Sailun Group Co. plans to invest USD 93.48 million to double its truck tyre production capacity in Cambodia, betting on growing demand in North America amid ongoing trade tensions.

The Shanghai-listed company said in a statement that the Chinese tyre maker will boost annual production of all-steel radial tyres by 1.65 million units at its CART Tire Co. facility in Sai Jaeng City. The expanded operation is expected to generate USD 244.73 million in annual revenue and USD 47.12 million in net profit.

The board, led by Chairwoman Liu Yanhua, approved the expansion plan at a meeting on January 6. The project allocates USD 61.18 million for construction and USD 32.30 million for working capital, funded through a capital increase at Sailun’s Hong Kong subsidiary.

Construction will take nine months, after which CART Tire’s total capacity will reach 21 million semi-steel radial tyres and 3.3 million all-steel radial tyres annually. The facility currently produces nine million semi-steel radial tyres, with an additional 12 million semi-steel and 1.65 million all-steel tyre capacity.

The investment comes as tyre manufacturers seek to diversify production bases outside China to navigate trade barriers and reduce geopolitical risks. Cambodia has become a preferred destination due to its lower labour costs and favourable trade status with major markets.

The expansion will be executed through a structured capital injection involving Sailun’s subsidiaries in Hong Kong and Singapore before reaching CART Tire in Cambodia.

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Tolins Tyres Ltd has announced that its wholly owned subsidiary, Terra Rubber Pvt Ltd, has entered into a purchase agreement with Cochin Reclaim and Rubbers Pvt Ltd to acquire plant and machinery as part of its capacity expansion and backward integration strategy.

The agreement, executed on 1 July 2026, involves the purchase of identified plant and machinery from Cochin Reclaim, an unrelated third party. According to the company, the acquisition is intended to strengthen Terra Rubber's manufacturing capabilities through increased capacity and greater backward integration.

Under the terms of the agreement, Terra Rubber will acquire the machinery on an "as-is, where-is" basis. The subsidiary is required to remove the equipment from Cochin Reclaim's premises within 60 days at its own expense. Ownership of each item will transfer only after full payment has been made and the machinery has been physically removed.

Tolins Tyres said the transaction is a routine purchase undertaken in the ordinary course of business and will have no impact on the management or control of the listed company. It added that neither Terra Rubber nor Tolins Tyres holds any shareholding in Cochin Reclaim.

The company also confirmed that the transaction is not a related-party transaction, has been negotiated on an arm's length basis, and that Cochin Reclaim has no relationship with the company's promoter group or board of directors.

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Nokian Tyres delivered a sharp improvement in second-quarter profitability as higher sales volumes, stronger pricing and lower manufacturing costs boosted earnings, while the company said it is entering a new phase focused on profitable growth after completing its major investment programme.

Net sales rose 10.6 percent year on year to €379.9 million in the April–June quarter, while operating profit more than doubled to €34.8 million from €14.8 million. Segment operating profit increased 71 percent to €45 million, driven by higher sales and improved manufacturing efficiency.

For the first six months of 2026, revenue increased 7.6 percent to €659.6 million, while segment operating profit climbed to €40.7million, more than five times the €7.8 million reported a year earlier. Operating profit returned to positive territory at €17 million, compared with a loss of €21.1 million in the first half of 2025.

"We delivered a strong quarter in line with our strategic ambition," said Paolo Pompei, President and Chief Executive. "Operating profit increased by 136 percent, driven by higher sales volumes and enhanced pricing."

Passenger car tyres lead recovery

The Passenger Car Tyres business remained the principal growth engine, with quarterly sales increasing 13.9 percent to €235 million, while segment operating profit more than doubled to €35.5 million. Heavy Tyres also returned to growth, posting a 10.4 percent increase in sales, although profitability at retail chain Vianor remained under pressure from cost inflation and seasonal factors.

Chief financial officer Timo Koponen said higher sales volumes remained the largest driver of earnings improvement.

"The Passenger Car Tyres continued their very strong performance also in Q2," he said, adding that the business had benefited from improved pricing, a richer product mix and lower raw material costs.

Management also highlighted six consecutive quarters of positive price and mix development, reflecting its strategy of moving further into premium products and larger rim-size tyres.

Romania becomes a strategic growth engine

Nokian Tyres said its new manufacturing facility in Romania is performing ahead of plan and is playing a key role in rebuilding capacity following the exit from Russia.

Sales in Central and Southern Europe rose 31.3 percent during the quarter, supported by higher production from the Romanian plant. "Everything is developing in this area according to plan," Pompei told analysts, referring to the Romanian factory.

He added that the new manufacturing footprint, together with recently launched products, was enabling the company to regain market share.

"We lost a significant amount of sales when we couldn't leverage our manufacturing facility in Russia at the end of 2022. Now, obviously, we are approaching the market with a new spirit, regaining market share in all the key markets where we believe we can be successful."

The company said contract manufacturing would continue to account for around 10 percent of total production, allowing it to focus internal capacity on strategically important products.

Investment phase winds down

Having invested heavily over recent years to rebuild its manufacturing network, Nokian Tyres is now shifting its attention towards cash generation and returns.

Capital expenditure in the first half fell to €24.5 million, compared with €89.7 million a year earlier. The company expects full-year capital expenditure to remain below €100 million, substantially lower than previous years.

"Following the successful completion of our major investment phase, capital expenditure will be somewhat lower this year than in the previous year," Pompei said.

Koponen said lower capital expenditure and stronger earnings had improved free cash flow, although higher receivables linked to increased sales continued to weigh on working capital. He added that net debt declined by €49m during the quarter while liquidity remained strong.

Premium positioning remains central

Nokian Tyres continues to focus on premium products rather than competing in lower-priced market segments.

The company said all-season tyres continued to outperform the broader market, while its flagship Hakkapeliitta 01 winter tyre had received a positive customer response.

Pompei said the strategy remains centred on strengthening brand equity and improving margins.

"We keep pushing our premium positioning, strengthening our brand through strong marketing investments, new products, and, in particular, better prices," he said.

Outlook unchanged despite uncertainty

Nokian Tyres maintained its full-year guidance, forecasting revenue growth in 2026 and a segment operating margin of 8–10 percent.

While management expects replacement tyre demand to remain broadly stable, it acknowledged that geopolitical tensions, tariffs and raw material price volatility continue to create uncertainty.

"We continue to focus on executing our strategy, strengthening our premium positioning, and improving profitability," Pompei said. "While there is still work ahead, we are on the right path to deliver profitable growth and create long-term value for all our stakeholders."

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Yokohama has announced the death of Simon Clarke, its Motorsport and Technical Manager, who was killed in a motorcycle collision on 12 July.

Clarke, who joined Yokohama HPT in 1993, spent more than three decades with the company and became a key member of its UK and European motorsport operations. He played a leading role in numerous domestic and international race series, while also supporting major European motorsport events at the request of Yokohama's global headquarters.

In addition to his motorsport responsibilities, Clarke led tyre development programmes for UK vehicle manufacturers. He also served as chairman of the Motorsport UK Production Tyre Panel and held a certified Claims Adjuster licence.

Yokohama said Clarke was a respected colleague and close friend to many across its UK business, the wider Yokohama organisation and the tyre and motorsport industries.

Outside work, Clarke was described as a devoted family man who enjoyed travelling and spending time with friends.

"Simon will be deeply missed by everyone who had the privilege of knowing him," the company said.

Yokohama extended its condolences to Clarke's family

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AZuR partner NEW LIFE has secured official recognition for its educational initiative, NEW LIFE macht Schule (NEW LIFE Makes School), following its inclusion in the national ESD (Education for Sustainable Development) actor index curated by the Federal Ministry of Education and Research and the German UNESCO Commission. This distinction positions the programme among Germany's prominent contributors to Education for Sustainable Development, underscoring its role in cultivating responsible environmental stewardship among younger generations.

Through a complimentary educational offering, the initiative bridges theory and practice by introducing students and trainees to the mechanics of circular economy models, resource efficiency and sustainable corporate conduct. Using tangible examples from mechanical tyre recycling, the programme illustrates how secondary raw materials directly support climate action and resource preservation while also highlighting the commercial and societal advantages inherent in circular systems.

Educators are equipped with an array of no-cost tools, including digital learning modules, project blueprints and vocational case studies tailored for trades such as landscaping, roofing, carpentry, administrative services and soon agriculture. The curriculum prioritises circular economy principles, secondary material flows, climate protection and judicious resource usage, with the aim of nurturing systemic thinking and empowering learners to devise and implement sustainable strategies in their future professions.

For AZuR, this achievement reinforces the conviction that educational institutions play a pivotal role in driving the transition to a circular economy. The recognition not only elevates the profile of NEW LIFE macht Schule among schools and educational bodies but also strengthens AZuR's ongoing commitment to advancing tyre circularity awareness in collaboration with the initiative.

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