- SATMC members contributed in excess of R15,9 billion to the SA economy between 2019 and 2021
- Over 70% of tyres sold by SATMC members are produced in South Africa
- SA tyre manufacturers employ more than 6 000 people directly in South Africa and create indirect employment opportunities for more than 19 000 people
[Johannesburg – 28 July 2022] The South African Tyre Manufacturers Conference (SATMC) said its application to investigate the unfair trade caused by dumped imports of passenger, truck and bus tyres imported from China, is part of a sustained effort to rescue the local tyre industry and the livelihoods dependent upon it. The industry body represents the four tyre manufacturing companies in South Africa – Bridgestone, Continental, Goodyear and Sumitomo Rubber South Africa – on trade, economic and environmental policies, and tyre sector regulations.
Nduduzo Chala, Managing Executive of the SATMC said: “The SATMC is not against healthy trade and competition at fair prices, but rather against tyres designed and manufactured in China that are imported unfairly into South Africa at unsustainable, rock-bottom rates. This limits the competitiveness of domestic manufacturers, who employ more than 6 000 people directly in South Africa and create indirect employment opportunities for more than 19 000 people.”
“The four manufacturers have made sizeable investments into upping their domestic capacity, but this continues to be eroded as rising cheap imports adversely impact industry capacity utilisation. We hope that our anti-dumping application to the International Trade Administration Commission (ITAC), if successful, will help to provide a more level playing field for the South African tyre manufacturers to sustain the significant role of this industry within the economy,” said Chala.
The investigation by ITAC could lead to import duties being levied on the imported tyres from China. Similar action has been taken in countries such as India, Nigeria, the United States and the United Kingdom, in order to protect local industry and save jobs.
In supporting the SATMC application, Renai Moothilal, Executive Director of the National Association of Automotive and Allied Manufacturers (NAACAM) said: “The domestic tyre manufacturers are a significant part of the SA automotive manufacturing value chain, and any production losses they face as a result of products being dumped into the country have the potential to negatively impact localisation and job levels, which is contrary to the objectives of the SA Automotive Masterplan 2035.”
“SATMC companies themselves work with tyre importers who demonstrate fair pricing, prioritise quality and safety, and are able to offer excellent after-sales service, guarantees and insurance, uplifting the domestic tyre sector and road safety industry as a whole,” said Chala.
In 2021 imported tyres accounted for more than 50% of local circulation, according to SATMC research. China holds the lion’s share of tyre imports into South Africa. Chala says the four manufacturers are committed to local production and ensuring its growth in the future. SATMC data compiled independently by Lightstone Auto shows that over 70% of tyres sold by SATMC members in 2021 were tyres produced in South Africa.