ERJ Business Briefing: September-November

Helped by strong growth in sales of all-seasons tires, the consumer replacement tire market recorded 5% year-on-year increase for the three-month period ended 30 Sept, ETRMA has reported. Sales of truck & bus tires sales increased 2% versus third quarter 2023, the association's data issued 29 Oct shows.  Read more

Nokian Tyres has posted third quarter net sales 13.6% higher year-on-year at €313.6m, or 14.4% higher at comparable currencies. Segments operating profit came in at €30.4m, compared to €19.6m in the prior-year period. Read more 

American Tire Distributors Inc. (ATD) has initiated voluntary Chapter 11 proceedings in the US Bankruptcy Court for the District of Delaware, the company announced 22 Oct. With the move, ATD has entered into a restructuring support agreement with lenders representing about 90% of the outstanding obligations under the company’s term loan. ATD and the 'Ad Hoc Lender Group' are discussing an asset purchase agreement to transition ownership of the company to the lenders.  Read more

Natural rubber prices in India have continued on a downward track seen over recent weeks: on 23 Oct RSS4 was trading at around $219/100kg on the Kottayam exchange. The data posted by the ANRPC marks a clear end to the surge in prices for the commodity, which spiked from around $248 to over $294 between mid-July and early August. Other rubber commodities tracked by the association have remained relatively stable, with the exception of RSS3 in  Bangkok, which had risen sharply to approach $301/100kg at the end of September.

During the first three quarters, global OE demand for passenger car & light truck (PC/LT) tires fell 3% year-on-year, Michelin reported 23 Oct. A particularly sharp decline was seen in Europe, with a 6% contraction, compared to a fall of 1% in North America and 1% increase in China. The decline, said Michelin, tracked OEM output, as new vehicle sales were hit low demand due to high interest rates and by uncertainties over the pace of the market’s transition to EVs.  Read more

Scandinavian Enviro Systems (Enviro) said 25 Oct that it had received SEK17.6 million (€1.5 million) in compensation from 'the joint venture company' after achieving a second milestone linked to the construction of its plant in Uddevalla, Sweden. Half of the payout consists of cash and the other half of shares in the JV. “The compensation is linked to progress at the site but also to completed procurement of critical equipment”, explained Enviro CEO Fredrik Emilson.

Trelleborg Sealing Solutions (TSS) is acquiring CRC Distribution, a US distributor active in polymer sealing products and related services in hydraulics, hydropower, oil & gas, pumps and compressors. Robertsdale, Alabama-based CRC is focused primarily on the US but recently expanded into the Mexican market. The SEK170m-turnover company "will “strengthen" Trelleborg’s offering to customers focused on maintenance, repair, and operation of industrial equipment,” said TSS president Jürgen Bosch, president of TSS.

The Galicia government has recently met with officials of the Port Authority of A Coruña to advance energy, industrial and logistics aspects of its Green Port development project. The meeting on 30 Aug also focused on government’s regional plan to “deburocratize” and accelerate the processing of industrial projects: halving deadlines while maintaining technical, legal and environmental guarantees. The statement went on to reference a range of related projects, including “the EDP Renewables in As Pontes, where the Sentury Tire tire factory will also be installed.”

Comerio Ercole has been presented with the Top 100 ESG excellence award and Top 75 ESG performance governance award from at the headquarters of Borsa Italiana, the Italian rubber processing machinery maker has announced. “This recognition highlights our ongoing commitment to addressing the challenges of climate change and transforming them into opportunities for innovation and sustainable growth,” said the 18 Oct statement.

Natural rubber prices in India have continued to drop back following a recent surge, the RSS4 trading at $233.25/100kg as of 17 Oct on the Kottayam exchange, data posted by the ANRPC shows. On the other hand, the association’s chart shows a continuing rise in prices for RSS3 in  Bangkok, reaching $300.64/100 kg on 30 Sept. Elsewhere, figures issued by the Rubber Trade Association of Europe show an almost 12% increase in TSR20 prices in September to €211.75 €cents/kg CIF at the end of the month.

Black Donuts announced 16 Oct that it had retained a spot in the ‘achievers list’ compiled by Finnish business newspaper Kauppalehti. The recognition, it said, reflected “our strong financial performance [which] has placed us among the top companies in Finland and our industry. The annual certificate is awarded to companies that “excel in growth, profitability, results, liquidity, solvency, and risk tolerance.”

Bridgestone Americas and Canadian fleet management specialist Geotab have started a collaboration to use data to enhance fleet optimisation. Under the agreement, Bridgestone has obtained access to Geotab's intelligent transport system (ITS) consisting of anonymised data from 4.5 million connected vehicles.  Read more

Momentive and Safic-Alcan have recently expanded of a distribution agreement for the supply of polyurethane (PU) additives in Europe. Since July, the deal has been extended to: Albania, Bosnia and Herzegovina, Croatia, Czech Republic, Estonia, Hungary, Kosovo, Latvia, Lithuania, Moldova, North Macedonia, Montenegro, Romania, Serbia, Slovakia, Slovenia, and Poland. Read more

Padua-based plastics and elastomer compounds producer Sirmax has recently announced a three-year industrial plan - building on investments of €180m made over the past four years, which saw a doubling of facilities in the US and Poland, and 10% capacity increas in Europe. The 2025-27 plan includes investments of €30m, focused on overseas projects, such as the completion of the Italian group's 14th plant in Hosur, India by 2026, and expansion of its Anderson, US unit.

Iran's top tire manufacturer Barez Industrial Group has unveiled a series of investments, including the construction of a new greenfield manufacturing plant and capacity expansions across its existing sites. The company has started construction work on a new production facility in Aligoudarz, in Iran’s western province of Lorestan, Barez confirmed to ERJ 9 Oct.  Read more

Natural rubber prices in India have continued to ease back from the record levels seen in early August, the latest data posted by the ANRPC shows. On 10 Oct, RSS4 was trading at $245.35/100kg on the Kottayam exchange, compared to a peak of around $291/100kg on 8 Aug. Rubber prices in Thailand, however, are moving in the opposite direction: a spike in Bangkok seeing RSS3 $300.64/100kg on 30 Sept compared to $193.02/100kg on 9 July.

Pirelli executive vice-chairman Marco Trochetti Provera was among a group of top Italian CEOs to attend a recent trade meeting in Rome with UK prime minister Kier Starmer.  Welcoming the PM, the tire group leader said the UK "represents a strategic market for us in terms of presiding over high-end car manufacturers."  Pirelli is the sole tire producer in the UK, with factories in Carlisle and Burton-on-Trent, where its headquarters is also located, Trochetti Provera noted at the 16 Sept meeting. 

Munich-based industrial fund Mutares said 1 Oct that it expects to deliver a strong Q4 2024 with high M&A activity. "Growth in achieving a relevant position in the automotive & mobility industry will lead to first-exit opportunities, it added. In August, Mutares completed the acquisition of Fischer Automotive to strengthen its 'automotive & mobility' segment, renaming the maker of vehicle interior and exterior parts Matikon.

Germany's polymer processing machinery industry is facing continuing weakness in sales and orders, latest figures from the VDMA indicate. The association has revised down its sales outlook for 2024 from a previous forecast of '0-5% decline' to a fall of 10-15%. For the eight months to end of August orders fell 16% year-on-year, with weak demand affecting all markets.  Read more

Trinseo is increasing the prices of all styrene-butadiene, styrene-acrylic, and acrylic latex products sold into the market in the EMEA region. Effective 1 Nov, the increase will be €80/dry tonne or as agreements allow.

Solvay has launched consultation with social partners to cease the production of trifluoroacetic acid (TFA) and fluorinated derivatives at its Salindres site in southern France. The planned discontinuation of the activities would impact 68 jobs. TFAs are used in a range of industrial applications, including as catalysts for silicones and alkylation reactions.  Read more

Linglong Tire has announced a global partnership deal with football club Real Madrid, as part of the its brand internationalisation process. With the marketing move, the tire maker’s aims to tap into the global media profile and fan base of the Spanish club. The collaboration represents a “profound integration of Eastern and Western cultures, sports, and business spirits.”

The European Commission (EC) has responded to increasing concerns over the EU Deforestation Regulation (EUDR) by proposing a 12-month phasing-in period to “ensure proper and effective implementation”. If approved by the European Parliament and the Council, the law would apply from 30 Dec 2025 for large companies and 30 June 2026 for smaller enterprises. Read more

Forvia, formerly Faurecia, has revised down its annual sales and profit outlook due to weak markets in Europe and North America. In a 27 Sept statement, the French automotive parts group noted “uncertainty” in European markets, with “continued slowdown of electrification" and concerns about ‘corporate average fuel economy’ regulations. It also noted "high levels" of car inventories in North America, though in China, the group expects a recovery in 2025. 

German chemicals major BASF has detailed plans to cut costs through a portfolio restructuring and the IPO of its agricultural solutions business. Among the measures announced 26 Sept, group said it intended to divest decorative coatings activities in Brazil, “de-risk” battery materials business and close plants at its Ludwigshafen operations in Germany. Read more

Sumitomo Rubber Industries (SRI) has divesting its wellness business including ‘fitness clubs, golf schools and tennis schools’ due to “the deterioration of business conditions caused by the impact of Covid”. The move will consolidate SRI’s operations and the group’s focus on its mid- to long-term business strategy. As part of the process, Dunlop Sports Wellness Co. will be transferred to Nagase Co., another Japanese wellness and fitness player operational since 1976.

Asahi Kasei America is relocating its corporate office from New York to Novi, Michigan, effective 1 Nov. The move consolidates operations in Novi and while 'streamlining processes and leveraging existing resources' to enhance services to partners. By bringing key leadership and operations together in the 14,403-square-foot location, Asahi Kasei said it is "poised to foster greater collaboration with the regional business units."

Continental Romania is training over 120 students during the 2024-2025 acamdemic year as part of the ‘dual vocational education system’ in the country. This brings the total number of students currently trained by Continental to over 400. Upon completion of the three years of theoretical (at high school) and practical (at the company) training, the students have the chance to work as a technician or operator in the production area of Continental. Subjects being studied include apparatus and equipment electronics, as well as electromechanic equipment and industrial installations.

Black Donuts Inc. has retained its low credit risk rating by Dun & Bradstreet. The “1” rating, said the Finnish tire consulting firm, underscores the company’s financial strength and ability to meet its obligations.

Prinx Chengshan has held a dealer conference in Nigeria where it launched two new products under the Austone brand — AT01 and AAR608. During the conference, attended by more than 100 local dealers, Prinx highlighted its internationalisation strategy, adding that it has been “deeply engaged” in the African market for many years. Its brand Austone, it said, has become “the leading tire brand in Nigeria, with a reputation far ahead of others.”

Battery technology supplier Solidion Technology is seeking strategic partners to accelerate the commercialisation of lithium-sulphur (Li-S) batteries, which are capable of delivering significantly higher energy density compared to lithium-ion batteries. Over the past decade, Solidion said it has developed a technology that addresses technical issues surrounding batteries such as lithium metal dendrite formation in the anode, low electric conductivity of sulphur and slow polysulfide reactions in the cathode, and the undesired migration of chemical species from the cathode to the anode.

AirBoss Defense Group, part of Canadian compounder AirBoss of America Corp., has been awarded a contract worth up to $84 million (€76 million) by the US Department of Health and Human Services for the supply of protective isolation gowns. The contract base and option periods are funded at $59 million with a yet-unfunded option and surge amount valued up to $25 million. Deliveries under the contract are expected to start in the fourth quarter of 2024 and continue through 2026.

Brazil has started its third antidumping sunset review into the imports of Chinese passenger car tires, which have been in place since 2009. According to the China Trade Remedy Information Network, the dumping investigation involves tires with rim sizes of 13 and 14 inches and the injury investigation period is from January 2019 to December 2023.

UK trade union Unite has vowed to explore all avenues to preserve jobs at Grangemouth, Scotland, following the announcement that PetroIneos will go ahead with its plans to close its refinery. According to the union, PetroIneos confirmed on 12 Sept that it intends to close the refinery at Grangemouth between April and June 2025 and to become “an import and export only facility.” The move impacts 500 jobs.

Freudenberg Group has announced that the number of apprenticeships at its German headquarters in Weinheim remains high after a 40% increase last. The company is providing training to a total of 124 young talents in Weinheim this year, 70 of which will be in technical fields. The retention rate, it said, is 95%. Worldwide, the German group said it is training around 500 young people in 15 countries this year.

China’s pneumatic tire exports in the first half of 2024 increased 5.3% year-on-year to 4.51 million tonnes, according to latest official data by Chinese authorities. Value-wise, exports increased 6.5% year-on-year to Yuan79.6 billion (€10 billion) in the first half, said Chinese tire maker General Science quoting customs office data.

Dynasol Elastómeros SAU has received (unspecified) support-funding for an R&D project focused on the development of a “rejuvenator for recovering the properties of residual bitumen in milled asphalt mixtures.” The assistance was co-financed by the European Regional Development Fund  through an Cantabria ERDF programme, Dynasol announced 30 Aug.

Metso’s Sorocaba foundry and rubber factory in Brazil received carbon-neutral certification in line with PAS 2060:2014 standard from an independent third-party, BSI. Supply-chain operations, said the Finnish group, are "pivotal to Metso’s overall CO2 footprint, with the Sorocaba foundry and rubber factories accounting for around 20% of Metso’s own operation’s CO2 emissions."

Korea’s Aekyung Chemical is investing KRW 96.7 billion (€65 million) in a mass production facility for TPC (TerePhthaloyl Chloride), a key raw material for aramid fibres, by the end of 2025. The facility will have the capacity to produce 15ktpa of TPC per year and will be the first of its kind in Korea. The plant will be supporting the production of aramid ‘super fibres’ in Korea for applications in EV tire cords, optical cables and aerospace materials, Aekyung reported 5 Sept.

Saint-Gobain has completed its divestment of Freeglass, a manufacturer of plastics- and elastomer-based exterior components for the automotive industry, the French group announced 2 Sept. With its industrial plant located in Schwaikheim in Germany, Freeglass generated sales of close to €20 million in 2023 and employs around 120 people.  Read more

Toyo Tire Corp. is leveraging its ‘optimal’ production, supply-chain and digital-based R&D capabilities to help advance its position in the global tire market. A particular focus is on optimising production at each of its plants to increase flexibility to respond to customer needs and changes in supply and demand, Toyo said in its recently issued integrated report 2023.  Read more

HF Group has won the “Golden Emil” award of the Possehl Group for its digital advancement in mixing technology. During a recent digital conference held by German industry holding group, HF Group’s ‘smart final mix’ (ERJ article) was awarded as “the best digital product,” said HF in a brief update.

Sumitomo Riko is joining "Station Ai", an open innovation hub based in Nagoya, Japan and set to open in October. Station Ai, it said, aims to “create and nurture startups” and promote new innovation through support programmes offered to universities and other organisations. The move is aligned with the group’s 2029 'vision' to increase ‘co-creation’ within the group, and helps further strengthen collaboration with startups and other external parties.

Linglong Tire has been listed among the top 500 Chinese brands during the 18th China Brand Festival 2024. With a brand value of Yuan 18.829 billion (€2.4 billion), Linglong said it is the “only company in the tire industry” to be on the list, which also includes majors such as Sinopec, and China National Petroleum Corp.

China's Hainan Rubber has widened losses in the first half of 2024, despite a 30% growth in revenue. The Chinese natural rubber group posted a loss of Yuan296.5 million (€37 million) for the first six months of the year, down from Yuan269.8 million reported a year ago. Group sales for the six-month period, meanwhile, grew 31.6% year-on-year to Yuan19.2 billion.

Black Donuts Engineering Inc. is changing its name to Black Donuts Inc. in English and Black Donuts Oy in Finnish to “better represent” its expanded global services. The Finnish company started out in 2011 as Black Donut Engineering has now grown into a “full-service provider with over 50 tire plants and over 1,300 tire models designed.” The new name, said the company, reflects its “broad capabilities and simplifies communication and branding.”

Niedernberg, Germany-based ips Intelligent Pelletizing Solutions has appointed Kotraco BV of Houten, The Netherlands as its sales representative in the Benelux countries. Specialising in the field of compounding and pelletizing technology and develops, the German company builds equipment and systems for the polymer, compounding, masterbatch and recycling industries.

Figures released by the UK-based Chemical Industries Association (CIA) indicate sustained growth within the industry for second quarter of 2024, building on the positive performance seen in the first three months of the year. According to CIA, the trend marks “a significant recovery” for the UK chemicals industry, following 18 months of “severe decline.”

Organisers have issued an updated programme for the New Frontiers New Markets rubber conference being held in Davao City , The Philippines, 26 -28 Sept. Led by the Philippine Rubber Industries Association and supported by the country’s department of trade & industry, the event will address topics such as sustainable rubber production and usage, market expansion, new technologies and global trade dynamics.

Ohio State University has received $26m (€23m) from the National Science Foundation (NSF) to advance rubber research in the US. The university is to create an engineering research centre to help ‘transform American rubber’ through supply-chain innovation. In partnership with Caltech, North Carolina State University, Texas Tech University and the University of California, the initiative aims to “create bridges between engineering, biology, and agriculture to revolutionise and on-shore alternative natural rubber production from US crops,” said NSF.

US Medical Glove Co. (USMGC) has acquired an unidentified domestic polyisoprene chemical facility to support the production of rubber gloves in the US. The 9,000 m2 facility has capacity to produce 1.4ktpa of polyisoprene annually, enough to produce 60 million pieces of polyisoprene surgical gloves. USMGC claims to be the “only” US-based manufacturer of the machines, components, and chemicals necessary to make nitrile and polyisoprene gloves. The acquisition in early August will make the Harvard, Illinois-based company an “end-to-end, made-in-America manufacturer of both nitrile and polyisoprene gloves.”

ERJ Business Briefing: July/Aug