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RUSSIA
Taftnet’s SSC Tyre Factory Hits 1m Target
According to a press release, "Tatneft", SSC Tyre Factory has reached the target of producing 1m all steel radial tyres.
The company, part of the PJSC "Tatneft" group, produces tyres for all types of buses, trucks and semitrailers. Production of solid steel cord tyres is one of the most promising directions of the tyre
Demand is said to have exceeded supply by an additional 50 per cent. By the end of 2015 the company had sold 875 000 solid steel cord tyres.
This development of the radial market in Russia is great news for Marangoni, who last year entered a joint venture with Taftnet to supply know how and equipment to help
the group establish a modern high tech retread facility. The growth of the radial market ensures that the
investment has a long term future as radial tyres are eminently more suited for cold cure retreading than bias belted tyres ever were.
industry.
Last year, with radial truck tyres under the brand KAMA, Taftnet took a claimed 61 per cent share of the Russian market for radial tyres.
At the same time, a number of market participants believe that the government should have taken this decision before.
“Most market participants currently face problems with the rising of the currency component in the casings, which are mostly imported, so restrictions on Chinese tyres would be very helpful, but this measure should have been taken at least a year ago, when retreading companies were in a better position. During 2015, most of them have been facing heavy competition with Chinese imports and due to the prohibitive cost of casings have left the market, or significantly cut production capacities,” commented a source at one of the Russian retreading companies who wished to stay
unnamed.
At the same time, representatives of the Russian government say that the situation in the Russian tyre industry in general, and in the retreading sector in particular, remains quite stable. According to the press-service of the Ministry of Industry and Trade in 2015 there were no major bankruptcies in the sector, so the rate of the production remains almost at the level of 2014.
At the same time, according to the forecast of the Ministry, the overall volume of the tyre market this year may reduce by 8-10 per cent due to the drop in car fleets, but the retreading segment is expected to benefit from the situation, with the demand for a budget solution also expected to rise.
Protective Duty on Chinese Tyres Should Support Russian Retreading Industry
Retreads a Small Part of Indonesian Aerospace Revival
From December 18, 2015 the Russian-led Eurasia Economic Union has applied protective duty on tyres imported from China. Duties have been imposed as part of the dumping investigation that has been taking place since March of last year. Market participants have welcomed the decision, stating that in general it should support the budget tyre segment and retreading companies in Russia.
According to the data of the investigation, in the period from 2011-14 the truck tyre market rose by 9.2%, while Chinese
brands increased their presence
by 27.1%. During this period the price of their products
was approximately half that of their main Russian competitors. The dumping of Chinese tyres cut profits tenfold within the economy tyre and retread segments, and hurt tyre business within the country.
“We have received numerous complaints from various organisations about the dumping activities of Chinese tyre manufacturers over the last two
years. The fact of the dumping has been confirmed over the recent studies. The rate of protective duties ranges between 14.79 - 35.35 per cent depending on the manufacturer” – commented a spokesperson from the Eurasia Economic Commission Alexei Stepanenko.
Representatives of retreading companies explained that Chinese supplies on quality and price occupied a large portion of the economy segment of the market. “With the price of one retreaded tyre at RUB 6,500 (US$ 80) Chinese tyres have been pushing on the prices in the budget segment, so retreading companies have had to make their prices even lower. Now, given the devaluation of the Russian ruble and the protective duty, the average price per retreaded tyre will be about RUB 10,000 (US$ 125), so most companies have a comfortable situation in which to raise prices,” commented Oleg Popov, a representative of the Voronezh based retreading company Shinomontazh Voronezh.
The Indonesian Ministry of Industry is conducting various strategic measures to revive the national aerospace industry. One of them by reviewing the
Aerospace
Design Center
at the Institute
of Technology
Bandung (ITB).
"The Ministry
of Industry will
make a study of
the
opportunities
that will arise
from the
formation of an
Aerospace
Industrial Area
near the Region International Airport West Java (BIJB) Kertajati," said Director General of Metal, Machinery, Transportation Equipment and Electronics (ILMATE) I Gusti Putu Suryawirawan .
Amongst the activities being reviewed for inclusion in the project are the retreading of aircraft tyres. "Currently, we are considering some technical guidance that can be offered in relation to the
manufacture of bimtek rubber seals, interior equipment, metal components, tools and jigs, air quality standard components,
22 Retreading Business
Helicopter made by PT DI
aircraft retreaded tyres as well as the manufacturing workshop for the nose landing gear for aircraft N219," said Putu.
The Ministry of Industry will assist aircraft component manufacturing nationwide to earn certification from both within and outside the country, as well as helping to establish foreign cooperation to develop the capacity the national aircraft industry components.