskets and seals, and we have a strong presence in the market for rubber boots because we are the only manufacturer in Mexico of such products.
“In Mexico the retread culture is not as strong as it might be, but the market is growing. It has the potential to double in size as the economy and the infrastructure develop. However, at the moment there are issues, as there are in many countries, with road conditions, loading and pressures, all of which lead to low quality casings, and as a consequence issues for retreading. “Galgo operates in 65 countries worldwide. In South America we have some long standing markets likes Chile, Colombia, Ecuador, etc. and we are for the moment out of the Brazilian market. But, we are sure we will have a full coverage of the Latin American Market in the future.
“The challenge to grow is always present and our growth is based on our share of the market. There are challenges everywhere but we need to look at these as opportunities. When we started looking outside of Mexico we were already the domestic market leaders and if we didn’t look to export then there was nowhere for us to grow. Where our product is well received we need to build our market share to 5-10 per cent and upwards. We are always looking to expand. If the Eastern European market develops as we hope, then we would look to developing a second logistics centre there.”
So, Galgo has a firm foothold in Europe and is quietly building its market share. There are plans for growth but overall it is a case of small steps. Galgo will of course be at Reifen Essen and will have a new line of treads on display.
Galgo’s Tula plant, Mexico
NO.1 IN TIRES AND MORE
27.05.- 30.05.2014 Essen · Germany
www.reifen-messe.de