Rubber & tire industry in numbers

PROJECTS / RESTRUCTURING

Bridgestone announced a Yen27bn (€167m) plan to expand production capacity for high rim diameter (HRD) tires at its Hikone, Tosu, and Tochigi tire plants in Japan by the end of 2028. Once complete, capacity across the three plants will increase by 3k tires/day. Hikone currently has the capacity to produce 55.6k passenger car tires/day; Tosu,18.8k passenger car tires/day; Tochigi, 12.3k tires/day, including TBRs.

Continental Carbon’s parent CSRC announced the sale of its carbon black plant in Chongqing to Longxing Chemical and is in talks to divest a facility in Anshan – in response to oversupply in China, due to an influx of Russian carbon black. CSRC, which started up a 175ktpa carbon black facility in Gujarat, India in late ’23, is to commission a 180ktpa JV carbon black facility with OYAK in Iskenderun, Turkey by the end of ‘25. The gorup is also progressing a project with Thai-based Eco Infinic to establish a major rCB plant at the original site of Continental Carbon’s plant in Phenix City, Alabama, in ‘26.

PPG completed the €280m sale of its 400-employee silicas products business to Polish chemicals group Qemetica SA. The divested operations include precipitated silicas plants in Lake Charles, Louisiana, and Delfzijl, The Netherlands.

Kolon Industries has completed a €15m expansion of its factory in Gumi, S Korea to double production capacity for aramid pulp  to 3kt/ yr. The product is used as a reinforcement material in automotive brake pads, gaskets, and tire rubber.

US compounder Prism Worldwide has raised $40m (€38m) in funding to advance its production of sustainable thermoplastic elastomers (TPEs). The company aims to use the funds to consolidate operations, invest in technology and equipment, and expand its team.  Last year, Prism launched a TPE featuring 50% recyclate from end-of-life tires.

BUSINESS

Bekaert’s rubber reinforcement business reported Q1-3 sales down 11.7% year-on-year to €1,295m, reflecting a 4.2% dip due to lower volumes and 6.7% impact from lower raw material and energy costs. Price and mix effects increased sales by 0.7% year-on-year, while the negative currency impact was estimated at 1.5%. “Volumes were impacted most in China versus a strong comparison year and driven by an economic slowdown which affects truck tire demand.”

In Japan, Kuraray reported higher sales but widened loss within its isoprene products business unit. For the quarter ended 30 Sept, the group posted sales up 20% year-on-year to Yen56bn (€350m) but operating loss increased to over Yen5.5bn, compared to a loss of Yen4 billion reported for the same period last year.

Sri Trang reported Q3 earnings (EBITDA) of THB1.9bn (€52m), up 180% on Q3/’23 and sales 87% higher at THB31.6bn. The Thai group’s natural rubber business reported 106% year-on-year growth in sales to THB25bn – nearly 80% of total group revenue. Volumes increased 53% year-on-year to 380,565t, with EUDR rubber contributing 16.5% of total sales at 62.8kt. Sales volume for gloves totalled 9.6bn pieces, up 26% year-on-year. Gloves-plant utilisation rate in Q1-3/’24 was 81.8%, versus 61.7% in Q1-3/’23.

The US Defense Logistics Agency has awarded three-year contracts for the supply of ground tires to: Goodyear, worth $134.8m; and Michelin, worth $108.2m.

Pyrum obtained an ‘unlimited delivery approval’ from Continental AG for the supply of its recovered carbon black (rCB) following an audit of two new lines recently put into operation at the pyrolysis company’s plant in Dillingen, Germany.

SHARE PRICES

Leading manufacturers’ share-price trends

MATERIALS markets

Natural rubber

Natural rubber (NR) futures were steady during last week, following a sharp decline earlier in the month. The trading week ended 22 Nov saw little price movement amid subdued trading. “Trading volumes declined significantly across all exchanges as prices remained range-bound, reflecting uncertain market sentiment,” reported Japan Exchange Group  25 Nov.

Selected NR futures price trends on major trading exchanges

(ERJ calculation for selected futures)

Previous ERJ week in numbers.