Chinese Tire Industry Embraces Decline in US Duties for Thai Passenger Car Tires
- 30-Jan-2024 4:20 PM
- Journalist: Peter Schmidt
Two prominent Chinese tire manufacturers with substantial operations in Thailand, Linglong and Jiangsu General Technology Co. Ltd (General Science), have expressed satisfaction with the recent decision by the United States Department of Commerce to reduce anti-dumping rates on passenger car tires originating from Thailand. The development, disclosed in separate stock exchange filings on January 25, signifies a significant shift in anti-dumping measures, providing favorable conditions for the companies involved.
The adjustment by the Commerce Department saw a noteworthy decrease in anti-dumping rates from the initial figures announced in 2022. Specifically, the rates were lowered to 4.52% from the original 21.09% and 17.06%, marking a substantial reduction. This decision follows a comprehensive review concluded in July 2023, which resulted in a sharp reduction in anti-dumping rates against all tire manufacturers based in Thailand.
Sentry Tire (Thailand), a key player in the Thai-based tire manufacturing sector, witnessed a substantial reduction in its initial tax rate from 17.06% to a mere 1.24%. Similarly, Sumitomo Rubber (Thailand) experienced a decrease from 14.59% to 6.16%. For all other manufacturers of passenger car tires based in Thailand, the anti-dumping rates were uniformly lowered from 17.06% to 4.52%, as reported by both Linglong and General Science.
Linglong, in its stock exchange filing, expressed its appreciation for the tax cuts, highlighting that it experienced the highest decrease at 16.57%. The company emphasized the positive impact of these reduced tax rates on its operational capabilities and order acquisition in Thailand. Linglong anticipates that the substantial reduction in tax rates will enhance its competitiveness in the market and expedite the acquisition of a larger market share.
Furthermore, Linglong sees this development as an opportunity to swiftly improve its product competitiveness, fostering a more agile approach to seizing market share. The reduced tax rates are viewed as a strategic advantage that will contribute to Linglong's market presence and overall performance in the competitive tire manufacturing sector.
The decision by the United States Department of Commerce to lower anti-dumping rates on passenger car tires from Thailand has been met with approval from major Chinese tire manufacturers, Linglong and General Science. This development is expected to have a positive impact on the operational capabilities, order acquisition, and market competitiveness of these companies in Thailand. The reduced tax rates are viewed as a strategic advantage that will foster growth, enhance competitiveness, and contribute to the companies' sustained success in the international tire manufacturing landscape.