The lingering epileptic energy supplies in the country has had a toll on Dunlop Nigeria Plc reducing its production and sales capacity by 20 per cent in the first half of 2007.

Chairman of the tyre manufacturing company, Mr. Jabez Lawuyi, who stated this at the Annual General Meeting (AGM) in Lagos on Tuesday, explained that the management of the firm had to switch to natural gas in the last five years, as an alternative, to power its facilities due to the poor electricity supply. But he regretted that even the switch to natural gas did not prove a better alternative as supplies were to be disrupted due to the crisis in the Niger Delta.

He said with unstable electricity and gas supplies, the company’s production and sales capacity had to drop by 20 per cent.
“The supply of electricity has remained epileptic while that of has deteriorated significantly that together has led to a 20 per cent loss in the volume of production and sales of tyres in the first half of the year,” Lawuyi said.

Lawuyi also decried the actions of importers of tyres whom he accused of manipulating import tariffs to the detriment of local manufacturers, like Dunlop.
“Import tariff at 10 per cent for truck tyres and 50 per cent for smaller tyres is being unscrupulously manipulated by importers of tyres to the detriment of Dunlop brands, substandard and under-priced tyres continue to flood the market and even Michelin has joined the rank of tyre importers having discontinued its manufacturing operations in Nigeria,” he stated.

According to him, the difficulty associated with enforcement of appropriate tariff regimes has brought to the fore the need to consider and urgently implement other forms of direct incentives to manufacturers as a means of ensuring their continued survival.
At the AGM, Lawuyi announced a turnover of N5billion and a loss before interest and tax of N370million.