As one of Europe’s most progressive and fastest growing manufacturers of quality OTR, Industrial, Port Handling and Mining tyres. Netherlands based, family-owned Magna Tyres currentl has a successful sales and dealership network in over 130 countries including South Africa and the African Continent.
Magna Tyres started to develop the business in South Africa over ten years ago and initially the ongoing growth of the business was managed by head office in the Netherlands. Magna Tyre South Africa opened its doors in January 2019 including warehouses in Johannesburg and Durban to increase the service level to its customers. Magna SA is headed by Robert-Jan Geurink whose main responsibility as Managing Director is to further enhance the company’s presence in Sub Saharan Africa by gaining customers through long term relationships.
Almost four years later Magna Tyres South Africa enjoys a growing presence in the home market sector and SA Treads recently chatted with Robert for an up-to-date report on the company’s progress.
You are based in Johannesburg so do youhave any additional satellite offices in South Africa?
Robert-Jan pointed out, “At the moment we haven’t felt the need to open any further offices. However, we have now established additional warehousing facilities in Durban to support the Johannesburg operation.
Explain briefly the set-up in your Johannesburg office – how many employees do you have working with you?
We are a relatively small team of five people and this is because the majority of the general business procedures are still currently managed by our Netherlands
Headquarters. Whilst our office handles the financial administration, logistic services and sales as well as generally working with our customers to ensure they receive a very high standard of customer service.”
We have already established that OTR, mining, port handling and industrial are Magna’s main market sectors. So, give a summary of all four tyre sectors and how they are received in the South African market?
“There is no doubt that all four sectors are extremely popular with our growing amount of customers. However, I would say Mining is our most productive business sector and we are proud of the fact that in the South African mining sector our tyres have a reputation of being at least equal to tier one brands.
This is because of our very favourable ‘cost of ownership’ (equated between the purchase price and performance). At the same time, I believe our very direct and
responsive relationship with customers is very much appreciated. Magna SA are basically available 24/7 (which is not that common) and our customers really like that we are always at the other end of a phone or email with quotation or advice and guidance. Magna particularly specialises in short and direct communication lines right across our business activities.”
What about Magna’s current distribution network?
“We have a very expansive distribution network that supports our warehouses in Johannesburg and Durban and we are able to comfortably cover the entire country with our tyres as and when required.”
How do you feel MagnaSA will progress in the future? Particularly in 2023. What trading objectives do you have in place for the short and long-term future?
“Obviously we are always focusing on growing the business in South Africa and capturing market share from our competitors. Our main aim is to engage even more with service providers in the business market. Magna firmly believes if offers a very comprehensive Service Facility to the end user including regular maintenance checks to ensure the ‘ultimate in cost of ownership from our tyres.
With the South African currency market being recognised as a difficult sector to work in. How does this uncertainty affect Magna’s operations?
“Yes, the vulnerability of the SA Ran has proved to be a real problem and for the past few months we have bee experiencing a significant depreciatio against the US Dollar. Which has force us to alter our pricing structure as total production costs are calculated in US Dollars. Meaning (in SA Rands) tyres are becoming even more expensive.
Looking at the African market in general. What other African countries do Magna currently operate in and do you have any spedific future plans to expand into new African countries?
“We are currently successfully selling our product ranges in a number of African countries including Zimbabwe, Angola, Mozambique, Malawi, Uganda,DRC and Zambia mainly concentrating on the Southern part of the Continent. Which are all exclusively managed by our South African office.
“At the same time, we are presently looking to establish a more extensive presence in Botswana in the immediate future as there are a lot of opportunities open for Magna here. It is a financially stable country and will be our next sales objective. In due course as Magna gradually increases its presence in West Africa, I believe we will consider opening another office in this region in due course.”
Have you recently introduced any new products or tyre sizes etc?
“One new business sector that we introduced earlier this year was Underground Mining Tyres and already Magna has instantly created an impact in this speciality market. Therefore, it is our firm intention to progressively increase activities in this sector backed by a special selection of these tyres.
“Also we are currently looking more closely at Agricultural tyres as the current global market for this sector is looking increasingly promising and I believe that Magna needs to tap into this growing trend in South Africa. Even though it would be a different supply chain and industry to our current activities.
However, Magna’s main new focus for the immediate future will be in Underground Mining Tyres. Robert-Jan concludes, “Magna Tyres S is a relatively young and ambitious tyre manufacturer and distributor who offer a very forward-thinking business structure and make important decisions quickly and clearly. Whilst also always reacting swiftly to all trading enquiries and situations with each enquiry received responded in a maximum time of half a day.
As a highly active and experienced OTR and industrial tyre Designer and Manufacturer. Magna Tyres has a dedicated reputation throughout the global tyre industry for keeping companies ‘constantly on the move’ by providing the very best tyre solutions to suit their individual operational needs.
Magna’s ultimate trading priority is to constantly strengthen our position in all relevant international market sectors as the largest second tier supplier of Off The Road Tyres incorporating Mining & Earthmoving, Underground Mining, Construction, Port & Terminal, Mobile Crane, Solid and Truck tyres. Magna is a family owned company who pride themselves on constantly forming valuable business partnerships around the world backed by a team of highly capable and motivated employees to secure successful ‘exclusivity’ deals.