Kordsa flags growing Asian competition in tire reinforcement export markets

Istanbul, Turkey – Kordsa has reported continued volume pressure in its tire-reinforcement business, citing production cutbacks and plant closures by tire makers as well as intensifying competition from Asia-Pacific suppliers.

The Turkish reinforcement materials group reported second-quarter tire-reinforcement sales of $145 million (€124 million), broadly level with $144 million a year earlier and up from $139 million in the first quarter of 2026.

The sales performance came despite lower production volumes within the segment, Kordsa said in a 3 Aug second-quarter earnings release.

Kordsa did not provide segment-specific data for its earnings results.

The group linked the volume losses partly to “production optimisation and factory closures by tire manufacturers” in the Europe, Middle East & Africa (EMEA) and North American regions.

Kordsa also highlighted increasing competitive pressure from Asian reinforcement-material suppliers, citing “the significant shift of the price-volume pressure created by Asia-Pacific competition toward export markets.”

The development follows similar pressure reported in the first quarter, when Kordsa said its tire-reinforcement business was being affected by “tough competition conditions” in EMEA.

At the time, the Turkish group also highlighted the negative impact of lower production volumes resulting from tire manufacturers' production-optimisation measures in the region.

In the second quarter, Kordsa said reinforcement-sector cost pressures were also affected by the gap between currency movements and inflation.

At the same time, geopolitical developments 'pushed up input costs', with the company reporting increases in raw-material and energy costs linked to higher oil prices.

Kordsa said it implemented price increases in response to the higher costs.

Despite the challenging environment in tire reinforcement, overall group sales increased 10.1% year-on-year to $217 million in the second quarter, while adjusted earnings (EBITDA) rose 75.7% to $26 million.

Kordsa attributed the earnings improvement partly to cost-reduction projects, which generated a $4.9-million positive contribution and helped offset pressures within its tire-reinforcement operations. 

A further $4.9-million contribution came from the recovery of PT Indo Kordsa following the flooding that hit the group's Indonesian operations in March 2025. 

Following the floods in Bogor, Indonesia, Kordsa said “all of the company's production operations had to be temporarily stopped,” leading to the imposition of force majeure measures for customers and business partners. 

In its most recent report, Kordsa said the “recovery process following the flood disaster at PT Indo Kordsa accelerated” during the second quarter of 2026.

The improvement follows a difficult start to the year for the Indonesian operation, as Kordsa worked to regain customers lost following the disruption.

In its first-quarter report, the group said tire-reinforcement sales had fallen 15% year-on-year to $139 million.

This, it explained, was driven partly by “pricing and volume pressures encountered in the process of recovering customers lost following the flood disaster at the Indonesia plant in March 2025.”