PA Measure Aims to Eliminate Scrap Tire Stockpiles

Dedicated Funding Source Key to Cleanup Action

For more information contact:
Dan Zielinski
(202) 682-4846
dzielinski@rma.org

WASHINGTON, D.C.August 23, 2007 - A bipartisan group of Pennsylvania lawmakers are seeking to eliminate scrap tire stockpiles across the state with legislation that provides $15 million in cleanup funds over five years.

The Rubber Manufacturers Association strongly supports the effort. The group conservatively estimates that Pennsylvania has nearly eight million tires in stockpiles and is one of seven states that have more than 85 percent of the nation’s stockpiled scrap tires.

“Pennsylvania lawmakers are on the right track with this legislation,” said Michael Blumenthal, RMA senior technical director. “A consistent funding stream has not been available for some time, which has hampered more extensive scrap tire clean up activities.”

RMA, which represents tire manufacturers, is a strong advocate for effective scrap tire management programs and activities. The group collects information on scrap tire market activity and cleanup efforts and issues a report every two years.

The legislation, SB 1050, was introduced by state Senator Lisa Baker (R-Dallas) with 11 co-sponsors, including Senate Minority Leader Robert Mellow (D). The measure would provide a $3 million annual appropriation for five years from the state’s Recycling Fund to the Used Tire Pile Remediation Restricted Account (UTRRA).

The legislation would provide a consistent and dedicated source of funding for scrap tire stockpile abatement. Additionally, it would require the Pennsylvania Department of Environmental Protection to provide the Legislature with an annual progress report on stockpile abatement activities.

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The Rubber Manufacturers Association is the national trade association for the rubber products industry. Its members include companies that manufacture various rubber products, including tires, hoses, belts, seals, molded goods, and other finished rubber products. RMA members employ over 120,000 workers and account for more than $21 billion in annual sales.

No Growth Predicted for 2007 Tire Shipments

For more information contact:
Dan Zielinski
(202) 682-4846
dzielinski@rma.org

WASHINGTON, D.C.August 16, 2007 - Tire shipments are expected to decrease slightly in 2007 as modest gains in the replacement markets are offset by further weakening in the original equipment (OE) tire markets, according to the Rubber Manufacturers Association

Revisions to RMA’s 2007 tire shipments forecast reflect changes in U.S. economic growth predictions for both the consumer and commercial sectors. The group projects that replacement tire markets in 2007 will show an increase of nearly 2 percent with OE markets declining approximately 8 percent.

Overall, the combined OE and replacement shipments for 2007 auto and truck categories are anticipated to decrease by fewer then one million units to approximately 306 million total shipments.

RMA’s Tire Market Analysis Committee forecast for key categories and their respective segments for 2007 include:

• Original Equipment Passenger Tires: This market is projected to decrease by approximately 4.5 percent in 2007 to 46.0 million units from 48.2 million units in 2006 as a result of further decreases in domestic light vehicle sales and production. Little or no change in the shipments is projected for the near future as imported vehicles increase their share in the light vehicle markets.

• Original Equipment Light Truck (LT) Tires: Less then 4.5 million OE units are forecasted to be shipped in 2007, representing a decrease of approximately 12 percent or 600,000 units over 2006 levels as a result of more light truck type vehicles being fitted with P-metric passenger tires rather than LT tires. Future growth in this category is expected to be slight as growth will be more dependent on commercial light truck applications.

• Original Equipment Medium/Wide-Base/Heavy On-Highway Commercial Truck Tires: Sales of commercial truck vehicles have experienced a sharper drop then anticipated for 2007 as changes in EPA regulations pulled forward 2007 truck sales into 2006. As a result, the forecast for this category has been revised further downward to a projected 29 percent decrease in OE shipments for 2007, or nearly 4.8 million units total, or approximately 2 million units less then the 6.8 million units shipped in 2006.

• Replacement Passenger Tire: Passenger replacement market will experience an increase of nearly 2 percent to approximately 200 million units in 2007 representing a gain of 4 million units over 2006’s shipments. Growth in this category is predominately a result of increases in the P-metric tire market (for SUV and smaller Pick-up trucks), which is projected to grow more than 8 percent, and the High and Ultra High Performance tire markets, which are projected to increase more than 6 percent and 11 percent, respectively. Growth in this segment is expected to continue as driving habits have not materially changed as a result of higher fuel costs, and tire purchases deferred in 2006 are beginning to appear in 2007.

• Replacement Light Truck Tire: This market segment is forecasted to increase by approximately 500,000 units to approximately 34 million units in 2007 primarily a result of higher demand from commercial vehicles using LT type tires.

• Replacement Medium/Wide-Base/Heavy On-Highway Commercial Truck Tires: The forecast for this market has been revised to 16.4 million units in 2007, a decrease of 500,000 units from 2006’s shipments, reflecting the slightly weaker economic forecast for the remainder of 2007.

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The Rubber Manufacturers Association is the national trade association for the rubber products industry. Its members include companies that manufacture various rubber products, including tires, hoses, belts, seals, molded goods, and other finished rubber products. RMA members employ over 120,000 workers and account for more than $21 billion in annual sales.