Page 4 - RB-87-18-4

NEWS
Galgo Recognised as a Socially Responsible Enterprise for the 7th Consecutive Year
transaction includes the purchase of the eleven-acre site where Vacu- Lug is based as well as an ongoing commitment to several large capital commitments in equipment and technology to ensure that Vacu-Lug becomes, over time, the most advanced independent retreader in Europe. The day after the acquisition was announced, Vacu-Lug Managing Director Tim Hercock issued the following statement on behalf of the company;
"While this represents a significant change in the background of the Company structure, you will see and experience ver y little change the sharp end. In essence, we have moved from one private family owner to another, both with a histor y of long-term investment in their businesses. The new owner brings added experience in our industr y as a fourth-generation tyre entrepreneur.
"The business will continue to run under the Vacu-Lug name under the current management team. Our aim is to work with the same customers, service providers, new tyre partners and
Zenises, it became clear that were a good fit for the owners. The fact that the Vacu-Lug would remain in Grantham was important, as was the fact that the company would remain independent. The acquisition was also consistent with Vacu-Lug’s strategy of tr ying to provide a one-stop shop as well as the general move in the market towards global supply chains. “the closer relationship with Zenises will enable us to expand and develop our product range knowledge further,” he said. Hercock also agreed that the acquisition will allow Vacu-Lug to access more international opportunities the the Zenises network of partners, in particular for the export of the company’s own fleet management technology.
On the issue of investments, Hercock confirmed ongoing investments in a new extraction system, investments in the Logistik product and additional investment in the company’s app, which was launched at the CV Show.
Vacu-Lug was established by Lewis Morley in Grantham in 1950 to retread tractor tyres using
For the seventh consecutive year, Galgo has earned the distinction of being an ESR - “Socially Responsible Enterprise”. This award is given by the Mexican Centre for Philanthropy (Cemefi) and the Alliance for Corporate Social Responsibly (AliaRSE). Galgo’s vision and ongoing commitment to operate as a socially and environmentally responsible company is seen through their achievement of corporate goals such as the development of a cogeneration power plant that allows the company to produce its own electricity and positively impacts the surrounding communities, their participation in a reforestation campaign that involved planting trees in Atitalaquia, Hidalgo, the
production of SmartWay certified products, which help reduce greenhouse gas emissions, and their integration of high quality and environmentally friendly production standards.
In a press statement, the company commented; “Receiving the ESR title for the seventh year in a row truly demonstrates Galgo’s unwavering commitment to be a sustainable company that offers high quality, innovative products and services, and further illustrates their desire to make a positive impact on the environment. It is because of business practices such as these, that Galgo remains a leading manufacturer and distributor of a wide variety of products for the tyre retreading industry.”
at
Zenises Group Acquires Vacu-Lug
key suppliers that we have enjoyed a strong and important relationship with.
"This change represents a new chapter in our long history and one that presents us with great new opportunities, whilst keeping all the advantages of a private family business. We owe a huge thank you to our founder Lewis Morley and his family for all their support over the last 70 years and will ensure we continue to work hard and build on these foundations to produce continued success into the future under our new owner."
According to Hercock, when considering the approach from
a revolutionary new method. The business quickly expanded and within a few years the new manufacturing process was being used under licence in 32 countries around the world. The business has subsequently grown into a major force in the retreading industry, manufacturing truck and Off Road retreads as well as developing an industry leading role in commercial vehicle fleet management.
The recent news that Vacu-Lug, the UK's hitherto largest independent retreader, has been acquired by the Zenises Group, completes the process of transition that has taken place in the UK’s retreading market over the past few years, during which the country’s three largest retreaders, Bandvulc, Bulldog and Vacu-Lug, have all been sold by the families that established them many years ago. The difference in the case of Vacu-Lug, is that the Grantham-based company has been acquired by another family owned group, whereas Bandvulc and Bulldog were both sold to
tyre manufacturers, namely Continental and Bridgestone respectively.
Zenises, owned by the Dubai/London based entrepreneur Harjeev Kandhari, which has developed rapidly as an innovative tyre distribution company, with connections and distribution networks across Europe, is the agent for Westlake Tyres in a number of key European countries, including the UK. Vacu-Lug has co-operated with Zenises as the UK distributor of the Westlake truck brand in the UK for the past five years. According to Kandhari, the
4 Retreading Business