Titan Welcomes Affirmative Preliminary Antidumping Determination on OTR Tires from China

2008-02-08 00:04:12 -

www.titan-intl.com - Titan Tire Corporation welcomed the U.S. Commerce Department's preliminary decision to impose antidumping duties on imports of new pneumatic off-the-road (OTR) tires from China. OTR tires are used on construction and agricultural equipment.

"Today's decision will help to restore conditions of fair trade to the U.S. market for OTR tires by requiring Chinese imports to be priced fairly," announced Titan Chairman and CEO Maurice M. Taylor. "For far too long, U.S. producers of OTR tires such as Titan and our workers have had to compete against Chinese tires sold at dumped prices, which is illegal. Now, importers and producers will have to compete on the same level field as other producers."

The following companies were listed: Guizhou Tyre Co., Guizhou Advance Rubber, Hebei Starbright Tire Co., Tianjin United Tire & Rubber International Co., Xuzhou Xugong Tyre Co., Aeolus Tyre Co., Double Coin Holdings, Double Coin Group Rugao Tyre Co., Double Coin Group Shanghai Donghai Tyre Co., Double Happiness Tyre Industries Corp., Jiangsu Feichi Co., Oriental Tyre Technology, Shandong Taishan Tyre Co., Xu Zhou Xugong Tyres Co., Laizhou Xiongying Rubber Industry Co., Midland Off the Road Tire Co., Midland Specialty Tire Co., Xuzhou Hanbang Tyres Co., Shandong Xingda Tyre Co., Shandong Xingyuan International Trade Co., Shandong Xingyuan Rubber Co., Qingdao Eastern Industrial Group Co., Qingdao Qihang Tyre Co., Qingdao Shuanghe Tyre Co., Qingdao Yellowsea Tyre Factory, Shandong Zhentai Tyre Co., Qingdao Hengda Tyres Co., Shifeng Double-Star Tire Co., Weifang Longtai Tyre Co., Qingdao Qinghang Tyre Co., Qingdao Qizhou Rubber Co., Tenzhou Broncho Tyre Co., Shandong Huitong Tyre Co., Shandong Jinyu Tyre Co., Shandong Wanda Boto Tyre Co., Xingyuan Tyre Group Co., Triangle Tyre Co., Wendeng Sanfeng Tyre Co. and Zhaoyuan Leo Rubber Co.

"Very few end users know that the tires they buy are Chinese tires, because the tires carry English names with a very small Made in China nameplate," said Taylor. "Titan will compete with anyone so long as its fair competition, but U.S. companies and their employees will lose if they must compete with government subsidies and dumping, unless the U.S. government enforces our trade laws. Titan, one of the smallest, yet specialized tire companies, stood up and said, 'enough is enough.' Our friends the United Steelworkers agreed to support our petition. Who would have thought that? This is a big step. Nearly 30 companies plus China government-owned factories will now hopefully get the message that some of us Americans don't like to be poked. If you do, we'll poke back."

As a result of this preliminary determination, Commerce will instruct U.S. Customs and Border Protection to collect a cash deposit or bond based on these preliminary rates. Commerce preliminarily determined that Chinese producers/exporters have sold new pneumatic off-the-road tires in the U.S. at 10.98 to 210.48 percent less than fair value, with a majority of exporter/producers at 24.75 percent less than fair value.

The agency will now continue the proceeding by holding hearings, conducting verifications of information, and reaching a final determination by early June of this year. The International Trade Commission will also investigate the issue of injury and reach a determination on that issue thereafter.

Off-the-road tires are designed for use on a broad array of agricultural, construction and industrial vehicles. Titan Tire Corporation, a U.S. producer, and the United Steelworkers, the union that represents most of the workers in the industry, filed a petition in June of last year alleging that the Chinese were dumping the tires and causing injury to U.S. producers and workers. Dumping is selling imported goods in the United States at less than fair value. If both Commerce and the ITC issue final affirmative determinations, an antidumping duty order will issue and future imports of the tires from China will be assessed with remedial duties to compensate for the unfair pricing.

Titan and the USW also filed a countervailing duty petition, alleging that Chinese OTR tires were unfairly benefiting from subsidies. Commerce issued its affirmative preliminary determination in that proceeding in December. The two proceedings will now move ahead on the same schedule.

Titan Tire Corporation is a subsidiary of Titan International, Inc. (NYSE:TWI), a holding company that owns subsidiaries that supply wheels, tires and assemblies for off-highway equipment used in agricultural, earthmoving/construction and consumer (including all terrain vehicles) applications.

Titan International, Inc.
Courtney Leeser
Communications Coordinator
(217) 221-4489