Performance Fibers supports proposed Chinese tyre tariffs

ERJ staff report (TB)

Washington DC - Performance Fibers, the only remaining North American manufacturer of high-tenacity polyester tyre yarn, is urging the Obama administration to approve the International Trade Commission's recommended tariffs on Chinese passenger and light truck tyres.

Imported tyre fiber and fabric from Asia have cost Richmond, Virginia -based Performance Fibers 225 jobs in 2009 alone, according to Richard Black, vice president-global marketing and technology for the company. Imports of high-tenacity PET fiber and tyre reinforcements this year are expected to reach 200 million pounds, valued at $300 million, Mr. Black said.

For the U.S. tyre fiber industry generally, Asian imports have displaced more than 1,000 domestic jobs since the early part of this decade and forced all of Performance Fibers' U.S. competitors out of the business, Mr. Black said. Performance Fibers' sales this year are off nearly 50 percent, he said.

In addition, Chinese fibre producers have lowered prices as much as 40 percent this year, exacerbating the situation even further.

“Adopting relief would provide the breathing room the tyre producers, its workforce and its U.S. supply base so desperately need to maintain viability,” Mr. Black said in his Aug. 20 letter to U.S. Trade Representative Ron Kirk.

The Office of the USTR is scheduled to recommend to President Obama Sept. 2 on whether he should approve the tariffs against Chinese tyres recommended by the ITC. The president has until Sept. 17 to decide.

From Tire Business (A Crain publication)