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OTR Shortage Leads to 300% Price Hike in Two Years

Those buying OTR tyres in the Middle East are likely to encounter further price hikes of 20% to 30%.

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According to an Emirates Business report, a tyre that cost £15,000 in 2005 cost as much as £45,000 in 2007. Now this is expected to increase by a further 20% to 30% by the end of the first half of 2008. As a result, major tyre manufacturers including Michelin, Bridgestone, Goodyear and Pirelli have all increased product prices three times a year since 2005, the report continued.

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Bridgestone is likely to increase prices in the region by 10% in January followed by another 10% in June. Goodyear is also expected to increase prices between five and 15%.

Bridgestone, the biggest supplier of these "super giant" OTR tyres, has already warned world demand will not be fully met until 2012, a view echoed by Michelin, the second largest supplier. The acute shortage has meant that tyres two years ago cost $30,000 (Dh110,100) or £15,000 have increased by as much as three times. (Tyres & Accessories/Staffordshire, U.K.)

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