USW/Titan Chinese Manufacturers of ‘Dumping’ OTR Tyres

The United Steelworkers (USW) has joined Titan Tire Corp. as a co-petitioner in a trade case petition filed yesterday with the U.S. Department of Commerce and the U.S. International Trade Commission, accusing Chinese companies of dumping and subsidizing OTR tyres. The USW and Titan Tire seek to have the government impose duties to off-set these allegedly unfair Chinese imports. According to the petition, Chinese imports have increased from 11.2 million tyres worth $166.35 million in 2004 to nearly 15 million tyres worth $374.25 million in 2006. China is the single largest source of imports of OTR tyres, accounting for more than 83 percent of total imports by volume in 2006, the statement added

Chinese imports are significantly underselling U.S. produced OTR tyres. Based on a comparison of Chinese and U.S. prices in the petition, the differential averaged 29 per cent. A second comparison shows underselling margins ranging from two to 30 per cent.

The USW estimates it represents 70 per cent of the US domestic OTR tyre makers with workers employed at Titan production plants employing about 1,355 workers in Des Moines, Iowa; Freeport, Ill.; and Bryan, Ohio; plus a total of about 4,215 employed at tyre plants of Bridgestone/Firestone in Des Moines and Bloomington, Illinois; Denman Tire in Leavittsburg, Ohio; and Goodyear Tire and Rubber in Topeka, and Buffalo.