Does post-pandemic lockdowns prompt any priority change for ATMA? Will there be a campaign for greater health safeguards for tyre company workers?

Tyre companies have been at the forefront of maintaining safety standards based on guidelines /advisories during last one year. Tyre companies were perhaps the first to shut down operations when the call for lockdown was given by Prime Minister Narendra Modi last year. It needs to be appreciated that Tyre is a continuous process industry. Sudden shutdown results in huge losses in terms of wastage of raw material and other Work in Progress inventories. Restarting operations involves picking up several pieces involving significant effort. Being a continuous process industry, we could have argued for waiver from the lockdown. However, in appreciation of the real intent of the lockdowns and Tyre Companies being responsible Corporate citizens, aimed at safeguarding lives, went for a shutdown. ATMA has already issued Covid Compliant Standards for the benefit of all tyre plants. Health if its employees including workers has always been a priority with ATMA members, and this will continue to be so going forward.

How do you plan to take cheap tyre import issue to the next level?

Government has introduced certain much-needed measures by curbing indiscriminate import aimed at making the country ‘Aatmnirbhar.’ As we have observed, the imports from China that accounted for the lion’s share in tyre imports in India, have come down significantly after import curbs were initiated. However, it is also being observed that the percentage share of some other countries in total tyre imports in India has gone up substantially. As per the latest tyre import official data, Thailand has displaced China as the largest source of Truck & Bus radial tyres (TBR). Nearly 50% of TBR imported in India in the first three quarters of FY21 are from Thailand. Even in Passenger Car Radials (PCR) imports in India, Thailand has come to account for largest share of 35% in the Apr-Dec’20 period. We are taking up with the Government for all such indiscriminate imports about which the Government has exhorted various sectors to strengthen their domestic manufacturing capacities and capabilities, especially in the automotive space. We are also keenly looking at the measures to further boost domestic production under the PLI scheme for Automotive Sector.

As the automotive sector shows signs of resurgence, how do you foresee the growth of tyre business in India?

After two years of downward trend, things are looking up for the Auto sector in India. Different surveys point to 14 to 18% growth for the Auto sector in FY22. Tyre Industry’s growth is closely linked to Auto sector’s performance and the economic graph. Since economy is also projected to grow at upwards of 10% by different agencies, we expect growth in tyre demand to be in sync with economic and auto sector’s growth. Hopefully tyre imports will remain in check and the growth in demand will be met by Indian manufacturing. The focus on Infrastructure investment by the Government, should lead to higher demand generation in the automobile sector.

The proposed Scrappage Policy is expected to see an increase in new tyre sales. How do you foresee the development? Do you think a similar policy could be implemented for tyres as well?

The new vehicle scrappage policy is a welcome move since it is aimed at phasing out unfit and polluting vehicles from the roads paving the way of boosting the demand for new and environment-friendly vehicles No doubt, the new policy has potential to kick start the revival of the Indian auto sector and the entire automotive value chain including tyres.

The policy with in-built incentives should boost the demand for new and environment-friendly vehicles. It would lead to recovery in Medium & Heavy Commercial Vehicles and its positive demand on tyres which have remained under stress for long and, in the process, also give a fillip to Truck & Bus tyre segment.

Regarding scrappage policy for tyres, any initiative that leads to replacing of worn-out tyres beyond their useful and safe life will be a welcome move. Over the last few years, ATMA & its technical arm Indian Tyre Technical Advisory committee (ITTAC) have been intensely involved in creating awareness on Tyre Care & Road safety through On-ground activations, Tyre clinics, Safety seminars, Mass media messaging, Social media campaigns, Participation at expos, Launching of safety calendars, Animation films and other possible interfaces urging the motorists to replace worn out and poorly maintained tyres before it is too late. Tyre industry is willing to partner in any initiative that leads to replacement of risky worn-out tyres and make the road usage and conditions safer.

The Budget has also focused on bigger infrastructure development and promotion of public transport. What is your take on the readiness of Indian tyre manufacturers to exploit the bigger opportunities?

Tyre industry is ahead of the demand curve. An unprecedented amount of over Rs 50,000 crore was invested across 4-5 years before the pandemic in creating new capacities and R&D. The new capacities are now coming on stream and are geared to meet increased demand borne out of Infra development and other growth drivers. As a vibrant part of Aatmnirbhar Bharat, Tyre Industry has been conscious of its responsibility to the nation and has been investing heavily in new capacities building and research & development. India is one of the few countries that are self-reliant in manufacturing of practically all varieties of tyres.

How does ATMA look to support the uncertainties in the Natural Rubber sector? While looking for easier availability options like new rubber alternatives, will there be any further steps to support the NR sector?

A well-developed and competitive domestic NR sector is very close to Tyre Industry’s heart. The fact remains that domestic production of NR is short of its requirement by over 40%. Rubber Board has certainly made sincere efforts to increase the production and productivity of NR in the country; however significant production- consumption gap continues to exist.

A project for supporting development of new rubber plantations in North East and improving quality of processed forms of rubber has been finalised under the guidance and active mentoring of Mr Piyush Goyal, Hon’ble Minister for Commerce and Industry, Government of India. The project is designed to implement the scheme for developing 200,000 hectares (ha) of rubber plantations in the North Eastern States with financial participation by major tyre companies, represented by ATMA with technical support and coordination by the Rubber Board.

While the NR project looks towards long-term availability of NR, for the short term, Tyre Industry has urged the Rubber Board to help the industry tide over the imminent crisis. (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.