Continental is making huge strides in using sustainable and recyclable raw materials.

Car tyres are round, black and made of rubber. Look closer, however, and you’ll see that the design of tyres and the interaction of the various materials that go into making them are extremely complex. But for some time now, material experts and tyre engineers at Continental have been bringing about a silent revolution. By 2050 at the latest, all tyres are to be made of sustainable materials. There is still a long way to go until then. But step by step, it is already becoming apparent which raw materials will find their way into tyre construction in the future. These include waste products from agriculture (such as the ash from rice husks), rubber from dandelions, recycled rubber or PET bottles.

Claus Petschick, Head of Sustainability at Continental Tires, is clear about Continental’s mission, saying, “Continental is on the road toward becoming the most progressive manufacturer in the tyre industry in terms of sustainability. We aim to use 100 percent sustainable materials in our tyre products by 2050 at the latest. Our innovative power enables us to break new and even more sustainable ground. This encompasses everything from the origin and sourcing of our materials through to the reuse and recycling of our tyres.”

Already today, around 15-20 percent renewable or recycled materials are used in a standard passenger car tyre from Continental. To further increase the proportion of sustainable materials and conserve valuable resources, Continental continuously analyses and reviews all raw materials used in tyre production.

Perfect material matching for maximum safety 
Depending on the application, season and environment, tyres have to fulfill specific requirements. This can be seen in, for example, the tread design. But in other areas – the composition of the rubber compound, for example – these changes are not so readily visible. Passenger car tyres from Continental consist of as many as a hundred different raw materials.

Their precise composition has a major impact on the tyres and their handling characteristics. The ability to deploy the various materials with their unique properties and interdependencies in specific ways is a complex balancing act for Continental’s engineers and material experts. Only when all the materials are ideally matched to each other can safe, energy-efficient and durable high-performance tyres be created.

Natural rubber still essential due to exceptional properties
Natural rubber is essential for ensuring outstanding tyre performance. This natural product accounts for between 10 and 40 percent of the entire weight of modern high-performance tyres. Its special properties include the high level of strength and durability, which are caused by the strain-induced crystallisation of the rubber. The tyre industry is the biggest consumer of global rubber production, accounting for more than 70 percent. However, Continental considers natural rubber a sustainable material only if it is sourced responsibly. Therefore, the company employs an integrated approach aimed at making the complex and fragmented supply chains for natural rubber more sustainable, including using cutting-edge digital technology, local involvement and close collaboration with capable partners with the goal of improving transparency and traceability along the entire value chain. Meanwhile, with its Taraxagum project, Continental is pursuing an innovative approach to ensure that it can become less dependent on natural rubber grown primarily in southeast Asia. The tyre manufacturer is working alongside partners on industrialising the extraction of natural rubber from specially cultivated dandelion plants.

Sustainable plant-based fillers 
In addition to rubber, fillers such as silica are essential to tyre assembly. Silica, for example, helps to optimise characteristics such as grip, rolling resistance and tyre life. In the future, rice husks will be used as the source material for sustainably-produced silica. Rice husks are a waste product of rice production and cannot be used as food or animal feed. Silica derived from the ash of rice husks is more energy-efficient when used in manufacturing than that obtained from conventional materials such as quartz sand.

Plant-based oils, such as rapeseed oil and resins based on residual materials from the paper and wood industries, already offer an alternative to crude-oil-based fillers in Continental's tyres. Only oils that meet technical quality standards and are not suitable for consumption are used. Oils and resins allow for flexibility in terms of tyre compounds and so improve the material’s grip.

Expanding the circular economy
Continental is aiming for fully circular operations in its tyre production by 2050 at the latest. In addition to the use of renewable materials, the company is working systematically on using recycled raw materials in tyre production. This is intended to ensure that carbon black – another crucial filler in rubber compounds – can be obtained on a large scale in the future. Continental recently signed a development agreement with Pyrum Innovations with a view to further optimising the recycling of materials from old tyres. To do this, Pyrum breaks the old tyres down into their constituent parts in an industrial furnace using a special pyrolysis process. This way, valuable raw materials contained in end-of-life tyres can be extracted and recycled. Both companies are working towards obtaining high-quality raw materials from the pyrolysis oil obtained for Continental's tyre production in the medium-term, in addition to the direct use of high-quality carbon black. In the long-term, the tyre manufacturer and Pyrum are aiming to establish a closed loop circular economy concept for the recycling of old tyres.

Recycled rubber from end-of-life tyres
In addition to pyrolysis, Continental is also making use of mechanical processing of end-of-life tyres. Rubber, steel and textile cord in particular are separated from one another in a highly sophisticated process. The rubber is then prepared for re-use as part of new rubber compounds.

Continental has a long history of working consistently to introduce end-of-life tyres into the circular economy to conserve resources and the environment. A material known as Conti-Reclaim has been obtained as part of the truck tyre retreading process at the company’s plant in Stöcken in Hanover since 2013. It has been used in tyre production at Continental for years. To expand the range of applications for the recycled rubber and optimise the properties for the various fields of application, Continental uses not only Conti-Reclaim but also recycled rubber from other suppliers.

Recycled plastic bottles in tyre casing 
“Recycled raw materials are going to play a big role in making tyres more sustainable. We use recycled materials whenever possible. Comparable quality and material properties to conventional raw materials are crucial for us,” says Petschick.

For example, Continental is working with partners to obtain high-quality polyester yarn for its tyres from recycled PET bottles. PET bottles often end up in incinerators or landfills otherwise. With its ContiRe.Tex technology, the tyre manufacturer has developed a more energy-efficient and eco-friendly alternative that allows it to reuse between nine and fifteen plastic bottles for each tyre, depending on the tyre size. The recycled PET has already replaced conventional polyester in the structures of some tyre casing. The PET bottles used are sourced exclusively from regions where there is no closed recycling loop.

Systematically moving toward greater sustainability
Continental is working to advance innovative technologies and sustainable products and services throughout its entire value chain, from sourcing sustainable materials to recycling end-of-life tyres. The company is aiming to achieve 100 percent carbon neutrality by 2050 at the latest.

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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.

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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.”

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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.

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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.

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