ERJ Business Briefing

Tracking significant market and commercial developments within the international tire and rubber industries:

MAY

BASF has launched a new phase of its “Winning Ways” strategy focused on strengthening and growing its core businesses following the carve-out of its standalone units. The chemicals major said 20 May that it aims to reduce net cash fixed costs across its core operations by up to 20% by 2029, compared with a 2024 baseline, under a new programme called “CoreShift”. BASF has also established a Core Transformation Office led by Julia Raquet, who will report directly to CEO Markus Kamieth. According to BASF, the core businesses – Chemicals, Materials, Industrial Solutions and Nutrition & Care – generate around €40 billion in annual sales. Kamieth said the company’s focus was to “leverage best-in-class competitiveness and synergies across our core businesses to lift their earnings power.” The group is already restructuring its Ludwigshafen Verbund site and reshaping global service units as part of efforts to simplify operations and improve profitability.

HF Group has been awarded Supplier Award 2025 by Continental in the category “service, maintenance, repair”, recognising the German machinery supplier’s after-sales support and service performance. The award highlights HF’s expertise in mixing and curing solutions, with a strong focus on “minimal downtime, reliable machine performance, fast response times, and proactive spare parts planning,” said HF in a statement. The group said it stood out for its “immediate support during critical breakdowns, global on-site service, rapid delivery of high-quality spare parts, and transparent, customer-focused collaboration.”

Dutch group TKH posted a 6.0% year-on-year decline in Q1/26 turnover at its ‘automated machinery - smart manufacturing systems’ division. Tire & rubber machinery major VMI generated 86% of division sales in 2025. The reverse was linked to “lower order intake in tire building machines (TBMs) in the previous quarters." Order intake for TBMs in Q1/26 “remained at lower levels, further impacted by the geopolitical circumstances,” added the 12 May update. On the full-year outlook for the group, TKH said "we reiterate our expectation for organic turnover and EBITA growth in 2026.”

Omya Performance Polymer Distribution has expanded its partnership with BASF to distribute Elastollan TPU across France, Switzerland, North Africa, Israel and the Middle East, effective 1 July. The agreement builds on Omya’s existing Elastollan TPU business in the UK and Ireland through Distrupol. BASF’s Elastollan TPU is used in applications including automotive components, industrial parts, consumer goods and electrical products.

Effective 1 June, or as customer contracts allow, Wacker Group will raise its prices for 'resins, dispersions, and dispersible polymer powders' sourced from its production sites in Europe and the US. Prices for these products will be increased by up to 15%, the company announced.

Asahi Kasei on 12 May announced plans to streamline operations at its Mizushima Works by fiscal 2030, aligning with its previously announced cessation
of ethylene production at Asahi Kasei Mitsubishi Chemical Ethylene Corp. Steps includes the discontinuation of the site's 3ktpa unit for the production of Duranol polycarbonate diol - a polyurethane feedstock for synthetic leather. Supply will be maintained via Asahi Kasei Performance Chemicals (China).

Effective 1 May, or as contracts otherwise allowed, Celanese Corp. increased prices in Asia for flame retardant Santoprene TPV products by $1.50/kg. Additionally, said the company, individual grades may be subject to higher increases than specified.

Pyrum Innovations AG has published its 2025 financial results, showing that revenue more than doubled compared to the previous year to €4.1m - from a prior-year €2.0m. In terms of profitability, Pyrum posted a consolidated net result of minus €10.0m, similar to 2024, adding that a "balanced EBITDA [was] expected for 2027."

Marangoni on 8 May announced a new partnership with Greenline Tyres and its owner Samir Amr to expand its presence in Morocco by delivering "sustainable, high-quality, and cost-efficient" tire retreading solutions based on its Ringtread and TRM technologies.  

Germany’s chemicals & pharma manufacturing industry saw a “significant decline” in overseas business at the start of 2026: exports falling across all regions, according to monthly economic data issued by industry association the VCI.  ERJ report

APRIL

Elkem has announced a price increase across its silicone product portfolio for customers in Europe and the Americas, effective 24 April or as contracts allow. The price adjustment ranges from 10% to 30%, depending on product categories and market segments. Elkem said the decision reflects “a sustained increase” in its cost base, driven by “inflation in key raw materials and chemical intermediates, higher energy and utility costs, and continued pressure on transportation and logistics. Additional cost impacts include packaging, labour, asset maintenance, and ongoing volatility in global supply chains.”

Michelin has reported first-quarter group sales of €6.17bn, down 5.4% year-on-year, with the entire decline attributed to adverse currency movements as the euro strengthened against the US dollar and most other currencies.

South Korea-based Nexen Tire posted Q1/26 sales of KRW838.3bn and earnings (operating profit) at KRW 54.2bn. Sales, it said, grew on a “strong performance” in Europe – helped by a recent plant expansion – and North America. Profitability improved on enhanced product mix and cost stabilisation efforts. Sales-share of high-value-added products such as premium OE, SUV and EV tires”continued to expand”, while 18”+ products reached 40% of total sales.

Tosoh Corp. is raising domestic prices for polyurethane raw material MDI and HDI-related products from 1 May, citing higher feedstock and energy costs. Prices for all MDI products will increase by at least Yen80/kg, while HDI and HDI derivatives will rise by Yen150/kg. Tosoh said the worsening situation in the Middle East, supply concerns from oil-producing countries and the continued depreciation of the yen had sharply increased raw material costs. 

UK-based tire retailer Loughton Tyres has entered “members’ voluntary liquidation,” according to a filing dated 2 April. Joint liquidators Ninos Koumettou and Constantinos Pedhiou of BTG Begbies Traynor (Central) LLP were appointed by members to oversee the process. The company, listed as operating a tire shop, is based in Loughton, Essex, and has been trading since 987.

Asahi Kasei on 24 April reported its filing of litigation for alleged infringement of its Chinese patent rights covering water-based grades of Duranol polycarbonate diol. The lawsuit against Shanghai Songxuan New Materials Co. Ltd and Huizhou Changlong Chemical Co. Ltd was filed 25 March at the Shanghai Intellectual Property Court. It seeks injunction against the manufacture and sale of products employing the polyurethane monomer/feedstock by both companies and compensation for damages.

Monheim am Rhein, Germany-based Oxea announced price increases for neopentyl glycol (NPG). The move was due to “significant and sustained increases in raw materials, energy, and supply chain costs, combined with ongoing supply and demand volatility. The increases, effective 24 April, add €280/t to molten NPG sold in Europe, and €250/t, $290/t and $0.13/lb for NPG slurry in Europe, RoW and N. America respectively.

Trelleborg AB reported “a good start to the year” with net sales for Q1/26 down 3% year-on-year to SEK8,606m - but up by 4% organically. While ‘structural changes’ increased sales by 2%, currency factors took a 9% toll. Earnings (EBITA), excluding items affecting comparability, fell 2% to SEK1,586m. EBITA margin at 18.4%, up from 18.2% a year ago, “was the highest margin ever for a first quarter.” Commenting, president and CEO Peter Nilsson said: “Despite the continued uncertainty in our external environment, our assessment is that demand in the second quarter will be somewhat higher than in the first quarter.”  More to follow...

Tosoh will raise prices for a range of elastomer products by Yen150/kg from 11 May, citing higher raw material and energy costs linked to Middle East supply concerns and the continued depreciation of the yen. The increase covers polycarbonate diols (PCDs) and derivatives, polyester polyols, thermosetting polyurethanes (TSUs) and thermoplastic polyurethanes (TPUs). The company said cost pressures have “reached a level that is difficult to absorb” and warned that further revisions may follow if conditions worsen.

Nokian Tyres has launched a long-term share-based incentive plan for management covering 2026-30, built around three rolling three-year performance periods. The first cycle (2026-28) will link rewards to relative total shareholder return (50%), average ROCE (40%) and reductions in Scope 1 and 2 CO2 emissions intensity (10%). The plan will cover around 100 participants, including the CEO and senior execs, with a maximum of 1.26m shares allocated for the first period.

PCBL Chemical said it has received the “Outstanding Performance Delivery (Domestic)” award at the Ceat 'vendor meet 2026', citing its focus on “efficiency, reliability, and seamless execution.” The company said the recognition reflects “strong collaboration and continuous improvement across operations”, highlighting its delivery performance for the tire maker.

Cooper Standard’s FlexiCore (ERJ report) automotive body seal has won a 2026 Environment+Energy leader award in the business & infrastructure category. The product is claimed to weight reduction of up to 44%, full recyclability and improved sustainability performance. According to the company,the seal, which replaces traditional rubber-metal designs, has already been launched in a front and rear closure application with “a global car maker.”

South Korea-based Nexen Tire on 22 April announced a US marketing initiative, encompassing stadium advertising, in-store promotions and mobile billboards. Features will include LED advertising in nine baseball arenas, targeting both in-stadium fans and TV audiences. In the retail space, Nexen is rolling out banner and digital advertising at more than 3,000 locations across North America.

Zeon Corp. has announced price increases for its elastomer products, citing a sharp rise in input costs linked to geopolitical developments in the Middle East. In a 21 April statement, Zeon said it will revise selling prices for a range of synthetic rubber products, effective for deliveries from 1 May. Read more

Ineos Inovyn on 21 April signed an agreement to sell its Italian chlor-alkali business to Esseco Industrial. The sale of the unit, which operates sites in Rosignano and Tavazzano, is expected to be completed during 2026. The sale will allow Inovyn to focus on its integrated European PVC and Chlor-alkali businesses, said Ineos.

Solvay has extended its global agreement with process automation specialist IMI to accelerate deployment of connected industrial sensors across its manufacturing sites. Under the expanded partnership, the Belgian group plans to increase the installation of industrial sensors from the current 5,000 units to 9,000 by 2027. The I-IoT sensors, already installed at 25 sites in 11 countries, “continuously measure vibration and temperature on critical equipment,” enabling teams to “track assets, prevent breakdowns and plan maintenance at the right moment.”

Nouryon is expanding production capacity for the Levasil-branded colloidal silica grades at its site in Guangzhou, China, in response to rising demand in Asia-Pacific. The materials, according to Nouryon, are used for applications including emissions control catalysts, electrical steel coatings and non-stick cookware. The move will “bring production closer to customers” and enable shorter lead times and a broader product range.

Denka Co. Ltd is raising the prices of its chloroprene products due to an increase in production costs. Effective 15 May, the price increase will be "$200 or more, or €180 or more, per tonne," Denka said 20 April. The group said it "continues to face challenges arising from rising production costs caused by geopolitical tensions." The price hike, it said, will ensure "a stable supply and maintain business continuity."

Celanese Corp. has announced a second price increase in just over a month for a range of engineered materials, including TPVs. The hikes, which mainly affect Asia, will take effect on 1 May and include flame-retardant Santoprene TPVs, which will see an increase of $1.50/kg in the region, the company said on 17 April.

Shin-Etsu Chemical is increasing its prices for silicones in Japan and globally, due to the recent Middle East conflict and the rise in crude oil and naphtha prices. Effective 1 May, all silicone products by Shin-Etsu’s silicone division will see a “10% or more” increase in prices, said the Japanese group 17 May. Read more

Resonac Corp. has announced that it will increase prices for its Showprene chloroprene rubber by more than Yen80/kg, effective for deliveries from 1 May, citing rising raw material costs linked to the situation in the Middle East. The company said cost pressures have moved “far beyond the limits of our self-help efforts,” adding that the increase is necessary “in order to maintain and continue this business.”

Flexsys increased prices for insoluble sulphur since 23 March, with rises of $0.60/kg in Asia, €0.45/kg in Europe and $0.40/kg in North and Latin America. The company cited “soaring raw material costs, energy costs, and freight costs,” driven by the conflict in Iran and the wider Middle East region and its impact on supply chains.

Effective 1 April, Klinger The Netherlands has acquired Conovalve, a Dutch specialist in control valve technology, particularly for the food & drink industry. The deal builds on a 20-year-plus partnership between two family-owned companies, through Klinger Italy’s Burocco control valves. The acquisition “is another step in building a stable and future-oriented platform for sustainable growth”, says Daniel Schibli, CEO of the Klinger Group.

In a recent update, UK polymers specialist MacLellan Rubber said it is “closely monitoring” the evolving geopolitical situation in the Middle East and evaluating any potential impacts on global supply chains. "At this time, we do not anticipate any disruption to our subcontract manufacturing operations or our ability to supply our customers,” the company said 25 March - adding that it would “communicate any meaningful updates should conditions change.”

Arlanxeo on 10 April announced an agreement for the expansion of marketing and sales of EPDM rubber manufactured by Rabigh Refining & Petrochemical Co. (PRC), a joint stock company formed under the laws of the Kingdom of Saudi Arabia. The expansion, it said, took effect in February, making Arlanxeo "the exclusive marketer of EPDM grades produced at PRC."

Cabot Sanmar, a joint venture between Cabot Corp. and India’s Sanmar Group, has broken ground on an project to expand the production of fumed silica manufacturing capacity at its existing plant in Mettur, southern India. Read more

MARCH

Arclin has officially closed its $1.8bn acquisition of DuPont’s Aramids business, adding the Kevlar and Nomex brands to its portfolio. The move expands Arclin’s presence across aerospace, EVs, electrical infrastructure, and personal protection, said the Alpharetta, Georgia-based materials specialist. The purchase will also strengthen Arclin’s global footprint with manufacturing facilities in Ireland and Spain.

Synthos ranked first among Polish companies for European patent filings in 2025, according to the EPO Technology Dashboard. The company’s applications focus on rubber and insulation technologies linked to sustainability. Read more

Huntsman Corp. has opened its expanded Performance Products facility in Petfurdo, Hungary, where operations were initiated at the beginning of this year. The move increases global capacity for polyurethane, coatings and electronics applications, said Huntsman, noting that demand for its Jeffcat amine catalysts is “continuing to grow across the globe,” with products used in applications including automotive seating, mattresses and insulation.

BASF has inaugurated its new integrated site in Zhanjiang, southern China, including a steam cracker with capacity of 1 million tonnes/year of ethylene. The German group said the unit is the ‘first of its kind’ “equipped with main compressors powered by 100% renewable energy,” enabling CO2 emissions to be up to 50% lower than conventional petrochemical sites.

Celanese Corp. has announced a price increase for a range of engineered materials products in response to various factors, including “recent market developments and global supply chain disruptions.” Effective 1 April, the hikes cover Celanese thermoplastic elastomers. The group will raise the price of Santoprene-branded TVP materials by $0.30/kg in Asia, $0.10/lb in Americas and $0.25/kg in Europe. Hytrel & Bexloy TPCs will see price increases of $0.25/kg in Asia, $0.10/lb in Americas and $0.20/kg in Europe.

In Tokyo, Zeon Corp. also announced that it will raise prices for petroleum resins and thermoplastic elastomers from 1 April, citing higher feedstock costs linked to geopolitical tensions. The company will increase prices for Quintone petroleum resin by Yen110/kg and SIS Quintac thermoplastic elastomer by Yen130/kg. The group said “a significant increase in the price of domestically produced naphtha is anticipated” due to the ongoing conflict in the Middle East. Zeon added that the rise “far exceeds the limits of our own cost-saving efforts”, leaving it with “no choice but to revise our product prices”.

The city of Fulda has exercised its pre-emption right to acquire the former Goodyear site for €16 million. The US group shut down the Fulda factory as part of a broader restructuring of its German operations in 2024. At the time, the tire maker cited the “significant decline in demand, rising costs, and growing competition from low-cost Asian imports.”

Goodyear is halting tire production at its facility in Topeka, Kansas for a week between 5 and 12 April, the company has told ERJ. The move, said Goodyear, is part of the group’s ‘continual reviews and adjustment to production schedules’ to “balance demand and operate as efficiently as possible.” The Topeka plant produces commercial truck and bus tires as well as off-road tires and has a nameplate capacity of 7,000 units per day.

Kuraray has announced price hikes across a number of its products, citing rising feedstock and logistics costs. Read more

Wacker Chemie has announced an increase in prices for its silicones products, effective 1 April. In a 20 March statement, the German group said the conflict in the Middle East had led to “significant disruption in global supply chains, resulting in significantly increased costs for energy, raw materials and logistics.”  (Read more)

B&C Holding Osterreich has announced a voluntary public takeover bid for Semperit Aktiengesellschaft Holding, targeting all outstanding shares not already held by the B&C Group. The offer is priced at €15.00 per share and will be subject to review by the Austrian ‘takeover commission’ before the full offer document is published, said Semperit 18 March. Semperit said it will assess the bid and issue a formal statement from its management and supervisory boards within the statutory period following publication.

Russia’s tire production is expected to recover in 2026, with passenger car output forecast to grow by up to 11%, according to Cordiant. “For 2026, a gradual recovery in production is forecast, with moderate growth of up to 11%,” the company said, while noting the overall market could decline by 2% to around 46 million units. Cordiant said imports fell 10% in 2025 to 1.7 million units per month, with Chinese brands accounting for 75%, while domestic production dropped 22%. The company retained a 27% production share and expects a 10% decline in Chinese brand activity in 2026.

China’s Shandong Yongsheng Rubber Group broken ground on a $670 million tire manufacturing facility in Morocco in January, through subsidiary Goldensun Tire Morocco. Located near the 'Nador West Med' port, the plant will have annual capacity of 18 million tires once fully operational. The project will include manufacturing, R&D and logistics infrastructure, targeting export markets in Europe and Africa. Production is scheduled to begin in early 2027.

LBB Specialties has entered a distribution agreement with Kemitura to supply KemituraSil fumed silica products across the US and Canada. The materials will be targeted at coatings, adhesives, sealants and elastomers, and are available in hydrophilic and hydrophobic grades.

Continental’s ContiTech division has opened a new distribution centre in Changshu, in the eastern Chinese province of Jiangsu to strengthen its automotive aftermarket operations and supply chain in the region. The first phase of the site will focus initially on the “assembly, warehousing and distribution.”  (Read more)

Hutchinson SA has completed the acquisition of US-based Cox & Co., a supplier of ice protection systems for aerospace applications, as the French group expands its presence in the US market. The deal covers 100% of Cox & Co. as well as its subsidiary Prime Technology, which specialises in instrumentation for naval defence and industrial sectors. (Read more)

Flexsys will raise regional prices for insoluble sulphur from 23 March, citing rising input costs linked to the Middle East conflict. Increases will amount to $0.60/kg in Asia, €0.45/kg in Europe, and $0.40/kg in North and Latin America. The company said the adjustments are driven by higher raw material, energy and freight costs.

In Germany, Lanxess is increasing prices for diphenylamine (DPA) and alkylated diphenylamine (ADPA) by 50% or more for all non-contractual volumes with immediate effect, said a 17 March announcement. The move reflects significantly higher costs for energy, raw materials and logistics amid ongoing geopolitical tensions, the German group said. 

In the US, Kraton Corp. is increasing global prices for all polymer products due to increasing costs, the company announced 15 March. The increase will range from $440/t to $700/t, or as contracts allow. (Read more)

Yokohama Tire is to permanently close its tire plant in Salem, Virginia with effect from 18 March. The company has previously announced a reduction in output at the  unit and notified employees that production could cease in July.  After negotiations with unions "the two sides have agreed to expedite the closure of the facility," said a 13 March announcement. (Previous ERJ report)

Wacker’s polymers business is ‘significantly’ raising its prices for polymer dispersions, resins, and dispersible polymer powders, citing “significant distortions in commodity market worldwide” following the recent military conflict in the Middle East. Effective 1 April, the extent of the price adjustment will depend on “where the respective product is sourced and on existing contractual agreements,” said Wacker. Primarily products sourced at Wacker’s production sites in Europe and Asia are affected by the increase.

In Houston, Texas, Orion SA announced that it is increasing prices by up to 25% and introducing a variable surcharge to all of its speciality carbons, effective 13 March. This action, it said, is due to rising costs, supply chain disruptions and feedstock cost volatility related primarily to the ongoing conflict in the Middle East.

Cabot also announced 12 March that it is raising prices globally for speciality carbon black products and speciality compounds, due to supply chain disruptions related to the Middle East conflict as well as escalating transportation, energy and feedstock costs. Price increases will be up to 20%, depending on the product and region and will be effective immediately.

Univar Solutions has expanded its distribution agreement with SI Group. The agreement "includes their portfolio of additives for plastics and adhesives, antioxidants, stabilisers, UV stabilisers, and impact modifiers, across select EMEA markets, Univar said 13 March. The growing collaboration, it stated, "reinforces the companies' commitment" to the plastics and rubber industries.

Lanxess announced 11 March that it has raised prices for its functional additives used in the manufacture of tires and speciality rubbers by 15-50% with immediate effect, citing “significantly higher costs for energy, critical raw materials and logistics amid ongoing geopolitical tensions.” 

An ABB/Sapio Research survey found that 63% of 2,700 senior decision makers – across 15 countries and 15 industries – have invested singnificantly in energy efficiency and a further 29% plan to soon. About 67% are using or ready to deploy digital energy?management tools. Said ABB: “What’s holding companies back now are organisational silos, skills gaps and a lack of usable data… The challenge is [to] turn intent into repeatable execution.” Read the full survey report.

Eneos Material Corp. is to acquire JSR Corp.’s rubber sales business for the electronics industry, the Japanese synthetic rubber (SR) producer announced. The unit has marketed and sold SR produced by ENEOS, since the latter’s formation in April 2022 through the spin-off of JSR's elastomer business. Read more

In the UK, Walker Rubber Ltd of Norwich has acquired Braintree-based Clingbrook Ltd. The deal for a near ‘seven-figure’ sum is linked to the retirement of the owners of the family-run business.  Clingbrook has spent 47 years supplying precision rubber mouldings, particularly to the bottling and packaging industry.  Established in 1941, Walker transitioned into rubber manufacturing in the 1960s and has since contributed to landmark projects including for King’s Cross station and the first road-going Tesla Roadster EVs.

Tire pyrolysis company Pyrum is introducing new names for its recycled raw materials with immediate effect. The thermolysis oil previously known as recycled oil will in future be listed under the name TTO (ThermoTireOil). The previously used term recovered carbon black (rCB) will be replaced by the new designation TTB (ThermoTireBlack). Pyrum's aim is to "strengthen its brand identity and emphasize the independence and quality of its products."  More to follow... 

BASF on 4 Mar announced global price increases of up to 20% for products in its antioxidant, process stabilizer and light stabiliser portfolio for ‘plastic’ applications. The price adjustment was "primarily required due to significant cost increases for essential raw materials, inflationary effects on fixed cost, and increases in freight rates." 

Rockwell has announced that wheel maker Ronal is implementing a centralised system to manage remote access across its global operations using its secure connectivity technology. The system enables control of authorised external access to its production sites through encrypted comms, role-based authorisation and monitoring functions designed to meet regulatory requirements, including the EU’s NIS2 cybersecurity directive.

HS Hyosung Advanced Materials said it plans to participate in the silicon composite anode materials business through Extra Mile Materials BV, which was established by Umicore. HS Hyosung said it intends to secure a stake in the venture through conversion of funds lent to Umicore in November last year.

Toyoda Gosei has completed the acquisition of all shares in automotive safety company Ashimori Industry (ERJ report), making the company a wholly owned subsidiary effective 1 March. The move follows a capital and business alliance launched in May 2021. TG said the full acquisition aims to “maximise synergies” in safety systems, particularly through the integrated development of airbags and seatbelts to improve vehicle occupant protection.

Jiangxi Black Cat Carbon Black has commissioned a 1ktpa production line for ‘high-dispersion water-based carbon black’ developed jointly with Beijing University of Chemical Technology. The company said the “industrialisation breakthrough” will expand its portfolio with both high-end and general-purpose water-based speciality carbon black grades. The new materials, it added, can reduce VOC emissions by over 50% compared with traditional solvent-based carbon black used in coatings and fibres.

Mitsui Chemicals expects commercial operations at its 120ktpa Tafmer polyolefin elastomers plant in Singapore to start in its fiscal FY/26 (commencing 1 Apr). At a 5 Feb investors briefing, Junichi Hiro, director, IR dept. said: "Given the scale of the plant, fixed costs are expected to increase... We will work to grow sales volume to cover this increase in fixed costs and pursue diversification of Tafmer applications.” Mitsui had initially targeted solar cell encapsulants as the main market for these materials. (Related ERJ report)

One of the world's largest rubber manufacturers for tire retreading Vipal Rubber has reported on a visit to retreader City Tyres in Uganda, east Africa. The visit, in February, “strengthened the relationship” with the local partner and included a strategic meeting with fleet operators from the region. City Tyres, part of the Mandela Group, operates “an almost exclusively Vipal-based product portfolio.”

Asahi Kasei Corp. has noted challenging trading conditions for its elastomers business in Q1 of calendar year 2026. “In addition to continued sluggish demand, we expect a seasonal increase in fixed costs and deterioration in terms of trade in elastomers,” said Takuya Takahashi, executive officer, material segment. This is due to “a rapid rise in the market price of the raw material butadiene. As a result, we expect operating income to decrease,” he added in a recent investors Q&A.

FEBRUARY

Hexpol has engaged Oktogrid to deploy transformer monitoring across its global production footprint. The agreement establishes a standardised, group-wide approach to monitoring critical electrical assets in both existing and future Hexpol facilities. “Reliable electrical infrastructure is fundamental to stable industrial production,” said Carsten Rüter, president technology, Hexpol.  “This partnership enables us to proactively protect our operations, reduce unplanned downtime risk.”

The US supreme court's decision on the Trump tariffs “does not mean the all-clear”, according to German chemicals industry association the VCI. In a 20 Feb release, MD Wolfgang Große Entrup commented: " For our companies, this is not the beginning of a phase of stability, but a new round of uncertainty... New tariffs on a different legal basis are possible at any time. The trade turbulence is not disappearing – it is just changing the playing field."

Trelleborg Marine and Infrastructure and Trelleborg Sealing Solutions have officially relocated to a new office in Singapore, at Maple Tree Business City in the Alexandra Precinct. This move is intended to strengthen regional footprint and enhance collaboration across business units. By bringing these key operational teams together under one roof, Trelleborg said it “aims to foster deeper integration.”

?VMI parent group TKH has consolidated its 2D machine vision brands Allied Vision, Chromasens, Mikrotron, NET, and SVS-Vistek under the Allied Vision brand. Since January, the companies have combined to provide "seamlessly integrated hardware and software solutions.” TKH’s 3D Machine Vision offering will continue under the LMI brand name.

UK steel conveyor specialist Continuous Process Solutions (CPS) has relocated to a new premises in Jackfield, Shropshire. The move, said a 24 Feb announcement, “reflects the company’s ongoing dedication to innovation, technical leadership and providing outstanding support to clients across the UK’s process industries.” Among other applications, CPS supplies steel belts for ‘rotocure’ continuous rubber drum vulcanisation equipment.

Hoffmann Mineral on 23 Feb announced Carst & Walker as a new distributor partner in Australia. The company, based in Malaga, WA, will be responsible for the fields of elastomers and cosmetics.

In France, Ineos has gained a €300m grant from the French government to upgrade its site in Lavera. This follows the €250m investment in the southern France cracker facility announced by Ineos last November. The latest funding will enable the installation of energy-efficient technologies to cut CO2 emissions by 331ky/yr: making Lavera “a profitable, lower-carbon facility… [able to process] feedstocks from recycled and bio-based materials. The steam cracker produces ethylene, propylene and butadiene, among other products.

Fenner Precision Polymers, part of Michelin Group, has achieved AS9100 accreditation for aerospace and defence manufacturing activities at its Lincoln, UK facility. The certification covers products across the company’s Fenner ‘air & fluid handling’ and ‘high-tech coated fabrics’ families and applies to manufacturing operations linked to aerospace applications.  Read more

Nokian Tyres on 17 Feb announced the 40th anniversary of its Ivalo test centre, claimed to be “the largest and most diverse winter tire testing environment in the world.” Opened in 1986, the ‘White Hell’ facility in Finnish Lapland has over 20 tracks which are used for testing from November to April. The 40km of test tracks include a 700m long ice hall, frozen lakes, rural roads and courses "curated to test every aspect of a tire’s performance in snow and ice."

Cooper Standard has announced plans to raise $1.1 billion (€930 million) through a private offering of senior secured first lien notes due 2031, as the automotive supplier looks to refinance existing debt and extend maturities. The proceeds from the notes, to be issued by wholly owned subsidiary Cooper-Standard Automotive, will be used to redeem several outstanding notes due in 2026 and 2027.

Datwyler has completed the acquisition of a majority stake in Capsul’in, strengthening its position in Nespresso-compatible aluminium capsules. The move is part of the Swiss group’s strategy to expand in structurally growing, low-cyclical ‘food & beverage’ segments. Capsul’in is expected to contribute ‘mid double-digit million Swiss franc’ revenues and improve earnings visibility, while enhancing innovation capabilities.

OTR tire maker GRI Tires hosted Italian national distributor Magri Gomme at its manufacturing facility in Sri Lanka in February. During the visit, the Sri Lankan tire maker provided an overview of its agricultural tire production processes to the Italian distributor. The visit included discussions on market trends and development of the Italian agricultural tire segment. GRI said the tour highlighted its focus on quality assurance, process control and manufacturing scale, as the companies seek to strengthen collaboration in the Italian market.

Bridgestone India has opened two new retail stores in Guwahati, Assam, expanding its regional footprint. The outlets, Kamrup Tyres and The Wheelz Shoppe, will offer passenger vehicle tires and related services. Bridgestone said Assam remains an important market, with the expansion aimed at improving customer access to its products, including the Turanza 6i and Dueler All-Terrain A/T002 ranges.

Tosoh Corp. has reported a 16.4% year-on-year decline in its ‘petrochemical group’ sales to Yen133.0 billion (€730 million) for the nine months ended 31 Dec 2025, with operating income down 34.7% to Yen8.1 billion. Chloroprene rubber volumes declined due to US tariffs and weak regional demand, although price revisions lifted selling prices, said Tosoh.

Kuraray has established a new subsidiary, Kuraray Products Middle East Trading in Dubai, UAE, to serve as a sales and market development hub for the region. The unit will initially focus on high-performance interlayer films, including PVB film and ionomer sheet, with plans to expand its product scope. To be led by Kamal Niazy, the Dubai base will provide a “locally based service structure” with faster response times and improved project support.

Nestle has initiated a voluntary recall of limited batches of Milo snack bars dipped and Milo snack bars original due to the potential presence of rubber pieces. The products were produced at Nestle’s facilities in Australia.

Dr Gerard Nijman of KraussMaffei Extrusion has won the “highest recognition” for innovation in rubber processing and will receive the 2026 Fernley H Banbury Award from the Rubber Division of the American Chemical Society. The award recognises Nijman’s contributions to rubber rheology, mixing and multiplex extrusion technologies, and silica compound processing for the tire industry. The award, one of the sector’s highest honours, will be presented at the Global Polymer Summit in Louisville, Kentucky, in September.

Reporting Q1 results, Shin-Etsu president Yasuhiko Saitoh commented on changes in Chinese industrial policy and the potential impact on the silicones market. In China, he said, "there is a move to restrict excessive price competition, and we are closely monitoring this... not only in silicones but also more generally. In fact, coal has begun to be subject to administrative guidance prohibiting price reductions and restrictions on excessive production."

In the UK, a bioengineering project to produce alternative sources of natural rubber via precision-bred dandelions has attracted £1.9m in funding from a €22.1m government sustainability initiative. Led by Qubertech Ltd, the QuBOOSTR bioengineering project aims to produce “alternative sources of NR via precision-bred dandelions engineered for high latex output in temperate climates, reducing supply chain risk linked to Hevea production pressures.”

Kumho Tire on 2 Feb launched a subscription service that allows customers to rent four tires of all car models for as “low as KRW3,800” (€2.20) per month. The 'Torororo Service Rental' includes a door-to-door installation or fitting at a specialty tire shop. Subscribers can also receive regular tire inspections and other services for safer driving. Rental period range from 12-36 months, while subscribers also have an option for replacing up to two tires free-of-charge if damaged, added a 2 Feb release.

German chemical industry association the VCI believes the recent EU-India trade deal could strengthen exports and supply-chains for Europe's chemical and pharma industries. MD Wolfgang Grosse Entrup said the agreement "strategically strengthens access to one of the key growth markets of the coming decades.”  ERJ report

JANUARY

French trade union CGT Michelin on 23 Jan threatened to boycott the Clermont-Ferrand works council over “sham” annual wage negotiations. Michelin's management, it said, has proposed a 1% general base-salary increase for staff and a 0.6% rise in the seniority bonus. CGT strongly rejected this, citing cumulative inflation of 16% between 2020 and 2025. The union called on the employer to change course in renewed negotiations.

Pirelli has published an updated version of its company bylaws to reflect changes in its share capital, following a bond conversion move (ERJ report).The revised bylaws were registered with the Companies’ Register of Milano, Monza-Brianza and Lodi on 23 Jan.

Hutchinson’s Monte Alto Body Sealing Systems plant in Brazil has secured four major awards at the Stellantis 'Kaizen SOP 2025 Tournament', standing out among 48 suppliers across South America. The site was recognised as ‘champion of the highest performance evolution’, ‘regional champion of the Kaizen SOP tournament’, ‘champion project for efficiency, ergonomics & sustainability’, and ‘regional champion for CO2 reduction’. The awards, Hutchinson said, underline the maturity of its industrial processes and its focus on automation, continuous improvement and sustainability.

Meanwhile, Hutchinson Wuhan Body Sealing Systems received JAC Group’s “quality excellent award” for the successful development and mass production of flush glazing body sealing systems for Huawei Maextro S800 model. The award, it said, recognises Hutchinson’s performance across “product development, quality, innovation, service and delivery.”

As of 1 Feb, Wacker will raise selling prices for silicone products by up to 25%, and possibly even higher in certain cases. The move "primarily affects"  customers in the automotive, pharma, medtech, electrical engineering, energy-transmission and release-coating sectors. Wacker cited a "sharp rise in commodity prices," particularly for platinum - used as a curing catalyst for crosslinking silicone release agents and for addition-curing silicone products.

Hexpol AB has reported an 18.3% dip in Q4/25 earnings (adjusted EBITA) to SEK545m on sales down 9.4% to SEK4,254m. For full year 2025, sales dropped 5.5% to SEK19,324m, and earnings by 13.3% to SEK2,933m. ”Increased volumes in a continued tough market,” summarised president and CEO Klas Dahlberg.

For its fiscal quarter ended 31 Dec 2025, Mumbai, India-based tire maker Ceat Ltd posted earnings (EBITDA) of INR5.7bn, up 64% year-on-year. Sales for the period grew 26% year-on-year to INR41.5bn, driven by a 20.9% increase in volumes.

Pirelli has signed new multi-currency committed bank facilities totalling €2.1bn, replacing existing lines of the same amount that are due to expire in 2027. The new five-year bank lines, agreed with "a pool of national and international banks," will extend maturities to 2031, said the Italian tire maker.  Read more

The Rubber Trade Association of Europe reported that TSR20 prices rose 5 €cents/kg during Dec ‘25 to 166.00 €cents/kg. The automotive market outlook in Europe "began to show signs of improvement, while US and China appear to be healthier," noted RTAE. However, "geopolitical tensions and uncertainty look set to increase in 2026.”

Yokohama Tire on 16 Jan announced plans to significantly reduce tire production at its US plant in Salem, Virginia from the start of March. The decision is due to the “expiration of certain product lifecycles and reduced demand for other products manufactured at the facility." The cutbacks will involve 392 job losses.

Siemens and NVIDIA on 12 Jan announced an expansion of their partnership to build the industrial AI operating system. Together, the companies aim to develop industrial and physical AI solutions that will bring AI-driven innovation to every industry and industrial workflow, as well as accelerate each others’ operations.

Cabot Corp. has signed a multi-year supply agreement with PowerCo SE, Volkswagen Group’s battery manufacturing subsidiary. Under the deal, Cabot will supply conductive carbons and conductive dispersions for lithium-ion battery electrodes used in electric vehicles. Cabot said the agreement will contribute meaningfully to its growth in battery materials and strengthens its position in the European EV value chain.

Hutchinson ADI has received a distinction from SPACE, the European benchmark for aerospace supply chain performance, for the deployment of demand driven material requirements planning across all its sites. The company said the programme improved supply chain agility, resilience and efficiency, with results at its Bondoufle site including a 10% improvement in customer service rating and a 15% reduction in inventory.

German chemicals industry body VCI’s figures for 2025 show that production and producer prices in the chemicals & pharma industry slipped by 0.5% year-on-year, while overall sales fell by 1%. Chemicals production declined by 2.5%, with domestic and export sales both down 3%. Capacity utilisation across the sector stood at around 70%, “an historic low”, while order volumes fell by more than 20% vs 2021. Employment in the combined chemical and pharma sector fell by 0.5% this year, equivalent to around 2,400 jobs.

China's Guangxi Petrochemical has posted a media report stating that as of 25 December, 2025, the company's ethylene output reached 150kt – six days ahead of its annual plan due to the use of advanced production control. The report said Guangxi had: achieved first industrial production of 10 new synthetic rubber materials; increased the number of development grades by 10 year-on-year; and increased outp,ut by 78% year-on-year.

Prysmian and Versalis on 22 Dec announced a partnership to chemically recycle polymer cable scrap. Prysmian will collect polymer its own production waste as well as from decommissioned cables coming from major customers. Versalis will use its Hoop technology at its Mantua plant in Italy, to transform the scrap first into a pyrolysis oil, and then into a new material for new polymers. Prysmian will then use these polymers in the production of new high-performance cables.

Equity firm Mutares is to acquire Sabic’s engineering thermoplastics business in the Americas and Europe for $450m (€380m). Expected to close in H2/26, the deal will be Mutares’ largest ever acquisition and will form the core of a new “chemicals & materials” segment. The $2.5bn-turnover, 2,900-employee Sabic business operates eight plants across the Americas and Europe and has combined resin and compounding capacity of more than 1,800ktpa: manly polycarbonate, ABS and PBT materials.

The UK Gasket & Sealing Association (UKGSA) has posted that Chemours is hosting a webinar on the role of fluoropolymers in Europe’s economy, their safety profile, and how the materials are responsibly manufactured. The webinar on 4 Feb will also provide updates on the upcoming Social-Economic Analysis (SEAC) consultation on PFAS restrictions. The European Chemicals Agency (ECHA) has issued guidance for the 60-day consultation, which is expected to start soon after a draft opinion is agreed at SEAC’s March 2026 meeting.

UK-based rubber hose manufacturer James Dawson has received Caterpillar’s ‘supplier excellence recognition award’, which recognises supplier performance in areas including product quality, delivery reliability and operational support. The award was presented by Caterpillar Inc. and follows a similar recognition earlier in the year for a Fenner Air & Fluid Handling site in China. James Dawson supplies silicone and organic rubber hoses for construction, mining, off-road and power generation applications.

Bridgestone is entering 2026, the final year of its 2024–26 medium-term business plan, with the aim to shift from restructuring to “growth accompanied by quality.” In its year-end message, the group said 2025 was marked by cost pressures, restructuring and external uncertainty, including the impact of US tariffs. In 2026, the group said, it will accelerate growth while maintaining a strengthened business base, with the stated goal of regaining the number-one position in the global tire and rubber industry ahead of its 100th anniversary in 2031.

Bridgestone has launched co-creation activities with Ethiopian Airlines Group and Addis Ababa airport to reduce foreign object debris (FOD) on airport surfaces. Using accumulated aircraft tire inspection and FOD data, Bridgestone said it has supported hazard mapping, targeted patrols and awareness programmes, leading to a significant reduction in FOD-related aircraft tire issues, improved on-time performance and increased use of retreaded tires.

Datwyler has signed an agreement to acquire 51% of Capsul’Invest SA und Brain Corp SA (together operating as Capsul’in), a supplier of aluminum coffee capsule solutions based in Luxembourg with annual sales of around €90m.  More to follow...

Ineos has called for urgent political action to halt the “catastrophic decline” in the EU chemical industry “before there is nothing left” (see Plant closures). In November, Ineos filed 10 major anti-dumping cases citing “significant inflows of carbon heavy imports into the continent from China.” Up 8.3% in H1/25, these “carbon-intensive” imports are subject to a fraction of EU energy costs and no carbon price at all, it stated.

Nokian Tyres will host a Capital Markets Day for investors, analysts, and other capital markets representatives in Helsinki, Finland, on 11 Feb 2026. At the event, president and CEO Paolo Pompei and team will discuss an updated strategy and financial targets as well as the company’s business operations.

ERJ Business Briefing - 2025