ERJ Business Briefing

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

FEBRUARY

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