The Retread Manufacturers Association (RMA) says that the flood of cheap tyre imports in the UK poses a threat to 2,500 jobs in the UK. Dumping practices have already had a negative impact on UK’s steel industry.
The RMA is calling for urgent action to allow the UK retread industry to compete on an equal footing with the cheap and subsidised imports coming in from China.
For a truck tyre, which typically weighs 60 kilos, the materials cost approximately EUR1.16/kilo, giving an overall total cost of EUR70. Meanwhile, Chinese imports are being sold at around EUR73, leaving a margin of just EUR3 for manufacturing, transportation, import duty and profit.
At the meeting with Department of Business minsters, the RMA reiterated that of the EUR1 billion the industry generates across the European Union, 60 per cent is generated by SME businesses, which are particularly vulnerable to the impact of dumping practises.
Patrick O’Connell, Chairman of the RMA, who led the tyre industry deputation to ministers, said: “We were extremely sorry to learn that the flooding of cheap imports into the UK steel industry has had such a devastating effect. This is terrible news for everyone affected and those working within the steel industry.
“Unfortunately, this mirrors what is happening in the UK’s tyre industry, with jobs under threat as a result of a flood of cheap tyres from China into the UK.”
“We are calling on the British Government and European Commission to take immediate action on the ‘dumping’ of tyres from China into the UK and European markets.
“Data supports the view that without intervention, the future of 2,500 employees, either directly or indirectly employed by the UK retreading industry, is under threat.”
He added: “We are committed to lobbying on behalf of the retread industry to secure its long-term future in the UK.