Retreaders Facing Cheap Imports

The Retread Manufacturers Association (RMA) presented in a RMA-logorecent meeting with UK government ministers how the ‘dumping’ of cheap tires has a “devastating impact” on the European retread tire industry. Clear evidence of ‘dumping’, according to the RMA, can be seen when comparing the cost of raw material and the retail price of Asian imports. The materials cost for a truck tire, typically weighing 60kg, is approximately £1.16/kg (€1.65/kg), with an overall total cost of £70 – roughly €100 consequently.

However, the RMA also explained that in the UK market these tires are retailing at around £73 and leaving a margin of just £3 for manufacturing, transportation, import duty and profit.

According to the association “that is an impossibly low amount for a commercial operation to sustain without significant subsidies from a backing organization or government”. RMA called on the UK government to take urgent action to allow the local retread industry to compete on an “equal footing” with the “cheap and subsidized imports flooding in.”

Article source: European Rubber Journal

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