Current Issue

PREMIUM CONTENT FOR SUBSCRIBERS ONLY

Retail

OTR tire shortage could hinder mining boom

Order Reprints

"We may be looking at 10 years of growth" in the mining industry, according to Michelin officials. But a lot of that will depend on the availability of large OTR tires.

"We think we're looking at a mega-cycle (in mining activity)," says John Funke, director of sales, mining, for Michelin North America Inc.

"In the past, the cycle was six years of growth and four years of drop-off."

Soaring commodity prices are driving increased mining activity throughout the world, according to Funke.

However, current demand for large OTR tires by mines, construction companies and other end users "is 25% to 30% greater than the industry can deliver."

Last month, Michelin announced that it will invest $85 million into its OTR tire plant in Lexington, S.C., over the next five years.

"There's been reactivation of some closed mines in the U.S. and Canada, but they can't flip the switch overnight. Growth is limited by available resources, one of them being tires."

Related Articles

More of less: OTR tire shortage could last until 2008

Attitude adjustment: OTR shortage has forced Redburn Tire and its customers to change the way they do business

Unit drain, the impact of BRIC and offshore comes ashore: Yokohama's Nash discusses how the OTR tire shortage is transforming the North American market

You must login or register in order to post a comment.