In early September the Supreme Court in the city of Bloemfontein will hold the final hearing on an appeal regarding the dumping of Chinese tires in South Africa. If the decision goes its way, the local industry will be given the means of resisting something said to be injuring its viability.

September’s court hearing will likely be the final battle in a campaign that began six years ago when the South African Tire Manufacturers Conference (SATMC) applied for International Trade Administration Commission of South Africa to instigate an anti-dumping investigation.

The SATMC, which represents the four multinational companies producing tires in the country – Apollo Tires, Bridgestone, Continental and Goodyear – alleged tires originating in or imported from China were causing material injury to the South African tire manufacturing sector.

The commission claims to have examined “all known producers and exporters” of Chinese tires by means of questionnaire, and in June 2006 its preliminary determination reported that while manufacturers including Triangle, Aeolus, Shandong Chengshan, Giti, Kenda and Kumho were not dumping tires in South Africa, other exporters were indeed engaging in this practice.

It stated that the South African industry “is suffering material injury” and that there is “a causal link between the dumping of the subject product and the injury.” Yet 10 months later, after “considering all the comments from interested parties,” the commission decided that factors other than dumping, such as the volume of Chinese imports at non-dumping prices, were responsible for harming the local industry. The commission, therefore, recommended to South Africa’s Minister of Trade and Industry that the tire dumping investigation be terminated.

The SATMC appealed this decision, complaining the investigation team visiting China accepted figures provided by manufacturers without compiling proper audit reports. It claimed the commission displayed a “totally unsympathetic attitude” toward South African tire manufacturers. In June 2010, the Supreme Court of Appeal ruled in favor of the SATMC’s appeal and ordered the commission to conduct a fresh anti-dumping investigation within four months, using prices from a third country. Instead of complying, the commission took this ruling to the Supreme Court in Bloemfontein, and now the industry awaits the final hearing on Sept. 7.

Recently, Apollo Tyres chairman and managing director Onkar Kanwar said “government inaction on the large scale import of tires into South Africa is taking a toll on the tire manufacturing industry.” The cost in terms of rand, pounds or dollars is difficult to calculate, however South Africa’s Mail & Guardian notes that out of an estimated annual replacement tire market of seven million units, in 2010 Chinese imports account for 1.69 million, or approximately 24%. Seven years earlier only 35,000 tires were imported from China and the total amount of imported tires entering South Africa was less than half the 2010 figure of 55%.

It is clear that September’s decision is an important one for the country’s tire makers.