President Biden Test drives Ford’s new electric truck

He said “my plan will spark more electric vehicle (EV) manufacturing in the United States, secure a domestic EV supply chain, ensure a nationwide network of charging stations, make EVs accessible to average consumers and do it with a unionised workforce.” Biden, in his nearly $2 TRILLION jobs-and-infrastructure spending plan, wants to spend $174 BILLION for EV infrastructure development. President Biden plans to fund the ambitious spending plan with tax increases, but as expected, it is opposed by the Republican lawmakers and many economists as inflationary and aggravating the national debt.

However, with this push for electrification, President Biden also appeases a large segment of his democrat supporters, such as the California Gov. Gavin Newsom, also a democrat, who has issued an executive order halting the sale of new gasoline-powered vehicles beginning in 2035 in the state of California.

The ‘GREEN’ angle

The most up-to-date data shows that driving an EV produces almost three times LOWER CO2 compared to an IC-powered vehicle. However, perhaps 50% or more of the greenhouse emissions occur due to an EV even before the vehicle hits the road; As the popularity of EVs starts to grow exponentially, so will the demand for raw materials such as lithium, nickel, and cobalt. These materials are used in batteries to power EVs but are also associated with significant greenhouse gas emissions and linked to environmental damage. Growing need for electricity to charge batteries with also add to the greenhouse gases, unless renewable energy is fully capable to power electricity networks.

Additionally, industry analysts predict that by 2030 the world will generate 2 million metric tons of used Li-ion batteries per year. Developing innovative methods to recycle and extract raw material from spent batteries is critical to reduce the need to mine for ‘fresh’ materials and to alleviate future pressure on supply chains. Therefore, there is an urgent need for further investment for researching and developing new practical methods for recycling the spent batteries and to avoid further environmental damage. While it is full-speed-ahead for EVs, a full life-cycle analysis of the production and use of EVs is needed.

Tyre industry seeks to benefit

The US Tire Manufacturers Association (USTMA) is hoping to influence eventual infrastructure spending and boost the industry in the process. Its 13 member companies produce 85 percent of the tyres sold in the United States, and directly support more than a quarter million jobs across the country.

The association, in its May 24 letter to Congress and the Biden administration, is urging them to take several steps to strengthen the US tyre manufacturing industry while also delivering on important environmental objectives.

The association is urging law makers to promote the recycling of scrap tyres, to invest in research and use of rubber modified asphalt in new and existing infrastructure work. The group also wants more research into the use of tyre derived aggregate in stormwater infiltration galleries.

USTMA also suggests incentivising the growth of US manufacturing of retreaded tyres for commercial vehicles and the use of low rolling-resistance tyres to increase fuel economy and reduce greenhouse gas emissions. Strengthened federal mandates that divert used tyres from landfills would help the country with sustainability and environmental goals, USTMA said, especially when coupled with the greater use of retreads. According to USTMA, there are several ways in which government and the tyre industry can collaborate to meet nation’s shared objectives.

Antidumping duty on tyre imports

President Biden plans to spend trillions of dollars for many social and infrastructure projects, and his administration will use every trick to raise money through imposition of higher taxes and tariffs. To wit, the US Commerce Department affirmed on 20 May 20 imposition of elevated antidumping duties on passenger vehicle and light truck tyres from South Korea, Taiwan, Thailand and Vietnam. This step will be followed by the US International Trade Commission (ITC) which will make its final injury determinations on or about 28 June, 2021. If the ITC finding is affirmative, then Commerce Dept. will issue antidumping orders. The 2019 imports of passenger tyres from the countries under investigation were approximately valued as follows:

• $1.17 billion from South Korea;
• $373.0 million from Taiwan;
• $1.96 billion from Thailand; and
• $469.6 million from Vietnam.

No doubt, USA will use vigorous enforcement of import duties to augment its budgetary needs. (TT)

Eurogrip Tyres, the leading tyre manufacturer in India, showcased its premium two-wheeler tyres at the 17th edition of Feria 2 Ruedas (F2R) International Motorcycle exhibition held at Plaza Mayor, Medellin, Colombia. The dates of this high-profile business event in South America's two-wheeler sector are 15–18 May 2025.

For more than 17 years, the Feria de las 2 Ruedas (F2R) has been the leading motorcycle industry event in Latin America. The expo, which takes place every year in Medellín, Colombia, is a vibrant venue for commerce, innovation and growth in the motorcycling sector. Additionally, it gives aficionados the chance to investigate the most recent developments and trends in the industry. The company showcased its premium lineup at exhibit N24 in the Tented Pavillion, which included a range of sport touring, off-road and trail tyres. High-performance versions including the Roadhound, Protorq Extreme, Trailhound STR, Climber, Bee Connect, Terrabite DB+ and Badhshah LX were on display.

P Madhavan, Executive Vice-President – Marketing & Sales, TVS Srichakra Ltd, said, “Eurogrip is focused to deliver innovative products for the global markets. Latin America is a priority market for us, and F2R Expo is a promising platform to engage with our target audience. We are looking forward to interesting business opportunities arising from this expo. Such specialised industry tradeshows add exceptional value to our quest in becoming a leading global tyre brand delivering world class tyre technology.”

Denka Company Limited announced it would record an extraordinary loss of approximately 16.1 billion yen (£85.8 million) as an impairment on manufacturing facilities at its US subsidiary. It will indefinitely suspend chloroprene rubber production at the Louisiana plant.

The Japanese chemical manufacturer, which holds a 70 percent stake in Denka Performance Elastomer LLC (DPE), cited mounting operational challenges, including unexpectedly high costs for pollution control equipment and declining production volumes at the American facility.

“DPE has faced significant cost, production and other challenges at its facility in the United States,” the company said in a statement. “Rising costs are attributable to, among other factors, identification, design, purchase, installation, and operation of pollution control equipment to reduce chloroprene emissions that DPE did not anticipate being required when it acquired the facility from E.I. DuPont de Nemours and Company.”

The subsidiary was established in December 2014 and acquired the chloroprene rubber business from DuPont in November 2015. The Louisiana facility was intended to serve as a second manufacturing site in North America, complementing Denka’s Omi Plant in Itoigawa, Niigata, Japan.

However, according to the company statement, DPE has struggled with multiple operational issues, including “rising energy costs and a shortage of qualified staff necessary to operate new pollution control equipment and implement other emission reduction measures. “

Production volumes have declined partly due to “operational restrictions arising from the pollution reduction measures and unscheduled plant outages associated with supply chain disruptions and severe weather events,” Denka said.

The company noted that these challenges, combined with changes in the global economic environment for chloroprene rubber, have pressured profitability, making near-term improvement difficult.

Denka confirmed that DPE employs 250 people as of December 2024 and will not restart its chloroprene rubber manufacturing facilities following a regular maintenance shutdown. Instead, “all options for the business, including a potential sale of the business or its assets, will be considered,” the statement said.

The company emphasised that “no decision regarding a permanent closure of the facility has been made at this time.”

Customers will continue to be supplied from current inventories and production at the company’s Omi Plant in Japan.

DPE is 70 percent owned by Denka USA LLC, a wholly owned subsidiary of Denka Company Limited, and 30 percent by Diana Elastomers, Inc., a subsidiary of Mitsui & Co., Ltd.

Yokohama Rubber reported a 56.9 percent year-on-year decline in profit attributable to owners for the first quarter of 2025, despite posting a 9.0 percent increase in sales revenue.

The Japanese tyre maker recorded a profit of 8.53 billion yen for the three months ended 31 March, down from 19.8 billion yen in the same period last year. Business profit fell 3.2 percent to 24.07 billion yen, while sales revenue rose to 275.12 billion yen.

The company maintained its full-year forecast, projecting an 11.4 percent increase in sales revenue to 1.22 trillion yen and an 8.8 percent rise in profit to 81.5 billion yen for the fiscal year ending 31 December 2025.

Yokohama Rubber attributed the profit decline to one-time costs related to its February acquisition of Goodyear’s off-the-road (OTR) tyre business, which it purchased for approximately 143 billion yen.

“Profit from existing businesses was strong,” the company said in its earnings statement. “In addition to increased sales volume for the company’s consumer tyres, mainly in overseas markets, and continued expansion of sales of high-value-added ADVAN, GEOLANDAR, and Winter tyres as well as high-inch tyres, profit was boosted by the MB segment’s MIX improvements and structural reforms.”

The tyre segment, which accounts for 91percent of the group’s consolidated sales revenue, saw a 10.4 percent increase in sales to 250.32 billion yen. Original equipment tyre sales were higher year-on-year, driven by “strong sales in Japan of vehicle models equipped with YOKOHAMA tyres and expansion of shipments for Chinese automakers’ new energy vehicles,” the company said.

Replacement tyre sales also increased, supported by higher sales of summer and winter tyres in Japan, increased sales of high-inch tyres in Europe, and stepped-up sales efforts in Asia.

The MB (Multiple Businesses) segment, which represents 8.4 percent of total sales, experienced a 3.2 percent revenue decline to 23.02 billion yen. This was attributed to lower demand from construction machinery makers in Japan and automakers in North America.

The company described an “upbeat” business sentiment in Japan for the quarter, noting that “a steady recovery in inbound demand and increasing orders for construction and logistics projects compensated for weak consumption by domestic households curbing spending in response to rising prices of consumer goods.”

Overseas, the company observed rising inflation concerns weighing on consumer spending in the United States, while in Europe, “manufacturing industries are rebounding and corporate business sentiment is improving.” In China, personal consumption was boosted by the Spring Festival holiday, but high US tariffs “reduced China’s exports and created uncertainty about the future that is weakening industrial activity.”

Swedish speciality chemicals firm Nynas reported solid financial results for 2024, posting an Adjusted EBITDA of 1,333 million Swedish kronor, marginally higher than the 1,316 million kronor recorded in 2023.

The company, which specialises in naphthenic speciality oils and bitumen products, attributed its performance to operational efficiency and commercial success in its niche markets.

“We are delighted with the progress made during 2024, evidencing our right-sized cost base and a more targeted commercial and manufacturing footprint. We have redefined our strategic direction, positioning Nynas as a speciality chemicals company, enabling the energy transition and setting our course for 2035,” Nynas CEO Eric Gosse said in a statement.

The firm highlighted strong cash generation from operations, which it said would support planned investments and longer-term growth initiatives. Nynas also mentioned the ongoing transformation of its Harburg site with plans to monetise the asset eventually.

All three of the company’s production facilities maintained high operational reliability between 95 percent and 99 percent. The Nynäshamn refinery achieved a notable milestone: in May 2024, it set a new monthly production record for naphthenic speciality oils at 42,000 tonnes.

Strategic pivot towards sustainability

Nynas outlined a strategic shift focused on higher-margin speciality materials with sustainable characteristics. The company aims to strengthen its position in European markets through innovation and sustainability initiatives.

“Nynas is uniquely positioned to contribute to the energy transition. Our strategy reflects our purpose to advance a more sustainable society, and our product development pipeline is fully aligned with this goal," Gosse added.

In 2024, the company received an EcoVadis Gold rating, placing it in the top 5 percent of globally rated businesses for sustainability performance.

With consecutive years of strong financial performance, Nynas indicated it continues to monitor debt capital markets to optimise its capital structure “at the appropriate time potentially”.

The Swedish chemicals producer noted that, having ceased operations in the United States in 2022, it remains largely insulated from recent global trade tensions surrounding US import tariffs. The company imports only minimal feedstock from America, shielding it from potential cross-border trade disputes.