Mar.2010

Alliance ceased tyre manufacture in Israel last year

Ramat-Hasheron, Israel -- Pelmar Engineering said it has acquired tyre making machinery from the Alliance Tire factory in

Hadera, Israel. Pelmar said in a statement, "Alliance Tire Company (1992) Ltd. has reduced PCR production since April 2009

and completely stopped production in September 2009. The reason is tough competition coming from low cost foreign tyre

manufacturers and almost non-existence of import duties on tyres in Israel."

ERJ sought clarification from Alliance, but the company had not responded as we went to press. Alliance' factory in Hadera

was the only plant making new tyres in Israel. If true, it would mean that no new tyres will be made in Israel.

Pelmar said the equipment includes 1st and 2nd stage Marangoni tyre building machines, Steelastic machine, Apex machine, 30 x 40.5” tyre curing presses, bladder presses and D-70 uniformity machine.

Alliance was bought in July 2007 by an Indian company, which built a new tyre plant in India which came on stream in mid-2009. Originally the Indian plant was to make low-value tyres, while thre high value products were made in Israel, but it

appears the downturn meant there was sufficient capacity in India to make all the tyres needed for Alliance' customers.

Alliance bought the assets of GPX at the end of 2009.

ERJ staff report (DS), 08 March 2010

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