Demand For Tyre Recycling Growing In Russian Far East: Ecostar Factory

EcoStar

Russia's tyre recycling industry has grown significantly in recent years due to increasing environmental concerns and government regulations aimed at reducing landfill waste. The country generates millions of tonnes of used tyres annually, with many initiatives focusing on recycling them into rubber granules, fuel and construction materials. Key players in the industry include local companies and a few foreign investments with major recycling plants concentrated around Moscow and other industrial regions.

However, the Russian Far Eastern region, referred to the vast, easternmost part of the country that borders the Pacific Ocean, still struggles to deal with the disposing of end-of-life (EOL) tyres.

According to Ecostar Factory Co-founder Sergei Lazarev, “Vladivostok, the largest city in Russia's Far East, ranks fifth in the country for vehicles per capita, making it the region's leader in vehicle density. This results in a growing volume of waste tyres annually, posing a significant environmental challenge. Due to the vast distances, transporting used tyres to recycling facilities in central Russia is prohibitively expensive, inflating both the recycling costs and the prices of products made from recycled materials. The lack of local recycling infrastructure exacerbates the problem, underscoring the need for regional solutions to manage tyre waste more efficiently and sustainably.”

“With 15 years of experience in tyre recycling, our company is well-positioned to meet the growing demand for tyre recycling in the Russian Far East. The new facility will allow us to recycle over 10,000 tonnes of ELT annually and meet market needs accurately. We also plan to double this capacity within the next five years, which is especially crucial in regions like the Russian Far East, where transportation costs are high and local recycling infrastructure is lacking. This expansion will help address regional tyre waste challenges more effectively,” he added.

A total of USD 500,000 was invested in the new tyre recycling unit, financed through a mix of 30 percent capital and 70 percent bank loans. The seven percent interest rate, subsidised by the Primorye Government Guarantee Fund and the Federal Government Fund for SMEs, highlights the strategic backing you’ve received. Specialising in recycling ELT tyres into rubber crumb, this setup not only aligns with growing sustainability efforts but also demonstrates the effectiveness of public-private cooperation in fostering business expansion and environmental impact in Russia’s Far East.

The Far East and Arctic Development Corporation (FEDC) played a crucial role in the tyre recycling project’s success by providing a 17.3-acre land lot and essential infrastructure. This included telecommunications, access roads, power supply, water supply, water disposal and natural gas supply. Additionally, FEDC offered tax benefits, making it a key partner in the project’s development, facilitating smoother operations and reducing overhead costs. This comprehensive support has been instrumental in advancing the project in the Russian Far East.

Promoting recycling

The company's operations, which focus on recycling ELT tyres without thermal methods like pyrolysis due to environmental concerns, were nearly derailed when the ruble-dollar exchange rate doubled in 2022, making equipment and construction prohibitively expensive.

Despite purchasing Chinese machinery, adjustments were needed due to differences in tyre composition, particularly the amount of cord fibre. The company plans to recycle 20 years’ worth of accumulated tyre waste and supply crumb rubber to playgrounds, stadiums and road projects, boasting the only facility in the region certified to meet government sanitary standards.

With no direct competitors in the Primorye region, the company remains committed to expanding operations despite these challenges.

Answering how the new plant supports broader recycling goals, Lazarev said, “The new plant supports the broader goals of the company by serving as a central hub for tyre recycling in the Russian Far East. We operate facilities in five regions including Magadan, Kamchatka, Sakhalin, Khabarovsk and Primorye and plan to upgrade them within the next three years to produce rubber chips, which will be transported to the main facility in Primorye for further processing. Additionally, we aim to invest in research and development to develop additives for bitumen, enhancing its use in road construction projects. This strategy is key to expanding recycling capabilities beyond 10,000 tonnes annually and promoting sustainable infrastructure development.”

The company will source tyre waste primarily from transportation and tyre service companies. To ensure quality, it has implemented a comprehensive management system designed to produce clean, precisely sized crumb rubber. The triple cleaning process removes metal and cord fibre, while its proprietary qualification system ensures four specific size fractions of crumb rubber are achieved.

Alluding to European Union (EU) directive on crumb rubber infill ban, he noted, “Regarding the EU ban on rubber crumb in artificial turf, Russia has no such restrictions. In fact, a recent Russian government act (08/28/2024) mandates the use of rubber crumb in sports infrastructure and road construction. We have also obtained a special health certificate allowing the use of its crumb rubber in outdoor playground construction.”

Addressing challenges

Russia imports tyres primarily from China, which is the largest supplier, offering a wide range of products including passenger, truck and industrial tyres. South Korea follows, known for its high-quality passenger and performance tyres, while Japan contributes advanced technology and speciality tyres. Belarus, as a neighbouring country, exports various tyre products, particularly for commercial vehicles. Turkey has also been increasing its market presence with competitive prices and quality. Additionally, some European Union countries export tyres to Russia, although trade dynamics are influenced by tariffs and geopolitical factors.

Such a wide array of tyres poses challenge for recyclers. Commenting on the same, the executive said, “The plant was initially scheduled to open in August 2023. The company faced significant challenges due to currency fluctuations, infrastructure delays and regulatory hurdles. Despite purchasing Chinese machinery, adjustments were needed due to differences in tyre composition between China and Japan, particularly the amount of cord fibre. The lack of suitable land with the necessary infrastructure and meeting strict ecological standards are further obstacles.”

“We are currently facing a staff shortage across all skill levels, from low-skilled to highly qualified personnel. To address this, we plan to recruit workers from other regions of Russia and internationally. Recently, we hired five individuals from India on one-year contracts, providing them with comprehensive benefits that include accommodation, food, transportation and work uniforms. We aim to attract even more skilled workers this year to strengthen our team,” he added.

Ecostar's plant aligns seamlessly with Russia's broader waste management and environmental objectives, particularly in the Far East. It supports the government's strategy for a circular economy, which is reinforced by new legislation regulating the use of recycled materials in the production of goods and services. Additionally, the government has introduced the concept of ‘green purchases’, mandating that government agencies and state-owned companies procure a minimum quantity of products made from recycled materials. This initiative emphasises the importance of integrating recycled materials into the economy, enhancing sustainability efforts across the region.

ZAFCO Appoints Tyre Industry Veteran Hee Se Ahn To Board As Independent Director

ZAFCO Appoints Tyre Industry Veteran Hee Se Ahn To Board As Independent Director

ZAFCO, a leading global manufacturer and distributor of automotive tyres, batteries and lubricants, has strengthened its corporate governance with the addition of Hee Se Ahn to its Board as an Independent Director, effective 1 January 2026. Bringing over three decades of specialised industry experience, Ahn is recognised for his extensive leadership in the global tyre sector.

His professional background is deeply rooted in international commerce, with significant achievements in overseas sales, strategic marketing and high-level management across key markets in Asia, Europe and the Americas. Prior to this appointment, his career included senior roles such as Executive Vice President at Nexen Tire and Managing Director at Hankook Tire, based in Seoul. Throughout his career, he has been instrumental in fostering international expansion and enhancing market positions while leading diverse, cross-regional teams, solidifying his status as a respected figure in the industry.

Zafar Hussain, Executive Director, ZAFCO Group, said, “We are pleased to welcome Hee Se Ahn to the Board of ZAFCO. His extensive international experience in sales, marketing and regional leadership will bring valuable perspectives to the company. His deep understanding of the global tyre industry will be a strong asset to both the Board and the management team.”

Amir Abbas, Executive Director, ZAFCO Group, said, “We are delighted to welcome Hee Se Ahn to the ZAFCO Board. He brings with him a global business mindset and rich insights into leadership and international business transformation. We look forward to his contributions as we continue to strengthen our global presence.”

Nokian Tyres Sets 2029 Targets With €2 Bln Sales Goal And Tighter Debt Ceiling

Nokian Tyres Sets 2029 Targets With €2 Bln Sales Goal And Tighter Debt Ceiling

Nokian Tyres has approved an updated strategy and financial targets through to the end of 2029, setting a net sales objective of €1.8 billion–€2 billion and outlining measures to strengthen profitability and reduce leverage.

The Finnish tyre maker said it would prioritise sustainable, value-driven growth following what it described as the most significant transformation in its history.

“Over the past years, Nokian Tyres has navigated the most significant transformations in its history. This period has been a complete strategic reset as we rebuilt the new Nokian Tyres platform. As we now enter the next phase of our development, we will refocus on sustainable, value-driven growth. This positions us to take better control of the unpredictable also in the future and will reduce our exposure to geopolitical risks,” said President And Chief Executive Paolo Pompei.

Under the revised targets, the company aims for segments EBITDA of more than 24 percent and segments operating profit above 15 percent. It also intends to keep net debt to segments EBITDA below 2.

Nokian Tyres will continue to use segments EBITDA as its primary profitability metric and has defined a range for net sales rather than a single figure.

The group reiterated its dividend policy, targeting distribution of at least 50 percent of net earnings.

Strategically, Nokian Tyres said it would focus on its core segments. In passenger car tyres, it aims to maintain a market-leading position in winter tyres and deliver above-market growth in the all-season and all-weather categories. In heavy tyres, it is targeting above-market growth in agricultural and forestry tyres.

Vianor will continue to serve as a European sales and service channel for both passenger car and heavy tyres.

The company said market trends including electrification, a growing car parc, increasing rim sizes and rising demand for winter tyres support development in its chosen segments.

“Our updated financial targets set a clear direction for the future and reflect our ambition to create sustainable value for our shareholders. Profitability improvement will be driven both by volume growth and by more than EUR 100 million coming from targeted performance initiatives. While maintaining strong performance in the Nordics, we aim to accelerate growth in North America and Central Europe. We will prioritize value creation through premium positioning, improved product mix and disciplined cost and operational efficiency,” Pompei said.

Carter’s Tyre Service Names Rob Watson CEO As Mike Hollier Prepares For Retirement

Carter’s Tyre Service Names Rob Watson CEO As Mike Hollier Prepares For Retirement

Carter’s Tyre Service has announced that Rob Watson will take on the role of Chief Executive Officer, adding this responsibility to his existing position as CEO of NTAW NZ. His appointment marks a significant development for the company, drawing on deep experience gained across New Zealand and the Pacific region.

Known for driving performance improvement and strengthening customer relationships, Watson brings a proven ability to lead service-oriented organisations. His focus will be on enhancing operational performance, supporting customers and empowering teams to maintain consistent service standards nationwide.

This leadership transition coincides with the forthcoming retirement of Mike Hollier in April. Hollier will remain actively involved in the coming months to facilitate a seamless handover. The company has acknowledged his valuable leadership and lasting contribution throughout his time with Carter’s Tyre Service.

Falken’s AZENIS FK520 Outperforms Rivals As Best Value Choice In 2026 ACE Summer Tyre Test

Falken’s AZENIS FK520 Outperforms Rivals As Best Value Choice In 2026 ACE Summer Tyre Test

Falken’s AZENIS FK520 has earned a ‘highly recommended’ rating in the 2026 ACE Summer Tyre Test, securing fourth place overall with 135 out of 170 points. Tested in the popular 225/40 R18 XL size, with an average price of EUR 87, the tyre stood out as the most affordable option among the top performers, underscoring its exceptional value for money. Customers seeking premium engineering without the premium price tag therefore find a compelling proposition in this model.

The ACE assessment placed particular emphasis on safety, where the AZENIS FK520 delivered standout results. It achieved the highest possible aquaplaning score, sharing top honours with two rival products and demonstrating assured stability on waterlogged roads. In dry handling exercises, the tyre impressed with precise steering response, robust lateral grip and high-speed stability. Its performance on wet surfaces was equally balanced and dependable, reinforcing its all‑round competence in challenging conditions.

Beyond its strong showing against established premium competitors, the Falken AZENIS FK520 also offers broad real‑world relevance. Available in widely used fitment sizes, it is especially well suited to compact cars - a segment that accounts for substantial sales volume across Europe. The ACE result confirms that this combination of safety, dynamic capability and accessible pricing makes the AZENIS FK520 a thoroughly convincing choice for drivers who refuse to compromise on either performance or affordability.