Speaking about the plant, Reddy said, “We planned to set up the plant in late 2018. Before the first wave of Coronavirus, we started off with construction, but our work was stalled due to the subsequent lockdown. Now the manufacturing unit has been fully constructed, but we can’t start operations due to Odisha being under lockdown. Once things normalise, we will start production.”

The plant is expected to have a monthly production of 500 units of 1200x24 size tyres used for Volvo truck-like vehicles.

The new plant will cater to the mining industry situated in Odisha. The company has already been serving the mining industry in the region for the last 24 years. “A lot of people from Andhra Pradesh are involved in the mining business in Odisha. We are taking indigenous machinery from Coimbatore, which will ensure an optimum cost for the tyres,” said Reddy.

The company’s customer base comprises VPR, BGR, Sainik Mining, etc.  It has also started trade relations with Linde India. Fortune Tire Tech also plans to offer management services to its customers as well.

Fortune Tire Tech is the first-of-its-kind company in India to retread tubeless, radial and bias tyres, complying with European and American environmental standards.

The Odisha plant is equipped with the latest machinery imported from Germany and Italy. Fortune Tire is the first company in India to use shearography for retreading tyres. However, speaking on the viability in deploying modern machinery, Reddy explained, “Due to being a model plant, the investment for the plant is high. However, the plant is not viable for the Indian perception. But as a passionate retreader for the last 25 years, we have made the investment. The challenge is the Indian customers compare my product quality with roadside retreaders. Global retreading machinery leaders have also set up plants in the country, but unfortunately, could not succeed in this market so far. The people interested in investing in machinery get demoralised as the output cost is more than the local products. It is a problem for everyone.”

Commenting on the Indian government’s move to open its indigenous mining to private players, he said, “Retreading is famous in the mining industry across the globe—everyone banks on it. It is a key change in the tyre space. It is viable for everybody.”

Reddy has been in the retreading business since1995, but he started on a larger scale in 2012 with his first manufacturing plant in Hyderabad. “I was associated with Vamshi Rubber Limited since 1995 as a franchisee. That time we would roll out 800 units per month in Telangana. It was a small unit. I know the chairman of the firm very well. So, in one of our discussions, I placed the idea of a model plant in India. After that, we set on a tour of Europe and eventually, with the help of Mereddy Ramesh Reddy, chairman of Vamshi Rubber, we laid out our first plant in Hyderabad in 2012. After its success, we started our second plant in Singrauli, Madhya Pradesh, in 2016. And now we have set our eyes on Odisha. But due to the pandemic, there is a delay in commencing operations,” said Reddy.

Fortune Tire Tech’s Hyderabad plant has a capacity of 4,000 tyres, but it is rolling out 1,300-1,400 tyres per month in the lockdown. On the other hand, the MP plant produces 500 units per month, but currently, it is producing 250 tyres per month.

Commenting on the retreading space in India, the veteran opined, “The market is outstanding, but the sector is unorganised. You cannot compete in an unorganised sector. Around 80 percent of the market is unorganised. We have appealed to the government to license players in this sector, but nothing has been done so far. Between 2016 and 2018, many Chinese tyres were imported into the Indian market which crunched to the tyre retreaders . But now, the current import duty has reduced the flow of Chinese tyres here. The government should show its support to the industry as we come under 18 percent GST slab. Due to this, transporters and other logistic support have to incur heavy losses. We appealed to the government through our association, but nothing came of it. We should come under the 5 percent GST slab.”

According to Reddy, fleet owners mow are more concerned about maintaining their old tyres than buying new ones and looking for retreading tyres to reduce the cost per kilometre. “Chinese tyres are use and throw tyres and can be used temporarily. They are not viable in the long run, and retreading of these tyres is not viable. Major Indian tyre companies have come into the retreading space, but none of them, including the government, have perceived that this industry can be eco-friendly,” said Reddy.

Drawing a comparison on tyre retreading awareness between India and European countries, Reddy opined, “In European countries, every retreader has to have a licence and label their tyres. We have demanded the government to bring the same practices to India. Because once we have labelling on retreaded tyres, the unorganised sector will come to an end. But it is not happening in India.”

He concluded the conversation by saying, “We have no future plans yet. We are looking at the second Covid wave. Future prospect for the space is good, but we have to see how it unfolds after the pandemic and what effect does Coronavirus have on it.” (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.