LEAVITTSBURG, Ohio-An arrangement described as ``a natural fit'' has resulted in Denman Tire Corp. rounding out its tire offerings, and Federal Corp. significantly expanding its U.S. distribution. The two companies recently entered into an agreement that makes Denman the East Coast distributor of Taiwan-based Federal Corp.'s line of Federal brand passenger and light truck tires.
Until now, the line has been distributed mostly on the West Coast by Competition Parts Warehouse, a large San Jose, Calif.-based wholesale distributor of tires, wheels and auto parts.
Primarily a manufacturer of specialty tires, Denman operates a plant in Leavittsburg and has a sales office in Indianapolis. The company is a subsidiary of Chicago-based Eagle Manufacturing Co.
Terence F. Deane, president of the Trillium Group in Akron, the exclusive representative and importer of Federal tires in North and South America, called the deal a ``natural fit.''
The addition of passenger and light truck tires was part of Denman's marketing plans, he said. ``We like to zero in on one good (exclusive) distributor on the East Coast, and it looks like they may be it.''
Denman has been a Federal customer almost three years, Mr. Deane said, and ``buys just about every off-road tire we make. For all intents and purposes, they're our exclusive OTR tire distributor. Passenger and light truck is an area they weren't in.''
In a news release, James G. Pearl, Denman's executive vice president of sales and marketing, said the company initially will offer 17 sizes across a broad range of aspect ratios and speed ratings.
``Further, we will carry these tires in our inventory and will be able to ship them along with our regular product line beginning in July,'' he said, calling Federal's products ``high quality and competitively priced.''
Federal Corp.-a publicly held company 6-percent owned By Sumitomo Rubber Industries Ltd.-expects to ship between 350,000 and 400,000 passenger/LT units to North America this year, and Mr. Deane anticipates that number will reach one-half million in 1996. He projects Denman will purchase 150,000 to 200,000 of those tires yearly.