Vellco is continuing to thrive, as demand for local retreaded tyres continues to grow, according to figures obtained in 2018. Results have been particularly positive in the car, truck, and OTR segments, where sales have increased noticeably.
Sales Growth for Vellco
In the last two years, Vellco Tyre Control has seen an important increase in its sales figures. It is estimated that in 2017, sales of passenger tyre casings hit 350,000 units, whereas truck tyres and OTR tyres reached 65,000 and 2,000 units respectively. These results were achieved in particularly difficult trading conditions affecting the retreading and recycling industries, where budget tyre options continued to put pressure on the markets.
However, in 2018 the figures were significantly higher, with Vellco selling an estimated 400,000 car casings, plus 75,000 truck casings, and 2,500 OTR tyres, as the company experienced an upturn in demand towards the end of the year.
This rise in the volume of sales represented approximately 5%, which has pleasantly surprised Joe Fell, the Managing Director of the company: “The sales of truck and bus tyres have been higher in 2018 than in previous years. We attribute this growth to the restrictions imposed by the European Union on Chinese truck and bus imports, which has consequently helped the sales of domestically produced tyres.”
After the European Union completed the anti-dumping and anti-subsidy investigations on Chinese truck and bus imports, the European commission settled on the final tariffs to be imposed against the products, which have seen a large impact on not only the retreading industry, but the new tyre sector as well.
Vellco has seen in this development the opportunity to keep growing, since it is expecting further growth in the first quarter of 2019. Says Fell; “We have seen an important increase in the demand for casings, and we expect the upward trend to continue. It is a great opportunity for the retreading industry, and we believe that we will overcome last year’s results."