Apollo Tyres is set to further strengthen its winter tyre and outdoor tyre testing capabilities with the inauguration of its new outdoor tyre testing facility at Invalo, Finland.

The new facility is being developed under a long-term agreement with UTAC, a globally recognised automotive testing and certification group, which also will incorporate exclusive, tailor-made infrastructure, dedicated tracks for real-world testing conditions.  

Daniele Lorenzetti, Chief Technology Officer, Apollo Tyres, said, “This is a strategic investment in autonomy, efficiency and agility. With this test track fully dedicated to us in UTAC proving grounds, we eliminate bottlenecks, increase our cost-effectiveness, gain full control of test schedules, and empower our teams to iterate and validate products, both Apollo and Vredestein brand, on their terms – especially during the critical winter season.”

The facility's primary focus will be on testing the snow and ice performance of both Apollo and Vredestein brand tyres. This investment is part of a broader strategy by Apollo to strengthen its development programs in the face of increasing regulatory oversight and unpredictable weather patterns. The new facility is set to be fully operational by December 2025 and will immediately begin supporting the development of current and future tyre lines.

Japanese tyre maker maintains 2025 guidance despite profit decline

Bridgestone Corp, the world's one of largest tyre manufacturers, reported a 42 percent decline in first-half net profit as restructuring costs weighed on earnings, though the company maintained its full-year guidance amid improving operational performance.

The Tokyo-based company posted net profit attributable to shareholders of 115.5 billion yen for the six months ended June 30, down from 199.1 billion yen a year earlier. The decline was primarily due to exceptional gains from asset sales recorded in the previous year.

Revenue fell three percent to 2.12 trillion yen, reflecting challenging market conditions across key regions. However, adjusted operating profit rose two percent to 234.6 billion yen, with margins improving to 11.1 percent from 10.5 percent in the same period last year.

"Return from business rebuilding" and "business cost reduction" initiatives contributed positively to results, the company said, offsetting headwinds from raw material costs and foreign exchange fluctuations.

Regional performance varied significantly. The Europe, Middle East and Africa segment showed the strongest improvement, with adjusted operating profit surging 151 percent to 18.5 billion yen as restructuring efforts began to bear fruit. The Americas division also posted a four percent increase in operating profit despite a six percent revenue decline.

However, Japan, the company's home market, saw operating profit drop 12 percent to 82.5 billion yen as margins compressed to 13.7 percent from 16.0 percent previously.

Bridgestone maintained its 2025 guidance, projecting revenue of 4.33 trillion yen and adjusted operating profit of 505 billion yen. The company revised down its estimate of the impact from US tariffs to 25 billion yen from a previous 45 billion yen forecast in May.

"Counter the direct impact of US tariffs — Impact on AOP has been revised from 45 billion yen level (May guidance) to 25 billion yen level (August guidance)," the company stated in its presentation.

The tyre maker is progressing with its capital allocation strategy announced in February, including a 300 billion yen share buyback programme. As of end-July, approximately 47% of the repurchase plan had been completed.

Global CFO and Executive Director Naoki Hishinuma highlighted the company's focus on premium segments and operational improvements as key drivers for future growth.

Bridgestone's diversified products business, including air springs and chemical products, remained under pressure with an eight percent decline in both revenue and operating profit during the half-year period.

Japanese tyre maker lifts dividend after 10.3% revenue growth driven by premium tyre sales

Yokohama Rubber Co said it achieved record first-half results with sales revenue climbing 10.3 percent to 579.2 billion yen, driven by strong demand for its premium tyres and successful integration of acquired operations.

The Japanese tyre manufacturer reported business profit rose 13.8 percent to 62.1 billion yen for the six months ended June 30, marking new highs for first-half performance. However, operating profit declined 2.5 percent to 54.9 billion yen, whilst profit attributable to shareholders fell 23.7 percent to 35.5 billion yen.

The company attributed the growth in consolidated business profit to robust performance from existing operations, which offset one-time costs related to its acquisition and consolidation of Goodyear's off-the-road (OTR) tyre business.

Yokohama's core tyre segment generated significant gains through increased unit sales of consumer tyres and continued expansion in sales of its high-value ADVAN, GEOLANDAR, and Winter product lines, alongside growth in high-inch tyre sales.

The company's diversified operations also contributed to results, with the MB segment posting improved sales in marine products and benefits from structural reforms in its hose and couplings business.

Based on the strong first-half performance, Yokohama raised its full-year fiscal 2025 forecasts across all key metrics. The company now projects sales revenue of 1.235 trillion yen, business profit of 153.0 billion yen, operating profit of 140.5 billion yen, and profit attributable to shareholders of 88.0 billion yen.

The results reflect Yokohama's strategy of focusing on premium tyre segments whilst expanding its industrial products portfolio through strategic acquisitions. The company has been working to integrate Goodyear's OTR operations, which serve the mining and construction sectors.

The tyre industry has faced headwinds from raw material cost pressures and supply chain disruptions, though premium segments have shown resilience due to strong replacement demand and the shift towards higher-specification tyres.

The Japanese Tyre Maker Combines Operations, Eyes Second-Place Position in Off-The-Road (OTR) Tyre Segment.

Yokohama Rubber Co. is betting big on heavy machinery tyres. The Japanese manufacturer completed its USD 905 million acquisition of Goodyear Tyre & Rubber Co.’s off-the-road (OTR) tyre business in February and has already begun an aggressive expansion strategy that includes a USD 35 million Romanian plant purchase and the appointment of veteran industry executive Loic Ravasio to lead the combined operations.

These moves elevate Yokohama to third in the global OTR market, but ambitions are set higher. Loic Ravasio, now president of Yokohama’s combined OTR business, has made it clear that the goal is to become the world’s second-largest supplier of specialised tyres for mining and construction.

“The essence of the acquisition is to grow and gain market share and not only to maintain our 3rd position but aim to be number two in the near future,” Ravasio said. “We have the people, the knowledge and the products for it.”

The acquisition represents the largest strategic investment under Yokohama’s ‘Hockey Stick Growth’ initiative, part of its Yokohama Transformation 2026 medium-term management plan. The deal brought Yokohama not just Goodyear’s extensive product lineup – spanning tyre diameters from 25 inches to ultra-large 63-inch models – but also advanced manufacturing technologies, established brand recognition and approximately 500 specialised employees.

STRATEGIC COMPLEMENTARITY

Goodyear OTR achieved USD 678 million of annual sales as of fiscal 2023, bringing important scale to Yokohama’s off-highway tyre business. However, above and beyond the revenue increase, Ravasio highlights how the two operations are complementary both geographically and in terms of product specialisation.

“The two businesses literally complement each other from a product point of view as well as presence point of view,” Ravasio explained. “Goodyear OTR is strong in Europe, APAC and Canada, whereas Yokohama OTR is strong in the US and Japan. Goodyear OTR has excellent ultra large haulage tyres, whereas Yokohama has mobile crane and port tyres.”

This product and geographic synergy is the basis for Yokohama’s strategic challenge to entrenched market leader Michelin and Bridgestone. The merged company now has what Ravasio terms “a broad, complete OTR portfolio offering from the smallest to the biggest tyres, delivering top performance and services in any application.”

The integration extends beyond product lines to leverage operational efficiencies in procurement, manufacturing, finance and legal operations. Yokohama has preserved the key intellectual property, seasoned personnel and service capabilities that made the Goodyear OTR business worth acquiring while introducing its global organisational strengths to increase operational effectiveness.

EUROPEAN EXPANSION STRATEGY

Yokohama’s drive for expansion was evident just months after it sealed the acquisition of the Goodyear OTR business. In May 2025, the company paid USD 35 million to purchase fixed assets, including land, buildings and manufacturing equipment, at a closed tyre factory in Drobeta-Turnu Severin, Romania.

The facility, Yokohama’s first significant European production site for OTR tyres, covers 200,000 square metres and will manufacture the full range of mining and construction tyres, including ultra-large sizes for global mining operations.

“The Romanian asset is a first step in the expansion,” Ravasio said. “We will be producing most of the OTR range in this factory, including the ultra-large tyres. We are working diligently on assessing solutions such as green field and/or brown field at the right locations to further grow and better serve our customers.”

The Romanian investment timing is part of a larger market trend behind the demand for OTR tyres. Global infrastructure development in roads, rails and residential projects continues to grow with the transition towards the green economy, which necessitates huge volumes of mineral extraction to produce electric vehicle batteries and renewable energy systems.

“These growing needs are driven by a growing world population that needs more housing, more roads, more communication means, plus the push for green(er) economy with the electrification of the world,” Ravasio noted.

INNOVATION THROUGH DUAL R&D CENTRES

The acquisition provides Yokohama with two R&D facilities, one in Japan and the other in the US. Rather than merging them, the company will utilise both to accelerate innovation and share best practices globally.

“Having two R&D centres will accelerate and intensify our innovation while learning best practices and continuously improve our overall performance,” Ravasio explained. The collaboration has already yielded practical benefits, with engineers able to combine Yokohama OTR casings (the structural base of the tyre) with Goodyear OTR tread compounds to enhance tyre performance.

The dual-centre approach addresses the complex technical challenges in OTR tyre development. These products must withstand extreme operating conditions while delivering optimal performance metrics that directly impact customers’ operational costs. As Ravasio puts it, “OTR tyres remain a complex assemblage of diverse technologies and solutions to deliver the required performance.”

Innovation priorities are driven to address changing customer needs for performance, sustainability and service. Industry pressure towards ‘Faster/Further/Heavier’ operations creates greater stress on tyre manufacturers to produce products capable of supporting more rigorous applications while being reliable and cost-effective.

MARKET DYNAMICS AND CUSTOMER EVOLUTION

Different principles from consumer tyres drive the OTR tyre business. Buyers – mainly from the mining, construction and infrastructure sectors – prioritise the total cost of ownership, which presents opportunities for manufacturers focused on durability and service.

“The OTR tyre market is very dynamic by nature. The industry has always been driven by the best cost of ownership,” Ravasio said. “The products, services and solutions provided must help our customers to optimise their operations.”

This emphasis on operational efficiency has grown stronger as customers are under pressure to be more efficient and less environmentally aggressive. Environmental concerns now influence the choice of tyres, prompting manufacturers to develop solutions that offer both performance and environmental friendliness.

Yokohama’s sustainability strategies involve lower-resistance compounds, improved materials, energy-efficient manufacturing and total retreading solutions. It has the industry’s sole OTR retread factory owned by a tyre manufacturer, and through this, it offers customers the opportunity to extend tyre life and minimise waste.

INTEGRATION CHALLENGES AND OPPORTUNITIES

Successfully integrating two large tyre operations presents significant operational and cultural challenges. Yokohama’s approach prioritises continuity for both customers and employees during the transition period.

“Our immediate priorities are and always will be our customers and our employees,” Ravasio emphasised. “For our customers, we aim to ensure a smooth transition, business continuity and a combined, more comprehensive portfolio of products, services and solutions to support them in their business growth.”

Employee integration focuses on creating development opportunities within a larger global organisation. Yokohama retained all Goodyear OTR personnel, recognising that their expertise and customer relationships represent much of the acquisition’s value.

“The critical parts of this acquisition were the IP knowledge, the experience and the people more than the equipment and the products. We kept all of that,” Ravasio said. The company has established a global leadership team combining experienced executives from both organisations to design the integrated structure and manage the transition process.

FINANCIAL TARGETS AND GROWTH STRATEGY

Yokohama prioritises market share gains and customer satisfaction over raw revenue for the merged OTR business. The growth strategy focuses on targeted investments in key geographies and technologies to enhance performance and quality at a cost-effective level.

The financial effect of the acquisition will start to be reflected in Yokohama’s consolidated performance from the first quarter of 2025. The company is now determining the exact earnings contribution as the integration continues.

Ravasio’s appointment to the post of president of the merged OTR operations marks a commitment by Yokohama to aggressive expansion. Ravasio reports to Nitin Mantri, Co-Chief Operating Officer and Head of the Off-Highway Tyre Unit, and will leverage his global tyre industry expertise to lead the next phase of growth.

“I’m humbled and excited to take on this important role at Yokohama, a company focused on growth and expansion,” Ravasio said upon his appointment. “We have a great future ahead, with the best associates in the industry and an outstanding value proposition to serve our customers.”

FUTURE MARKET POSITION

The long-term development curve of the global OTR tyre market underpins Yokohama’s ambitious expansion goals. The development of world infrastructure and the mineral extraction needs of the unfolding green economy transition are expected to sustain demand for heavy-duty tyres in various applications.

Yokohama aims to capitalise on OTR market growth to steal share from larger rivals. By combining Yokohama’s operations, Goodyear’s customer base and expertise and targeted manufacturing investment, executives believe they have a winning formula.

“As we invest in growth, our expansion strategy is based on the right location and the right technology/equipment to deliver top performance and quality and the right cost,” Ravasio explained.

The global reach of the company offers flexibility to supply customers in diverse markets while maximising production and distribution networks. With secure positions in complementary geographic locations and product categories, the integrated operation can provide end-to-end solutions to multinational customers engaged in multiple markets.

INDUSTRY OUTLOOK AND COMPETITIVE RESPONSE

The next three to five years will pose a challenge to Yokohama’s capacity to implement its aggressive growth strategy in a more competitive market. Its peers will not surrender market share without reacting to Yokohama’s improved competitive footing.

Achievement will depend on continued technological progress in tyre compounds, manufacturing techniques and digital technology to achieve progressively higher performance standards. The development of the industry towards more sustainable, more technologically sophisticated products presents opportunities as well as challenges for all producers.

“In the today and tomorrow of the OTR tyre market, it will be crucial to continue innovating in compounding, manufacturing processes and digital technologies to meet the evolving and stringent needs of the industry,” Ravasio observed.

Yokohama’s dual R&D centres and expanded global presence provide tools to compete effectively. Still, execution will determine whether the company can achieve its goal of becoming the world’s second-largest OTR tyre supplier.

For now, the company expresses confidence in their strategy and capabilities. As Ravasio puts it: “We look forward to celebrating it when we will be a strong number two in the near future.”

Alena Bauer has assumed leadership of Continental’s PR and internal communications for its tyre replacement business across Europe, the Middle East and Africa (EMEA) with effect from 1 June 2025. This appointment finalises the integration of the company’s internal and external communications teams under a unified structure.

Bauer brings 15 years of international communications expertise, including roles as Media Relations Manager at MTU Maintenance, Senior PR and Internal Communications Manager at RICOH Germany and Head of Marketing at Redaktionsnetzwerk Deutschland. She joined Continental in her most recent position overseeing internal communications for Tires EMEA. In her expanded role, Bauer now reports to Egemen Atış, Continental Tires EMEA’s Head of Strategy, Analytics and Marketing, reinforcing the strategic alignment of communications across the region.

Egemen Atış, Head of Strategy, Analytics & Marketing, Continental Tires EMEA, said, "By combining our internal and external communications, we are creating an integrated communications structure that optimises synergies. Alena Bauer has extensive experience in both areas and knows how to combine strategic communication with a clear understanding of target groups and messages. Under her leadership, the team will communicate our content consistently, efficiently and effectively across all channels, both internally and externally.”