STRATEGIC EVOLUTION

TT NEWS

Marangoni Meccanica, the leader in tyre assembly machinery design and production, has undergone a re-branding. It is now Marangoni Machinery. The new corporate brand identity comes at a time when the company, which was recently recapitalised and spun off from the Marangoni Group, is evolving through a strategic journey with the objective of offering to its customers an even more powerful support and commitment.

The company has been a leader in the market for long and has a unique brand identity. Marangoni says the new branding reflects the company’s market-leading position better and demonstrates the comprehensive lifecycle of machinery and services offered to its customers across the globe. The new brand Marangoni Machinery and its new logo work well across digital and physical channels. “They evoke a feeling of ideas, dynamism, collaboration, movement, positivity, speed—and velocity, which work all together for obtaining the highest quality and satisfaction for the customers,” Ricardo Mastronardi, the new CEO, says.

“Marangoni Machinery has a unique value proposition in the global tyre industry, especially in the big tyre segments like Agriculture and OTR. We are driven by a continuous Customers focus: each new feature is designed to support Customer’s growth and performance, oriented to best efficiency and quality, Mastronardi told Tyre Trends 

 

Foreseeing and inventing new solutions

Research is an activity of fundamental importance for Marangoni Meccanica. The company’s collaboration with the Department of Industrial Engineering of the University of Trento - Laboratory of Maieutics, allows sharing knowledge and skills that can greatly improve the technical culture of its designers. The project ‘Marangoni Station - New Generation’ aims at creating software that can be used on a variety of IT media

Belt package transfer

 

The company’s main activity is the design and manufacturing of machines and technologies related to the production of new tyres, mainly machinery for tyre building of Agricultural and OTR tyres industry.

Within the flow of activities that lead to the creation of a product, research is an area of fundamental importance. The ability to match the customer's needs and, if possible, to foresee them by inventing new solutions is Marangoni Meccanica’s core strength.

The company designs around the customer’s needs, searching for new solutions to address improvements, optimisation and coming industry challenges an eventually find out new needs and anticipate what the market will require in the coming years.

Software solution

Key Accounts - Simona and Anna

Most of the companies in its customer portfolio are not equipped with integrated supervision systems, especially for the production process. Those companies simply exchange data within their databases regarding the manufacturing process aspects, for example recipe data loading necessary for machine work, neglecting the aspects related to the plant components. Those topics are usually managed in a traditional way, not integrating the new production technologies that allow improving the working conditions by increasing the productivity and the production quality of the plants.

Being a partner who can cooperate, apart from being a mere supplier, even in the areas of plant management, is a distinctive aspect that no competitor is currently able to provide. The Company can customise and enhance the essential engineering functions for its applications, such as the total integration of external software tools developed with research institutions for satisfying the most demanding customers.

For the development of this new powerful software platform, Marangoni Meccanica has started an important collaboration with the Department of Industrial Engineering of the University of Trento - Laboratory of Maieutics, which will allow sharing knowledge and skills that can greatly improve the technical culture of its designers. The Department research group has been working for many years on the development of technologies, so it is an important reference in the industrial engineering field, having the advantage to count on the skills of all the project members within the company. The project consists of software writing for industrial automation components, characterised by a strong inter-disciplinarity among sectors such as user interfaces, industrial process engineering, communication networks and software design.

 unistage bay

Reasons underlying the research

The modern scenario of industrial plants requires an ever-increasing level of integration of functions such as data communication management, operator-machine interfaces, data processing and connections to company systems for production and maintenance management. Industry 4.0 responds to the latter needs, as this new industrial revolution aims to develop data communication networks via the Internet and similar networks. This project adheres to the basic values of this new development context, namely the development of machine data management systems (SCADA - Supervisory Control And Data Acquisition), data analysis and communication on data networks, as well as creating interfaces for the operator of the production plants (HMI - Human Machine Interface).

Therefore, supervision and control software play a fundamental role in the management of complex machines and systems.

HMI and SCADA are two terms closely related to the extent to which an operator is an integral part of the components of a plant management system.

HMI and SCADA

detail of machining area

Human-Machine Interface (HMI) is a control panel designed for interactive communication between the operator and the process / machine carrying out the tasks of entering orders, display the results connected to the process / machine status in real time. Moreover the Marangoni Machinery vision is to let HMI to become an effective gate to get access to the whole production machines even into a network and/or stand-alone mode: in such a way the Customers can have access to a variety of information (operations, maintenance, alarms etc.) to enhance the production lines to be in real-time controlled.

SCADA system is a Supervision, Control and Data Acquisition System. It is also referred to as 'telemetry,' a system having a full data communication and data control, which includes two-way communication (measurement and control) between the process system and the operator's position. In addition to this, the capacity of SCADA systems to control and monitor multiple devices, such as remote terminal units (RTUs) connected with process transmitters and final control devices, implementing basic control functions such as Start / Stop, or multiple regulation circuits including safety shutdowns, warning, notice, or PID controllers, allow the RTU devices to communicate digitally with a Master Unit (MTU) terminal in a central position where operators can monitor the process and intervene in it.

This HMI SCADA software is used in all sectors with the aim of providing a direct means of machine control, automation, security, data storage, analysis, and communications as well as allowing connectivity to a wide range of functions within the system.

In a few words the HMI software is used to monitor SCADA systems.

Customers have been increasingly demanding SCADA / HMI systems with the following features:

1. Improve control and monitoring of the process, system or plant.

2. Manage important information, such as warnings, alarms, machine shutdown, and increase productivity by decreasing shutdowns. Analysing data in real time in order to prevent unexpected stops, and resume activity more quickly.

3. Simplify the interaction between systems of different manufacturers with proper communication modes.

4. Optimise the effectiveness of user control on data and help with alarms or data groups to know the status of the system and the possible problems.

5. Enhance the quality for the correct functioning of the system.

6. Reduce operating costs through the integration and the maintenance of the process and plant.

It consists of additional software to complement our supply of machines and plants whose complexity requires systems allowing a more intuitive and quick management control, helping our customers to monitor the process in real time, especially remotely through communication networks (data, videos, etc.).

AgriFast 2nd stage 

Aim of the Project

This project aims to create an HMI / SCADA software platform offering:

 - A user-friendly application in terms of persistence, business logic, graphic interface;

- The use of technologies for the creation of architectures and software structures that guarantee the optimisation of software writing and maintenance, through proper software patterns;

- The creation of responsive software allowing their use on multiple web browsers and various platforms (PC, tablet, mobile);

- The creation of suitable documentation both for the upstream analysis of the engineering process and for the control of the final product.

Goals

The result of the project is the creation of a development environment consisting of a series of applications able to:

- manage basic recipes for each type of machine

- communicate with the PLC by managing the flow of information that starts and arrives from it.

- have a graphical interface (HMI) that can be easily used in all the application contexts (design, control, monitoring, visualizations, reporting).

- allow the use on multiple web browsers and various platforms (PC, tablet, mobile) at the highest possible application level.

Basically, Marangoni Meccanica customers ask for a support where, in addition to providing machines and systems, it can integrate product with their "company system," allowing an easy, functional use even by staff whose level of specialisation is not uniform. Hence the success of this project is to have a tool enabling the company to be for its customers more and more a partner, and not only supplier.

 

 

Interview 

 

Perfectly in lane for era of transformations

Over the next five years, the industry is poised to enter a transformative era. Marangoni Machinery (MM), global tyre industry leader, especially in Agriculture and OTR segments,  is perfectly positioned and prepared to play a leading role in this evolving context, “thanks to our creativity, flexibility and engineering innovation capabilities, assures the company’s CEO Riccardo Mastronardi

TT Report

CEO Riccardo Mastronardi

What drives you to start afresh as a new entity? How much do you think Marangoni Machinery impact global tyre industry?

Marangoni Machinery (MM) has a great technological background and exceptional innovation and engineering capabilities. The new shareholders clearly perceived that this potential in the last years has been partially untapped and big opportunities were ahead of us, therefore they decided to invest. MM has a unique value proposition in the global tyre industry, especially in the big tyre segments like Agriculture and OTR. We are driven by a continuous Customers focus: each new feature is designed to support Customer’s growth and performance, oriented to best efficiency and quality.

How does Marangoni Machinery see the tyre industry evolving in the coming decade?
Technology innovations and developing end-user requirements are driving the off-the-road tyres market into unexplored territory, presenting fresh challenges to manufactures and suppliers. The global market for off-the-road (OTR) tyres is estimated to significantly grow in the next years.

Technological advancements and market changes in the OTR tyre industry are presenting several challenges to manufacturers and suppliers. From an end user’s perspective, the imperative is to continue to drive efficiency and productivity, even as equipment gets larger and places additional stress and performance demands on the tyre.

Over the next five years, the industry is poised to enter a transformative era and we in MM believe to be perfectly positioned and prepared to play a leading role in this evolving context, thanks to our creativity, flexibility and engineering innovation capabilities.

What is your added strength in R&D and also in business development?

MM R&D is oriented to a new Customer’s experience approach. The new machines are tailor designed according to Customer’s needs and requirements in order to achieve the best quality output, and at the same time best reliability, safety and productivity.

detail of OTR 

As customer demand and technology developments change, what challenges do you foresee in providing tyre making machinery?

Main challenges are about time to market and installed base refurbishment: nowadays Customers are looking for renewal plans to get new machines within short lead times, plus new equipment oriented to increase productivity for premium products as well, so our challenge is to be ready for both business needs by serving Customers on reduced lead-time and on increased quality output.

What new products do you plan to offer?

MM is mainly oriented to “turn-key systems”: from complete Tyre Building Machines up to all comprehensive “Production Site” composed by multiple production units with software supervision platform to get an integrated and efficient management manufacturing system architectures. About new products MM is offering new tyre building core technologies (drums, toolings and robotics) to enhance the tyre productivity and quality by proprietary patents and proven solutions, mostly oriented to Agro and OTR industry areas (Stage-1, Stage-2 and Unistage solutions with Strip-Winding embedded architectures).

Any move to widen your network of sales and after-sales services?

Drums building and test stands


We are definitely strengthening our Sales and After Sales Organisation in order to better satisfy our growing Customer Base. We are also planning to internationalize our After Sales Services to be closer to our Customers’ production facilities and serve them better and quicker.

Are there any new areas in tyre industry that Marangoni Machinery plans to cover?
As said above, our company is characterised by our strong and distinctive engineering capabilities. Those capabilities allow us to tackle disparate challenges and solve them in a creative, effective and efficient way. Our deep knowledge of the Tyre Industry together with our distinctive capabilities, open for us unexploited opportunities that we plan to explore in the next years.

What other new elements have been included in the new entity?
We are in the process of transforming a family owned business into a structured and managerial modern company where M&A opportunities will be also explored.

What is your take on the general economic slowdown, particularly in the Asian markets?
Frankly speaking, till now, we are not experiencing any slowdown in our business leads, especially in Asia. In our Agriculture and OTR segments in Asia we experience a significant growth led by China and India, supported by all end-use sectors; much of the gain in radialisation is seen in this region; mechanisation of agriculture is definitely a major growth driver. We need to carefully consider the significant threat to global economic growth amid coronavirus outbreak

Do you see the new regulations in import/export in some markets impacting your business?

Not yet, potentially yes, even if our solutions are not so easily replaceable and customers loyalty is very high.

 

Mexico 2026: A Manufacturing Powerhouse Still Seeking To Revitalise Retreading

Mexican Tyre Shop

While the tyre and rubber industries are experiencing one of their most dynamic periods thanks to North American integration, the retreading sector continues to face economic, cultural and market challenges in its efforts to regain momentum.

Few Latin American economies currently occupy as strategic a position within the global tyre industry as Mexico. The combination of manufacturing capacity, geographic proximity to United States and the advantages provided by the United States-Mexico-Canada Agreement (USMCA) has consolidated the country as one of the leading tyre and rubber manufacturing hubs in the region.

In recent years, US trade policies directed at producers located outside North America have further strengthened this position. Investment relocation, nearshoring strategies and the need to secure regional supply chains have created particularly favourable conditions for Mexican industry.

The effects are visible throughout the value chain. Tyre manufacturers, rubber compound producers and raw material suppliers are operating at high activity levels, largely driven by demand from the US market. Industry stakeholders consistently point out that the current challenge is not finding customers but maintaining sufficient capacity to meet North American demand.

The rubber compound industry is perhaps one of the clearest examples of this trend. Benefiting from the regional trade environment, many companies are operating close to full capacity, supplying tyre manufacturers as well as other rubber-related industries. A similar situation can be observed among several retreading material suppliers, whose primary concern is not local demand but their ability to meet growing requirements from United States.

Yet, while manufacturing is experiencing a period of expansion, the retreading sector faces a very different reality.

The paradox is striking. In a country that markets more than 40 million tyres annually and possesses one of Latin America’s strongest industrial platforms, retreading has not been able to regain a sustained growth trajectory.

During his presentation at the Latin Tyre & Auto Parts Expo Panama 2025, Juan Carlos Hernández, then Commercial Manager of Hules Banda, presented figures that help illustrate the scale of the challenge. According to the data presented, Mexico marketed more than 40 million tyres during 2024, with an estimated potential of over five million tyres suitable for retreading. However, only around 960,000 units were actually retreaded, representing a retreading rate of approximately 18 percent.

The figures become even more revealing when analysing installed capacity utilisation. While tyre factories report average idle capacity levels close to 14 percent, retreading plants operate with approximately 70 percent idle capacity. Furthermore, during the first months of 2025, retread production showed a decline of nearly 9 percent compared to the previous year.

The reasons behind this situation appear to be less related to technical capabilities and more connected to the economic incentives currently shaping the market.

The growing presence of low-cost imported tyres has significantly transformed purchasing decisions across many fleets. According to Hernández’s presentation, nearly 40 percent of the radial truck tyre market consists of Asian products sold for less than USD 150 per unit. As a result, the economic gap between purchasing a low-cost new tyre and investing in a retread has narrowed considerably for many operators.

In this context, measures such as tariffs on selected imported products have so far failed to generate significant structural changes in market behaviour or retreading activity levels.

However, attributing the situation solely to pricing would be an oversimplification.

One of the most interesting observations highlighted by Hules Banda points to a less visible but potentially more significant long-term issue: the gradual loss of tyre management culture.

For decades, retreading formed part of a comprehensive asset management strategy, where tyres were managed throughout multiple life cycles in order to maximise cost per kilometre performance. Today, in many segments of the transport industry, that approach has increasingly been replaced by purchasing decisions focused primarily on immediate acquisition costs.

The result has been lower casing utilisation, fewer maintenance and monitoring programmes and increasing difficulty in demonstrating the long-term economic benefits that have historically supported the retreading business model.

Paradoxically, those segments that continue to manage tyres as strategic assets still demonstrate the relevance of retreading. Fleets operating premium and medium-tier tyres remain highly dependent on retreading to optimise operating costs, improve profitability and maximise asset utilisation.

CIRCULAR ECONOMY BEYOND END-OF-LIFE TYRES

Another issue deserving attention is the way the circular economy debate is currently evolving within Mexico’s tyre sector.

Much of the public and regulatory discussion focuses on end-of-life tyres (ELTs), collection systems, reverse logistics and recycling or recovery solutions once the product reaches the end of its useful life. By contrast, strategies aimed at extending product life through reuse often receive considerably less attention.

This is particularly relevant given that internationally recognised circular economy principles establish a hierarchy in which extending product life generally delivers greater environmental value than interventions applied after a product becomes waste.

From this perspective, retreading represents one of the most tangible examples of circularity within the tyre industry, as it preserves the economic, material and energy value embedded in the original casing for a longer period.

Mexico will undoubtedly remain one of the leading players in the North American tyre industry. The strength of its manufacturing sector appears well supported by regional integration, industrial investment and strong demand from United States.

The question that remains is whether the retreading sector will be able to become fully integrated into this growth story.

The industrial capacity exists. The technology is available. Premium market segments continue to require strategies focused on maximising cost per kilometre performance. The challenge appears to lie elsewhere: rebuilding tyre management culture and repositioning retreading as a strategic tool for competitiveness, efficiency and circular economy performance.

At a time when much of the discussion focuses on managing tyres at the end of their life, perhaps the more important question is how to ensure that life lasts longer in the first place.

The War Within: Managerial Mindset

Manager

I can still vividly remember a journey I made in 1995 with my young Kenyan MD (who is no longer living) in a hired car from the Delhi Airport to some town close to Ludhiana to meet a tyre moulding machinery supplier. The travel was through vast expanses of paddy fields extending to miles, and in between, we could see large industrial sites far away. A clear sign of industry and agriculture co-existing synergistically. When passing the area called Kurukshetra, the driver mentioned that there was a war at this area a long time ago. He was obviously referring to the great war of the epic Mahabharata, a subject which still generates ample curiosity in me even at this advanced age. With growing years of maturity, I am more convinced that the great war symbolically and semantically depicts the inner conflicts going on in our own minds, while these are conventionally polarized as ‘black and white’ under the ‘all- or- nothing’ principle, and Kurukshetra represents our own hearts and intellect, commonly called the emotional brain and intellectual brain in today’s jargon. Equipped with my industry experience acquired for nearly six decades, I am tempted to make a rather feeble effort to understand what has changed in the managerial mind map over the past 50 odd years. It would be similar to finding parallels between the Vietnam War in the late sixties and current war going on in the Middle East, despite the common factor, US.

Quite in contrast to machinery and materials, the man component of the traditional 4Ms is the most confusing area despite the vast research that has been carried out over the years. It is said that the adult human brain consists of about 86 billion neurons, an astronomically high figure compared to memory capacity of the modern computers. Over the past few decades, the modern managerial mindset has undergone profound transformations. Managers today, particularly in the age group of 35 to 50 ( Gen X), operate in an astonishingly different scenario compared their counterparts 50 years ago. The two eras are fundamentally different and attempting to compare them is largely futile. The rapid changes, technologically, culturally, socially and psychologically, are so vast that today’s managers are shaped by globalisation, digitalisation and fierce competition, which has significantly altered their cognition, thinking patterns, values and behavioural approaches.

While most living managers of the older generation adopt a stance of lamenting about the ‘’good old times’, I think it would be more prudent to understand the realities of change. Management philosophies have undergone profound change, evolving from Taylor’s scientific management and Fayol’s top-down framework based on five key managerial functions to the humanistic approaches advanced by Carl Rogers and Maslow. This is the universal feature of impermanence of all conditioned phenomena (cause-effect related), discovered more than 2,600 years ago by Lord Buddha and some Greek and other Eastern philosophers. Endeavoring to maintain stability, in an ever-changing world scenario, has been the driver for the emergence of management concepts and theories, including the latest approaches seen in the contemporary modern world. Comparing modern managers with those from 50 years ago is unrealistic because of the complete change in the context. Earlier managers operated in stable and localised economies, while modern managers operate in a dynamic globalised environment. It is sometimes said that ‘when the President of the United Sates sneezes, the Eastern leaders catch a cold’, a fact amply demonstrated by the recent events.

Decision-making in the past was slow and experience-based, while today it is data driven, rapid and technologically assisted. Traditional management emphasised relationships, loyalty and progressive and gradual growth, while modern systems emphasise on performance metrics and quick results, like the instant coffee.

The growing corporate trends due to industrialisation over the past 30 years especially has witnessed increased focus on productivity, efficiency and outputs along with standardisation, which has made workers and managers becoming a part of a mechanised system. Modern corporate managerial thinking is also been heavily influenced by globalisation, due to exposure to international competition and the need to adapt to diverse cultures and markets and the pressures to meet global benchmarks and standards. The constrains and the stresses imposed on countries such as Sri Lanka is tough in these areas. A good example is the EUDR requirements, which initially was a nightmare to the rubber product manufacturing companies. A far more serious non-technical consequence is that the concept of a ‘global village’ is eroding values of the strong cultural and ethical foundation, leading to identity dilution among managers

During my association with the industry, particularly over the past 20 years, I have personally witnessed decline of the traditional values in the modern managerial mindset. This is also seen in some professional associations in which I have been a member for a long time. Some of the key trends noted are as follows:

a) Limited understanding and low priority given for religion, history and cultural heritage.

b) Reduced emphasis on ethics, empathy and social responsibility despite the fact that this has become a ‘catch word’ in most corporate circles.

c) Over reliance on technical knowledge and digital skills.

d) Decline in the respect for elders and their experience (crystallised knowledge)

e) Over confidence due to access to information, which brings forth a ‘know it all ‘stance.

f) Diminished openness to learn from others.

g) Difficulty in accepting criticism and feedback

While these tendencies directly affect workplace relationships, team cohesion and leadership effectives, the hidden or latent consequences have more deeper implications on personal and social wellbeing.

The Buddha in one of the discourses has observed that a person can victoriously face a battle against an army of elephants, horses, chariots and infantry by having the necessary resources, but it will be more difficult to win the war within due to mental conflicts.

Most business environments are characterised by aggressive target setting, continuous performance evaluations and competitive organisational cultures, which has caught the managers in a perpetual rat-race where success is narrowly defined by targets and profits while there is hardly any time for reflection or personal growth. This creates a certain emptiness and dissatisfaction even among the high achievers.

I find it interesting at this juncture to refer to the historic concept of Sigmond Freud (considered as the founder of Psychoanalysis), the structural components of the mind, namely Id (pleasure principle or gratification), Ego (reality principle) and the Super Ego (ethical and moral conscience). In order to minimise the negative impacts of the conflicts between them, the Ego resorts to defence mechanisms, or temporary coping solutions. Some of these are denial of the problem, repression of the feelings, projection of the blame to somewhere else and rationalisation or giving logical but false explanations. While these   are useful in the short term, over reliance can interfere with mental functioning and emotional growth. All of us are unconsciously resorting to one or several of these in times of emotional turmoil.

The pressures of modern management have led to an exponential growth in mental health challenges in recent years, which include common mental disorders such as stress, anxiety, burnout, depression and features associated with Borderline Personality traits (emotional instability and impulsivity), which result in work-life imbalance and chronic dissatisfaction.

Due to the high psychological demands, there is a growing need for career and workplace counselling. Counselling is a relatively new term that came into prominence around the mid-20th century, before which guidance and support was traditionally provided by the religious institutions, parents, teachers and the elders in the society. Over the recent years, counselling has evolved as a unique profession. Many organisations, especially the larger ones due to the seriousness and gravity of the problems they experience, have established counselling as a regular activity performed in-house or outsourced. Counselling helps managers to cope up with stress and expectations, supporting emotional regulation and resilience and enhancing self-awareness and interpersonal skills, which results in reconnecting purpose and meaning and balancing professional and personal life to develop a healthier mind set. The modern managers must endeavour to have a balanced mind set which is an integrated mix of technical competence, human values, cultural awareness and emotional intelligence and wellbeing. Only then they can move beyond being mere ‘cogs in a wheel’ and become holistic, effective and ethical leaders in the modern world

It is somewhat ironic that Human Resource Sustainability is not named as a single standalone goal in the United Nations Sustainable Development Goals (SDGs) but covered under several headings such as Good Health and Wellbeing, Quality Education, Gender Equality, Decent Work, Economic Growth and Reduced Inequalities.

While I do not have firsthand information on how human resource counselling is caried out in other countries, my observations and experience in Sri Lanka is that it is done more in a fire fighting or reactive mode, where corrective and remedial measures are taken only in cases of psychological deviances. It is somewhat surprising because Sri Lanka is famous for its preventative public health care in pre and postnatal maternity health and school dental health. Industry safety and health is fairly well addressed in most large, medium and some small enterprises, although these are mainly covering the operational levels. Currently, several standard stress, anxiety and depression measuring scales, both qualitative and quantitative, are available, but they do not seem to be used proactively to detect the cinders underneath the ash. People in emotional distress invariably need to vent their thought and emotions, which causes several cognitive distortions and mental disorders. Active and empathetic listening plays the major role in a therapeutic counselling relationship

Coming back to the Mahabharata, the classic instance of counselling for a person in deep emotional conflict and inner war is the Bhagwat Gita, and all of us will need Lord Krishnas in different disguises at some stages in our lifetimes.

It is interesting how Buddha has adopted an integrative approach to the four aspects or components of wellbeing for human progress as:

  • Physical wellbeing
  • Mental wellbeing
  • Social wellbeing
  • Spiritual wellbeing

The author is a Management Counsellor from Sri Lanka. 

Training: what does it mean and what does it entail?

EV Tyre Manufacturing

At the end of my career, I am at the return-on-investment stage, giving back my mentors’ investments in me for all those years ago, and even not so long ago.

Training to me is setting the standards that you wish your trainees to achieve. All those mistakes you learned the hard way, the tricks of the trade, the missteps can all be related to those who’ve chosen our industry. Help them understand how to learn.

The standard for training has to be set very high; no use having a low bar and then complaining that no one knows what they are doing. If you jump for the stars but don’t quite make it, then at least you’ve cleared the tree tops.

When setting training qualifications, the quality of the parameters of the applied learnings has to be not only high but sound. The written materials have to be water tight, the methodology without flaw and the evidence of successful learnings not just a tick and flick exercise. The candidates undertaking the training have to be assessed and then critically deemed competent.

One could be forgiven for not wanting to get on a commercial aircraft if the pilot had ‘purchased’ the qualification instead of working for years towards it; likewise, think about a surgeon operating. The methodology and learning materials have to be sound and qualified.

Bureaucrats often outline training without any real knowledge of what the industry involves. Sure, there are governmental outlines as to what has to appear and how it must appear, but does this really meet the requirements of industry? Few industries are so alike that the same template of learnings can be applied, but for the sake of being able to tick the boxes and say, ‘Yes Minister’, we have standardised learnings regardless of the actual industry requirements.

Safety is the paramount learning. There is no return on investment if the training candidate is injured or maimed and cannot actually perform the work they were trained in. There are only poor outcomes for all involved, from the employer to the family; the provided training must embed safety as a paramount requirement.

I acknowledge the human failings whereby, even with all safety systems engaged, poor judgements and flawed decision-making can lead to inauspicious outcomes. Humans are fallible creatures, and that is what makes us different from machines.

When engaged in a training process, all the ‘what ifs’ have to be considered. In the early days of my education in computing using pencils and card readers, I soon learned the base rule of garbage in equals garbage out, or GIGO. After numerous hours of hairpulling, a comma was identified as the error; it should have been a full stop. There were no error messages generated, no one looking over my shoulder assisting; I blundered on until I stumbled over the fact that I had screwed up. The outcome was negligible, just some lost time. For others in our industry, a mistake may mean the end of their career, loss of amenity and even loss of their life. Do we permit such ‘what ifs’ to be ignored in training?

In the early days of tyre service personnel training, I’d commence the session by telling the candidates ‘never use your first chance, you may not get a second’, then run a series of videos showing catastrophic tyre failures, some simple others disturbing, but the message was clear. There is a process that has to be followed; do not take short cuts and do not deviate without understanding the risks involved deeply and clearly.

In preparing training materials, the risks (regardless of industry) have to be clearly understood; there is no tolerance for a lack of risk assessment and associated mitigation. If a poor standard of materials is presented to newbies to the industry, how are they equipped to identify the flaws that could propagate the catastrophic outcomes we all seek to avoid?

Training is not unlike the manufacturing of a tyre. The materials involved in the construction have to be of sound quality; the processes used in the matrix of the materials to produce the end result we know as a tyre have to be exacting. Anything less and the end product is a blemish or down grade.

Is this what we desire in the personnel we train?

Tyre servicing is one of the most hazardous occupations that is not licensed. Electricians, medical workers, lawyers, all require strict licensing. Yet the personnel that manipulate large tyres that have destructive burst forces that can, and do, result in fatal injuries may not even be required to demonstrate their competency in the aspects of the duties they may encounter.

Tyres are ubiquitous in our societies; just as we observe with the current petroleum shocks, the loss of tyres would be just as disruptive to our modern way of life. We can live without social media (as much as the squeals I hear saying NOOOOO), but can we live without tyres? From the paddock to the plate, tyres are part and parcel of the product. Look around you right now and think about what didn’t arrive in your sight as a result of tyres’ involvement. I doubt if there is anything you see that didn’t arrive to you on tyres.

So why do we not engage with serious education not only for the personnel operating in the tyre industry but also the general public?

I read of tyre recycling efforts, yet most people will only identify with plastics as a recycling target. This whilst listening to a streaming service sitting on public transport running on transport that requires tyres to operate. Tyres are forgotten; everyone ASSuMEs[sic] that the tyre does its job without any thought given to the personnel that ensure our daily safety and food.

Tyres deserve better recognition of the service they provide to our societies. The personnel that service our tyres also deserve the highest level of training that can be provided, not just learn on the job with the potential of not being able to return home in the same condition as they arrived at work.

Training packages must be water tight; anything less will only result in the submersion of the outcomes below the standard that is safe. Training is an investment in the future; to those who invested in me in my younger days, I say THANK YOU! You did well in that I have made it to the later stages of my life intact and am still able to function. Your mentorship is remembered and honoured.

I take this opportunity to remember John Powath, the founder of this masthead. His standards and leadership have created opportunities for our industry to achieve a global recognition of excellence.

Training is the foundation of our industrial and societal processes. Do not scrimp on the materials presented and do not underestimate the risks involved regardless of how trivial they may seem.

Take care, stay safe and invest in your future by offering the highest quality training you can possibly deliver. Your life may depend upon it.”

The Gulf Crisis Leading To A Profound Change In The Tyre Industry

Viewpoint - Bahan

The effects of the Strait of Hormuz closure will become particularly evident in 2026 and undoubtedly represent a strategic bottleneck for global energy and petrochemical trade. The Gulf War disrupted raw material supplies, crippled logistics and destabilised key export markets.

While the war represents a financial catastrophe, it also presents new opportunities. It has driven up raw material costs, while the logistics crisis has impacted export markets. The financial consequences include shrinking margins and reduced demand. However, long-term strategic shifts are expected, and these trends are likely to accelerate by 2040.

The closure of the Strait of Hormuz and the disruptions in the Red Sea have brought maritime traffic to the Middle East and Europe to a near standstill. The war has caused logistical chaos, and exports face immediate difficulties. China alone was expected to export more than seven million tyres to the Middle East by 2025, but this vital trade route is now blocked by skyrocketing freight rates and insurance premiums.

The profitability of the sector, whose gross margins are expected to fall to slightly more than four times their pre-war levels, is likely to be impacted by market consolidation and rising demand for high-tech tyres, particularly for electric vehicles. In the short to long term, the costs of raw materials such as synthetic rubber, carbon black and logistics are expected to rise significantly. Furthermore, this crisis could spur massive investments in bio-based and recycled materials to reduce dependence on petroleum. To address supply bottlenecks, the sharp decline in exports from the Middle East, coupled with significantly increased transportation costs, should be offset by regionalised production, for example, in India and Southeast Asia. With regard to product development, the short-term priority of cost control should lead to an acceleration of research and development into sustainable rubber compounds and sensorless smart tyres.

The end of the Gulf War is likely to usher in a period of weak economic growth and high inflation. The tyre industry is already facing a profound restructuring process. In the post-war era, the focus is not only on repairing the damage but, above all, on accelerating the long-term transition to regionalised supply chains, a circular economy and value creation through technology.

The most immediate consequence of war is a drastic increase in raw material costs,

which can account for almost 70 percent of tyre production costs. Around 45 percent of the raw materials used in the tyre industry are petroleum-based, and another 45 percent are natural rubber. In the case of synthetic rubber (NBR/SBR), the direct rise in oil prices leads to a price increase for butadiene, a key raw material. In the US, NBR prices rose by 7.4 percent at the beginning of March 2026; in China, butadiene prices jumped by 25 percent within a week.

Analysts estimate that this conflict could reduce global natural rubber production by 36 to 45 kilotonnes in the first half of 2026. How can this be explained, given that the effects on natural rubber are indirect? Diesel shortages prevent trucks from collecting rubber from plantations, thus reducing supply on the market. This shortage is contributing to the energy crisis in Southeast Asia. Prices for carbon black and chemicals derived from oil and gas are also rising in line with increasing energy costs. The supply of speciality chemicals (such as bromine from Israel) is also at risk.

Bio-based materials, particularly long-term ESG pilot projects, represent an immediate strategic necessity. The market for bio-based materials is projected to reach USD 337 million by 2032, with a compound annual growth rate (CAGR) of 101 percent, thus replacing volatile petrochemical feedstocks. Similarly, it is becoming increasingly clear that tyre pressure monitoring systems (TPMS) and sensorless, AI-powered systems like Michelin SmartWear can reduce costs and enhance safety.

Rising energy prices and crumbling infrastructure will weigh on consumption and investment. Inflation is high and is expected to remain high (around four percent for the G20 in 2026). Even after the war, energy costs and the rebuilding of supply chains will keep prices high. Consequently, the post-war economic recovery is expected to be slow and uneven, without a V-shaped rebound. The war has left lasting scars on global supply chains and public finances. Global GDP growth is weaker and below the pre-pandemic average.

In the field of carbon black recycling, carbon black is developing into a strategic raw material. Recycled carbon black (rCB) and tyre pyrolysis oil are becoming strategic raw materials intended to replace unstable fossil fuels. Massive investments, such as in Lummus-InnoVent, a continuous pyrolysis technology, will increase rCB production and reach a market of USD 15.6 billion by 2034.

Sustainable and bio-based materials are of great strategic importance, and significant investments are already being made to increase their production. Rising oil prices are making bio-based alternatives economically viable and essential for security of supply. Therefore, the transition to sustainable materials is no longer just an ESG goal but a necessity for the entire supply chain.

The Gulf War acted as a powerful catalyst, transforming promising future trends into immediate and essential investments. Bio-based silanes, for example, are now being used more and more frequently. Momentive’s NXT P97, a next-generation silane for electric vehicle tyres with 79 percent bio-based carbon, reduces reliance on fossil fuels while improving rolling resistance and durability. This technology, a prime example, is currently being deployed on a large scale.

Tyre prices will remain high. The recovery will therefore be characterised more by rapid strategic development than by a simple return to pre-war levels. It is not so much the fluctuating demand from car manufacturers, but rather the replacement tyre market, which alone accounts for 70 percent of the volume, that is likely to continue to strongly support the consumer goods and logistics sectors during the economic recovery.

Increasing uncertainty is becoming the new normal. Geopolitical risks remain a key concern, forcing companies to prioritise resilience over efficiency. This situation is creating unequal competitive conditions for tyre manufacturers and their core markets. The difficulties faced by energy-importing countries in Europe and Asia will be further exacerbated in this climate of uncertainty.

This crisis will be one of the main reasons for the relocation of production to key markets, forcing the tyre industry to make unavoidable investments. It will be compelled to implement the technologies necessary for a more resilient, sustainable and technologically advanced future. New production centres will be established to circumvent geopolitical obstacles. This new dynamic is characterised by a clear strategic realignment of production and supply chains, accelerating ‘out-of-China’ models and leading to regionalisation. This conflict is not merely a disruption but a form of brutality for economically weaker countries, even if it represents a highly effective response to the relocation of production areas.

This war teaches us that excessive dependence on unstable regions like the Middle East must be balanced by the need for market diversification. Exporters like China and India will increasingly focus on Africa, Latin America and Southeast Asia. Margins will remain under pressure in the short term. High raw material and energy costs will not fall immediately. Large global companies will gain market share by leveraging their size and technology, as well as through increased regionalisation. Conversely, smaller, less diversified companies risk being acquired or exiting the market. Companies with strong pricing power and high operational efficiency will recover faster than those that rely solely on low prices.

The tyre industry is facing profound change. The tyre market is being restructured, and local, sales-oriented production is being intensified to circumvent geopolitical barriers and tariffs. In the short term, demand is expected to recover, but profit margins will be severely impacted by persistently high costs. In the long term, the sector will become more regionally focused, evolve towards a circular economy and rely more heavily on technology. In short, the end of the war will not restore the pre-conflict status quo. The crisis has forced a difficult but necessary transition to sustainable and resilient business models that will shape the key trends through 2040.