VMI parent reports strong growth at tire systems major

Haaksbergen, The Netherlands – TKH has reported strong growth in sales and earnings for its ‘smart manufacturing’ division, to which tire-building systems major VMI contributed 83% of revenues.

Adjusted for currency effects and divestments, turnover at ‘smart manufacturing’ grew organically by 11.1% year-on-year in 2024, the Dutch technology group stated 4 March.

Turnover, it said, developed “strongly during the year, although growth slowed down in the second half of 2024, in line with expectations, partly explained by the strong H2 2023.”

The ‘smart manufacturing’ order book, at €501.5 million, decreased by 15.2% year-on-year organically – compared to a record €631.3 million reported at the end of 2023.

‘Added value’ increased to 51.5%, from 50.5% previously, due to a combination of product-mix and price increases being passed on to customers, TKH continued.

Earnings (EBITA) excluding one-off income and expenses grew 31.1% organically at €116.1 million, helped by efficiency measures and “high-capacity utilisation at tire building systems.”

The tire building systems gains were driven by a “record order book and the catch-up effect of deliveries, following the easing of earlier supply-chain constraints,” the parent group added.

The lower order intake in 2024, both for passenger and truck tire machines was mainly related to a decline in demand at tier 1 customers, according to TKH.

On the other hand, it said, “order intake from tier 2 and 3 customers remained at similarly high levels compared to previous years.”

TKH went on to note that an order for VMI’s UNIXX system, booked at the start of 2024, was due for delivery and installation in the second half of 2025, "with further strong market interest.”

The technology, it explained, is being implemented in newly released tire component production machines such as UNIXX Beltmaker and Revolute, as well as in tire building machines.

TKH concluded that the drivers for advanced tire building systems “remain very strong” due to the growing need for increased automation and production flexibility, as well as sustainability.