Collaboration Is A Growing Need!

Michelin

The tyre industry has undergone significant changes over the past century, particularly in material composition and performance optimisation. While the external appearance of tyres may remain similar, advancements in rolling resistance and the integration of sustainable materials have reshaped the sector. Michelin, alongside its competitors, has been embracing innovation through collaborations to meet its ambitious 2050 sustainability goals, focusing on using 100 percent renewable and recycled materials. However, the challenge lies in scaling up recycling technologies and ensuring effective sorting. As the industry shifts, RFID technology and extended producer responsibility (EPR) regulations are emerging as critical tools for achieving material circularity and enhancing recycling efficiency.

Tyres have changed in the last 100 years. While the basic shape and colour might look the same, the internal composition has evolved significantly. Over the past century, and especially in the last 30 years, there have been major advances. One of the most significant has been the improvement in rolling resistance. Achieving lower rolling resistance without compromising grip has been a major technical challenge, and it has had a direct impact on fuel efficiency. In parallel, there’s been increasing focus on using more sustainable materials in tyre manufacturing. So, while it might not be obvious from the outside, there’s been substantial innovation under the surface.

However, it is a well-known fact that the tyre industry is secretive. Companies keep their research and development as tight as possible, but endeavours for including recyclable materials seem to break that ceiling, prompting towards collaborations.

Speaking exclusively to Tyre Trends, Sander Vermeulen, Vice President for End-of-life Rubber Products Recycling Business at Michelin, said, “There is a growing need and momentum for tyre companies to work more closely together, particularly around sustainability and materials innovation. Many companies have set ambitious goals for 2050, which include using 100 percent sustainable materials, achieving full recyclability or becoming carbon neutral. While each company may define these goals differently, the overarching direction is very similar.”

“A good example of this shift is our recent collaboration with Bridgestone through the ‘Call for Action’ initiative. We discovered that both companies shared similar long-term ambitions. One major challenge we identified was the scalability of innovations, especially from recycling companies. Many of these innovations work well at small scale, but scaling them up to meet the needs of the global tyre industry is a different story. What’s promising is that instead of working in silos, we began engaging in open dialogue. Both Michelin and Bridgestone were receiving proposals for new materials but often found them unsuitable for tyre applications. Rather than simply rejecting these proposals, we asked that how we can help these suppliers improve the products,” he added.

He noted that together the tyre makers started defining shared specifications that outline the minimum criteria a new material must meet to be viable for tyre manufacturing. “It’s not a guarantee of adoption, but it provides a clear, transparent benchmark. And if a material doesn’t fall within that box, we can save time for ourselves and the suppliers,” added Vermeulen.

He also quipped that he had never imagined working so openly with a competitor like Bridgestone whilst strictly respecting antitrust rules. But the experience has been incredibly constructive.

Michelin’s 2050 target is bold as it seeks to make 100 percent of its tyres from renewable, recycled or sustainable materials. Recycling sits at the core of that ambition. Internally, the company is aligning efforts across departments to meet this goal with a near-term milestone of 40 percent sustainable content by 2030.

That percentage includes both recycled and bio-based materials. However, Michelin isn’t developing recycling technologies in-house. Instead, it’s working with a network of external partners to identify and scale promising innovations.

Among its collaborators are Enviro and Infiniteria as well as broader initiatives like Biobutterfly and the WhiteCycle consortium, which focuses on recovering textile fibres for tyres. The company remains open to any solution that can help close the loop on tyre materials.

As of the most recent annual report, Michelin reported that 31 percent of the materials used in its tyres are either renewable or recycled. This figure reflects the combined share of both categories, not recycled content alone.

Opining on whether recycled materials are easier to use in commercial or passenger tyres, Vermeulen said, “It really depends on the specific application. Some applications allow for a higher percentage of renewable or recycled content than others. But we don’t break down our targets or current performance by tyre category. The current figure we’ve communicated in our annual report is a global average across all types of tyres.”

EVOLVING VALUE CHAIN

As tyre companies remain steadfast towards the respective goals of using recycled and renewable materials, a glaring question that remains is the fate of current suppliers. Explaining how the value chain will be impacted once tyre companies reach the goals, Vermeulen stated, “They will also need to adapt. The entire value chain must evolve. That means synthetic rubber producers and oil suppliers need to develop renewable or recycled versions of the materials they currently provide. Everyone, from upstream raw material providers to downstream manufacturers, will need to contribute if we’re going to meet these ambitious goals.”

Commenting on whether such shift will restructure the entire tyre industry, he said, “It’s hard to make specific predictions, but one thing is clear that the entire value chain is already beginning to change. All raw material suppliers now understand the direction tyre manufacturers are heading. We’re already seeing many traditional suppliers exploring new approaches to reduce the reliance on fossil-based materials. Some are developing recycled alternatives, while others are exploring biobased feedstocks.”

“In this effort, a concept we explored in a large-scale European project was called BlackCycle. It brought together various actors from the entire tyre industry value chain including raw material suppliers and other stakeholders to map out how we can extract maximum value from end-of-life tyres. It looked at viable recycling pathways including how pyrolysis oil can be integrated into chemical supply chains. We all need to work together to co-create solutions based on renewable and recycled materials,” he added.

Michelin doesn’t plan to produce recycled materials itself. Instead, its focus is on defining performance and quality specifications, then partnering with companies ranging from start-ups to established suppliers that can deliver materials meeting those standards.

Commenting on the same lines, he added, “The entire tyre industry has a strong interest in gaining access to recycled materials that can be reused in new products. And to achieve that, partnerships are essential. There’s no way we can meet these ambitions if every company stays within its traditional boundaries and works in isolation. We believe in collaborating across the value chain. Often, smaller companies have breakthrough technologies or innovative ideas but lack the resources or infrastructure to scale. In those cases, if we can help them access funding or industrialise the processes, it’s a win-win for the industry as a whole.”

While performance gaps between recycled and virgin materials are a known concern, Michelin sees scalability as the more critical barrier. Many recycling innovations show promise at the lab or prototype level, but few are ready for industrial-scale production.


To bridge that gap, Michelin and others in the sector are working closely with innovators to help mature these technologies to meet industry demands.

REGULATION & TECHNOLOGY

The extended producer responsibility (EPR) has been a staunch advocate for recycling end-of-life tyres across countries. The regulation is not only limited to European markets but has expanding into countries like India too.

Commenting on whether EPR regulations will help drive more effective recycling, Vermeulen said, “Extended producer responsibility plays a key role in tyre recycling by making manufacturers responsible for collecting and recycling tyre after use. In countries with EPR laws, such as most of Europe, producers and importers must ensure proper tyre collection and recycling. This legally mandates tyre producers to manage the end-of-life stage of the products. However, EPR is not the only model that can ensure effective recycling. In regions without EPR, like the United States, tyre recycling is still managed through a free-market system driven by industry and service providers. Even in Germany, which lacks an EPR law, tyres are still collected and managed properly through industry-driven solutions.”

“While EPR can certainly help in places with limited infrastructure, the key to effective tyre recycling lies in how well the system is organised. Whether through EPR or free-market models, both can be effective as long as the collection and recycling infrastructure is well established,” he added.

Vermeulen also views RFID technology as a crucial enabler for achieving material circularity in the tyre industry. By embedding RFID tags, tyres can be tracked and identified with precise information about its composition, helping to streamline the recycling process. This technology allows for better sorting of tyres based on specific material make-up, which is critical for maximising the quality of recycled materials.

Just as with household recycling, the challenge is to ensure that materials are sorted effectively. With too many sorting categories, costs rise without guaranteeing better quality. RFID makes it easier to identify the correct ‘bin’ for each tyre, whether it’s a winter, truck or passenger car tyre.

Additionally, RFID can help differentiate between new, retreaded and partially worn tyres, which often have varying materials and recycling needs. This enables more efficient sorting, improving the overall quality of the recycling output while keeping costs manageable. Michelin sees RFID as an essential tool in making the recycling process more effective and economically viable.

ANRPC Publishes Monthly NR Statistical Report For August 2026

ANRPC Publishes Monthly NR Statistical Report For August 2026

The Association of Natural Rubber Producing Countries (ANRPC) published its Monthly Natural Rubber Statistical Report for August 2026, noting firmer prices in several markets. Supply constraints, stable downstream demand and persistent geopolitical and macroeconomic uncertainty shaped the month. Renewed conflict and disruptions to major shipping routes added further pressure.

Physical prices for major grades moved in different directions. SMR-20 in Kuala Lumpur averaged USD 2.31 per kg, up 4.25 percent from July, while STR-20 in Bangkok rose 1.40 percent to USD 2.39 per kg. RSS-3 dropped 4.18 percent to USD 2.80 per kg, but RSS-4 in Kottayam gained 0.57 percent to USD 2.92 per kg. Latex-in-bulk fell 4.73 percent to USD 1.73 per kg. Brent crude averaged USD 91.08 per barrel, driven by concerns over possible restrictions on oil shipments through the Strait of Hormuz and wider Middle East instability, which raised energy supply risks and strengthened the oil market risk premium.

On trade, China's imports climbed 3.39 percent month-on-month, while India fell 10.18 percent and Malaysia dropped 8.24 percent; Viet Nam rose 5.08 percent. Exports advanced 5.63 percent in Viet Nam but declined in Thailand (-5.24 percent), Indonesia (-5.36 percent), Malaysia (-1.48 percent) and Cambodia (-1.88 percent).

Global production is projected to rise 0.6 percent to 15.039 million tons in 2026 from 14.952 million tonnes in 2025, after revisions to Thailand's 2025 output and updated 2026 estimates for Thailand, Malaysia and Indonesia. Weather, including erratic rainfall and drier Southeast Asian conditions, affected output. August 2026 production was estimated at 1.396 million tonnes, down 4.51 percent from 1.462 million tonnes a year earlier. Demand is forecast to grow 0.4 percent to 15.356 million tonnes in 2026 from 15.301 million tonnes, with the largest consumption gains expected in China, Malaysia and Cambodia. Prospects depend on vehicle sales, tyre production, shipping conditions and weather-related supply disruptions, while steady EV-linked demand supported modest growth led by China and India. The ringgit traded between RM4.02 per USD and RM4.09 per USD, and the baht between 32.68 and 33.34. The SHFE January 2027 contract averaged 18,109 CNY per tonne, up 7.78 percent month-on-month, while the SGX November 2026 contract averaged USD 2.24 per kg, up 4.32 percent.

HS HYOSUNG To Expand Mexico Investments From 2027 Under New State Agreement

HS HYOSUNG To Expand Mexico Investments From 2027 Under New State Agreement

HS HYOSUNG has formalised a memorandum of understanding (MoU) with the State Government of San Luis Potosí, with the signing taking place at the World Trade Center Mexico City. The event formed part of the Korea-Mexico Business Forum, held alongside the Korean economic delegation's visit to Mexico.

Attending officials included Marcelo Ebrard, Mexico's Secretary of Economy, and Mario García Valdez, Secretary of Economic Development of San Luis Potosí. The two sides confirmed their shared resolve to back the company's local investment and regional growth. Separately, HS HYOSUNG's leadership met bilaterally with Secretary Ebrard to elaborate on its strategic vision and investment plans.

The agreement sets out a phased expansion of HS HYOSUNG's investments in San Luis Potosí beginning in 2027, with the goal of creating a major advanced materials production hub that bolsters supply for North American and wider global markets. The company's advanced materials span tyre cord, a flagship world-leading product, along with mobility, energy, aerospace and defence applications. Its North American operations, spanning Mexico and the United States, turn out tyre cord, airbag materials and mobility interior components for global leaders such as General Motors and Goodyear, underpinned by a highly dependable global supply chain.

Nak-yang Sung, CEO, HS HYOSUNG ADVANCED MATERIALS, said, “This investment goes beyond establishing a simple manufacturing base – it reflects our strategy to turn Mexico into a pivotal hub connecting North America with global supply networks. We are also committed to strengthening local supply chains and creating high-quality jobs to contribute directly to the region's industrial ecosystem.”

Kumho Petrochemical Group Shifts Focus To R&D and Speciality Materials

Kumho Petrochemical Group Shifts Focus To R&D and Speciality Materials

Kumho Petrochemical Group is steering its business towards research-driven, higher-value outputs as oversupply and soft demand continue to weigh on the worldwide petrochemical sector. The Seoul-based group outlined plans to boost spending on speciality chemicals, sustainable materials and novel production methods, a push intended to lift profits while building a foundation for future expansion.

Underlying the move is a deliberate evolution in the group's identity, from a bulk materials vendor to a provider of technology-backed solutions that address shifting customer requirements and stricter environmental rules. A central element of that effort involves widening the speciality lineup, exemplified by added capacity for solution styrene butadiene rubber, a synthetic rubber that enhances durability, rolling resistance and tread wear in high-performance electric vehicle tyres.

Environmental initiatives form another pillar. Facilities built by the company can trap approximately 76,000 metric tonnes of carbon dioxide each year, while separately developed technology turns recycled acrylonitrile butadiene styrene sourced from scrapped household appliances into automotive-grade interior components that satisfy performance standards and generate fewer emissions than conventional methods. The group has also joined forces with POSCO Future M and BEI on anode-free lithium-metal battery development.

Parallel technology-focused programmes are underway at affiliated units. Kumho P&B Chemicals is formulating water-based epoxy resins that curb volatile organic compound releases while incorporating more bio-based inputs to reduce carbon intensity. Kumho Mitsui Chemicals is advancing bio-based polyurethane systems and electric vehicle materials, alongside debottlenecking work to add 100,000 tonnes of annual methylene diphenyl diisocyanate capacity. Kumho Polychem, meanwhile, is targeting ethylene propylene diene monomer through low-temperature polymerisation paired with energy-efficiency improvements.

Birla Carbon Announces Asia-Wide Speciality Materials Price Hike Of Up To 15%

Birla Carbon Announces Asia-Wide Speciality Materials Price Hike Of Up To 15%

Birla Carbon has confirmed a price increase of up to 15 percent for its Speciality Materials products across Asia, scheduled to take effect on 1 October 2026. The company pointed to significant and sustained rises in feedstock costs, driven partly by ongoing geopolitical instability and disruptions in global feedstock markets, as the reason behind the adjustment.

Although Birla Carbon pursued operational efficiencies, supply chain optimisation and disciplined cost management to soften the impact, the scale and persistence of the cost escalation left a price adjustment unavoidable. The company's sales teams will engage customers directly to explain the details and help them navigate the transition.