The current high price level for the main types of natural rubber used in the production of tyres compelled Continental Tyre South Africa to increase the prices of tyres in the South African replacement market by an average of 7.5%, in January 2011 with a further increase expected in the second quarter of 2011.
“At well over US$3 per kg, the prices for natural rubber are now at a historic high. The price rises affect all the tyre brands belonging to Continental Tyre.
“We have implemented this price increase in South Africa in order to offset some of the substantial increases experienced this year in the cost of these raw materials,” says Dieter Horni, the Managing Director of Continental Tyre South Africa.
Depending on the tyre, natural rubber can account for over 40% of a tyre, making it one of the most important raw material components required to produce a tyre. Continental Tyre is working vigorously to find alternatives to gradually replace it, without having to compromise on the performance and safety characteristics their tyres are known for.
Continental Tyre’s Port Elizabeth factory produces tyres for the passenger, 4×4, Van, Truck, Mining, Earthmover and Agriculture markets, all of which will be affected by the unprecedented increases experienced in natural rubber.
Alan Straton
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