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December 12, 2007 01:00 AM

Commerce: Chinese OTR tire makers get subsidies

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    WASHINGTON (Dec. 12, 2007) — The U.S. Commerce Department has made a preliminary determination that Chinese off-the-road tire manufacturers are receiving subsidies from the Chinese government.

    The subsidy rate is 6.59 percent for Tianjin United Tire & Rubber International Co. Ltd., 3.31 percent for Guizhou Tyre Co. Ltd., 2.38 percent for Hebel Starbright Tire Co. Ltd. and 4.44 percent for all other Chinese OTR tire makers, the department said.

    Titan International Inc. and the United Steelworkers, which joined to file a countervailing and anti-dumping duty against Chinese OTR tire imports, said they approve of the Commerce decision.

    Maurice Taylor Jr., Titan president and CEO, said it was the obvious conclusion. "This was the simplest thing (to find), because it's what the Chinese government admits to," Taylor said. "A blind dog could have found that one."

    Commerce now has until Feb. 20 to make its final subsidy determination in the case.

    If it affirms that that Chinese OTR tire makers are being subsidized, the case will go back to the International Trade Commission, which will decide finally whether U.S. OTR tire makers suffer material injury because of Chinese imports.

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