Rubber & tire industry in numbers

PROJECTS

Zeon Corp. and US startup Visolis have completed a feasibility study to jointly produce bio-based isoprene monomers and sustainable aviation fuel (SAF), using Visolis’s processing technology. The two companies launched the joint initiative in April last year and are now initiating preparatory steps toward construction of a new production facility. California-based Visolis has developed a manufacturing platform that combines AI, synthetic biology and catalysis technologies to produce 'carbon negative' replacements for petrochemicals and fuels for various industries.

Kumho Tire has launched the second phase of a 'technical transformation' project at its tire manufacturing site in Nanjing, China, to address growing demand for ‘new-energy’ tires. The project completes Kumho’s delayed ‘phase III’ at the factory, originally designed for 3.5 million passenger car tires. According to Kumho, the company now plans to modify the remaining unbuilt capacity to produce 1.4 million new-energy tires, bringing the total passenger car tire capacity of the plant to 8.2 million units. 

Nexen Tire is setting up a dedicated winter tire testing centre in Ivalo, Finland, to advance its winter tire R&D in Europe. Set for operation in December, the facility will serve as a hub for winter tire testing and development.

Sentury Tire's plan to establish a tire plant in Galicia is among a number of industrial projects being threatened by a lack of support for the development of energy infrastructure in the region. That's according to Galicia minister of economy and industry María Jesús Lorenzana, who has called for amendments to a draft national law on 'industry and strategic autonomy' approved by Spain's central government. 

Denka Corp. has discontinued a project to develop low-carbon acetylene as its US startup partner Transform Materials has been dissolved. The two companies entered a joint R&D agreement in June 2023 to develop a low-carbon technology to produce acetylene using Transform Materials’ microwave plasma process. 

M&A & RESTRUCTURING

Continental AG’s executive board has decided to make ContiTech an independent entity in the course of 2026, with the parent company focusing solely on its tire business. The German manufacturer will enter a “preparatory phase” to analyse potential transaction structures and develop an implementation timeline. As things stand, Continental considers the sale of ContiTech to be "the most likely option."

Taiwanese carbon black maker International CSRC is scaling back its footprint in China with the closure of one plant and the divestment of another. On 11 March, the group announced plans to shut down its manufacturing site in Anshan, northeastern China, as part of a global strategic realignment aimed at enhancing competitiveness. At the same time, CSRC finalised the previously announced sale of its carbon black facility in Chongqing, southwest China, to Longxing Technology. Beyond China, CSRC said it is adjusting global production footprint with plans to increase capacity across operations in the US and Europe.

Hexpol AB has taken over the full ownership of German recycled polymer compounder almaak, for a value of €36.7 million. The Swedish group had previously acquired a 70% share in almaak in 2022, at a value of €70 million, and has now exercised its option to purchase the remaining 30%. Previous owners Olaf Eichstaedt and Thomas Schmeinta will continue to serve as almaak’s CEOs. 

TBC Corp., a US tire wholesale JV between Michelin and Sumitomo Corp., is divesting its tire and automotive service franchise to focus on core businesses. The group has agreed to sell its Midas franchise portfolio to New York-based Mavis Tire Express Service Corp. 

MARKETS

New EU car sales declined by 3% year-on-year to 853,670 units in the first two months of the year as major markets reported decreases in demand. Demand fell in Italy by 6% compared to the first two months of 2024, while Germany and France reported declines of 4.6%, and 3.3% respectively. Meanwhile, Spain recorded a positive development with an 8.4% increase year-over-year, the European ACEA reported. 

BUSINESS

Continental AG is streamlining its commercial speciality tires operations with a planned exit from the farm tire business by the end of the year. Instead, the German group will focus its off-road operations on material handling, earthmoving and port operations tires. Continental said the decision was due to “strong disruptions” in the farm tire market over the recent years, noting that its “ambition is no longer compatible with the increasing commoditisation of the market.” Continental’s manufacturing site in Lousado, Portugal will be the main location affected by the move.

The Helsinki court of appeal has sentenced several former Nokian Tyres employees, including ex-CEO Ari Lehtoranta, for a securities market information offence, Nokian announced on 10 April. The case, related to events from 2015–2016, alleged that the company's board of directors and CEO at the time had failed to disclose information affecting the value of the company’s securities in December 2015. 

Aeolus Tyres is withdrawing a previous plan to issue shares to specific investors with the aim of raising Yuan300 million (€37 million). The funds raised were intended to go towards the ongoing Yuan1.47 billion project to add production capacity for 20,000 units/year of giant OTR tires at the Jiaozuo City facility.

US TARIFFS

The ACEA has called on the European Commission to seek a “constructive, negotiated resolution” with the US over automotive tariffs. The call was made during a high-level meeting with European Commission president Ursula von der Leyen and industry leaders, including the heads of BMW, Daimler Trucks, IVECO, Mercedes-Benz, Scania, Stellantis, and Volkswagen. The meeting discussed the far-reaching impact of recent US tariffs on European automotive, steel and aluminium exports, and urged the EU to “avoid countermeasures that risk damaging European competitiveness.” 

The UK Chemical Industries Association (CIA) has described a 10% additional duty on UK exports to the US as “another blow” to the industry as it grapples with high manufacturing costs locally. According to CIA data, the chemicals and pharmaceuticals industry is the UK’s second-largest exporter, with a combined export revenue of £55 billion (€64.5 billion) in 2024. The industry’s export value to the US stood at £11 billion last year – £5 billion in chemicals and £6 billion in pharmaceuticals – accounting for 40% of non-EU trade.

SHARE PRICES

Leading tire manufacturers’ share-price trends

Leading rubber product manufacturers’ share-price trends

MATERIALS

Natural rubber 

Natural rubber futures fell sharply in the first trading week of April as the US imposed new tariffs on imported goods. All major Far East markets closed the trading week ended 4 April significantly lower, driven largely by "growing fears of a global recession" following President Trump’s tariff hikes earlier in the week. According to JPX, the weakness was fuelled by a sharp decline in global commodities, reflecting deepening concerns over a potential global recession. Meanwhile equity markets fell significantly as trade tensions intensified worldwide. 

JPX: Selected rubber futures price trends on major trading exchanges

 (ERJ calculation for selected futures)

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