Dunlop India to outsource tire production
NEW DELHI, India (Dec. 3, 2001)—Dunlop India Ltd. has decided to outsource the production of tires to China in an attempt to keep the company afloat. Dunlop India has accumulated losses worth $85.5 million in the past few years, as labor costs have spiraled upward and the company has suffered extended work stoppages.
Dunlop India Chairman Manohar Rajaram Chabria said that reducing costs is the only way to keep Dunlop alive.
Labor representatives, however, doubted the experiment would succeed as the company earlier had tried unsuccessfully to outsource tires from Nepal.
Under that proposal, Dunlop India planned to procure truck and light commercial vehicle tires by providing technical expertise and using the Nepal plant to outsource. Dunlop India did not identify the Chinese off-take manufacturer or manufacturers.