Market and product

Michelin Tyre Service Company (MYSC) has said that if all measures are put in place, Nigeria can become the hub where tyres can be exported to other West African countries.

It has also offered to partner with the Federal Government on grading of tyres being imported into the country, while it called for the control of importation of sub-standard tyres to the country.

The Managing Director of the company, Mr Jean-Yves Mafron, who recently led a delegation from his company on a visit to the Minister of Commerce and Industry, Senator Jubril Martins-Kuye, said putting a control on importation of sub-standard vehicles would reduce carnage on the roads.

Mafron, however, cautioned that the importation of sub-standard tyres, which represented 47 per cent of imports of tyres by fragmented importers, should be controlled by the government.

“We propose relevant government agencies, Standards Organisation of Nigeria (SON), Consumer Protection Council (CPC), Customs and the Road Safety should partner with companies like us to look for innovative solution to this serious economic and social problem.

“Tyre manufacturing is now done in massive high volume strategic factories served by logistic hubs in countries like Hong Kong, Singapore and Dubai.

“Logistics hubs have become sources of countries competitive advantage as growth instrument,” he said.

Commenting on the possibility of the company returning to Nigeria, Mafron said the current tyre industry structure of 100 per cent importation was a direct result of global shift of sourcing and manufacturing in the supply chain.

He said that Nigeria could benefit from the global trend by supporting logistics businesses through appropriate government incentives and reform of the importation process and procedures.
He pledged the readiness of the company to assist in tyre grading if SON was prepared to collaborate with it.

He said this would penalise low quality tyres and enhance low tariff on premium quality for affordability of such tyres by consumers.

Responding, the minister urged the company to come back to Nigeria to set up its factory just as it was few years ago.
He said the country had the raw materials for the production of tyres and as such, it was natural for the company to be located in Nigeria.

Responding, Martins-Kuye said the government was working towards providing a conducive business environment for investors in the country.

He said part of government’s plan was to provide electricity and other infrastructure that would ensure that companies, which left Nigeria for other countries, returned.

(Source: www.tribune.com.ng)