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

Yokohama Rubber Co. is investing around €57m in its Philippines tire plant to increase production capacity 5.8% to 32,500 tires per day, it announced 24 Jan. The project will include adding capacity for the existing tire sizes (13-20”) as well as introducing 21” and 22” sizes. The new lines are expected to be fully operational in two years.

Birla Carbon is building two 120ktpa greenfield manufacturing sites: in Niadupet, Andhra Pradesh, India, and Rayong, Thailand, it announced 22 Jan. Birla added that it plans to double the output of each plant to 240ktpa "in the future".

India’s Epsilon Carbon has unveiled a 10-year plan to build a major carbon products facility in Jharsuguda, in the eastern Indian province of Odisha. Under an MoU with the government of Odisha, the €1bn facility will include a 500ktpa unit for speciality carbons, 300ktpa for carbon black and 75ktpa for advanced material.

Chinese tire cord manufacturer Shenma Co. Ltd is investing around €32min a new PA66 tire cord facility in Rayong, Chonburi. To be built in two phases, it will have a production capacity of 20ktpa of ‘differentiated fibre’ for use in tire production.

M&A

Cooper Tire & Rubber Co. Europe Ltd (CTE), part of Goodyear, is engaged in “advanced discussions” with a third-party company to potentially sell some of its “assets used in the manufacturing and sale of certain motorsport tires under the names Avon Motorsport and Avon Racing,” Goodyear confirmed to ERJ.

A new global motorsport brand Nova Motorsport has launched 23 Jan in the UK with a mission “to revolutionise the world of premium competition and specialist tires.” Founded by Paul Hallas, managing director of parent company SPC Rubber Group, the new business is to create innovative tires for the "racetrack and beyond". Nova has recruited Paul Coates, formerly head of Avon Motorsport.

Carbon black

US-based Orion SA has projected its 2023 results to land at the lower end of its previous earnings guidance of $330-340 million. Demand-recovery is “building slower than expected” in many carbon black markets, Orion said 22 Jan. Despite that, it forecast a fourth year of profit growth in 2024, CEO Corning Painter noting that, similar to 2023, a “mid-single digit increase” in earnings was expected.

Tire market

ETRMA: Sales development in the European replacement tire market

Share prices

Development of leading rubber processors’ shares in 2024

Materials prices

Natural rubber

Selected NR futures price trends on major trading exchanges