DMACK
 | This article needs to be updated. (Feb 9, 2016) |
| Company type | Private |
|---|---|
| Industry | Design and Manufacturing |
| Founder | Dick Cormack |
| Headquarters | , |
Area served | World Wide |
Key people | Dick Cormack, Managing Director;
Robert Walker, Director; Craig Graham, Sales Director, Road Tyres; Glenn Patterson, Coms Director; Jonathan Fowler, Technical Director; Paul Handal, Motorsport Sales Manager, S.A. |
| Products | Motorsport/Niche Market Tires |
| Services | Design, Develop, and Manufacture specialy tires |
| Subsidiaries | DMACK Holdins Ltd. |
| Website | www.dmacktyres.com |
DMACK, the parent company of DMACK Holdings Ltd., is a Carlisle, England-based tire manufacturer, whose headquarters are located in the South of France.
CONTENTS
1. History
2. DMACK Holdings Ltd/Legal And Business
4. Market Break Through/Development
5. Investors/Proposed Plans
7. Current Challenges
8. Existing Plans For Growth
9. References
10. External Links
History
Founded in 2008 by now-managing director Dick Cormack, DMACK was started using less than ₤10,000 (approximately $15,000 USD) of savings.
Cormack left his position at Pirelli’s motorsport division, determined to become his own boss. So, he configured a plan with the goal to supply affordable, well-designed tires, ones that could meet demand from the renewed interest in the stock” rallying” scene. This niche market required smaller tire sizes than the ones supplied by industry giants, such as Michelin and Goodyear.
Cormack’s initial goal was to design and produce four or five sizes for the rally market. Securing funding became a very difficult issue, and Cormack, unable to obtain capital from high street banks, decided to release money from his own pension in order to purchase molds, and begin manufacturing in China.
The first step Cormack took was to visit Chinese suppliers in order to negotiate whether they would be willing participants in producing his tire designs. He was able to secure funding from Chinese investors. [1]
DMACK HOLDINGS LTD. / LEGAL AND BUSINESS
DMACK Holdings Ltd. is a subsidiary corporation owned by Cormack. It was created for the purpose of assisting business in China on behalf of the parent company, DMACK. It is a wholly foreign owned enterprise (WFOE). The director and sole shareholder is Robert Walker, a member of the renowned Lehman Lee and Xu law firm’s legal department. Walker is an intellectual property agent with the China Copyright Office (CCO), as well as a Harvard student.
DMACK Holdings Ltd. has become one of the leading suppliers of race car tires in their specific market, and the corporation owns tire production factories in China. Recently, the company decided to open up a WFOE business, in order to facilitate production and distribution more effectively. DMACK’s legal counsel in China is Lehman Lee and Xu, of which Edward Lehman is the managing director. This legal partner to DMACK Holdings Ltd. is renowned for its ability to facilitate such investment interactions between the West and China smoothly and efficiently.
The scope and goal of this incorporation is to prevent potential intellectual property theft of tire designs, and to ensure trade security. [2]
MARKET BREAKTHROUGH AND DEVELOPMENT
The company’s big breakthrough happened in 2011. DMACK was given the prestigious opportunity to supply the World Rally Championship with tires (alongside Michelin.) Cormack believes the International Automobile Federation, the governing body for world motorsports, took a significant risk in doing such a large deal with such a small company. (Incidentally, the company entered its own team in world motorsports, and qualified for the second tier rally competition, and won the world team championship, in 2014.)
Cormack states, “We’ve been successful because we didn’t just focus on making money. We focused on the product, and the brand, and reinvested every penny.”
INVESTORS AND PROPOSED PLANS
Presently, DMACK works with Chinese investors, the British government, and local authorities in its plans to build a tire factory near Carlisle, England. The facility is scheduled to be complete by the end of 2017. It is speculated that it could bring over 375 jobs when production is up to full scale. Its goal is to manufacture 2 million tires a year, mostly for motorsport specialist markets.
CURRENT CHALLENGES
While the company had received strong support in the location where they were founded, the money wasn’t available at that time in the UK for this type of project. So in an alternate plan, Cormac utilized offers from three Chinese trade investors, in excess of ₤130,000,000 (approximately $195,000,000 USD.)
EXISTING PLANS FOR GROWTH
Two of the biggest issues DMACK faces are anti-dumping laws and embargoes, which affect where China can export to.
If planning goes as scheduled, DMACK is strategizing to open their new factory on a 120 acre site. This would mean DMACK would be manufacturing its own tires for the first time, instead of sending its designs to production partners. [3]
REFERENCES
1. The London Times, January 25, 2015
2. DMACK Holdings Ltd, Legal and Corporate Disclosure, January 2016
3. The London Times, January 25, 2015
EXTERNAL LINKS
1. Dick Cormack https://www.linkedin.com/in/dick-cormack-45423467
2. Robert Walker https://www.linkedin.com/in/robertwalkerchinaspecialist
2. DMACK Tyres http://www.dmacktyres.com