OTR Tyre Litigation Cases.
Shaw Tyre Services Pty Ltd can provide the Mining Industry with an "impartial and independent" assessment on tyres which fail because of structural integrity issues and therefore are deemed a Safety Risk. This support includes the following :-
Tyre Procurement Arrangements.
"Take or Pay Tyre Contracts " to secure Plant Investment.
Over the years Tyre Companies and Mining Houses have gone "In and Out" of phase with each other regarding tyre " Supply and Demand". Five years ago Demand outstripped Supply as Tier 1 tyre manufacturers could not provide sufficient product to the mining industry. This resulted in Tyre Factory Expansion Projects, the development of New Factories and the explosion of Tier 2/3 manufacturers coming into the market.
OTR Tyre companies required a huge Capital Investment to increase production capacities, but needed secure orders to recover costs. This resulted in Contracting Mining Houses to either buy equipment for the Tyre Plant, or committing to long term orders on a "Take or Pay" basis. This was fine for well established Brands like Michelin and Bridgestone brands , but not really an ideal situation for Mining Concerns who have set up relationships with the less reputable tyre companies.
Companies who ventured into the Tier 2/3 market now find themselves with two dilemmas , they are firstly left with under performing product on site, and secondly a commitment to future orders. These Tier 2/3 Tyre manufactures are still in the process of trying to develop reliable Designs and Processes to compete with Tier 1 Brands. So questions can be raised as to operational limitations that some brands should be exposed to , and whether they meet the Sites Duty of Care requirements , and applicable Mine Safety Legislation.