The illegal dumping of tyres by at least four countries from the Far East on the South African market, is a serious contributing factor that local tyre manufacturers have to deal with.
In all probability, it is one of the reasons why Goodyear is set to close its manufacturing plant in Kariega, although it declined to comment on the issue.
Even with dumping duties put in place during 2024, loopholes still exist that lead to cheaper tyres that do not necessarily comply with the required standards, ending up on vehicles, Nduduzo Chala, the Managing Executive of the South African Tyres Manufacturers Conference (SATMC) tells Dealerfloor.
The SATMC represents the four local tyre manufacturers: Bridgestone, Continental, Goodyear and Sumitomo Rubber.
“It is a sad reality to happen, but we have to allow Goodyear to go through its processes as a company. Hard work goes into the closure of loopholes for the dumping of tyres between the SATMC and the relevant government institutions,” he tells us.
He says that local tyre manufacturers are experiencing a decline in the demand for their tyres as cheaper tyres from the East become more popular. “We trust legislation will assist in stopping this problem to protect jobs in the local tyre manufacturing industry,” Nduduzo says.
Goodyear has not elaborated on its original statement saying although it is only the manufacturing that will be halted, the sale and distribution of tyres from the brand will continue through its Hi-Q and other tyre outlets, according to various media reports.
In an official statement, it says it’s transforming its go-to-market strategy in the Europe, Middle East and Africa region to optimise its footprint and portfolio.
“As part of that transformation, Goodyear South Africa is launching a restructuring process in accordance with the provisions of the Labour Relations Act to address proposals regarding the closure of its manufacturing facility in South Africa and the realignment of certain sales, administration and general management functions,” the statement reads.
Goodyear, which has been in South Africa since 1918, began local manufacturing in 1947. Among a wide range of tyres manufactured locally, is the unique Off-The-Road (OTR) Bias tyre, used in heavy-duty applications like mining and construction vehicles, of which the Kariega plant was the sole producer.
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Goodyear is set to close its tyre manufacturing plant in Kariega in the Eastern Cape, and it could affect as many as 900 jobs at the facility, not to mention the knock-on effect it would have on the economy of the Eastern Cape, which is already suffering from high unemployment.
The South African automotive industry is deeply entrenched in international supply chains. Export-driven growth continues to benefit the automotive industry and spurs activity in downstream sectors.
