By Oliver Hall
Nexen Tyre America has become the latest tyres manufacturer to announce it is set to raise its prices.
It will hike the cost of its Korea-made tyres by 8 per cent on 1st January 2010, according to a report in the Modern Tyre Dealer.
The company issed a statement saying: “Once again, our industry is taking an increase in raw materials, and Nexen is not immune to the increase.”
In addition to the price increase, Nexen’s parent company, Nexen Tyre Corp, has transferred the moulds for its SB702 all-season high performance tyre from China to Korea. This will enable the company to avoid paying the increased tariffs on China-made tyres imported to the US.
Nexen confirmed that back orders will not be affected by the price increase. “All factory-direct container orders submitted for January 2010 production will be affected by the… increases.”
Goodyear announced earlier this month that it was raising its prices in the US by 6 per cent from 1st December 2009. Analysists were quick to speculate other manufacturers would follow in their tracks.