Pelmar forecasts sale growth in 2009, 2010

ERJ staff report (DS)

Ramat Hasharon, Israel -- Reconditioned machinery seller, Pelmar Group expects increased sales in 2009 and 2010. This 42 year old company, with 150 employees, reported that the fourth quarter of 2008 and the first quarter of 2009 show an increase in sales of more than 25% for one of the largest rubber and tyre machinery groups in the world. 

Sellers of new machinery, by contrast said orders were sharply down in the same two quarters.

According to Jacob Peled, Pelmar does well in the good times, when new equipment delivery times are long. Pelmar can deliver within a few weeks, rather than the 12 - 18 months being quoted for new machinery. The company also does well in the bad times, when it is able to offer equipment at prices which new machinery makers cannot hope to match.

Pelmar, he said, has been doing well, ever since the crisis of 2001. The key, he said, is being reliable and being fast, and keeping strict control of cash. When Pelmar negotiates to dismantle an old tyre factory, said Peled, the company thinking is that “The large tyre makers like cash but more important is that peope are reliable.” He added that other key factors are that the purchaser must be discrete - not discussing the project too widely, and ensuring that the equipment goes to an authorised purchaser -and should always be on time.”