Infra spending buoys Aeolus tire sales in PH

With the Build, Build, Build program of the Duterte administration, a China-based tire company saw an increase in its sales, as the demand for quality industrial tires rose.

Wang Feng, chief executive officer of Aeolus Tyres Co. Ltd., said with the collaboration with the technology of Italian tire brand, Pirelli, their new Neo Series, a third generation tire that targets the trucking and public transportation industry, can fare well in the country. “This new product has a good performance and reputation. I expect that the new product will satisfy the local market,” he said.

Gerard Tan of Southgate Express Marketing Inc., the distributor of Aeolus and Pirelli tires in Cebu and the Visayas, said that their sales usually grew from five to 10 percent since they began selling in the country 17 years ago. From last year until recently, they noted a 20 percent growth in sales.

“The government program helped us to grow our tire requirement from the construction industry because a lot of their programs need quality tires. In 2017 and 2018, there were so many investors spending on infrastructure in the Philippines. People now are more confident spending in infrastructure,” Tan said.

Asked if the company foresees opening up a manufacturing facility in the country, Tan said energy costs and labor laws should first be addressed.

“The government has to give favorable conditions for manufacturing to expand in this country like incentives and better energy costs because it’s one of the biggest problems, as we have not developed proper infrastructure for us to enjoy lower electricity costs. We have the manpower but the labor laws have to be put in a proper forum that will attract foreign investment,” Tan said.

He noted that the Philippines’ labor force is talented, but it still needs more government support.

They are currently looking at other countries to produce the Aeolus brand, as Pirelli has factories in Brazil, Egypt and Turkey.

Fu Trayqiang, vice general manager for international sales and marketing, said the Philippines is their third largest market after China and Australia in the Asia-Pacific.

“The Philippines is a big market with a population of more than 100 million, and we think it has big potential for growth. Right now, we have quite a good share of the Philippine market, and we hope that with this Neo series, we can offer a better performance. The Philippine market has potential to grow bigger than Australia in the coming years,” he said. /