ERJ: Rubber & Tire industry in numbers

Review of the key figures and data to emerge this week from leading players in the tire & industry: 

Projects & investments 

Silicones

Wacker Chemie is investing a ‘low triple-digit million-euro’ amount in a new silicone specialties production facility at Karlovy Vary, Czech Republic. Set for production in 2025, the facility is expected to create up to 200 jobs by 2028, and is designed to produce 20ktpa of custom-made silicones at full capacity.

Tire capacity

ZC Rubber is building a new tire manufacturing plant in Indonesia with production expected to start by the end of 2024. The Chinese group is also assessing plans to establish a tire factory in Mexico, under its strategy to expand its manufacturing footprint overseas. ZC currently operates an overseas unit in Rayong, Thailand, with capacity to produce 11m units/year of light vehicle, truck & bus, two-wheeler, earthmover and industrial tires. 

Linglong has produced the first giant radial tire with homegrown technology at its manufacturing plant in Jilin, China. The tire, in size 27.00R49 rolled off the production line 10 Jan. The Yuan5bn (€640m) plant is designed to produce 12m passenger car tires, 2m truck & bus tires and 200k retreaded tires, once fully operational. 

Acquisitions

Polish group Sanok Rubber has acquired Finland-based rubber parts maker Teknikum. With four plants in Finland and one in Hungary, Teknikum has sales of around €70m and EBITDA of €7m per year from the supply of products such as industrial hose for the mining industry.

Sustainability

Toyo Tire has developed a tire with 90% sustainable materials. Renewables, forming 60% of the tire, include biomass-derived butadiene rubber and SBR, rice husk ash silica, plant-derived oil, and bio-derived polyester fibre. Another 30% include recyclate such as rCB, bead wire and steel cord, as well as CO2-derived butadiene rubber. Toyo aims to achieve a 40% sustainable material rate in its tires by 2030.

Tire manufacturers’ share price developments 

*1-4 Jan 2023 , **~1 Dec 2023, ***18-19/1/24

Materials prices 

Synthetic rubber

Synthetic rubber pricing* depicted a mixed picture over the latest trading week, the latest data compiled by ChemAnalyst shows. (See table above) 

Natural rubber

Cambodian and Chinese officials have signed an MoU concerning plans to invest $1bn (€910m) in joint rubber & tire projects, Cambodia Development Council announced.

Rubber futures prices

Natural rubber futures presented mixed signals on Far East exchanges during the second trading week of 2024, Japan Exchange Group (JPX) reported.

 Selected NR futures price trends on major trading exchanges 

Selected NR futures price trends on major trading exchanges