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MEXICO
An aerial shot of Galgo’s factory in Tula
achieve a National Export Award. Outside Mexico, Galgo is present in all other Latin American markets with the exception of Argentina, Brazil and Paraguay, where according to Commercial Director Francisco Ibarzabal, import duties preclude the development of a market presence. Latin American exports are carried out from Galgo’s head office in Mexico City. The company has an export manager, who covers this area, but, according to Ibarzabal, the company is looking for a marketing person to provide additional support in these markets.
Galgo has been present in the North American market since 1989, initially through a dealer, Associated Rubber Company, who were also rubber producers. Galgo eventually acquired ARC and moved production to Mexico in order to assure better consistency
years.
In Europe Galgo has managed to create a strong position, thanks to the efforts of the late Joe Krimpenfort, who was instrumental in the setting-up of the company’s facilities at Tongeren in Belgium
“Joe Krimpenfort was a key factor in helping us get established in Europe,” says Francisco Ibarzabal. “He had prestige in the market and helped create a situation where people were willing to tr y our products. They continue to do so because we provide quality products.”
Despite this, Ibarzabal is the first to admit that Galgo does not yet have the infrastructure of major players like Marangoni and Kraiburg. Galgo are relative newcomers to the market. However, they are optimistic. “We have a have a certain share of the market and we are fighting to keep it,” says Ibarzabal.. “We are
big potential market.
In terms of its product ranges, Galgo says it has almost
ever ything covered in the American market. In Europe they don’t yet have ever ything but are in the process of getting it.
In addition Galgo says it will
uncured rubber materials as well as a range of precured treads for OTR tyres called OTRead. “We have been successful in this area so we will continue to develop products for these markets,” said Ibarzabal. “We have good clients in the USA and in Europe we currently have customers in Holland and Germany.
Despite all the new investments and product developments, for Francisco Ibarzabal, the most important characteristic for Galgo is consistency. “If we produce rubber again and again control is vital,” he says. “So our attention to detail and the investments we have made in product development and the quality of
The mixing facility inside Galgo’s factory in Tula
Galgo operates a fully functional training centre in Tula
of product.
Says Ibarzabal; “ We have a network of exceptionally good independent retreader accounts in North America and hold good levels of stock at our warehouse facility in Dallas, Texas. We’ve also worked closely with the TSA and Homeland Security to enable us to get trucks across the border quicker. Our commitment to the US market is illustrated by the fact that we were one of the first manufacturers to get certification for rolling resistance. We have been SmartWay certified for 1 1⁄2
continuing to develop new products for the European market in order to continue our growth in that region.”
Although Galgo does have a presence in some markets with its mould cure range, the company’s European focus is primarily on pre-cured treads. According to Ibarzabal, the company is particularly strong in Germany, Poland, Romania, Bulgaria and Russia and is developing a position in Scandinavia with its range of winter treads. The company sees Eastern Europe as a
shortly also be introducing a range of envelopes and curing tubes for the retreading sector. “We have carried out a number of product trials,” said Ibarzabal, “and we are currently adjusting to get the final product ready for market.” Another area where Galgo have been active is in the OTR sector, where the company sells both
our laboratories in vital. We want to develop what is needed by the various markets so our R&D is critical. We want to get the message across that we are an international player with consistently high quality, that is prepared to invest in both products and service in order to serve the market.”
Galgo’s laboratory at the Tula plant