Tire Companies Release Financial Reports Intensively, Accelerating Layout of Recycled Materials-Hebei Dongyin New Materials Technology Co., Ltd.

1. Market Dynamics

Tyres Europe stated in its participation in the UNECE working group on tire wear that a unified global tire wear standard is key to ensuring compliance consistency and avoiding market fragmentation, and also an important prerequisite for the implementation of the Euro 7 framework. The association will continue to provide technical support to promote the formulation and implementation of enforceable wear standards.

Russia’s Tatkordion Holding forecasts that the local passenger car tire market will decline by 17% in 2025 due to weak vehicle demand, with new car demand down 16% year-on-year. The company plans to expand the high-end tire brands it has acquired and restart several overseas companies’ tire and related parts factories in Russia.

The Tire Recovery Association (TRA) of the UK pointed out that since the implementation of the enhanced verification system for waste tire exports in October 2025, the compliance rate has been less than 25%, with large quantities of waste tires flowing into informal processing plants in India. The association called on the UK government to follow Australia’s example in implementing a “crumb-only tire export” policy and abolish unreasonable exemptions for waste tire treatment, so as to regulate exports and revitalize domestic recycling capacity.

2. Industry Data

Affected by market closures during the Chinese New Year holiday, overall trading in global rubber futures markets was thin in the third week of February. However, OSE and SICOM contracts closed slightly higher supported by a weaker Japanese yen, rising oil prices and short covering, with the OSE main contract rising 2.7% week-on-week.

The German Rubber Industry Association (WDK) released 2025 data showing continuous declines in production, sales and employment in the rubber industry, with a particularly sharp drop in tire output. The association warned that Germany’s rubber industry is facing weak domestic and foreign demand and fierce cost competition. Issues such as high energy costs and high taxes are forcing companies to relocate investments abroad. It called on the government to provide political support to sustain the industry.

3. New Products & New Technologies

Toyota Motor will deploy seven humanoid robots at its plant in Ontario, Canada, for automated material handling on the RAV4 production line. This marks one of the first commercial applications of humanoid robots in large-scale automotive plants, aiming to optimize production efficiency and reduce employees’ burden of repetitive physical labor.

4. Investment & Production

India’s BKT announced an investment of €325 million to officially enter the Indian passenger car tire market, and plans to enter the all-steel radial truck and bus tire sector in June 2026. To this end, the company will expand capacity, conduct R&D, and establish BKT Tyres and BKT Carbon to separate its tire and materials businesses.

Solvay has built Europe’s first bio-circular silica production base in Livorno, Italy. Using rice husk ash as raw material, the plant produces highly dispersible silica, reducing carbon emissions by 35% per ton of product and helping increase the proportion of recycled materials in tires to 15%.

Cabot announced that its factories in Indonesia and China are now capable of producing circular reinforcing carbon materials made from pyrolysis oil from waste tires, enabling the company to serve tire manufacturers in all major regions. This move aims to meet the industry’s growing demand for sustainable materials, strengthen the supply chain through a “local production, local sales” model, and support the achievement of global tire circular economy and sustainable development goals.

5. Corporate News

Michelin released its 2025 results, showing moderate overall growth in the tire market but weakness in the original equipment (OE) market. Sales of OE and replacement tires for passenger cars and light trucks rose 2% and 1% respectively, with OE tire demand in China up 9%. Truck tire OE sales (excluding China) fell 4% while replacement sales rose 4%. The company expects overall market stability in 2026, but demand may weaken in the first half. Growth in the passenger car and truck & bus tire markets (excluding China) is forecast at -2% to 2%.

Nexen Tire achieved revenue of KRW 3.19 trillion (approximately RMB 15.3 billion) and operating profit of KRW 170.3 billion (approximately RMB 800 million) in 2025, driven by the expansion of its European plant and other factors. In 2026, the company will focus on product innovation, channel optimization and brand building, pursuing both volume and quality growth in the global market.

Yokohama Rubber reported its fiscal 2025 results, with sales and profit rising for the fifth consecutive year and hitting record highs. Its tire business delivered strong performance, with overall sales up 14% year-on-year and operating profit up 22% year-on-year. The off-the-road (OTR) tire segment was a major driver of overall growth.

Pirelli posted sales of €6.77 billion in 2025, an increase of 4.2% after excluding exchange rate and other factors, with a slight improvement in profit and profit margins. The company forecasts 2026 revenue of €6.7–6.9 billion and an adjusted EBIT margin of approximately 16%.

French automotive component supplier Akwel reported sales of €938 million in 2025, down 5% year-on-year, with the fourth-quarter decline widening to 10.2%. Affected by the sluggish automotive industry and competition from Chinese rivals, the company expects double-digit revenue decline in 2026 and will strictly control costs and optimize project investment in the future.

Tokai Carbon’s carbon black business saw a decline in 2025 results, with sales down 6.1% year-on-year and operating profit plunging nearly 40%. The downturn was driven by production cuts at tire manufacturers, product price reductions, and non-recurring losses from the integration of a Bridgestone subsidiary in Thailand. The group expects a business recovery in 2026, with revenue and EBITDA to rise 8% and 10% year-on-year respectively, though operating profit may fall slightly by 6.1% year-on-year.

Nokian Tyres released a climate transition plan approved by its board, with a net-zero greenhouse gas emission target aligned with the 1.5°C warming limit. By the end of 2025, the company’s Scope 1 and 2 total emissions had dropped by more than 38% compared with 2022. It plans a 42% reduction by 2030, and its Romanian plant is the world’s first full-scale zero-emission tire factory.

Yokohama Tire’s plant in Salem, Virginia, which has been in operation for nearly 60 years, will permanently close on March 18, resulting in the layoff of more than 400 employees. The move comes as the company builds a new plant in Mexico to serve the North American market. Local authorities are providing support to affected employees through job fairs and other measures.

Eneos announced a price increase for all latex products starting April 1, with a rise of no less than 28 Japanese yen per kilogram of dry rubber. The adjustment is mainly due to higher production costs, labor and equipment maintenance expenses, as well as rising prices of auxiliary raw materials.

Source: Information & Exhibition Department, China Rubber Industry Association (CRIA)