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January 06, 2010

2009 was a tough year for OTR tires

Last year was a tough one for OTR tire sales. Replacement civilian OTR tire shipments dropped nearly 35%.

OTR tire shipments in the United States fell dramatically in 2009 vs. 2008. The anti-dumping and anti-subsidiary duties imposed on OTR tire imports had something to do with it.

Replacement civilian OTR tire shipments in 2009 totaled 185,000 units, down nearly 35%. Original equipment shipments didn’t fare much better, dropping 29% to 201,000 units.

Overall OTR imports were down 28% -- about the same percentage OTR tire imports from China were down.

OTR tire pricing also was down year to year. Prices fell anywhere from 10% to 20%, depending on the line.

The result was a decrease in replacement sales. In 2008, OTR tire shipments represented $570 million in sales; that dropped to $326 million last year.

The demand for 63-inch giant OTR tires remained high, however. Titan International Inc. began producing 63-inch radial OTR tires at its Bryan, Ohio, facility last July. The plant has the capacity to produce more than 20 giant tires a day, according to Chairman and CEO Morry Taylor.

Goodyear says it will begin production of 63-inch radial OTR tires in the fourth quarter of 2010. The tires will be produced at its Topeka, Kan., plant in at least two sizes, 59/80R63 and 53/80R63.

Modern Tire Dealer’s January 2010 Facts Issue will look more closely at OTR tire shipments in 2009.

Related Topics: Chinese imports, MTD Facts Issue, OTR

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comments

  1. Sierra | January 07, 2010 at 02:18PM
    While I am sure that there must be multiple factors to why OTR sales were down last year, tighter waste restrictions certainly seem to have an undeniable impact on the industrial tire industry. Hopefully sales can recover, but the implementation of more stringent recycling programs and retreading efforts would be a useful way to combat tighter anti-dumping policies.

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