Rubber & tire industry in numbers

PROJECTS

Kumho Tire is progressing with its plans to build a KRW1trn (€616m) tire plant in Europe, having narrowed down location candidates to Poland, Serbia and Portugal. Korea's second largest tire maker expects the new production base in Europe to boost its OE tire supply to high-end car brands. It currently operates eight manufacturing plants: in Korea, China, the US and Vietnam.

Pirelli and Saudi Public Investment Fund have progressed their JV tire plant project in Saudi Arabia, tendering the contract to build the€480m facility in the King Abdullah Economic City (KAEC), according to the Italian Trade Agency. The tender notice was issued in December last year with a bid submission deadline of 10 April. UK-based Jones Lang LaSalle has been named as the project consultant. Set for operation in 2026, the plant will have a capacity to produce 3.5m passenger car tires/yr. The project was tendered by the Mena Tire Co., a joint venture between PIF (75%) and Pirelli (25%).

Chinese chemicals major Zhejiang Jiahua Energy Chemical Co. announced plans to invest up to Yuan1.25bn (€151m) in a 240ktpa synthetic rubber project in China. Set for production in 2027, phase 1 will include two SSBR production lines, each with a 60ktpa capacity. The unit will be located at the group’s existing complex in Jiaxing, eastern China. It will supply rubber for EV tires.

Goodyear unveiled a four-year, $320m (€277m) plan to expand its largest tire factory located in Lawton, Oklahoma: converting production capacity to add 10 million units of annual capacity for larger rim-diameter car tires, announced Oklahoma Department of Commerce 8 April. Goodyear previously invested $50m in the plant between 2021 and 2023 to add factory space and an advanced mixer.

Titan International has expanded its warehousing capacity for Goodyear-branded farm tires at its France headquarters in Flers, Normandy. The tire maker has ‘nearly doubled’ the logistics space to support increasing demand across Europe. The move is part of the US tire maker's broader European strategy and follows the acquisition of the Carlstar Group in February last year.

M&A & RESTRUCTURING

Shell Singapore Pte Ltd (SSPL) has completed the previously announced sale of its energy and chemicals park in Singapore to CAPGC Pte. Ltd, a JV between Chandra Asri Capital and Glencore Asian Holdings. The divestment is aligned with Shell’s ongoing efforts to “high-grade” its chemicals and products business and wider strategy to “create more value with less emissions.” SPL’s operations in Singapore are located on the two islands of Pulau Bukom and Jurong and include a 155ktpa butadiene extraction unit. Shell was also building a 50ktpa ‘pyrolysis oil upgrader’ at Bukom, slated for start-up in 2023.

MARKETS & BUSINESS

Qingdao, China-based Mesnac expects net profit attributable to shareholders to range between ¥490m (€59m) and ¥530m for full year 2024, reflecting a 47-59% increase from ¥333.15 million in 2023. Excluding non-recurring gains and losses, net profit is projected to range between ¥425m and ¥465m, a 62-77% year-on-year increase. The Chinese manufacturer of tire and rubber machinery and systems linked the strong performance to a “surge in overseas investments” by Chinese tire makers.

The Italian plastics and rubber machinery industry association Amaplast reported weakness in exports for 2024 to Europe, especially within the EU, while sales to the Americas remained stagnant. In Asia/Oceania, sales to the two main markets China and India increased by 15% compared to 2023. Sales to top destination Germany fell 2% year-on-year. Exports to Spain, Poland and Romania dipped 6%, 19% and 20%, respectively, while demand from Turkey grew 15% year-on-year. Italian exports of plastics and rubber machinery to the US, the sector’s second-largest destination, fell by 4%, Amaplast noting that it would take “several more months” to see the impact of tariffs.

China’s tire manufacturing industry is set for a period of “strong development," with domestic demand providing a key driver for growth, said Sentury Tire president Lin Wenlong. China’s new-energy vehicle production and sales, he said, increased by more than 30% year-on-year in 2024, and the growth rate in the first two months of 2025 exceeded 50% compared to the previous year.

In Q1/25, new EU car registrations fell 1.9% compared to Q1/24, ACEA reported 24 April. The battery-electric vehicles (BEVs) market share stood behind expectations at 15.2% in Q1/25, vs 12% a year ago. Hybrid EV registrations surged, capturing 35.5% of the market to remain the top choice for EU buyers. Meanwhile, the combined market share of petrol and diesel cars fell to 38.3%, down 48.3% year-on-year.

SHARE PRICES

Leading tire manufacturers’ share-price trends

Leading rubber product manufacturers’ share-price trends

MATERIALS

Natural rubber  

All major Far East markets closed the week ended 18 April lower compared to the week before, while overall trading volume declined, Japan Exchange Group reported 21 April. Market participants, said JPX, “grew cautious about selling at already depressed price levels.” For instance, it said, despite low-price levels on the Osaka exchange, traders ‘remained cautious due to prevailing market uncertainties.’ Added JPX:The recent sharp downturn in prices has left many traders hesitant, with a noticeable reluctance to take on large positions,” JPX said.

JPX: Selected rubber futures price trends on major trading exchanges

 (ERJ calculation for selected futures)

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