Tyre prices set to inflate

There’s bad news for South African drivers as tyre companies announce price increases.

Continental, with a factory in Port Elizabeth, has said that the high price of natural rubber used in the production of tyres has forced it to hike pricing by an average of 7.5 percent in January 2011, with a further increase expected in the second quarter of 2011.

Dieter Horni, Managing Director of Continental Tyre South Africa, said: “At more than $3 (about R21) a kilogram, the prices for natural rubber are now at an historic high. The price rises affect all the tyre brands belonging to Continental Tyre.”

Depending on the tyre, natural rubber can account for more than 40 percent of a tyre, making it one of the most important raw material components required to produce a tyre.

Bridgestone and Firestone, both also produced locally, have confirmed an average five percent increase, effective on March 1, across all their products.

Importers have not been spared the increase either, with Pirelli’s products going up three percent on March 1 and Yokohama’s going up six percent from April 1.

Anton Wessels, Managing Executive at Yokohama SA, said: “The increase of natural rubber is not unique to one tyre manufacturer, the entire tyre industry worldwide faces huge increases in raw material.

“The tyre industry has always been competitive, leaving very small margins that don’t allow tyre manufacturers to absorb increases of this magnitude,” he said.

(Source: http://www.iol.co.za/motoring/tyre-prices-set-to-inflate-1.1031799)