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IOL News
10-06-2025
- Automotive
- IOL News
Goodyear's plant closure and job losses raise concerns over SA's macroeconomic policy
In a statement on Monday to the Business Report Goodyear South Africa confirmed that they would be undergoing a restructuring at their Uitehage manufacturing plant in Eastern Cape. Image: Jason Boud The announcement of Goodyear South Africa's impending closure of its tyre manufacturing plant in Kariega after 78 years of operation has stirred a myriad of concerns regarding the nation's macroeconomic policy and its capacity to lure and sustain investments. Goodyear South Africa on Monday confirmed that they would be undergoing a restructuring at their plant and that this would affect more than 900 jobs, coming as the manufacturing sector's output in the country has been dwindling. The National Union of Metalworkers of South Africa (Numsa) also confirmed on Friday that it had received a section 189 notice from Goodyear. The tyre manufacturing giant said it was transforming its go-to-market strategy in the Europe, Middle East & Africa region to optimise its footprint and portfolio. 'As part of that transformation, Goodyear South Africa is launching a restructuring process in accordance with the provisions of the Labour Relations Act to address proposals regarding the closure of its manufacturing facility in South Africa and the realignment of certain sales, administration and general management (SAG) functions. Goodyear South Africa will continue to maintain a sales and distribution, and HiQ retail presence in South Africa,' it said. 'The process will be facilitated by the CCMA, and Goodyear will engage in it with transparency and fairness, ensuring that the dignity and interests of all those potentially impacted by the process are appropriately safeguarded. As a company, we recognise our responsibilities towards our employees and their families and are firmly committed to acting fairly and providing them with appropriate support.' Meanwhile, the National Automobile Dealers' Association (NADA) on Monday said it recognized that Goodyear's decision to discontinue manufacturing operations in Kariega was a difficult one made as part of a broader global restructuring. NADA added that with South Africa already facing high unemployment, the potential loss of hundreds of jobs is deeply concerning for the automotive ecosystem and the broader economy. 'Our thoughts are with the employees, families and communities who may be affected by this change,' NADA said. 'This development underscores the importance of creating a supportive environment to sustain industrial operations and employment in the country.' However, Efficient Group chief economist Dawie Roodt placed the blame sqaurely at the doorstep of the government policy direction, saying the pattern of disvestment had been observed in the last couple of years. 'South Africa is in a process of deindustrializing, which means we are losing our factories and investments. The reason for this is that we have the wrong macroeconomic policies and I know trade unions are going to be concerned about this,' Roodt said. 'Unfortunately that is part of the problem: organised labour in South Africa is too strong and they get too much legislative protection.' Roodt said the government was implementing wrong macroeconomic policies and that were leading to job losses. 'Untill we change these policies these trends that have become apparent for a number of years will continue. It's really disappointing for the workers and for the South African economy.' Waldo Krugell, an economics professor at the North-West University, said globalisation 'It is caused by a combination of cheap import competition from China and the local supply side issues facing manufacturing. The loss of jobs will hit the local community hard. It also spills over into the staff of support industries, security, and cleaning,' he said. Krugell said the government can perhaps try to levy tariffs on imported tyres and make South African tyre manufacturing great again. 'That is relatively easy to do, and we have been doing it with little success. Or we can try to fix the supply side to make local manufacturing more competitive. That is relatively difficult, but we have been talking about it quite a bit,' he said.
IOL News
03-06-2025
- Business
- IOL News
SARS imposes provisional anti-dumping duties on tyres from Vietnam, Thailand and Cambodia
The newly imposed dumping duty stands at 41.47% on all exporters not specifically named in the Government Gazette, effective for a six-month period from late May to late November 2025. Image: Jason Boud The South African Revenue Service (SARS) has implemented provisional anti-dumping duties on new pneumatic tyres imported from Vietnam, Thailand, and Cambodia as of 29 May 2025. This action comes after an anti-circumvention investigation initiated by the International Trade Administration Commission (ITAC), responding to concerns that Chinese tyre manufacturers were evading existing tariffs by distributing products through affiliates in Southeast Asia, a practice often referred to as "country hopping." The newly imposed dumping duty stands at 41.47% on all exporters not specifically named in the Government Gazette, effective for a six-month period from late May to late November 2025. This measure targets various tyre types categorised under specific tariff subheadings including motor car tyres and bus and lorry tyres. This situation stems from a prior investigation launched by ITAC in 2022, prompted by an application from the South African Tyre Manufacturers Conference (SATMC). The findings of that inquiry revealed that dumping practices were inflicting material harm on local tyre manufacturers, leading to the imposition of anti-dumping duties as high as 41% on non-cooperating Chinese exporters. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading Those producers that complied with the investigation were granted reduced duties ranging from 7% to 15%. However, in the aftermath of these duties, imports of tyres from Thailand, Vietnam, and Cambodia surged. SATMC accused Chinese exporters of circumventing the imposed duties by routing their products through entities in these countries. Responding to these allegations, ITAC initiated an anti-circumvention investigation, uncovering substantial operational ties between Chinese tyre manufacturers and their affiliated companies in Southeast Asia. According to evidence presented during this investigation, the companies identified as both dumping and circumventing the regulations include Sentury Tire, Huayi Group, Prinx Chengshan, and Linglong, among others based in Thailand and Vietnam. Notably, a few exporters such as Vietnam Cofo, Firemax (Cambodia), and Haohua (Vietnam) were not found guilty of either dumping or circumvention. The South African Tyre Manufacturers Conference (SATMC) told Business Report that they welcome the anti-dumping duties. SATMC said, "According to ITAC's preliminary report, there is evidence that there was circumvention taking place in the form of country hopping and that there was dumping into the SACU region in the period reviewed. The provisional duties will be in place for the next six months and the SATMC believes that this is a strong move to address the unfair trade of tyres in South Africa. It is also a bold step to protect not only the local producers namely, Bridgestone, Continental, Goodyear and Dunlop Tyres, but also to ensure fair trade for the compliant importers." "The ITAC investigation will now continue with its Final Investigation Phase, during which ITAC will study all interested parties' comments and verify information that was submitted, before concluding the investigation. SATMC and its members remain committed to the country and maintaining a sustainable future for the tyre industry in SA," SATMC further said. For those impacted by these provisional duties, the next steps are crucial. According to evidence presented during this investigation, the companies identified as both dumping and circumventing the regulations include Sentury Tire, Huayi Group, Prinx Chengshan, and Linglong, among others based in Thailand and Vietnam. Image: These measures will remain in effect while ITAC finalizes its investigation, with a possibility of establishing definitive duties that could remain for up to five years. Importers, particularly those sourcing tyres from Southeast Asia, are urged to closely evaluate their risk exposure, mindful of the potential for significant penalties issued by SARS for misinterpretations of anti-dumping duty applications. As the situation unfolds, interested parties have until 12 June 2025, to respond to ITAC's preliminary determinations. Those wishing to represent their views directly to the Commission must submit requests for oral hearings by 25 July 2025. With this ongoing investigation and potential long-term implications for trade and industry, stakeholders in the South African tyre market are urged to stay informed and proactive.
