Alan González
Managing Director Mexico
Pewag
/
Insight

Raising Market Standards Through Quality and Technology

Mon, 10/22/2018 - 17:23

Mine operations are labor intensive and require machines that can operate 24 hours a day. In light of price volatility, operators are welcoming solutions that can help them save money by prolonging the utility of spare parts. “Three years ago, prices dropped significantly at the same time that the government released new tax royalties,” says Alan González, Managing Director Mexico of component supplier Pewag. “Companies needed help and we were able to provide support by offering durable chains that can prolong the life of tires significantly.”
He says Mexico is attracting a growing number of players each year and that is a good development. “Despite the increased competition, there is enough room for everyone,” he says. “One example is our main competitor in Monterrey. While we specialize in quality tire protection chains, it specializes in chains for machines and construction equipment.”
Pewag manufactures its products in Austria and uses dealers in Mexico to distribute its chains. “We are not planning to open a plant in Mexico as our plants in Europe have become a trademark for Pewag,” González says. The company additionally uses a distribution model that relies on dealers. “We found that it is better to retail our products through dealers as they have an established network of clients that have a general preference for purchasing package solutions from trusted distributors over buying each part separately,” he says. “This has been a success for us and also helps us maintain the quality of the product as a separately sold chain can become loose.” Even though the company manufactures its products in other European countries, it guarantees its ability to meet the demands of the industry by having large storage capacity in Mexico.