Kordsa tire reinforcement sales fall amid Asian competition

Izmit, Turkey – Kordsa has reported a 6% year-on-year decline in third-quarter tire reinforcement sales amid continued competition from Asian suppliers and restructuring among global tire manufacturers.

The Turkish reinforcement materials manufacturer posted segment revenue of $136 million (€123 million) for the three months ended 30 Sept, down 6.2% compared with $145 million a year earlier.

In a 27 Oct statement, the Turkish supplier linked the decline to "intense competition" and lower tire production volumes, particularly in Europe, the Middle East and Africa (EMEA) and North America.

According to Kordsa, production optimisation initiatives and plant closures by tire manufacturers in these regions have been shifting the global manufacturing network towards China.

"This change in the industry continued to put pressure on both volumes and prices," the company said.

Kordsa noted that major tire manufacturers, particularly in Europe and North America, "continued to close their plants", while "volume and price competition" from Asia-Pacific manufacturers remained significant.

The company also highlighted increased raw-material prices, driven by higher oil and commodity costs during the quarter.

These increases were reflected in higher tire reinforcement selling prices, although competition continued to weigh on the business.

Meanwhile, Kordsa said cost pressures arising from differences between foreign-exchange movements and inflation had been balanced through "cost-reduction projects".

The company also reported that recovery work at its PT Indo Kordsa facility in Indonesia, following flooding in March 2025, had accelerated. 

Kordsa did not provide a separate earnings figure for its tire reinforcement segmen.

At group level, third-quarter revenue increased 4.5% year-on-year to $207 million, supported by higher sales in the composites business.

Adjusted earnings (EBITDA) reached $23.3 million, while the company posted quarterly net income of $5.2 million.