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October 13, 2000 02:00 AM

South Pacific may bolster Australian, New Zealand imports

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    MELBOURNE, Australia (Oct. 13)—South Pacific Tyres, the Pacific Dunlop Ltd.-Goodyear joint venture, may increase imports of tires for the Australian/New Zealand markets from "overseas sources" as part of its plan to cut costs and increase profits, Pacific Dunlop Managing Director Rod Chadwick told shareholders at the firm´s annual meeting. South Pacific Tyres produced a "very poor result" for the fiscal year ended June 30, a situation the company blamed on rising cheap imports from Asia. The company nearly has completed a "top-to-bottom" review of its operations, Chadwick said, and has determined that "a major step-change is necessary in all areas, if we are to supply the market more effectively, lift productivity and cut manufacturing costs." The company thus far has not commented directly on the future of its plants in Australia and New Zealand, but Pacific Dunlop Chairman John Ralph said, "We are also engaged in discussions with Goodyear to address the longer-term positioning of this business."

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