Making a tyre is an extensive process that includes everything from formulation to testing. With the advancement in software-defined technology, tyre testing is increasing within a simulated environment. However, as real as the rubber wheel is, its testing in real-world environment stands as imminent in future course despite the current trend of simulation.

Alluding to this, Black Donuts Head of Tyre and Material Development Ilkka Lehtoranta told Tyre Trends, “Alongside the advanced laboratory equipment and various simulation methods, real-world tyre testing remains essential now and in the future. Physical testing in diverse conditions is critical for final evaluation and validation. Real-world tyre testing will continue to play a significant role moving forward. At Black Donuts, we offer comprehensive tyre testing services through our subsidiary, BD Testing. This company specialises in outdoor testing to ensure that products perform reliably in all environments.”

Commenting on the role of simulation in tyre development, he said, “Simulation plays a critical role in tyre development, offering a proven and essential part of the design process. One key type of simulation is finite element analysis (FEA), a mathematical method used to model and simulate physical phenomena. FEA is widely employed across industrial sectors including tyre manufacturing to predict and validate design performance before creating physical prototypes.”

“For tyre development, simulation tools provide significant advantages. By conducting design verification and validation virtually, companies can reduce the need to produce experimental tyre, which saves raw materials and minimises waste. This approach not only supports environmental goals but also accelerates the development timeline, allowing for faster iterations and refinements. Black Donuts integrates various simulation methods into its development process, heavily relying on the results to optimise designs,” he added.

Testing facilities

The Finnish company offers comprehensive tyre testing services with a primary focus on outdoor testing rather than indoor facilities. While indoor testing facilities are widely available globally, including in Europe, Asia, India and North America, Black Donuts has chosen to concentrate on outdoor testing. The company leverages the expertise of skilled test engineers and drivers, who understand the nuances of environmental and external factors, to deliver dependable testing outcomes. 

“We operate a proving ground in northern Sweden, where winter tyres are tested under snowy and icy conditions. Additionally, we have a testing centre in Finland’s Tampere region, which serves as a hub for evaluating tyre properties across a range of conditions. The facilities enable grip testing on ice, snow, wet and dry surfaces; noise testing for internal and external evaluations; handling and comfort assessments; aquaplaning analysis and tailored tests developed to meet specific customer needs,” informed Lehtoranta.

He mentioned that test drivers are central to Black Donuts' outdoor testing process as their expertise in assessing tyre behaviour is critical for validating designs and providing feedback to engineers. This collaboration ensures the test results are seamlessly integrated into the design and development process, allowing engineers to refine tyre properties based on real-world performance insights. 

Winter testing is conducted during the colder months to utilise natural snow and ice conditions. While the company does not have an indoor snow-testing facility, it makes use of local resources such as ice halls for ice-related evaluations. For summer tyres, the focus shifts to testing grip, handling and noise levels under both dry and wet conditions. 

In addition to testing during tyre development, Black Donuts supports homologation and certification processes. Through its subsidiary, BD Testing, the company provides accredited testing services and official test reports required for certifications by authorities. This includes European homologation tests for snow and ice performance, as well as specialised assessments such as road wear impact evaluations for studded tyres in Scandinavian markets. 

The company also conducts internal testing to collect data, monitor market trends and benchmark tyre performance. “This continuous research helps us to identify industry standards and emerging trends, ensuring that our tyre development projects remain innovative and competitive,” averred Lehtoranta.

Industry peek

Black Donuts provides end-to-end solutions for the global tyre industry, catering to both manufacturing and tyre research and development needs. Its services cover tyre design and production, materials research and development, making the company a comprehensive partner for tyre manufacturers globally. Whether supporting the establishment of new tyre plants, upgrading existing facilities or offering specific technical expertise, it has a broad portfolio of engineering and technological solutions. 

In production, Black Donuts assists manufacturers with everything from setting up greenfield projects to improving brownfield facilities. For existing manufacturing lines, the company conducts thorough audits to identify bottlenecks, inefficiencies and quality issues. The focus often includes increasing automation, enhancing productivity, reducing manufacturing costs, improving quality, minimising scrap and waste and even reducing tyre weight. These solutions are tailored to meet the specific demands of the client. 

For greenfield projects, it offers turnkey solutions. These include site selection support, plant layout design, architectural planning, defining machinery specifications, automation strategies and utility calculations. During the execution phase, an on-site engineering team supervises construction, machinery installation, commissioning and the ramp-up of production processes. The company also trains operators, troubleshoots quality issues and supports clients in improving efficiency. The level of post-production support is flexible with options for ongoing assistance tailored to the client's needs. 

Alluding to how the design and production process differ across regions, the executive said, “The design and production processes themselves are generally consistent across regions. However, automation levels may vary based on factors like labour costs and plant location. European facilities, for instance, often require higher automation levels due to higher manpower costs, though automation is increasingly being adopted in Asia as well. This trend has significantly reduced manpower requirements in tyre manufacturing globally, driven by advancements in automation technologies.”

Research and development

In tyre development, significant trends include the growing demand for sustainability, increased automation in production processes and evolving design needs tailored to regional and market-specific conditions. Tyre materials development is a subset of tyre development but is critical due to its role in addressing environmental and performance challenges. Black Donuts works on both these aspects, helping clients innovate while navigating changing demands in the tyre industry.

The push for sustainability is the most pressing challenge in tyre material development. There is an increasing emphasis on replacing fossil-based materials with sustainable alternatives like bio-based and recycled raw materials. Black Donuts plays a pivotal role in identifying and testing new materials available in the market, integrating them into tyre compounds and ensuring its compatibility with production processes.

In addition to working with existing materials, Black Donuts has initiated its own research and development efforts to explore innovative, out-of-the-box sustainable solutions. These include new bio-based raw materials currently under internal development, which are expected to be launched soon.

On the tyre development front, it offers comprehensive services for creating new tyre lines across segments like passenger car radial (PCR), truck and bus radial (TBR) and off-the-road (OTR) tyres. The designs cater to various markets including Europe, US, Asia and Africa, ensuring optimal performance under different environmental and regulatory conditions.

Customisation for specific client needs, whether summer or winter tyres, and adapting designs to suit regional preferences are also part of the company's everyday operations.

Competitive edge

The rapid evolution of technology, automation and sustainability trends demands agility and adaptability. Black Donuts maintains an active presence in the market, staying updated on global developments by leveraging its extensive partner network, including machinery and raw material suppliers, to gather insights and anticipate emerging trends.

Alluding how the company selects partners, the executive revealed, “The partner selection process is fundamental to delivering high-quality, innovative solutions. Many members of our team have decades of experience and longstanding relationships with suppliers, which provide a solid foundation for selecting trusted partners. Besides, there are several factors that are taken into account to source new partners.”

One of the most crucial factors in selecting partners is the technological capability. Black Donuts prioritises partners that offer cutting-edge technologies, which can add value to both the company and its customers. It also carefully evaluates the ability of potential partners to deliver machinery, raw materials and components as promised. Moreover, the company seeks partners who share values of sustainability.

While Black Donuts draws on its established relationships with trusted suppliers, the company remains proactive in sourcing new partners and exploring the latest advancements in technology and materials.

Sustainability

The executive noted that in the next five years, the proportion of renewable or bio-based materials in tyre production is expected to remain relatively modest. “Currently, aside from natural rubber, which makes up around 20 percent of tyre materials, the use of other renewable materials is almost negligible. While the industry faces challenges in sourcing and incorporating bio-based and recycled raw materials, it is estimated that within five years, the share of such materials could reach 30-35 percent of the total tyre content,” said Lehtoranta.

Alluding to industry goals of incorporating 100 percent renewable materials in tyres by 2050, he noted, “Incorporating 100 percent renewable materials in tyres is possible, but it will require collective action across the entire industry. All stakeholders must align and collaborate towards this common goal. Many mid-sized and smaller companies may struggle with this transition on its own, which is where industry partners can offer valuable support. This is also why companies are increasingly focusing on researching and developing new bio-based raw materials in order to expand the availability of these alternatives in the market. However, scaling these innovations to a commercial level remains a challenge as many promising ideas have not yet been fully realised on a large scale,” informed the official.

He also noted that achieving sustainability in tyre production will undoubtedly require significant investment. A key challenge is that sustainable raw materials are currently more expensive than conventional alternatives. Unfortunately, many end consumers are not yet willing to pay a premium for tyres made with sustainable materials.

Market presence

Black Donuts has a presence on all continents. “We have a strong market footprint, serving a wide range of regions. For instance, of the 25 largest tyre manufacturers, 20 have been or are currently our customers. We also have upcoming projects across Europe, Asia, North America, South America and Africa, highlighting our global reach and ongoing expansion,” said Lehtoranta.

He added, “In terms of revenue, our biggest business segment revolves around providing end-to-end solutions for tyre plants including services related to tyre factory setup and operations. This is the largest segment in terms of financial impact. Additionally, tyre and material development is another major part of our business contributing significantly to our overall revenue.”

North America is one of its largest markets, followed by Europe and Asia, though revenue distribution can vary year by year due to the nature of projects.

He also noted that regulations play a crucial role in driving the business. The regulation concerning studded tyres, for instance, which has been important in the European market. Winter tyre regulations, particularly the requirement for the snowflake symbol on tyres, are also significant, especially in Nordic countries.

Additionally, a newer regulation being prepared by the European Commission concerning tyre abrasion, which is becoming a more prominent issue due to sustainability concerns, is also slated to drive business.

Commenting on the same, the executive said, “Tyre abrasion, especially concerning microplastic emissions, has gained attention in Europe as tyres are recognised as a major contributor to microplastic pollution. The industry and authorities are now focusing on reducing this issue by improving tyre wear properties. The goal is to ensure that tyres generate less microplastic per kilometre driven. This is particularly relevant in regions with snowy and icy roads, where tyre performance and durability are critical.”

Furthermore, he highlighted that the difference between snow and ice significantly impacts tyre performance. Ice presents much lower friction than snow, which is why ice poses a more challenging driving condition. Tyres perform worse on ice, resulting in longer stopping distances. In regions with icy roads, like the Nordic countries, manufacturers often use studs to enhance grip on ice, improving safety by reducing braking distances.

Expansion and demand

The executive mentioned that the company is expanding in the Asian and North American markets. “While winter tyres are a big demand in these regions, it's important to note that winter tyre usage varies by region. In China, for example, there is a significant demand for winter tyres, particularly in colder regions, and Japan has a large market for them as well, with regulations encouraging its use. North America, especially in regions with harsh winters, also has a strong market for winter tyres,” said Lehtoranta.

“Despite the slowdown in the European market and concerns about the US market, we still see North America as a strong growth area for us. We haven't noticed any significant slowdown in our business there and the market remains promising. However, we also see great potential in Africa, where we are seeing a lot of investment activity,” he added.

Answering what factors led the company to explore avenues in Africa, he said, “Several factors are driving the growth potential in Africa. Currently, there is little local tyre manufacturing in the region and many countries are looking to establish local industries to boost the economies and create jobs. Additionally, Africa has significant natural resources including natural rubber and oil, which can be used to produce synthetic rubbers and other raw materials needed for tyre manufacturing. Local production would enable companies to add value by refining these raw materials into finished products like tyres, creating a more sustainable and profitable cycle.”

Commenting on future plans, he said, “Our focus will be on the entire tyre lifecycle, from raw materials to production, performance and ultimately, the end of life of the tyres. We are working on developing solutions that handle tyre disposal and recycling with the goal of creating a fully sustainable tyre manufacturing process. This approach would ensure that our products and services are environmentally friendly throughout the entire supply chain.”

Industry challenges

Tyre manufacturing factories often encounter several challenges when setting up greenfield and brownfield projects. One of the primary challenges is managing the project’s schedule and budget, ensuring that the project stays on track and within financial constraints. Another critical aspect is reaching the targeted capacity for the plant, which can be challenging given the complexities of large-scale projects.

Additionally, there are technological hurdles that the company must overcome, especially in terms of innovation and research. Developing new technologies and sustainable solutions for the industry is not an easy task and requires a long-term commitment.

In terms of business challenges, the company is focused on technological innovation and research. Developing cutting-edge technologies and creating sustainable solutions for tyre manufacturing is a key priority. However, this process is often time-consuming and requires significant effort.  This is where Black Donuts’ know-how and cutting-edge solutions come into play. The company is currently focused on pushing the boundaries of what is possible within the tyre industry, particularly regarding sustainability.

Regarding operations in India, the company is in the early stages of its expansion. Although it does not have a physical office in India yet, it has begun operations under the leadership of a technical director. The goal is to develop the business in India and gradually establish a technical centre that will focus on tyre simulation and other technical areas of tyre development.

The Chinese market is another area of focus. While it is not the largest market for the company, it remains an important one, with ongoing projects and customers in China. The company recognises that China is a significant player in the global tyre industry, and it continues to engage with the market, even though it is not the biggest revenue driver.

Additionally, the company is observing a trend where manufacturing is returning from Asia to local markets, a shift that began before the pandemic and has been accelerated by it. This trend is visible in regions like Africa, North America and Europe, where companies are establishing local production to mitigate supply chain issues and reduce reliance on distant markets. This shift represents a significant opportunity for the company to expand its operations and grow its presence in these regions.

Anshuman Singhania, Managing Director of JK Tyre & Industries, has been awarded the 'CEO of the Year' by the Top Rankers Management Club. The accolade was presented at the 25th National Management Summit, held in New Delhi on 23 August 2025.

The award recognises Singhania’s exceptional leadership and strategic vision, which have been pivotal in steering the company toward sustained growth and innovation. Under his guidance, JK Tyre has reinforced its position as a leader in radial tyre technology, expanded its global presence and strengthened its dedication to sustainability and customer focus.

In his acceptance speech, Singhania expressed his gratitude, stating, “I am honoured to receive this recognition from the Top Rankers Management Club. This award reflects the collective commitment of the entire JK Tyre team, whose efforts continue to drive our progress. I would like to thank my colleagues, industry partners and stakeholders for their unwavering support in our journey of growth and transformation.”

He has been a key figure in modernising the company, leveraging new technologies and expanding its presence in both domestic and international markets. The 'CEO of the Year' award, presented by the Top Rankers Management Club, celebrates leaders who demonstrate a clear vision for organisational excellence and industry transformation.

Hana Technologies, Inc. (Hana RFID) has strengthened its leadership in the Asian market with the appointment of industry veteran Jason Chang as Sales Director for Asia. Based in Shanghai, he will be responsible for managing key customer relationships and driving strategic growth throughout the region.

Chang brings a wealth of relevant experience to the role, with over 15 years in the RFID sector following a successful career in IT. His proven track record includes significant tenures at leading firms like Xerafy, Stora Enso and Beontag. His accomplishments range from pioneering the development of innovative flexible anti-metal tags to launching groundbreaking RFID-based retail solutions that gained widespread adoption in China and Europe. He has also demonstrated a strong capacity for growth, most recently achieving remarkable business expansion in the APAC market.

This appointment is a strategic milestone for Hana RFID, underscoring its commitment to supporting global customers with high-performance technology and expert, on-the-ground leadership. This move highlights Hana RFID's focused strategy on deepening its regional support and providing partners with sophisticated RAIN RFID inlay and embeddable tag solutions, backed by local expertise.

Mike Hetric, Senior Vice President – Sales & Marketing, Hana RFID, said, “The appointment of Jason Chang is a significant step forward in improving local availability and supporting our key partners in Asia. Jason’s track record in driving innovation, his deep market knowledge and his commitment to customer success will be invaluable as we expand our footprint in this dynamic region.”

Chang said, “I’m excited to be part of the Hana RFID team, which is recognised in the market as both a key player and a trusted partner for an ever-growing network of label converters, service bureaus and system integrators. I look forward to working alongside our partners in Asia to deliver innovative solutions and exceptional service.”

Ralson Tire North America (RTNA) has expanded its leadership team with the appointment of two seasoned tyre industry professionals.

As per the new development, Billy Dorsey Jr has been appointed as Vice President of Sales – South and Jamie McSwaney has been appointed as Vice President of Sales – North. Both the new appointments bring a combined 45 years of tyre industry experience to the company.

Brian Sheehey, President, RTNA, said, “These additions signal our unwavering commitment to accelerating Ralson’s growth in the US and Canada. We’re building a leadership team that knows how to compete, win and deliver results. Their deep industry relationships and ability to execute will be instrumental as we continue to grow our footprint in the North American trucking industry.”

Scandinavian tyre service provider Citira sees robust potential for premium tyres in the Nordic region, driven by seasonal demands and safety priorities. CEO David Boman highlights that premium tyres including Pirelli’s offerings hold a significant share in passenger car, light truck and truck tyre segments supported by harsh winter conditions that emphasise performance and reliability. Despite a slight recent decline amid broader economic pressures and rising price sensitivity, premium brands remain relevant. Citira’s new long-term partnership with Pirelli and acquisition of Dackia AB aims to consolidate and optimise premium tyre distribution across Sweden.

Scandinavian tyre service company Citira recently told Tyre Trends that Nordic countries have excellent potential for premium tyres during a discussion over its partnership with Italian tyre major Pirelli.

Speaking on the market potential, Chief Executive Officer David Boman said, “When it comes to the Nordic markets, Scandinavia in particular has a relatively high share of premium tyres across categories including passenger car, light truck and TBR segments. Compared to other global regions, the demand for premium tyres here is notably strong.

“One of the main reasons for this is the seasonal nature of our market. Winter tyres, in particular, drive a more premium-oriented approach because of the need for high performance and safety under harsh conditions. While we’ve observed a slight decline in the premium tyre share over the past few years, it still holds a significant portion of the market. This demand is closely tied to seasonal safety concerns, especially in winter, autumn and early spring. Drivers here prioritise safety and reliability, which naturally supports the continued relevance of premium brands like Pirelli.”

He noted that the decline is likely tied to broader financial challenges in the market, especially following the Covid period. Both consumers and companies have become more price-sensitive, making cost a bigger factor in purchase decisions.

As a result, there’s been a gradual increase in demand for lower-cost, imported non-European tyre brands, while the market share of European premium tyre brands has slightly decreased.

Pirelli and Citira have entered a long-term strategic partnership aimed at enhancing their market presence in Sweden. As part of the deal, Citira will acquire Dackia AB that has a network of 102 retail outlets from Pirelli.

In return, Pirelli and Dackia have signed a supply agreement extending to 2030, ensuring Pirelli remains the main tyre supplier. The transaction, pending regulatory approval, is expected to close by 2025. The partnership will boost Pirelli’s distribution and market coverage while supporting Citira’s goal of expanding a sustainable, flexible and high-quality customer service network.

THE PACT

Citira currently runs over 50 tyre shops and over five retreading units across Scandinavia and Poland. “Citira is actively working towards creating a more efficient and consolidated tyre market. While our current focus is primarily on the Scandinavian region, it’s not out of the question that we may consider expanding beyond this geographic perimeter in the future. This agreement is part of a broader industry trend where partnerships and acquisitions are used to enhance efficiency, strengthen distribution networks and provide end customers with better service coverage,” revealed Boman.

Nonetheless, the deal specifically pertains to the Swedish market, and as part of the regulatory process, Citira has conducted a market analysis to understand the potential implications on market share. However, the specifics of that study were said to be confidential and could not be disclosed prior to the official closing of the deal.

Explaining how this partnership will influence the supply chain of premium tyre in the Nordics, Boman said, “We do anticipate some changes, particularly within Citira. We operate a number of logistics centres, and this partnership presents an opportunity to optimise our overall supply chain setup. Enhancing logistics will be a key enabler of better service and responsiveness in premium tyre distribution.”

He added, “This particular deal is unlikely to have a direct or immediate impact on independent retailers or smaller distributors. More broadly, the Scandinavian tyre retail sector is undergoing consolidation. Several players are actively reshaping the competitive landscape and that trend could gradually influence the positioning of independents. But again, this specific acquisition is not a disruptive event in that context.”

Alluding to the current demand for replacement tyres, he said, “In general, the tyre market has proven to be quite non-cyclical. Even in challenging economic conditions, it tends to remain stable. That said, I believe we’re entering a phase where circularity and life-extension solutions will gain more momentum. We’re likely to see increased focus on services that extend tyre life, especially for larger fleets. This shift won’t just be driven by cost or fleet uptime concerns but increasingly by environmental responsibilities.”

THE BUSINESS

According to Boman, Pirelli represents a very minimal share of Citira’s overall sales, currently. However, the strategic partnership mainly revolves around Dackia and Pirelli, and the former is intended to become part of the Citira Group. “Moving forward, there is definitely an opportunity to deepen the collaboration with Pirelli and potentially grow their share within our overall brand mix,” added Boman.

Citira currently follows a multi-brand strategy and will continue with it even after closing of the deal. Besides, it is also involved in process and sales of retreaded TBR tyres and wheel rims.

“We operate a facility in Poland where we refurbish truck and bus rims. The process involves media blasting and repainting the rims to restore its appearance and functionality. The logic behind it is quite similar to retreading. In most cases, the structural integrity of the rim is still intact; it’s just the surface or aesthetics that degrade over time. By restoring these rims, we’re able to extend the life and reduce waste,” said Boman.

The company operates five retreading facilities collectively, located in Finland, Sweden and Poland. It uses both hot-cure and cold-cure retreading methods. Hot-cure is used in Poland and cold retreading in Finland and Sweden. Annually, it retreads around 160,000 tyres, averaging about 13,000 per month. While its current focus is on retreading, Citira is actively exploring expansion into tyre recycling as part of a broader push towards sustainability and circularity.

The company also manages tyre distribution for fleets across countries. Its circular tyre distribution approach involves not only delivering new tyres to customers but also collecting used tyre casings from them. These casings are then sent back to its retreading facilities, creating a closed-loop system. Besides, Citira has different suppliers across Europe for sourcing tyres for retreading.

MARKET WATCH

Citira sees a strong willingness in the market for consolidation and it has already engaged in several partnerships. Commenting on market challenges, Boman said, “One key challenge is the need for a player capable of driving consolidation at a larger scale. In the Scandinavian markets, this kind of brand-independent consolidation hasn’t really taken place over the last 10 to 15 years. Previously, consolidation efforts were primarily led by tyre manufacturers or affiliate networks players. However, consolidation has largely been on hold recently, leaving space for an independent actor to step in. We see that opportunity clearly and believe it is well received both by other market participants and customers. The challenge lies in successfully executing this consolidation while maintaining trust and delivering value across a diverse market.”

Commenting on the demand for retreading, he said, “The Scandinavian market has a long tradition of retreading heavy vehicle tyres. Currently, there is a growing shift towards pay-per-kilometre or tyre-as-a-service models, especially among large fleets like bus companies and hauliers. Notably, public tenders increasingly require a certain share of retreaded tyres, reflecting a strong environmental focus. Retreading extends the life of a tyre by reusing about 70 percent of its original material, making it a significant sustainability tool. The market share of retreaded tyres is gradually increasing with expectations that the retread market will grow faster than the new tyre market in the coming years.”

“The main challenges for the retreading industry lie in overcoming the longstanding perception that retreaded tyres are merely a low-cost option rather than an environmentally friendly and sustainable product. This is mostly prevalent is Scandinavia and it is crucial to shift this mindset by educating customers and the broader market about the true benefits of retreading. Moving away from a purely price-driven sales approach to one that highlights quality, durability and positive environmental impact remains a significant hurdle for the industry,” he added.