Local tyre-makers under

04/02/2009 12:00 - 764 Views

Local makers of motorcycle tyres have reduced their production capacity by 20-40 per cent since the import of cheap products from China surged rapidly to about 1 million pieces per month.

In order to survive amid the intense competition, the industry has asked the Commerce Ministry to conduct an anti-dumping investigation into these imports. If dumping can be proved, the products should be subjected to the appropriate additional duties.

Chayo Trangadisaikul, chairman of the Rubber-Based Industry Club of the Federation of Thai Industries, said tyre sellers had shifted to importing cheaper products from China, which was putting pressure on local manufacturers.

Thailand has eight motorcycle-tyre plants with a combined production capacity of 5 million-6 million pieces a month. About 25,000 people work in the industry.

According to the Customs Department, the Chinese products are coming in at between Bt5.78 and Bt14.48 per motorcycle tyre. However, prices in China are considerably higher, at Bt35 per piece, and the price of Thai-made tyres is Bt40-Bt45.

"We want the Commerce Ministry to track those imported products, for which the price is much lower than the standard fair price. If the price is indeed unfair, the government should enforce anti-dumping measures on those producers in China," Chayo said.

He is also worried about poor quality, which will mean unsafe products for end-users. The Thai Industrial Standards Institute should, therefore, inspect the quality of the imports at the port of entry rather than make random checks when the products are already in the market, he added.

By Chalida Ekvitthayavechnukul
The Nation
Published on January 22, 2009

Source: www.nationmultimedia.com
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