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.”

Linglong Tire has announced the promotion of Alessio Iacovelli to Deputy Director of Replacement Sales for Western Europe, effective 1 September 2025. In this elevated role, Iacovelli will take on leadership of the regional sales team with a mandate to accelerate business development. His key objectives will include forging strategic alliances and implementing programmes to strengthen customer loyalty. Iacovelli will report directly to Lisa Zhao, the Director of Replacement Sales for Western Europe, and will collaborate with her to manage key markets, including Germany, the UK, Italy and Spain.

Iacovelli, who began his career with Goodyear and Nexen, first joined Linglong Tire at the end of 2022 as a Sales Manager. In that capacity, he demonstrated significant success in developing the Southern European aftermarket, where he expanded the brand's footprint, defined effective growth strategies and secured robust partnerships with distributors. This strategic appointment and the restructuring of the sales leadership underscore Linglong Tire's intensified focus on achieving its ambitious growth targets across the European continent.

Iacovelli said, "I am very pleased to have been promoted to Deputy Director Replacement Sales West Europe at Linglong Tire. We have fantastic products such as the Sport Master 4S and the Sport Master Winter, both successfully tested in the recently published tyre tests. We have a state-of-the-art development centre in Germany and a new tyre plant in Europe and are successful in original equipment – ideal conditions for achieving our ambitious goals together with my team and the colleagues in Hannover and continuing to grow, especially in Europe."

German synthetic rubber maker ARLANXEO has launched consultations with worker representatives over the potential closure of its Port Jerome facility in France, citing persistent weak demand and declining competitiveness in the European chemicals industry.

The company, which is majority-owned by Saudi Aramco, had begun an information and consultation period with the Works Council at the site, located in northern France. A final decision on the closure will be taken after the mandatory consultation process concludes and approval is obtained from the French labour authorities, DREETS.

“The European chemical industry continues to face persistent weak demand and declining competitiveness driven by rising costs, unbalanced global markets, and increased regulatory pressure,” said Stephan van Santbrink, ARLANXEO chief executive.

“These conditions have generated a significant burden on the sector across the regional value chain. ARLANXEO has not been an exception to these challenges. The Port Jerome site has remained in a structurally loss-making position. Despite numerous improvement efforts, we do not foresee a viable path to a sustained structural improvement.”

The company did not disclose how many jobs would be affected by a potential closure, nor did it provide details on the facility’s production capacity or annual output.

Van Santbrink acknowledged the impact on workers, saying: “We recognise the impact a potential closure may have on our employees, and we regret the need to consider these steps. We will continue to treat all employees with respect. If we decide to cease operations at the site, we will do our utmost to assist in finding alternative solutions for all impacted employees. In addition, we intend to provide impacted employees with a social plan which reflects their valued contribution to ARLANXEO.”

The announcement adds to a growing list of European chemical producers struggling with high energy costs, sluggish demand and competition from lower-cost producers in Asia and the United States.

ARLANXEO said it would work closely with all affected internal and external stakeholders to minimise the impact of the intended closure.

Continental's Tires group sector has strengthened its leadership team with two key internal appointments, effective 1 September 2025. Jana Striezel has been named the new head of global purchasing for Continental Tires, while Dennis Bellmund has assumed leadership of the global original equipment business for both passenger and commercial vehicles. Both executives will report directly to Christian Kötz, the member of Continental AG's Executive Board who leads the Tires group sector.

In her new capacity, Striezel will oversee worldwide strategic and operational purchasing. She brings extensive experience from the automotive industry, having previously held several procurement management roles at Renault, where she led purchasing for the Renault brand and its alliance with Nissan and Mitsubishi in Europe. Her career began at Volkswagen in 2014.

Bellmund, who has a 25-year tenure with Continental, steps into his role following the departure of his predecessor, Manja Greimeier, to the ContiTech sector. His extensive background within the company includes recent responsibility for Continental’s tyre retail operations, alongside prior leadership roles in EMEA supply chain management and sales direction for the European replacement tyre business. These appointments signal a strategic reinforcement of Continental's tyre division leadership.

Kötz said, “We’re delighted to welcome Jana Striezel, a highly skilled manager, to our team. She brings extensive expertise in international procurement and will focus on driving forward our purchasing strategy. In Dennis Bellmund, our global original equipment business has gained a highly experienced leader. Thanks to his many years at Continental, he is familiar with our company and our customers’ needs from many different angles. On behalf of the entire management team, I wish both of them every success in their new roles and look forward to working together.”

“On behalf of the entire team, I would like to thank Manja Greimeier for her successful leadership of our original equipment business and wish her all the best and continued success,” added Kötz.

In a significant leadership update, LD Carbon (LDC) has announced a restructuring of the chief executive office at the company. The company confirmed that Seong-Moon Baek will now serve as the sole CEO. This move follows the departure of former co-CEO Yong-Kyung Hwang from the executive position.

The change is effective immediately as the company continues to advance its initiatives in the sustainable materials sector. Chief Commercial Officer Bumseek Kim (BK) formally communicated the development in a statement, saying, “Should you have any questions, please feel free to contact me at any time.”