Tracking the latest announcements and new business developments in the global rubber and tire industries...
Trinseo is increasing the prices of all styrene-butadiene, styrene-acrylic, and acrylic latex products sold into the market in the EMEA region. Effective 1 Nov, the increase will be €80/dry tonne or as agreements allow.
Linglong Tire has announced a global partnership deal with football club Real Madrid, as part of the its brand internationalisation process. With the marketing move, the tire maker’s aims to tap into the global media profile and fan base of the Spanish club. The collaboration represents a “profound integration of Eastern and Western cultures, sports, and business spirits,” Linglong said.
The European Commission (EC) has responded to increasing concerns over the EU Deforestation Regulation (EUDR) by proposing a 12-month phasing-in period to “ensure proper and effective implementation”. If approved by the European Parliament and the Council, the law would apply from 30 Dec 2025 for large companies and 30 June 2026 for smaller enterprises. Among other issues, the EC acknowledged 2 Oct that “three months ahead of the intended implementation date, several global partners have repeatedly expressed concerns about their state of preparedness, most recently during the UN general assembly in New York.” / More to follow...
Forvia, formerly Faurecia, has revised down its annual sales and profit outlook for the second time in three months, due to weak markets in Europe and North America. In a 27 Sept statement, the French automotive parts group noted “uncertainty” on European market, largely attributing it to “continued slowdown of electrification" and concerns related to ‘corporate average fuel economy’ regulation implementation. The group also sees "high levels" of car inventories in North America, leading to plant shutdowns by OEMs and lower production forecast for the second half of 2024. In China, the group expects a recovery in 2025, due to delays in start of production this year.
German chemicals major BASF has detailed plans to cut costs through a portfolio restructuring and the IPO of its agricultural solutions business. Among the measures announced 26 Sept, group said it intended to divest decorative coatings activities in Brazil, “de-risk” battery materials business and close plants at its Ludwigshafen operations in Germany. Read more
Sumitomo Rubber Industries (SRI) has divesting its wellness business including ‘fitness clubs, golf schools and tennis schools’ due to “the deterioration of business conditions caused by the impact of Covid”. The move will consolidate SRI’s operations and the group’s focus on its mid- to long-term business strategy. As part of the process, Dunlop Sports Wellness Co. will be transferred to Nagase Co., another Japanese wellness and fitness player operational since 1976.
Asahi Kasei America is relocating its corporate office from New York to Novi, Michigan, effective 1 Nov. The move consolidates operations in Novi and while 'streamlining processes and leveraging existing resources' to enhance services to partners. By bringing key leadership and operations together in the 14,403-square-foot location, Asahi Kasei said it is "poised to foster greater collaboration with the regional business units."
Continental Romania is training over 120 students during the 2024-2025 acamdemic year as part of the ‘dual vocational education system’ in the country. This brings the total number of students currently trained by Continental to over 400. Upon completion of the three years of theoretical (at high school) and practical (at the company) training, the students have the chance to work as a technician or operator in the production area of Continental. Subjects being studied include apparatus and equipment electronics, as well as electromechanic equipment and industrial installations.
Black Donuts Inc. has retained its low credit risk rating by Dun & Bradstreet. The “1” rating, said the Finnish tire consulting firm, underscores the company’s financial strength and ability to meet its obligations.
Prinx Chengshan has held a dealer conference in Nigeria where it launched two new products under the Austone brand — AT01 and AAR608. During the conference, attended by more than 100 local dealers, Prinx highlighted its internationalisation strategy, adding that it has been “deeply engaged” in the African market for many years. Its brand Austone, it said, has become “the leading tire brand in Nigeria, with a reputation far ahead of others.”
Battery technology supplier Solidion Technology is seeking strategic partners to accelerate the commercialisation of lithium-sulphur (Li-S) batteries, which are capable of delivering significantly higher energy density compared to lithium-ion batteries. Over the past decade, Solidion said it has developed a technology that addresses technical issues surrounding batteries such as lithium metal dendrite formation in the anode, low electric conductivity of sulphur and slow polysulfide reactions in the cathode, and the undesired migration of chemical species from the cathode to the anode.
AirBoss Defense Group, part of Canadian compounder AirBoss of America Corp., has been awarded a contract worth up to $84 million (€76 million) by the US Department of Health and Human Services for the supply of protective isolation gowns. The contract base and option periods are funded at $59 million with a yet-unfunded option and surge amount valued up to $25 million. Deliveries under the contract are expected to start in the fourth quarter of 2024 and continue through 2026.
Brazil has started its third antidumping sunset review into the imports of Chinese passenger car tires, which have been in place since 2009. According to the China Trade Remedy Information Network, the dumping investigation involves tires with rim sizes of 13 and 14 inches and the injury investigation period is from January 2019 to December 2023.
UK trade union Unite has vowed to explore all avenues to preserve jobs at Grangemouth, Scotland, following the announcement that PetroIneos will go ahead with its plans to close its refinery. According to the union, PetroIneos confirmed on 12 Sept that it intends to close the refinery at Grangemouth between April and June 2025 and to become “an import and export only facility.” The move impacts 500 jobs.
Freudenberg Group has announced that the number of apprenticeships at its German headquarters in Weinheim remains high after a 40% increase last. The company is providing training to a total of 124 young talents in Weinheim this year, 70 of which will be in technical fields. The retention rate, it said, is 95%. Worldwide, the German group said it is training around 500 young people in 15 countries this year.
China’s pneumatic tire exports in the first half of 2024 increased 5.3% year-on-year to 4.51 million tonnes, according to latest official data by Chinese authorities. Value-wise, exports increased 6.5% year-on-year to Yuan79.6 billion (€10 billion) in the first half, said Chinese tire maker General Science quoting customs office data.
Dynasol Elastómeros SAU has received (unspecified) support-funding for an R&D project focused on the development of a “rejuvenator for recovering the properties of residual bitumen in milled asphalt mixtures.” The assistance was co-financed by the European Regional Development Fund through an Cantabria ERDF programme, Dynasol announced 30 Aug.
Metso’s Sorocaba foundry and rubber factory in Brazil received carbon-neutral certification in line with PAS 2060:2014 standard from an independent third-party, BSI. Supply-chain operations, said the Finnish group, are "pivotal to Metso’s overall CO2 footprint, with the Sorocaba foundry and rubber factories accounting for around 20% of Metso’s own operation’s CO2 emissions."
Korea’s Aekyung Chemical is investing KRW 96.7 billion (€65 million) in a mass production facility for TPC (TerePhthaloyl Chloride), a key raw material for aramid fibres, by the end of 2025. The facility will have the capacity to produce 15ktpa of TPC per year and will be the first of its kind in Korea. The plant will be supporting the production of aramid ‘super fibres’ in Korea for applications in EV tire cords, optical cables and aerospace materials, Aekyung reported 5 Sept.
Saint-Gobain has completed its divestment of Freeglass, a manufacturer of plastics- and elastomer-based exterior components for the automotive industry, the French group announced 2 Sept. With its industrial plant located in Schwaikheim in Germany, Freeglass generated sales of close to €20 million in 2023 and employs around 120 people. Read more
Toyo Tire Corp. is leveraging its ‘optimal’ production, supply-chain and digital-based R&D capabilities to help advance its position in the global tire market. A particular focus is on optimising production at each of its plants to increase flexibility to respond to customer needs and changes in supply and demand, Toyo said in its recently issued integrated report 2023. Read more
HF Group has won the “Golden Emil” award of the Possehl Group for its digital advancement in mixing technology. During a recent digital conference held by German industry holding group, HF Group’s ‘smart final mix’ (ERJ article) was awarded as “the best digital product,” said HF in a brief update.
Sumitomo Riko is joining "Station Ai", an open innovation hub based in Nagoya, Japan and set to open in October. Station Ai, it said, aims to “create and nurture startups” and promote new innovation through support programmes offered to universities and other organisations. The move is aligned with the group’s 2029 'vision' to increase ‘co-creation’ within the group, and helps further strengthen collaboration with startups and other external parties.
Linglong Tire has been listed among the top 500 Chinese brands during the 18th China Brand Festival 2024. With a brand value of Yuan 18.829 billion (€2.4 billion), Linglong said it is the “only company in the tire industry” to be on the list, which also includes majors such as Sinopec, and China National Petroleum Corp.
China's Hainan Rubber has widened losses in the first half of 2024, despite a 30% growth in revenue. The Chinese natural rubber group posted a loss of Yuan296.5 million (€37 million) for the first six months of the year, down from Yuan269.8 million reported a year ago. Group sales for the six-month period, meanwhile, grew 31.6% year-on-year to Yuan19.2 billion.
Black Donuts Engineering Inc. is changing its name to Black Donuts Inc. in English and Black Donuts Oy in Finnish to “better represent” its expanded global services. The Finnish company started out in 2011 as Black Donut Engineering has now grown into a “full-service provider with over 50 tire plants and over 1,300 tire models designed.” The new name, said the company, reflects its “broad capabilities and simplifies communication and branding.”
Niedernberg, Germany-based ips Intelligent Pelletizing Solutions has appointed Kotraco BV of Houten, The Netherlands as its sales representative in the Benelux countries. Specialising in the field of compounding and pelletizing technology and develops, the German company builds equipment and systems for the polymer, compounding, masterbatch and recycling industries.
Figures released by the UK-based Chemical Industries Association (CIA) indicate sustained growth within the industry for second quarter of 2024, building on the positive performance seen in the first three months of the year. According to CIA, the trend marks “a significant recovery” for the UK chemicals industry, following 18 months of “severe decline.”
Organisers have issued an updated programme for the New Frontiers New Markets rubber conference being held in Davao City , The Philippines, 26 -28 Sept. Led by the Philippine Rubber Industries Association and supported by the country’s department of trade & industry, the event will address topics such as sustainable rubber production and usage, market expansion, new technologies and global trade dynamics.
Ohio State University has received $26m (€23m) from the National Science Foundation (NSF) to advance rubber research in the US. The university is to create an engineering research centre to help ‘transform American rubber’ through supply-chain innovation. In partnership with Caltech, North Carolina State University, Texas Tech University and the University of California, the initiative aims to “create bridges between engineering, biology, and agriculture to revolutionise and on-shore alternative natural rubber production from US crops,” said NSF.
US Medical Glove Co. (USMGC) has acquired an unidentified domestic polyisoprene chemical facility to support the production of rubber gloves in the US. The 9,000 m2 facility has capacity to produce 1.4ktpa of polyisoprene annually, enough to produce 60 million pieces of polyisoprene surgical gloves. USMGC claims to be the “only” US-based manufacturer of the machines, components, and chemicals necessary to make nitrile and polyisoprene gloves. The acquisition in early August will make the Harvard, Illinois-based company an “end-to-end, made-in-America manufacturer of both nitrile and polyisoprene gloves.”
ERJ Business Briefing; July/Aug