08 July 2010
Interview with Aeolus Tyres Co. Ltd
Aeolus at Reifen 2010, Essen
For years the international Reifen trade fair in Essen has been outstanding in terms of quality and the number of visitors from different countries. We don’t think that Aeolus can afford to miss out on that. Our European partner Heuver Tyrewholesale arranges the stand there and sends out invitations. We like to present ourselves to the international market in Essen.
Alongside the truck and trailer tyres, we also show our EM tyres in Essen. At Reifen 2008 we launched the Aeolus EM tyres. The initial results are good. We are enjoying healthy growth with these tyres in Europe and have high expectations of them. These are high quality products which can meet the highest standard. Aeolus has been an important player for OEM in China in this area for a long time. Our experience and the range are extensive - we have long shed the status of runner-up.
‘Essen’ is also an outstanding meeting place for both our customers and end-users, where they have the perfect opportunity to compare our quality with that of our many competitors. We are ready for that challenge! That is why our slogan in Europe is ‘Aeolus, the Alternative’. In Essen we have a 100m2 stand for Aeolus, which will be manned by representatives from the Aeolus team at Heuver.
2009 sales figures
As a listed company, Aeolus does not publish any immediate sales figures. There are specified reporting times for this which we must follow. Nonetheless the year that we have had in Europe gives grounds for satisfaction, particularly in view of the state of the market. Users were more carefully about their spending. Aeolus could thereby position itself favourably as The Alternative. Things were not easy worldwide either, but we were able to cope well. The research and development of new tyre types and profiles has continued as normal. Not just for trucks and trailers in our case, but also for earth-moving equipment.
Current sales figures compared to previous years
After 2009, which was the crisis year, we have started 2010 in Europe better than expected. We are currently also doing well, certainly in Europe. It is hard to forecast for the coming months. There are many factors which may have an effect, such as the increased cost of raw materials and shipping. Throughout the global market were are seeing that price rises can no longer be absorbed and are being passed on. We are anticipating what may be a more uncertain time, but we are convinced that we can absorb this across the organisation. Despite these uncertainties, our partner Heuver is showing that it has full confidence and is expanding its Aeolus team with a specialist for France and strengthening the still very promising German market. In short, we have a great deal of confidence in our future in Europe.
Important markets are …
Heuver is very active in the major markets in Continental Europe. The Benelux countries, Germany, Austria and Scandinavia are very important, whereby we will be focusing particularly on the Scandinavian countries this year. As indicated, France is another area of focus for expanding name-awareness. There too we are keen to go head to head with the competition. We will be strengthening the German market - our largest market which still offers many opportunities - with a new field sales representative. This will allow us to respond even better to wishes and needs.
In the Netherlands itself Heuver has also hired an additional sales representative for Aeolus, since it feels that now is the time to convert the developing growth and name-awareness into even better results.
We feel that Reifen in Essen will once again prove itself to be an important trade fair for maintaining existing contacts and establishing new ones.
Who are the most important distributors
Heuver’s important partners in Europe include Ovethi in Denmark, Arema in Switzerland, Profile Tyrecenter in the Netherlands and Belgium and Gumiflex in Hungary. All the other markets, such as Austria, are served by Heuver with its specialist Aeolus team.
How are current trends in tariffs such as the US measures relating to Chinese tyres affecting the business
Different rules often apply in different markets. That does not always make things easy for a manufacturer. Aeolus ensures that its tyres always comply with the applicable rules. For example, in Germany there is the ‘de-minimis’ scheme whereby transport companies receive substantial subsidies if they buy low-noise and/or energy-saving tyres. Aeolus offers users interesting options to comply with this. This is one of the reasons why we say ‘Aeolus, the alternative to the established brands‘… We have also already implemented the so-called Reach guidelines, which will come into effect as Legislation for Chemicals from 2012. Aeolus remains constantly focused on innovation and incorporating statutory regulations into its processes as quickly as possible.
How are European regulations such as labelling and S-marking affecting the business
The S-marking does not affect our business. Our European tyre sizes and profiles have all passed the S-marking test. They comply with the requirements laid down by this legislation.
At the moment we are looking at the regulations relating to ‘labelling’. However, we do not expect these to have a negative effect on our business.
Naturally new regulations and laws affect production and its cost. Yet an ecologically stable and healthy environment is vital to us, and we will do everything we can to make our contribution to this.
