In Europe’s fragmented but fiercely profitable tyre market, success is hard-won and short-lived. The continent offers scale, premium pricing and OEM proximity, but it also throws up formidable barriers in the form of legal complexity, consumer conservatism and entrenched legacy players. While many Asian tyre makers continue to struggle for relevance, international Sailun Group has quietly rewritten that script. Combining academic roots, machinery expertise and agile ownership, it has grown into a global force. Now, with rising brand visibility, the company is challenging old assumptions.    

Every tyre manufacturer from any nook and cranny of the world wants a piece of the European tyre market. The obvious reasons include higher profitability, consumer spending capacity and the lot. However, it’s easier said than done for entering such a varied and high-profile tyre economy.  Tyre manufactures from many Asian countries continue the struggle to penetrate the European tyre scene. And some have been steadfast and persistent enough to have finally commenced operations running in the continent.

International tyre major Sailun Group is one such company that has its presence in the European market for the over a decade. Tyre Trends caught up with Sailun Tyre Europe’s Director of Marketing, Stephan Cimbal, at a recent expo.

He noted that the European market is one of the largest and arguably the most complex tyre markets in the world. It’s not a single market but rather 40 individual ones, each with its own language, regulations and consumer behaviour. 

“Despite its fragmentation, Europe remains one of the most profitable regions thanks to its high price levels and concentration of major original equipment manufacturers. If you can succeed in Europe, chances are you’ll find success in other global markets as well,” he added.

When Sailun Tyre Europe began its European journey just over a decade ago, few in the industry could have predicted how swiftly the brand would rise. According to the executive, it ranks among the 10 most valuable tyre brands in the world today.

Cimbal recalls the group’s roots with quiet pride. “It all began a little more than 20 years ago in Qingdao, China. We were founded out of the Qingdao University of Science and Technology, a think tank for rubber technology with 30,000 students and 4,000 faculty members doing nothing but research on rubber,” he explained.

That academic foundation proved crucial. Sailun Group’s founder Yuan Zhongxue still is also a university professor whose role has always been to turn scientific research into real-world industrial solutions. One of his earliest achievements was the establishment of a machinery company, now known as Mesnac, which went on to become a major force in tyre manufacturing equipment.

A few years later, Sailun was born, initially, to serve China’s domestic market. “Success came quickly. The tyres were well received and demand just kept growing,” noted Cimbal.

That early success at home soon gave rise to ambition abroad. After a successful foray into North America, a relatively straightforward market by comparison due to its unified legislation, Sailun Group turned its sights on Europe.

“It was maybe 12 or 13 years ago when we entered Europe. We started the usual way by partnering with local distributors, shipping containers, building the brand from the ground up. The approach worked. For nearly a decade, we quietly expanded our footprint, growing year on year. Then, almost suddenly, the brand recognition soared. We started to appear in the top 10 of European tyre magazines. That was unimaginable just a few years ago,” Cimbal recalled.

The executive noted that currently its European operations are expanding. While the traditional import-distribution model continues to thrive, the group is now actively exploring original equipment partnerships and deeper regional integration with its partners.

Alluding to how did a relatively young company muscle its way into a fiercely competitive, brand-driven industry, Cimbal noted, “It was a combination of entrepreneurial ownership, cutting-edge technology and a deep-rooted respect for branding. We are privately owned. That means we can move fast. We also benefit from Mesnac’s machinery expertise and the scientific horsepower of our university roots. We take the brand very seriously. For us, it’s more than a name, it’s a mindset, a promise.”

STAYING COMPETITIVE

As the European tyre market shifts towards premiumisation and larger tyres with higher margins, many established brands are closing plants that once made smaller-size products. The move reflects a strategy to reduce volume while increasing profitability with a focus on 18-inch and above sizes.

Yet, Sailun Tyre Europe sees the market differently. “We don’t believe small cars or small tyres will vanish in a year or two. People will still use them for years and we see that as an opportunity,” said Cimbal.

The company positions itself as a full-range manufacturer. “We do tyres for small cars, medium cars, big cars, trucks, excavators, tractors etc. If an established brand sells at a price index of 100 and we offer similar performance at 70 or 75, it gives the consumer a sense of making a smart choice. They feel like they got the same quality for less; it’s a psychological win,” noted Cimbal.

Sustainability is another pillar of the company’s strategy. With modern factories, including its latest plant in Cambodia, which is just 18 months old, Sailun Tyre Europe can not only claim sustainability but also prove it. “That’s especially important for original equipment customers. If your sustainability processes aren’t in place, they won’t even talk to you,” said Cimbal.

While the manufacturer offers tyres across all segments, the strongest volumes remain in passenger cars. However, the company highlights its strength in truck tyres, citing nearly a decade of proven quality and performance. Its off-the-road tyre brand has also seen strong uptake in agriculture and construction, where reliability and brand trust are critical.

“It’s not about being cheap. We aim to be more affordable than traditional brands but still offer a high-value, reliable product. That’s attractive to farmers, construction firms and mining operators alike,” the spokesperson added.

On the evolving trend of tyres-as-a-service, the company isn’t actively engaged yet.

MARKETS IN VIEW

While the group has seen success in both North America and Europe, the two markets are vastly different in structure, regulation and consumer behaviour.

“In North America, the market is dominated by maybe five to 10 major wholesalers. In Europe, you’re dealing with hundreds. The difference isn’t just about distribution; it goes to the heart of how tyres are sold, marketed and perceived,” explained Cimbal.

Vehicle diversity plays a role too. “In North America, you generally see a lot of big trucks and a strong budget segment. But in Europe, the car types vary hugely. The complexity doesn’t end there. With 15 to 17 separate national regulations governing things like winter and summer tyres, the European landscape is a maze of legal requirements. The complexity of Europe is pretty unique,” added Cimbal.

Branding adds yet another layer as European consumers are heavily influenced by brands. They’re premium-oriented, very technology-conscious and pay close attention to the look, feel and messaging of a brand.

This awareness has shaped how Sailun Tyre Europe presents itself as it tries to appear smart, clean and modern.

Becoming a global brand is no simple task particularly for a company rooted in China. Commenting on how the group achieved this feat, Cimbal said, “It’s a tough, long journey from being a local brand in China to becoming a global one. You need a global framework, but you must also adapt the brand to local markets. European consumers don’t care what your brand looks like in China or the US; they want something that speaks to them directly.”

BRANDING EDGE

Back in the 1970s, Chinese manufacturers were often just copying European designs and not always doing it well, noted Cimbal. But that changed quickly. They moved from simply imitating to matching quality levels and then very rapidly to improving on them, doing it better, faster and cheaper. That’s the real secret behind the success.

According to him, it’s China’s ability to learn quickly and apply those lessons at scale that underpins its industrial momentum. In the tyre sector, evolution has brought performance, reliability and competitive pricing to global markets. But as the industry matures, product quality alone is no longer enough.

“Tyres are a branding game. The quality is there but others also make good tyres. For most consumers, all tyres look the same. That is why brand strategy is becoming critical for Chinese firms. Unless you’re a race driver or a tyre expert, you can’t easily tell one tyre from another. So brand becomes the key differentiator. It’s a shift already playing out in the automotive world and tyre makers will need to follow suit. We think we have the right tools and experience to manage it,” he contended.

As Chinese tyre manufacturers move from replication to innovation, a quiet transformation is underway. Across the board, Chinese manufacturers are no longer aiming to match European standards but working to surpass them.

This shift, Cimbal believes, is already beginning to reshape how Chinese-made products are viewed, particularly by younger consumers. “The next generation is growing up with products that are simply ‘Made in China’. They don’t question the quality. That label doesn’t carry the same doubts it used to,” he noted.

And in this high-speed race, brand perception could be just as critical as performance.

GEO-POLITICS AND SUPPLY

With a growing global footprint and an increasingly agile supply chain, Sailun Group is navigating a complex mix of political, economic and industry-specific challenges.

The group currently operates ten manufacturing plants in China along with facilities in Cambodia, Vietnam, Indonesia and Mexico, and a European plant is on the horizon, though the timeline remains uncertain.

The move to diversify production isn’t just political but strategic. As the European Union considers new anti-dumping tariffs on Chinese tyre imports, many Asian companies, including Sailun Group, are shifting capacity abroad. “You have to decentralise anyway for economic reasons. Now, with the threat of protective tariffs, it just makes even more sense. But it’s not a new strategy. The solutions are already in place,” explained Cimbal.

Despite growing geo-political friction, the company retains a high level of logistical flexibility. It can shift sourcing and supply routes quickly as needed.

In terms of product strategy, Sailun Tyre Europe remains committed to a balanced focus on both passenger car radial and truck and bus radial segments.

Surprisingly, the current economic downturn with inflation and cost-of-living pressures in regions like North America may actually benefit the brand. “We offer near-premium performance at a lower price. For consumers tightening their budgets, that’s a compelling proposition,” noted Cimbal.

 However, the tyre business remains layered with challenges. The industry, still largely traditional, is digitally underdeveloped. While tyres can be purchased online, the need for physical installation adds complexity but also presents upselling opportunities at dealerships and tyre outlets.

“Competition is among the most pressing concerns. The market is overcrowded with dozens of brands. Many of them are weak and some may vanish but no one is waiting for a new entrant. Earning a foothold requires a fight,” said Cimbal.

In a saturated European market, where demand has plateaued, the company sees growth through aggressive expansion. While legacy European manufacturers defend ageing infrastructure and close plants, Sailun Tyre Europe is building, growing and taking market share.

Commenting on the future of collaboration between companies, Cimbal noted, “There are simply too many brands and manufacturers in the market today. That can’t continue indefinitely. We will see more collaborations and mergers.”

As for growth, the company reports a sharp upward trajectory. “It depends on the market, but overall, we’ve seen a decent year-on-year growth. In some mature markets, even one digit is a big win. Elsewhere, higher two digits growth is possible, though those markets tend to be smaller. So it’s complex to quantify in a single figure,” contended Cimbal.

Following the 2025 General Assembly, Law Hieling has been elected to the Global Platform for Sustainable Natural Rubber (GPSNR) Executive Committee to represent the Manufacturer category. His 27-year international career at Michelin, encompassing roles in finance, commercial sales, distribution and his current leadership in natural rubber purchasing, provides a profound, ground-level understanding of the global tyre industry.

This extensive background has given him a clear appreciation for the intricate balance between commercial needs and ecological responsibility. He is committed to leveraging this perspective to help drive the collaborative, transparent and equitable solutions that are essential for a genuinely sustainable natural rubber value chain, benefiting both people and the planet.

Hieling said, “I look forward to contributing to the work of the Executive Committee in advancing responsible practices across the natural rubber sector.”

As the world grapples with the environmental challenges of discarded tyres, IIT Bombay researchers are developing sustainable solutions by repurposing waste rubber into innovative construction materials. Nilesh Wadhwa reports on how their work not only aims to mitigate landfill waste but also offers unique thermal, electrical and structural benefits for future infrastructure.

With over a billion tyres discarded globally each year, the world faces an escalating crisis in managing tyre waste. Beyond the mounds of rubber in landfills, the environmental and health hazards from tyre degradation, microplastics and toxic emissions are profound. However, a team of researchers at the Indian Institute of Technology (IIT) Bombay is charting a sustainable path forward. By transforming waste tyres into innovative construction materials – Rubcrete, which is a form of concrete mixed with shredded waste tyres. This is said to not only provide strength to the material but also make it more environmentally friendly. The idea is to turn an environmental problem into a valuable resource for civil engineering.

In an interaction with Tyre Trends, Prithvendra Singh, a principal researcher at IIT Bombay, explained the motivations behind this ground-breaking research. “The main aim of this research was to address the dual challenge of excessive end-of-life tyre (ELT) accumulation and the unsustainable depletion of natural aggregates due to ever-rising demand in infrastructural development,” he stated.

By converting waste rubber into engineered rubber aggregates (RA) and rubber-plastic blends (RPB), the team seeks to not only reduce landfill dependency but also enhance the sustainability of construction materials.

This pioneering approach is timely. The sheer scale of tyre waste, with millions of tonnes generated annually, has far-reaching consequences. Tyres are durable, non-biodegradable and pose serious fire hazards.

“One of the most overlooked issues is the generation of microplastics and toxic volatile compounds through tyre wear and tear, degradation, weathering or fires. Landfilled rubber fires can take months to extinguish and result in the emission of carcinogenic gases. These pose risks to human health and ecosystems, and their long-term contamination potential – especially via water, soil and air – is often overlooked in conventional waste management frameworks,” emphasised Singh.

FROM LAB TO FIELD

The IIT Bombay team’s research has revealed promising properties in both RA and RPB, which could revolutionise the use of secondary materials in civil engineering.

Singh elaborated on the mechanical characteristics, “RA and RPB exhibit significantly lower stiffness and higher deformability than natural aggregates, which makes them suitable for specific geoenvironmental applications but limits their use under high structural loads.”

While these properties may exclude them from load-bearing infrastructure, they open up opportunities in other areas. “Despite their lower mechanical strength, both materials demonstrate promising insulation characteristics and environmental safety under controlled conditions,” Singh added.

Thermal and electrical insulation capabilities are where these materials truly shine. “Both RA and RPB have superior thermal resistivity compared to standard sand, confirming their suitability for thermal insulation. Electrically, dry RPB shows the lowest conductivity, making it highly suitable for electrical insulation applications. Both materials also act as excellent dielectric materials over a broad frequency range,” Singh explained.

These characteristics make them ideal for construction projects where insulation and resistance to extreme temperatures or electrical fields are critical, such as in utility corridors or specialised building applications.

However, the journey from laboratory research to real-world applications is not without its challenges. “The lower stiffness of RA leads to higher vertical deformation under applied loads, making them less suitable for high-load applications such as base layers of highways,” Singh pointed out.

“However, they are ideal for lightweight fill applications like embankments or drainage layers, where flexibility and energy absorption are more beneficial than stiffness,” he added.

This insight highlights the potential for using RA and RPB in applications where traditional materials fall short, such as in earthquake-prone regions or on unstable soils where flexibility can mitigate damage. The process of creating RA and RPB depends heavily on the methods used to shred and process waste tyres.

SHREDDING METHODS: BALANCING COSTS AND PERFORMANCE

Singh outlined the pros and cons of various shredding technologies. “Ambient shredding is cost-effective but produces rough-surfaced particles, which exhibit better interaction in cement and polymer composites,” he noted. “Cryogenic shredding yields smoother particles with a broader size distribution but poorer bonding characteristics, and the created particles are generally suitable for turf or sports surfaces. Water-jet grinding offers finer control over particle size but comes at high energy and equipment costs.”

Each method results in materials with distinct properties, influencing their performance in construction applications.

Real-world validation is a crucial step in advancing this technology. To this end, IIT Bombay has partnered with GRP India, a leader in rubber recycling.

“We are currently collaborating with GRP to venture into production and field applications of these sustainable aggregates,” Singh revealed. “This partnership provides a foundation for scaling up through industrial-grade shredding, blending and real-world performance validation.”

These collaborations not only bring academic research closer to commercial implementation but also offer a model for future partnerships between academia and industry.

Of course, environmental safety remains a central concern in adopting new construction materials, especially those derived from waste. Leaching of metals and organic contaminants can pose long-term risks if not properly managed.

Singh’s team addressed these concerns through rigorous testing. “ICP-AES analysis showed that heavy metals like Pb and Zn are present in low concentrations, well within permissible limits,” he reported. “Previous studies corroborate that such materials typically stay within permissible toxicity limits under standard conditions. However, long-term leaching behaviour under varied field conditions remains necessary to confirm safety under varying environmental exposures.” This underscores the need for comprehensive testing and monitoring to ensure environmental safety.

THE ROAD AHEAD

Looking forward, IIT Bombay’s research agenda is ambitious. Singh described plans for further experimentation to expand the applications of RA and RPB. “We are currently planning long-term loading-unloading experiments and elevated temperature testing to establish the thermo-mechanical response of RA and RPB under realistic field stresses,” he said. “These experiments aim to address limitations in durability data and expand application potential. Also, future experiments will simulate realistic landfill environments, including interactions with leachate, microbes, humidity and temperature, to understand long-term behaviour.” Such studies will be essential for certifying these materials for broader use in civil engineering.

Could tyre-derived materials eventually replace traditional aggregates in certain applications? Singh is optimistic. “Yes, particularly in non-structural or semi-structural applications such as leachate drainage layers, landfill covers, thermal insulation barriers and lightweight embankments. The lightweight, high porosity and insulation capabilities of the RA and RPB present unique advantages that traditional aggregates cannot provide,” he said.

This vision aligns with global efforts to promote circular economies and reduce reliance on finite natural resources.

Responding to his expectations from the industry, Singh stated that stakeholders need to support the integration of sustainable materials into mainstream construction.

“The message I would like to convey to the academicians, tyre industry stakeholders and policymakers is to embrace innovation through cross-sectoral collaboration. Sustainable solutions like RA and RPB not only offer environmental remediation but also open new markets for green construction materials. With the right policy incentives, certification frameworks and industry support, we can mainstream these materials and accelerate the transition towards a circular, resilient economy,” he said.

IIT Bombay’s work exemplifies how innovative research, when coupled with industry collaboration and policy support, can turn a pressing environmental problem into a sustainable solution. By reimagining waste as a resource, Singh and his team aim to not only address the tyre waste crisis but also lay the groundwork for more resilient and eco-friendly infrastructure in the future.

Pirelli has confirmed that all five of its new slick tyre compounds will be used during the first three races of the 2026 Formula One season, beginning with Australia, China and Japan.

The Italian tyre supplier said the compound selections for the opening races mirror the approach taken in 2025, with nominations spanning from the hardest to the softest compounds to suit varying circuit demands.

For the season-opening Australian Grand Prix in Melbourne, scheduled for March 6–8, teams will have access to the C3, C4 and C5 compounds. The same combination in 2024 led to a two-stop race strategy using all three tyres. Earlier this year, however, variable weather conditions limited the use of slicks, with intermediate tyres required for much of the race.

At the Chinese Grand Prix in Shanghai, from March 13–16, Pirelli has selected the mid-range compounds: C2, C3 and C4. The 5.451-kilometre circuit, which was fully resurfaced this year, places average lateral and longitudinal loads on the tyres, with greater wear on the left-hand side of the car. Shanghai will again host the first sprint weekend of the season.

Suzuka, which hosts the Japanese Grand Prix from March 27–29, will require the hardest allocation, with C1, C2 and C3 nominated. The circuit is regarded as one of the most demanding on tyres. In 2025, low track temperatures and reduced graining allowed drivers to complete the race with a single pit stop, whereas higher thermal degradation in 2024 required at least two stops.

Drivers will arrive in Melbourne after an extended pre-season testing programme. The first test will take place behind closed doors in Barcelona from January 26–30, marking the first on-track running of the new tyres on 2026-specification cars. Each team will select three days of running during the five-day test. Two further tests will be held in Bahrain, from February 11–13 and February 18–20.

Pirelli said the use of all five slick compounds across the opening races will allow it to assess performance gaps between the tyres under competitive conditions, as well as their resistance to graining and overheating. The data will be used to inform compound selections for the European rounds later in the season.

Shandong Dawn Polymer Material Co., Ltd has agreed to acquire an 80 per cent stake in Ningbo SK Synthetic Rubber Co., Ltd for RMB515.97m, as the Chinese polymer materials group seeks to extend its elastomer value chain and strengthen its EPDM rubber capabilities.

Dawn Polymer’s board approved the transaction on 10 December 2025. The company will use internal funds to purchase the stake from SK Geo Centric Investment Hong Kong Limited. Upon completion, Ningbo SK Synthetic Rubber will become a controlled subsidiary and be included in Dawn Polymer’s consolidated financial statements.

The acquisition is subject to shareholder approval but does not constitute a related-party transaction or a major asset restructuring under Shenzhen Stock Exchange rules, the company said.

To support stable operations following completion, certain patents, proprietary technologies and trademarks related to Ningbo SK’s products are expected to be transferred to Dawn Polymer by affiliates of the seller, SK Geo Centric Co., Ltd and/or SK Innovation Co., Ltd. The intellectual property transfer, which has not yet been finalised, is capped at RMB 64.7 m based on an assessment as of 30 June 2025.

Founded in 2012, Ningbo SK Synthetic Rubber is based in the Ningbo Petrochemical Economic and Technological Development Zone. It focuses on the production and sale of EPDM rubber, along with related technical services.

As of 30 June 2025, the company reported total assets of RMB783.0m and net assets of RMB343.8m. Revenue for the first half of 2025 was RMB568.5m, according to audited financial statements.

An asset-based valuation placed the company’s net asset value at RMB647.3m, representing an increase of 88.27 per cent over book value, primarily due to the revaluation of fixed and intangible assets.

Dawn Polymer said the acquisition would enhance its integrated “polymerisation–modification–application” industrial chain. EPDM rubber is a key raw material for the company’s dynamic vulcanisation products, and in-house production is expected to reduce reliance on external suppliers and improve supply chain resilience.

The company cautioned that the transaction remains subject to regulatory approvals and integration risks following completion.