For any enterprise involved in on road operations there are quite a number of risks and always a degree of risk. How to mitigate the risk potential is always a challenge and in some larger businesses involving a dedicated risk manager.

Many trucking companies look at risk exposure as a necessary evil and utilise insurance packages to reduce the financial ramifications of such exposures.

Now, what if, a risk mitigation strategy that provided positive financial outcomes was available for just a little investment? Does this spark interest in those who drive the abacuses in the back rooms?

Tyres form one of the highest cost centres for a transport operation be the activities on road or in a mining operation. Fuel is usually the largest and is tightly controlled as the abacus jockeys understand that every last millilitre of fuel must be accounted for. Granted there is a percent here or there for spillage but as fuel companies demand payment prior to delivery for almost all operations the bean counters are onto it without delay. Tyres?

When we consider the humble tyre so many ASSuMe that the tyre just performs the required duties without any (at worst) attention or with just a little attention, perhaps a kick every now and again or being slapped with a pipe or bar to confirm the tyre isn’t totally flat.

Tyre, the influencer

What is not very well understood by back-office personnel is that tyres are influenced by, and actually influence, the successful operation of the vehicle, be it a wheel barrow, a tri-cycle, a rigid truck or road train even a giant haul truck. If the tyres aren’t “right” then the operating costs will rise. Consider a delta percentage on fuel burn of 3 – 5%, a wheel end bearing life reduction of 10%, a tyre life deficit of 10%, decreased suspension component life as the tyres are being dragged not rolling, at what cost does the “head in the tyre” influence the profits of the business?

So, when we “Cover Your Analyse risk SAFETY” every-time (CYA) we consider all the contributing aspects of tyre use and how risk mitigation practises can be employed to grow the return on the investment our businesses make in tyres. All successful transport companies maintain a close log on the consumption of mechanical items such as fuel and spare parts. Labour costs are also rigidly overseen and as every driver well understands there are events on the road that result in a later delivery than was planned, a traffic event that turns the usual highway into a car park. When the driver returns to base and lodges the work hours there is always a cry from the accounting department why has this person worked overtime, why are we paying more than normal?

Yet, for tyres it seems too often the humble servant is treated as a mere consumable commodity and just turned over or replaced without any consideration as to how life can be extended. Why? When tyres influence so many of the unseen factors for a transport operator why are they not used as the reporter, the data logger of operations? A tyre does not lie about the experiences they have endured, they cannot suddenly grow tread to cover misalignment or a brake lock up, the evidence is in our faces IF we simply observe what the tyres are telling us.

Tyre management

There are many valued publications from around the globe that have photos of tyres that have worn in a certain manner or exhibit various conditions that relay the root causes of the damage to the observer. The tyre scrap heap is the first place we visit when determining the tyre management capacity and capability of a new client. How many tyres with more than the minimum legal tread depth are in the scrap heap? If there are records of tyre performance what is the tread consumption rate for the tyres consumed? What is the frequency of the various scrapping reasons the business using tyres is experiencing? Why? What is the distance per tread unit rate? What is the fuel burn rate per tread unit consumption? What if these questions can’t be answered? Then a risk mitigation practise is obviously not in practise. Exposure is certain, a matter of when not if.

A simple tree diagram or spider web drawing outlining the various risk aspects a tyre could experience with each branch drawing down into detail of how, what and why can assist in the mitigation process. The risk on the underside of the branch with the solution on the top provides a simple but effective illustration of the potentials available.

The TyreSafe Australia policy known as the 6M Principle is engaged in not only tyre performance enhancement but right through the various aspects of the transport business. Before you can MANAGE you have to be able to MEASURE. With measurements (read data) one can MONITOR to know when to MAINTAIN the equipment therefore actually MANAGING in order to MAKE MONEY! The 6M principle is simple but it requires diligent and dedicated systems within the workplace. There are many principles such as that espoused by Dr William Deming who developed the PDCA process, PLAN, DO, CHECK, ACT where the a/ versus b/ consideration was created:

Bill Smith who introduced the 6 Sigma philosophy in the 1980’s also recognised the same avenue of opportunity. The basis of 6 Sigma is the improvement of the output quality by recognising and eliminating the root causes of defects and so minimizing the impacts using statistical processes, ie managing by measuring monitoring and maintaining!

The TyreSafe Australia 6M principle is closely aligned with these well recognised philosophies and commences with the simple recognition that tyre inflation pressure control is the absolute basis for the desired performance outcomes a transport related business will experience. How do you analyse the risks, what mitigation processes are in place?

Safety is not just about well-being of personnel. If a business doesn’t employ safe practices, is it going to be sustainable? Not just from the human factor but also consider the financial aspects. A business engaged in risky financial undertakings will probably collapse sooner than later.

So why not start the process from the ground up by ensuring that the foundation of the modern motor vehicle, the humble tyre is indeed operating at optimum levels. With modern electronics there is no excuse for not completely understanding (and so appreciating) what the tyres you use are providing to your business profits. If you are not measuring, how are you managing?

Ensure that your tyres are not a drag on your operation, ensure the rolling resistance is as low as possible and this will ensure there is an even flow of dollars into your account. Utilising real time tyre monitoring is now a standard practise for successful businesses who utilise tyres in their operations.

Cover Your, Analyse Risks Safety Everytime! (TT)

• Adam Gosling and the team at TyreSafe Australia provide guidance and direction for all tyre users. Safety is paramount, so is efficiency and sustainability. Tyres are a globally universal product, the requirement for tyre safety is also a global standard.

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.