The global tyre industry has evolved on all fronts.  Tyre manufacturers faced a constant trade-off between meeting productivity goals and increased requirements from the customers and new regulations. Hauvala and his colleagues realised that tyre manufacturers could no longer do everything by themselves in the changing market environment: to design tyres, tyre factories and manufacturing processes in a way that would support the new demands for efficiency. Instead, they should be able to concentrate on their core business. “We had a great vision with true market potential, plus an attractive option to reform the tyre industry,” said Hauvala.

‘We’, that is a key founding team of twelve tyre technology professionals. Hauvala uses the plural form throughout the interview, pinpointing the obvious fact that you cannot change the industry alone. “It is all about ‘collaboration’,” Hauvala stresses.

In 2011, the tyre industry, well known for its strict conventions, was however not ready and waiting for a changemaker. It took long before tyre manufacturers accepted the new service concept and realized its potential business value. “It was the depth of our expertise that convinced the first customers. The fact that we knew the tyre industry from inside out and could provide the whole package under one roof,” Hauvala says

Today, Black Donuts is an established and recognised technology house providing innovative solutions for tyre manufacturers. The concept of turnkey solutions has remained as the company’s key strategic principle. Elaborating the solultion provided by Black Donuts, Hauvala, said, “We are a full-service technology house providing the entyre solutions for designing, building, and running a smart and sustainable tyre plant with maximized productivity and best-in-class products.”

The company’s customer portfolio includes 20 out of the top 25 tyre manufacturers, which a glaring sign of competence and an option to reform the industry. “You need references to be convincing. And you need a network of partners sharing your vision of a brighter future for making it happen,” Hauvala says.

 

Changes And Challenges In Tyre Production

In last ten years, according to Hauvala, tyre manufacturing has witnessed the diverse challenges, including complex product mixes, shorter product runs, and the pressure for faster deliveries – a myriad of different demands affecting day-to-day factory operation. “ Things are changing at an accelerating pace, and there are no signs of slowing down. From the tyre manufacturers’ perspective, the operational environment has become complicated,” thinks the Black Donuts CEO.

Focusing on core competencies is a clear industry trend. Other operations outside manufacturing high-end products are increasingly being outsourced – aligned with Black Donuts’ original business idea.

Nevertheless, all players regardless of their area of specialization benefit from partnering with a company that understands the entire sector. In the era of ever-tightening cost and efficiency targets, choosing a partner to lead and actualize major investment projects, such as setting up a new factory, has become a mainstream option. “Tyre manufacturers desire a proven and effortless end-to-end service, provided by professionals, whose core competence is to plan and manage investment projects,” he says.

Assuming total responsibility for the production design, ramp-up, and material handling, Black Donuts controls that every detail in the production aligns with the customer’s goals. A shortened payback time creates concrete extra value for the customer. Hauvala says, “Our finetuned processes and advanced technology tools enable a smooth ramp-up. The reduced time-to-market generates faster and greater ROI.”

The rise of automation is another key trend in the tyre manufacturing. Black Donuts helps tyre manufacturers improve productivity and take the required technology leaps towards smart factory efficiency. The company has developed its own MES concept that gives multiple benefits for tyre manufacturers, such as improved insight and the potential for full traceability of tyres in production. The new plant concept also enables a remarkable decrease in stock levels and factory manning. “ In our latest factory design plans, the required manning is only half of the level in the first plans ten years ago,” tells Hauvala.

Also, the end-customer demands are higher now than a decade ago, forcing tyre manufacturers to rethink their business models to live up to the growing expectations.  In the concept of Black Donuts, the manufacturing process is optimized, flexible and efficient despite the increased number of simultaneous products and sizes in production. “With us, the manufacturing process gets new flexibility that enables shorter delivery times,” Hauvala promises.

 

The Rise Of New Brands

During the past decade, the tyre industry has witnessed a geographic change. The number of brands in the market is growing, just like in any other industry offering low-involvement consumer products. Established international brands get new challengers from local manufacturers offering good quality for moderate prices. “ The interest in tyre production raises its head particularly in the countries of fast economic growth with own raw material sources,” says Hauvala.

Black Donuts has developed a tailored turnkey service for the industry newcomers. It covers the entire solution from A to Z for designing, building and running a tyre plant. “We step in on day one and work hands-on with the customer throughout the process from feasibility study to the market entry. Or beyond, keeping the production and products always in the frontline of tyre technology,” explains Hauvala.

Today, Black Donuts is a genuinely international company with customers on almost every continent except Australia, where there is no domestic tyre manufacturing. “ We don’t have any borders in our minds, but the whole world is our market area. We are fully open to all directions,” says Hauvala.

 

Quality Leap In Tyre Development

According to Hauvala, a quality leap is the single biggest change in tyre development, driven by a continuing high-performance trend and technological advances. “ The quality of tyres is remarkably higher today,” adds Hauvala.

Black Donuts’ customers get access to the latest technology, the smartest innovations, and the most advanced materials. All the best-in-class product qualities, such as superior performance, lowest rolling resistance and a quiet ride, are at hand. Within the past ten years, the debate about tyre qualities has increasingly shifted to the total environmental impact of the tyre. Parallel to tightening regulations on emissions and rolling resistance, tyre manufacturers are being pushed to enhance the use of biomaterials in tyre compounds and to minimize waste.

“The tyre industry has made remarkable progress in reducing waste, yet compared to many other industries, the use of biomaterials is still in its infancy,” Hauvala admits. He anticipates new regulations to emerge concerning the recyclability of tyres.

 

In-Built Sustainability

Improvements in tyre manufacturing and development have accelerated over the last decade, spurred by the sharpened focus on environmental issues. The demands for sustainability now concern the entire industry from products to production.

At Black Donuts, sustainability is a strategic driver. The company not only contributes to sustainability in its own operations but also supports its customers and partners in the move. “The ideas of circular economy are inherent in our business philosophy. All our solutions focus on manufacturing excellence and resource efficiency, optimizing biomaterial use, minimizing emissions and maximizing recyclability,” says Hauvala.

Enjoying a comprehensive view of the tyre industry, Black Donuts has a great opportunity to improve overall branch sustainability. The company runs several major investment projects that aim at making the tyre industry greener – one tyre at a time, like Hauvala says.  “All our most important development projects support a more sustainable tyre industry.”

Recently, the company developed a new stud concept that remarkably reduces the negative side effects of safe winter driving. The new, patented technology tackles the environmental challenges of studs, such as road wear, pollution, and noise. Revealing a bit of the company’s future aspirations, Hauvala reports that Black Donuts is also developing a high-end winter tyre for electric cars, doing research in biomaterials, and investigating the usability of recovered carbon black received from an integrated pyrolysis solution. “We are getting closer to zero-emission factories, although it will require dedication, engagement, and collaboration,” Hauvala concludes.

 

Future-Proofing The Industry

Today, Black Donuts employs over 60 professionals with skills that cover all areas of tyre manufacture and tyre technology. During the 10-year journey, the company has grown, reinforced its skills and recruited new talents from areas outside its original core competences. Hauvala praises the employees for making it possible to celebrate such a significant milestone. “Our team is exceptional. We have great people from diverse backgrounds, working together for a common goal and inspiring each other to make a difference,” says Hauvala proudly.

Although the company has rapidly grown, it has managed to preserve the flexible and agile corporate culture from the early days. In a recent employee survey, team spirit was named as the strongest motivator. “Team spirit is our internal source of power and a strong pillar supporting the whole business.”

According to Hauvala, every team member at Black Donuts shares the same value-adding commitment and passion to help customers and to make the tyre industry an exemplary branch that considers the generations to come. He encourages all players in the industry to prepare for the future, starting today. “ We know the best practices, future challenges, and opportunities in the tyre industry. For us, it is quite simple to evaluate if a tyre business is future-proof or not. Is yours?” (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.