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Johannesburg - Continental Tyre SA said on Tuesday that it had increased tyre prices in the South African market by an average of 7.5% in January, with a further hike expected in the second quarter.
The tyre maker said high price levels for the main types of natural rubber used in the production of tyres compelled the group to increase the cost of tyres.
"At well over $3 per kg, the prices for natural rubber are now at a historic high. The price rises affect all the tyre brands belonging to Continental Tyre," said Dieter Horni, MD of Continental Tyre SA.
"We have implemented this price increase in SA in order to offset some of the substantial increases experienced this year in the cost of these raw materials," Horni said.
Depending on the tyre, natural rubber can account for more than 40% of a tyre, making it one of the most important raw material components required to produce the product.
Continental Tyre said it was working vigorously to find alternatives to gradually replace natural rubber, without having to compromise on the performance and safety characteristics its tyres are known for.
The tyre maker said high price levels for the main types of natural rubber used in the production of tyres compelled the group to increase the cost of tyres.
"At well over $3 per kg, the prices for natural rubber are now at a historic high. The price rises affect all the tyre brands belonging to Continental Tyre," said Dieter Horni, MD of Continental Tyre SA.
"We have implemented this price increase in SA in order to offset some of the substantial increases experienced this year in the cost of these raw materials," Horni said.
Depending on the tyre, natural rubber can account for more than 40% of a tyre, making it one of the most important raw material components required to produce the product.
Continental Tyre said it was working vigorously to find alternatives to gradually replace natural rubber, without having to compromise on the performance and safety characteristics its tyres are known for.
