Fujifilm-Kodak Dichotomy + US Tariff on CN Tires

choi

There is no need to read either of the following reports.

(1) Kana Inagaki and Juro Osawa, Fujifilm Thrived by Changing Focus. Wall Street Journal, Jan 20, 2012.
http://online.wsj.com/article/SB ... 70481473958516.html

Quote:

"'Both Fujifilm and Kodak [which filed for bankruptcy protection yesterday] knew the digital age was surging towards us,' Fujifilm Chief Executive Shigetaka Komori said in a recent interview. 'The question was, what to do about it?'

"What Fujifilm did was to look further than simply moving to digital photography from analog. Instead, the company tapped its chemical expertise for broader uses, such as drugs and liquid-crystal-display panels. Fujifilm ventured into cosmetics, as well: It seems the process for stopping photos from fading can be used on skin, too.

"The Tokyo-based company's postdigital transition wasn't swift or easy. Thousands of jobs were sacrificed and manufacturing facilities shut down.

"The surface of photographic film has 20 ultrathin layers that contain about 100 kinds of chemical compounds. Fujifilm applied its expertise in handling chemical elements and enegineering atomic-scale particles to the development of films used in LCD panels for computers, TV sets and other devices. That business, started about a decade ago, is one of Fujifilm's most competitive, selling film to LCD-panel-component suppliers.

"It also is tapping its knowhow for drugs, seeking ways for the human body to more effectively absorb chemical elements in drugs. The company has spent Y650 billion since 2000 to acquire health-care companies.

"And one of its latest endeavors is cosmetics--it has its own Astalift skin-care line--that use antioxidation technology for preventing photos from fading.


(2) John Bussey, Get-Tough Policy on Chinese Imports Falters. Wall Street Journal, Jan 20, 2012.
http://online.wsj.com/article/SB ... 71130489514146.html

Quote:

(a) "John Everett slaps a tire in his vast warehouse and delivers a troubling verdict on Washington's big battle with China over tire imports.

"'This is a China tire, it costs me $69 today,' says the owner of Cybert Tire& Car Care i New York City. 'Before it cost $39.' A big part of that increase: The fat tariff the US has placed on Chinese tire

"The measure was meant to whack imports of passenger and light-truck tires and gives a boost to manufacturers and job creation in the US.  Yet , for a variety of reasons, it has apparently done little of either--and has surely raised prices for consumers.

"'The tariffs didn't have any material impact on our North American business,' says Keith Price, a spokesman for Goodyear Tire & Rubber Co, echoing a sentiment expressed by some other manufacturers. 'The stuff coming in from China is primarily low end. We got our of that market years ago.'

"After tariff was enacted in 2009--35% in the first year--imports from China did in fact drop sharply. But that business quickly shifted to Thailand, Indonesia, Mexico and elsewhere.

"China later lost its appeal of the tire tariff to the WTO.

"For its part, the Steelworkers union [which petitioned successully for the tariff increase] believes the measure has been a success. It cites anecdotal and other evidence of production expansion of the industry.

"The good news? The statute under which the tariff was issued expires at the end of 2013. And so would any extension [of tire tariff].

Note:
(a) Cooper Tire & Rubber Company
http://en.wikipedia.org/wiki/Cooper_Tire_&_Rubber_Company
(In 1919 Cincinnati auto parts dealer IJ Cooper formed the company [Cooper Corporation] to manufacture new tires, which merged with to others in 1946 to form the company which bore today's name)
(b) A bar chart headlined "Source Switch[;] US tire imports affected by tariffs, in millioms of tires" shows

...........Jan-June 2009.....Jan-June 2011
China......~22.5.............~15.5
Canada.....~9................~11.8
South Korea..~5.2............~11.5
Japan......~6.2..............~9
Indonesia..~2.2..............~5.1
Thailand...~2.1..............~4.95
Mexico.....~2.2..............~4.5
Taiwan.....~1................~3