With the divestment of the primary traditional aftermarket activity to Bohnenkamp in July, STARCO now only has traditional aftermarket in Poland, France, the UK and the Balkans. Starting today, STARCO will phase out all traditional aftermarket and only retain the aftermarket supporting the OE business.
“We have customers where our aftermarket support is a deal-breaker for their business, so of course we still need this kind of aftermarket,” explains Thomas Ballegaard, Chief Commercial Officer at STARCO. He gives the trailer and dual wheels businesses as an example, and continues: “Customers will experience a narrow product range because the products we will have in stock, are what we have for our OEs. However, this will secure a much leaner and more competitive set-up.”
Examples of the aftermarket activity supporting the OE business are duals in Switzerland, trailer wheels in Benelux, solid tyres in Poland, compact tractor tyres in France and various other products in the UK.
“No rule is without an exception,” says Ballegaard, smiling. “We will continue to sell solid tyres in Poland and compact tractor tyres in France, and the UK customer will not experience mayor changes in the product range we offer today.”
STARCO’s traditional aftermarket is known as “the blue catalogue aftermarket” and refers to tubes and tyres, as well as a wide variety of accessories.
Aiming for growth in the OE segment next year
The journey to strengthen the OE business and focus the core competences of development and manufacturing into play is a part of the 2020 growth strategy. Here, focus is on OE customers, aligning the business, investing in manufacturing and strengthening the supply chain set-up.
“We are ready to take the final step to become a pure OE player in the market,” says Richard Todd, Chief Executive Officer at STARCO. He highlights that even though a decision like this comes at a certain cost, STARCO sees it as an investment in the future.
“We would rather win a gold medal in one discipline than get bronze in two. I truly believe we bring most value to our customers when we use our 55 years of experience, extensive application know-how, product development skills and unique manufacturing set-up,” says Richard Todd, putting emphasis on the unique team of 550 passionate STARCOnians working across Europa and in Asia.
As a result of a dedicated focus on OE, STARCO has closed various long-term contracts with OE customers this year – the latest being with Trigano, Husqvarna, Mitsubishi Caterpillar Forklift Europe, and GGP.