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Tyres under inflation pressure
September 22nd 2008

Watts says high raw materials costs and a resurgent dollar offsetting the recent drop in oil prices mean 40 per cent year on year increases in natural rubber and crude oil will again be passed on to distributors and consumers in 2009. It will review the situation quarterly.

The firm says high raw material prices are here to stay, as demand for oil and rubber increases in areas such as China and India. It says tyre producers must therefore produce higher performance, more durable tyres that add proven value, rather than compete on price. By way of example, the firm touts its new Premia Press On Band and the Sherpa Industrial Pneumatic products launching this quarter.

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