PROJECTS
Chinese steel tire cord maker Shoujia Technology is studying plans to build a manufacturing base in eastern Europe: with a delegation sent to Romania in late June. If approved, Shoujia said the European facility would help to optimise its global production layout and strengthen its position in the regional market. Exports have reached nearly 40% of total company sales over the past two years, with plans to increase to over 50% this year. Shoujia completed two rights offerings in the past year: raising HK$277m (€30m) to support capacity improvements and overseas expansion.
Shandong Linglong Tire has submitted its application to the Hong Kong Stock Exchange for an H-share listing: filing plans to use the proceeds to expand production, R&D and other activities. The total amount to be raised was not disclosed. Part of the investment will go toward the first phase of a new production base in Brazil, with planned capacity for 6m passenger car and light truck tires. In April, Linglong unveiled a €1-billion greenfield tire project in Brazil with capacity to produce 14.7m tires.
Michelin and UK tire recycler Murfitts are to construct a £14m (€16m) end-of-life tire (ELT) pyrolysis plant in Stoke-on-Trent, UK. It will employ technology developed by Murfitts to process waste tires into recovered carbon black and tire pyrolysis oil, while using the steam generated to power Michelin’s production. The project, which will involve Michelin supplying Murfitts with 12.5ktpa of ELTs for recycling, the equivalent of 1.35m car tires, is slated to be operational by the end of 2026.
Pyrum Innovations AG has received approval from local authorities for the early start of construction at its second end-of-life tire (ELT) pyrolysis plant in Germany. To be built in Perl-Besch, near the border triangle between Luxembourg, Germany and France, Pyrum GreenFactory II GmbH will have the capacity to process 22.4 ktpa of ELTs. Pyrum expects to break ground on the facility in July, with commissioning scheduled for the first quarter of 2027, according to a 26 June release.
Evonik Industries AG is expanding production capacity for its silane-functionalised polybutadienes in China as part of a move to support regional growth in Asia. The German group will ‘localise the final step’ for the production of Polyvest ST-E 60 in Shanghai, China, to enhance supply security.
Japanese machinery maker Kobelco has announced plans to expand its rubber and tire equipment production business in India with an investment of Yen3bn (€17.5m). The project at Kobelco Industrial Machinery India (Kimi) aims to strengthen production capacity and support business growth. Set for completion in fiscal 2027, the project will see the addition of new facilities at Kimi for manufacturing “non-standard compressors."
China’s Taishun region has announced a project by local firm Yibang to invest Yuan1.18bn (€140m) in a major end-of-life tire pyrolysis plant. Sign-off for the project, which involves building 12 production lines, was carried out in the second quarter of the year. The facility will use “a continuous, low-temperature, slight negative-pressure pyrolysis process without steel wire stripping to recycle waste tires.” It will have the capacity to produce 240ktpa of ELTs to produce recovered carbon black.
M&A & RESTRUCTURING
Michelin plans to cease operations at its manufacturing facility in Guarulhos, Sao Paulo, Brazil, citing cheap imports as the reason behind the decision. The factory in Guarulhos produces motorcycle and bicycle inner tubes, industrial tires and semi-finished products and employs 350 people.
The Milan Business Court has appointed a board of three professionals to oversee Lomabardi-based hose & fittings maker Alfa Gomma SpA. The decree, issued 27 May, is the culmination of proceedings initiated by the company itself, the Italian rubber products manufacturer said. A restructuring programme will be pursued through “a structured enhancement process aimed at improving the group value creation,” Alfa Gomma stated.
Sabic on 25 June confirmed it will close its olefins 6 facility in Wilton, Teesside, UK. The unit has been offline since the end of 2020 and was due to be converted to run entirely on gas feedstocks. Last month it was reported that Sabic could be looking to sell its European petrochemicals business amid high energy costs, according to the Unite trade union.
China’s Hongdou Group has completed a previously announced sale of controlling shares in tire manufacturer Jiangsu General Technology (General Science). In a statement, General Science said Hongdou Group transferred of 389m shares it held in the company to Soho Group, accounting for 24.5% of the total shares. With the Yuan2.1bn (€256m) transaction Soho Group holds 24.5% of the shares and Hongdou Group will hold 16.85% of the shares.
MARKETS & BUSINESS
Polish group Qemetica said the crisis in the European chemical industry is driving it to diversify its operations and invest outside the EU. Kamil Majczak, president of the group’s board said: "We must explore new growth avenues to reduce our dependence on unpredictable regulations and crises in the European market.” In particular, he said, the acquisition of the PPG silicas business in the US has strengthened the company’s position in the global market and facilitated expansion into new chemical industry sectors.
India has launched a sunset review of import duties on fluoroelastomers (FKM) from China. The original anti-dumping duties were imposed in January 2019 and will be in force until 27 November, said the directorate general of trade remedies (DGTR). The current rates range from $1.04/kg to $8.86/kg. The dumping investigation period for the review is 1 Jan 2024 to 31 Dec 2024. Investigations were launched following a complaint by India’s sole FKM supplier Gujarat Fluorochemicals Ltd.
Cambodia attracted $745m (€640m) in automotive investments in 2024 and exported over $1.1bn worth of vehicles in 2024, said the Council for the Development of Cambodia, which expects further automotive investments through to 2027, 'driven largely by tire manufacturing projects’. In its latest monthly update, CDC said it approved a $244m tire expansion project in Svay Rieng province in May, without providing further details.
German rail and bus components supplier Huebner Group is to supply multiple parts, including rubber gangways, for new light rail vehicles to be used in Boston, Massachusetts. The parts will be supplied to train manufacturer Construcciones y Auxiliar de Ferrocarriles, which has secured an $810m (€688m) contract to build 102 light rail vehicles for the ‘green line’ of the Massachusetts Bay Transportation Authority.
In China, Sailun Group announced that it had acquired an 11.09% stake in Australia’s Mobile Tyre Shop through a AUD$5m investment by its Singapore subsidiary. The mobile retail business plans to use the funds to expand operations nationwide.
German ELT pyrolysis company Pyrum Innovations posted a 51% year-on-year sales increase to €509k in the first quarter of 2025, supported by plant expansion progress and investment grants. Earnings also turned positive at €23k, up from a loss of €2,000 reported last year.
SHARE PRICES
Leading tire manufacturers’ share-price trends
Company
|
26-27 June
|
3-4 July
|
Change
|
Bridgestone
|
Yen5,905
|
Yen6,047
|
+2.4%
|
Goodyear
|
$10.38
|
$11.08
|
+6.7%
|
Hankook
|
KRW40,250
|
KRW43,100
|
+7.1%
|
Michelin
|
€31.11
|
€31.80
|
+2.2%
|
Nokian Tyres
|
€6.08
|
€6.32
|
+4.0%
|
Pirelli
|
€5.80
|
€5.85
|
+0.9%
|
Sumitomo (SRI)
|
Yen1,632
|
Yen1,682
|
+3.1%
|
ZC Rubber
|
CNY44.08
|
CNY44.69
|
+1.4%
|
Leading rubber product manufacturers’ share-price trends
Company
|
26-27 June
|
3-4 July
|
Change
|
Avon Technologies
|
£18.68
|
£19.32
|
+3.4%
|
Cooper-Standard
|
$20.06
|
$24.17
|
+20.5%
|
Datwyler
|
CHF119.00
|
CHF120.60
|
+1.3%
|
Hexpol
|
SEK90.15
|
SEK94.30
|
+4.6%
|
Semperit
|
€12.90
|
€13.14
|
+1.9%
|
Trelleborg
|
SEK349.90
|
SEK365.60
|
+4.5%
|
MATERIALS
Natural rubber
The Association of Natural Rubber Producing Countries (ANRPC) expects NR production to increase by 0.5% year-on-year in 2025 to reach 14.892m tonnes – reflecting the impacts of weather, limited investment in planting, and market trends. For the month of May, the association expects global NR production to reach 1.04m tonnes, a year-on-year increase of 1.27%. On the demand side, ANRPC expects consumption to see a modest growth of 1.3% year-on-year to reach 15.565m tonnes in 2025.
Tokyo – Natural rubber futures climbed to a three-week high on supply concerns, according to Japan Exchange Group (JPX). Prices ended the week to 27 June firmer across all major exchanges, with what JPX described as “a combination of short covering and light, fresh speculative buying” pushing values higher. Market sentiment improved following reports of heavy rain and flooding in southwestern China, as well as in northern Thailand, Vietnam, and the Philippines.
JPX: Selected rubber futures price trends on major trading exchanges
Exchange
|
Commodity
|
Delivery
|
Week to 20/6/25
|
Week to 27/6/25
|
% Change
|
Osaka
|
RSS3
|
Sep‘25
|
299.9 (JPY)
|
313.7 (JPY)
|
+4.6%
|
SHFE
|
SCR/RSS
|
Sep ’25
|
13,900 (CNY)
|
14,045 (CNY)
|
+1.0%
|
INE
|
TSR
|
Sep ‘25
|
12,035 (CNY)
|
12,130 (CNY)
|
+0.8%
|
SICOM
|
TSR20
|
Sep’25
|
161.5 (US$c)
|
163.6 (US$c)
|
+1.3%
|
SHFE
|
BR
|
Sep‘25
|
11,490 (CNY)
|
11,120 (CNY)
|
-3.2%
|
(ERJ calculation for selected futures)
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