February 27, 2017 Weekly Legislative Update


At the OTR Conference, during our discussion on tax reform, we went into the “border adjustability” provisions set forth in the House Blueprint Tax Reform package.  As you probably know, these provisions are quite controversial.  Under this proposal, exports would not be subject to corporate tax while imports would be subject to tax.  It is intended to promote US manufacturing.

This provision has pitted companies that primarily export (for instance, Boeing and Caterpillar), which are obviously in favor of it, against companies that import (for instance, Walmart, Target, Best Buy, most retailers, your local gas station), that believe not only would the provision be detrimental to them but also to the consumer.  Companies that oppose the proposal are stressing that costs of producing their goods will go up by 20% and that they would have to pass the cost on to the consumer. 

Read the source article at TIRE INDUSTRY ASSOCIATION

Justin Trudeau meets with auto industry as concerns mount over NAFTA

With a possible renegotiation of the North American Free Trade Agreement looming, Prime Minister Justin Trudeau sat down to reassure representatives from the auto industry on Monday. 

Trudeau and foreign affairs minister Chrystia Freeland visited the Automotive Parts Manufacturers Association’s Toronto office for a closed-door meeting with business leaders. Earlier this month, the Prime Minister met with U.S. President Donald Trump, who has promised to renegotiate NAFTA on terms more favourable to the U.S.


Read the source article at Financial Post

Rolling resistance vital to fuel economy

It is a known fact that tyres play a significant role in the vehicle’s performance. There has been tremendous pressure on automotive OEMs to improve the performance of the vehicles. For the last few years, performance of tyres has played a significant role because of the change in requirements of automotive OEMS and end users. Tyre ratings & labeling programs are steps towards improvement of tyre efficiency. This gives option to the customers to select the brand of their choice.

Read the source article at Rubber Asia

Peled: M&As a big deal for tire industry


Hanover, Germany – Merger & acquisition (M&A) activity has had a significant impact on the development of the tire manufacturing industry, particularly as the deals involved have accelerated the flow of information and technology in the sector, according to executive chairman of Pelmar Engineering Jacob Peled.

“The influence of M&A activity is very strong on the industry, much stronger than people understand,” Peled set out in a presentation at the TTE conference in Hanover on 15 Feb.

Read the source article at European Rubber Journal

Nitian Mantri to replace Yogesh Mahansaria as CEO of ATG


Yogesh Mahansaria is to step down as chief executive officer of the company he founded. Alliance Tire Group (ATG) has announced the appointment of Nitian Mantri as chief executive officer – designate, and states that he will “be taking over the reins” from Mahansaria over the coming few months.

Read the source article at Tyrepress

China’s tire exports increased 5.4 percent and are valued at CNY 468.48 million in 2016


Dublin, Ireland – In 2016, China’s tire export reached CNY 468.48 million, increasing by 5.4 percent year-on-year. Export value was $12.89 billion, decreasing by 6.9 percent year-on-year. Average unit export price was $27.52, decreasing by 11.65 percent year-on-year. Affected by the decreasing price of natural rubber in the international market in recent years, the manufacturing cost of tires has been declining, so the average unit export price of tires has been declining as well, according to Research and Markets.

In 2016, tires from China were exported to more than 200 countries and regions with the U.S.A. being the largest market. The value of tires exported from China to the U.S.A. was $2,102 million, accounting for 16.3 percent of China’s total export value of tires in the same term. The U.K. was the second largest market. In 2016, the value of tires exported from China to the U.K. was $541 million, accounting for 4.2 percent of China’s total export value of tires in the same term. Mexico, Australia, the UAE and Germany were also important export destinations for tires from China. Tires exported to the U.S.A. were mainly radial tires for passenger vehicles between 15 and 16 inches. China’s export price of tires of that size is 80 percent of the average export price, still lower than the prices of other countries. Tires imported from China ranked the first in terms of all sizes of imported tires for passenger vehicles in the U.S.A.

Read the source article at Global Rubber Markets News

Rubber-based material for certain JKR, rural roads: Najib


PEKAN: Prime Minister Datuk Seri Najib Abdul Razak (pix) today disclosed that certain Public Works Department (JKR) and rural roads would be built using rubber-based material.

He noted that the construction cost would comparably be slightly higher than that of normal roads but the government could save cost on maintenance in the long run, besides creating a demand for rubber.

“Today the rubber price has gone up. In a way, it is due to our efforts; although rubber price is determined by the world market, the government can endeavour to dictate a higher market demand for Malaysia’s rubber and palm oil.

“So the additional measure that I have decided is for us to build a number of JKR roads and other rural roads using rubber material, never mind that it will cost a bit more.

“But we will save on maintenance costs … and this will push up the demand for rubber,” he said at the presentation of letters of commission to 213 new participants of the Bukit Sijau Felcra cluster land development near here today.

Read the source article at theSundaily

Bridgestone & Atg experts warn on future of OTR market


The off-the-road tire market is finally seeing an uptick but it will have to adapt to meet the future demands of industry.

That’s according to two of the tire industry’s most experienced voices. Bridgestone OTR tire divisions president Taylor Cole and Alliance Tire Group vice president of marketing Bruce Besancon outlined their analysis and expectations at the Tire Industry Association’s OTR Conference last week.

Cole told those in attendance the industry was seeing upticks in the construction, mining and aggregates sectors — which he attributed to the Fixing America’s Surface Transportation (FAST) Act of 2015 — which put $305 billion into the federal transportation budget for 2016 through 2020.


Read the source article at Traction News

SRI uses bio-liquid rubber in winter tire for better ice-grip


Tokyo – Sumitomo Rubber Industries (SRI) has developed a winter tire using Kuraray-supplied liquid farnesene rubber (LFR) as a performance enhancing additive, the Japanese synthetic rubber supplier announced 20 Feb.

Tokyo-based SRI has used the additive in the production of its latest studless tire Winter Maxx 02, according to Kuraray’s announcement.

LFR is a liquid rubber developed by Kuraray using farnesene, a new biologically derived diene monomer developed by US biotech company Amyris.

Read the source article at European Rubber Journal

Technotrac: Hankook Tire opens own winter test facility in Finland


With a decisive snip, more than a year’s work was officially complete. Four representatives from Hankook Tire’s global and European operations, suitably rugged up for the occasion, were on hand to open a facility that extends the tyre maker’s aim of self-contained development and manufacture of tyres for European markets.

Read the source article at Tyrepress