Rubber & tire industry in numbers

PROJECTS

Pyrum Innovations AG and Czechia's Suas Group are planning to build a €57m waste tire pyrolysis plant in Vresova, near the German border. The project will have the capacity to convert 23ktpa of end-of-life tires into secondary raw materials.

Pyrum is also partnering with energy storage and infrastructure company VTTI to jointly develop a tire recycling plant at VTTI’s Antwerp Terminal. The ‘thermolysis’ plant would have an ELT processing capacity of 90ktpa – implemented in two phases of 45ktpa.

Tire-to-fuel recycling firm Wastefront has officially started construction work on its Port of Sunderland facility. The plant’s commercial phase is to begin at the end of 2026, with the aim of processing 10m ELTs a year.

Hyosung Advanced Materials Corp. has signed an MoU with the government of Maharashtra to build a INR17.4bn (€190m) production facility in Butibori, in the central Indian city of Nagpur.

BASF India is building a microcellular polyurethane (MCU) plant in Dahej, India, set for operation in H2/26. MCU materials provide NVH reduction solutions for the automotive industry.

M&A & RESTRUCTURING

Mutares is to acquire NBHX Trim Europe from Ningbo Lawrence Automotive Interiors. NBHX Trim Europe is a major European supplier of decorative surfaces for premium automotive interiors. Based in Bruchsal, Germany and with additional production facilities in Rolem, Romania and Abergavenny, UK, the group generated sales of around €200m in 2024.

MARKETS

Pirelli could potentially expand its tire production capacity in the US to offset the impact of the trade war within North America. While Pirelli’s US business contributed more than 20% of group sales, the level of tire production there is limited with the group's plant in Georgia having a capacity of 400k tires/year. Pirelli imports more than 50% of its US supply from Mexico and about 40% from Brazil and Europe.

BUSINESS

Pirelli has exceeded its 2024 targets for earnings and sales. Adjusted earnings for the full-year were up 5.9% year-on-year at €1.06bn, versus a target of €1.04bn. Sales for the 12-month period grew 1.9% to €6.77bn, slightly above the initial €6.7bn target.

Continental AG’s Tires sector has reported a slight decline in 2024 sales at €13.9bn, down 0.7% year-on-year. But a growing share of the premium tires market and good winter business in Europe boosted adjusted EBIT margin to 13.7%, versus 13.5% reported in 2023. ContiTech hit target with an EBIT margin of 6.7% but saw sales down 6.7% on the prior-year level, at €6.4bn.

Reka Industrial’s rubber business has posted earnings (EBITDA) of €1.4m for 2024, up from a prior-year €1.2m. Full year sales fell 11% to €27.2 million on lower volumes.

SHARE PRICES

Leading tire manufacturers’ share-price trends

Leading rubber product manufacturers’ share-price trends

MATERIALS

Natural rubber futures have declined in the Far East markets amid escalating tariff concerns globally, according to Japan Exchange Group (JPX). Rising geopolitical tensions and inflationary pressures further dampened sentiment after the US imposed 25% tariffs on both Canada and Mexico, along with an additional 10% tariff on China, effective 4 March.

JPX: Selected rubber futures price trends on major trading exchanges

(ERJ calculation for selected futures)

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