ERJ: Rubber & tire industry in numbers

 PROJECTS / RESTRUCTURING

UK-based Nova Motorsport has progressed its previously announced €20-million upgrade of the Camac tire manufacturing plant in Portugal which it acquired in April. With the completion of the project, the factory will support over 100 skilled jobs across various disciplines. The Camac factory has a nameplate capacity of over 500k tires/yr.

Saudi group Blatco (Black Arrow Tire Co.) has signed a natural rubber supply agreement with Thai exporter Golden Star Rubber to support the establishment of a €445m tire factory in Yanbu, western Saudi Arabia. Deal facilitator the Saudi-Thai Business Council said the plant will initially have an annual capacity to produce 4m units of passenger car tires and would later be expanded to 6m units/yr, including truck & bus tires.

In Binh Duong, Vietnam, Kumho Tire is investing €285m to increase production capacity in the country by 36%. The plant currently produces 12.5m/yr units of passenger car and light vehicle tires, having undergone an expansion round in 2021.  A further project will increase production to 17m units/yr by 2026.

US-based polymer compounder Geon Performance Solutions completed a $1.3m (€1.2m) expansion and upgrade of its facility in Ramos Arizpe, Coahuila, Mexico: installing a new line to produce compounds including those based on TPEs and thermoplastic vulcanisates (TPVs).

PCBL is evaluating greenfield sites for new carbon black capacity, towards reaching a total production target of 1,000 ktpa within three years. Currently, the Indian group’s carbon black production capacity stands at 770ktpa, with PCBL set to commission a 20ktpa speciality project in Mundra and a 30ktpa brownfield expansion in Tamil Nadu by the yearend. A phase II, 60ktpa expansion in Tamil Nadu (to 147ktpa) will bring the group’s installed capacity to 880ktpa in fiscal 2026.

Dutch group Nouryon has completed an expansion for organic peroxides at its Ningbo, China site: doubling production capacity for Perkadox 14 and Trigonox 101 organic peroxides to 6ktpa each.

BUSINESS

Swedish supplier of single-end cord (SC) for tires and industrial fabrics AB Svenskt Konstsilke (SKS) said it recently purchased the assets – dipping lines, twisting machines, winders, and a lab – from Mehler EP’s Martinsville plant in Virginia, US. SKS will use the equipment across its facilities in Estonia, China, and Mexico, adding 3kt/yr of SEC capacity.

Zeon Corp. aims to increase earnings by 60% and sales by 30% within its speciality rubber operations, which produce NBR, HNBR, ACM and epichlorohydrin (ECO) rubber, over the next two years – helped by transition to EVs. The group currently has a production capacity of: 75ktpa for NBR, including 60ktpa at its Tokuyama, Japan site; 9.9ktpa for HNBR, including a 4.4ktpa capacity in Takoka, Japan and 5ktpa in Pasadena, Texas – the US unit is undergoing a 50% expansion. Zeon’s 22ktpa ACM capacity is split between its Japanese facilities in Tokuyama and Kawasaki (8.5 ktpa each) and Rayong, Thailand (5ktpa). The Rayong unit is Zeon’s sole manufacturer of ECO, with a 10ktpa nameplate capacity.

Yokohama Rubber Co. reported Q1-3 earnings (business profit) of Yen83.4bn (€512m), up 70% year-on-year, on 13% higher sales at Yen783bn, citing stronger volumes, higher pricing, and improved product-mix. The sales included Yen701bn from its tires business, up 14.5% year-on-year, and included contributions of Yen106bn and Yen115bn from Yokohama off-highway tires and Y-TWS respectively. Segment earnings were up 76% year-over-year at Yen79bn. YRC’s ‘multiple business’ rubber products unit posted 17.5% higher Q1-3 earnings to Yen5.1bn, on sales 2.7% higher at Yen75bn.

For its fiscal year 2024 to 30 Sept, Avon Technologies reported adjusted EBITDA up 21.6% year-on-year to €41m, on 12.8% higher sales of $272m. Orders received grew 40.9% to $364m and closing orderbook was up 66% year-on-year at $225m. The UK protection products group linked the earnings gains to a transformation/streamlining strategy.

Apollo Tyres was impacted by a sharp rise in raw materials costs in H1 of its fiscal year, ending 31 March 2025. In Q2, the Indian tire maker saw a 24% year-on-year decline in operating profit to INR8.78bn (€95m), on 3% higher sales of INR64bn. H1 operating profit fell 19% to INR17.8bn, on sales up 2% o INR128bn.

TRADE

SHARE PRICES

Leading manufacturers’ share-price trends

MATERIALS markets

Natural rubber

After recent volatility on markets in India and Thailand, natural rubber prices seem to have settled, ANRPC data indicates. On 7 Nov, RSS4 was trading at around $216/100kg on the Kottayam exchange, down from about $219 on 23 Oct. In Bangkok, RSS3 was trading at around $229 on 31 Oct, having spiked to approach $301/100kg at the end of September. Other rubber commodities tracked by the association remained relatively stable.

Natural rubber futures strengthened during the trading week ended 8 Nov, driven by gains in global equities following the US presidential election results. All major Far East markets closed the week higher amid expectations of lower interest rates, and declining official SHFE rubber stock levels, reported Japan Exchange  Group.

Selected NR futures price trends on major trading exchanges

(ERJ calculation for Jan ‘25 futures)

Previous ERJ week in numbers.