Rubber & tire industry in numbers

PROJECTS

Mumbai-, India-based PCBL is in the process of acquiring 116 acres of land in Naidupeta, Andhra Pradesh for its sixth manufacturing unit. According to managing director Kaushik Roy, the new facility will primarily focus on rubber blacks as well as performance and speciality chemicals. In the first phase, the group is planning to build a 150 ktpa unit mainly producing rubber grade carbon blacks. The land can eventually accommodate 450ktpa of production capacity, said the PCBL leader. 

Zeon Corp. has completed an expansion project at its synthetic rubber production facility on Jurong Island, Singapore, to support the production of high-performance, fuel-efficient tires. According to Zeon, the expansion project was recently completed, with commercial production scheduled for 2026 following a test production phase. Operational since 2014, the Singapore facility initially had an output of 30–40ktpa. With the expansion completed, Zeon will have a combined SSBR capacity of 125ktpa across its plants in Singapore and Japan. 

Chinese rubber additives manufacturer Shandong Cabot Chemical has launched its first overseas manufacturing project in Cambodia. The company has officially registered its Cambodian production facility with the local investment authorities in the Snoul district of Kratie province. The project is currently in the equipment installation and commissioning phase and some products have already entered production.

Sailun Group expects to begin commercial production at its new tire manufacturing facilities in Indonesia and Mexico by the end of this year, according to company announcements. The first tires rolled off production lines at the greenfield plants in Central Java, Indonesia, and Guanajuato, Mexico, in late May, the Chinese tire maker said in social media posts. 

China’s Shandong Yongsheng Rubber Group has announced plans to build a tire manufacturing plant in Morocco to become the second Chinese manufacturer with a production base in the country. The group said the planned facility will have the capacity to produce 6 million units of semi-steel radial passenger car tires per year. 

Lummus Technology and InnoVent Renewables have signed an MoU to pursue the global licensing and deployment of InnoVent’s continuous tire pyrolysis technology. Under the deal, Lummus would serve as the exclusive licensor of InnoVent’s proprietary process, which converts end-of-life tires (ELTs) into pyrolysis oil, gas, recycled carbon black, and steel.

M&A & RESTRUCTURING 

Goodyear has announced plans to close its tire manufacturing facility in Kariega, South Africa, as part of a wider transformation of its Europe, Middle East and Africa (EMEA) operations. In a 5 June statement, the company said it is launching a restructuring process which includes a realignment of certain sales, administration and general management (SAG) functions. The move, it said, is intended to 'transform Goodyear's go-to-market strategy in the EMEA region and to optimise its footprint and portfolio.'

Evonik Industries AG is considering the divestment of its C4 business over the next two years as part of a major ongoing portfolio restructuring. In addition to that, the German group will ‘execute’ on strategic options for its two biggest German infrastructure sites, Marl and Wesseling. 

In Japan, Asahi Kasei Corp. has announced plans to discontinue its methyl methacrylate (MMA), cyclohexyl methacrylate (CHMA), PMMA resin, and styrene-butadiene (SB) latex businesses over the next few years. As part of the process, Asahi Kasei will end the production of MMA and PMMA resins by September 2026, SB latex by September 2027, and CHMA by March 2026. Sales of the products will be phased out through late 2027, the group added.

MARKETS & BUSINESS

Waste tire pyrolysis joint venture Infiniteria has signed additional multi-year delivery agreements for rCB from its Uddevalla recycling plant, effectively filling 100% of the site's rCB production capacity ahead of its commissioning. The agreement, valued at SEK100 million (€9.2 million) over its term, was signed with “a global manufacturer of technologically high-quality sealing systems and rubber components.” 

Ceat Ltd has seen its fourth quarter earnings fall due mainly to higher raw materials costs and despite higher sales. The Indian group posted consolidated earnings of INR 3.9 billion (€40 million), down 1.8% compared to INR4 billion reported last year. Sales for the three months ended 31 March rose 14.3% year-on-year to INR 34.2 billion, helped by a “combination of both volume and price growth.” 

Fukoku Co. has posted higher full-year profits for the fiscal year ended 31 March, supported by improved automotive production volumes and internal efficiency efforts. Consolidated net sales rose 0.9% year-on-year to Yen89.6 billion (€550 million) while operating profit grew 29.5% to Yen4.7 billion, despite cost pressures such as rising raw material and labour costs. Fukoku said its earnings benefited from a recovery in global auto production and the ongoing measures to streamline operations and improve organisational efficiency.

Goodyear is raising $500 million (€440 million) through a five-year senior notes offering. The US tire maker will use the proceeds from the offering to partially redeem its outstanding 5.000% senior notes, with a total value of $900 million, due 2026. 

New EU car registrations grew 1.3% year-on-year in April to 925,359 units, showing “signs of recovery” despite the unpredictable global economy, the latest data published by ACEA.  Over the first four months of the year, new car registrations fell by 1.2% year-on-year to 3.64 million units, ACEA reported 27 May.

SHARE PRICES

Leading tire manufacturers’ share-price trends

Leading rubber product manufacturers’ share-price trends

MATERIALS

Natural rubber 

Natural rubber futures ended the final trading week of May "sharply lower" across all major exchanges amid renewed concerns over a slowing Chinese economy and ongoing trade tensions between the US and China. Prices came under further pressure as NR production resumed fully in the northern hemisphere following the end of the wintering season.

JPX: Selected rubber futures price trends on major trading exchanges

 (ERJ calculation for selected futures)

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