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Continental: Russian tyre raw material supply will ‘gradually deteriorate’

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Igorn; Pixabay

In light of the ongoing war in Ukraine and the resultant sanctions against Russia, Tyres & Accessories asked the well-known automotive supplier and premium tyre manufacturer for its perspective on the situation. In response, an official statement from the Continental Tire Group Sector explained: “We are following the war against the Ukraine with great concern. Our thoughts are with the people affected and we hope that the combat operations end as quickly as possible.”

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Related news:

  1. How will war in Ukraine impact European tyre production?
  2. Nynas stops doing business with Russia and Belarus
  3. Nokian Tyres drops 2022 guidance due to Russian invasion
  4. Nokian moves selected tyre production out of Russia
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How will war in Ukraine impact European tyre production?

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Jorono; Pixabay

The tragedy of war always has repercussions. Russia’s invasion of Ukraine at the end of February is no exception. With reports of thousands of deaths and hundreds of thousands of people already displaced, the human cost is incalculable. While blood is being spilt in Ukraine at a horrifying rate, this war is being fought on at least three fronts: military, electronic and financial. The human cost of the military dimension is beyond the scope of this publication. Likewise, cyber-warfare is probably a bridge too far (unless we are talking about vehicle cyber security, which is of increasing importance right down to the aftermarket garage level – see pages 16 to 17  of our forthcoming March edition for more on this). The economic cost of the war in Ukraine, however, will have an inevitable impact on European tyre production directly due to conflict and indirectly due to logistics and the impact of sanctions.

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Related news:

  1. Top tyre manufacturers deny involvement in tyre test manipulation
  2. Manufacturers Take On the Russian Market
  3. Goodyear: New EfficientGrip Performance 2 tyre offers 20% more mileage than Michelin
  4. Bridgestone’s Blizzak LM005 wins Auto Express winter tyre test
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Rosava’s long-established partnership with Belarussian Grodno Azot tested by war

Rosava

At the end of 2021 Ukraine’s only domestic tyre manufacturer, Rosava, hailed the strength of its partnerships with neighbouring Belarussian tyre manufacturing materials suppliers. Rosava representatives said “Established partnerships are the most effective tool for achieving common goals. Thus, our partners are always welcome to visit our company.”

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Related news:

  1. Omsk Carbon Belarus factory: construction underway
  2. DuPont increases Zytel prices globally
  3. Rosava back in Brazil
  4. Exports drive Rosava’s rising sales
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Nokian moves selected tyre production out of Russia

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Nokian

In light of the Russia-Ukraine war, Nokian has established a crisis management team to safeguard staff and production at its Vsevolozhsk, Saint Petersburg, Russia tyre factory and is relocating the production of certain tyre lines to Finland and the US. Nokian employs 1,600 people in Russia. Net sales in the company’s Russia & Asia business unit amounted to 336 million euros in 2021.

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Related news:

  1. Nokian to invest $360 million in new US tyre factory
  2. Nokian Tyres drops 2022 guidance due to Russian invasion
  3. Nokian Reports “Satisfactory Results” for 2009
  4. Nokian’s US staff travelling to Europe for training
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Sri Lanka: Kelani/CEAT to invest in expanding tyre manufacturing capacity

On 31 January 2022 Kelani Tyres PLC announced plans from the Kelani Tyres/Ceat joint venture to invest up to 3.2 billion Sri Lanka rupees (£11.637 million; 13.915 million euros; US$15.801) in increasing its tyre manufacturing capacity via machinery upgrades.

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Related news:

  1. Ceat radial production getting a boost in Sri Lanka
  2. Triangle building fifth factory
  3. Official opening of Ceat JV plant draws near
  4. Ceat inaugurates factory expansion
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4Jet wins 10 million euro order with ‘top 5 tyre manufacturer’

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4Jet

4Jet Group reports that it has received new orders worth over 10 million euros from “one of the world’s leading tyre manufacturers”. The machines will be delivered to several of the customer’s production sites in North America, Europe and Asia in 2022 and 2023. The agreement covers laser systems for marking tyres with machine-readable QR codes or logos, mould cleaning, and gluing preparation for e-mobility tyres.

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Related news:

  1. Kobe Steel opens tyre and rubber machinery firm in China
  2. Marangoni Meccanica “restarts”, appoints new CEO, broadens board
  3. 4Jet acquires Hennecke Systems tyre inspection business
  4. Beumer debuting green tyre handling system at Tire Technology
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Expansion – production has changed, but it is certainly ramping back up again

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Last month, this column suggested that “acquisitions, consolidation and sustainability” were three words that will sum-up developments in the tyre business in 2022. Judging by what has taken place in the weeks since that text was published, the overall argument was pretty sound. However, in retrospect it also seems pretty clear that we could have, and perhaps should have, added in a fourth term – “expansion”.

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Related news:

  1. MRF to increase tyre production capacity – reports
  2. Roadbot roadblock – Middle Eastern tyre factory stalls due to pandemic
  3. Jinyu: Further international tyre factories on the agenda
  4. Sailun’s Cambodia factory begins tyre production
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China’s GS Tire raises Cambodia investment to $300 million

GS Tire

On 11 January 2021 Jiangsu Province Department of Commerce approved Jiangsu General Science Technology Co. Ltd’s (GS Tire) US$300 million investment in a new tyre factory in Cambodia. Company stock market filings had previously described that factory as a $204 million investment, which suggests the scope of the project has increased significantly.

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Related news:

  1. Jiangsu General investing US$300 million in Thailand tyre plant
  2. Sentury internationalising with US tyre factory investment
  3. Prinx Chengshan invests £19 million in purchasing land for new Thailand tyre factory
  4. Seyoun Tire’s 3.2 million tyre factory project gets underway
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Seyoun Tire’s 3.2 million tyre factory project gets underway

Seyoun Tire

During January 2021, Jiangsu Seyoun Tire Co. Ltd.’s phase 2 Suqian City, China factory construction project got underway. According to industry association CRIA, the new tyre production base is expected to manufacture 3.2 million sets of “high-performance all-steel radial tyres” and become an “all-steel radial tyre production base for heavy trucks”.

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Related news:

  1. Pyramids Tires: $350 million Egyptian factory begins manufacturing
  2. Open for business: T&A tours Triangle HQ and manufacturing base
  3. ZC Rubber’s Anji factory starts making tyres
  4. Jiangsu General investing US$300 million in Thailand tyre plant
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Continental: South Africa agricultural tyre plant closed in 2019

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Continental

Following reports that Continental had sold its South Africa agricultural tyre production assets, company representatives have confirmed that the plant ceased operation a little more than two years ago.

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Related news:

  1. Continental sells South Africa agricultural and industrial tyre factory assets
  2. Continental closing Aachen, Germany tyre factory
  3. Mitas celebrates 10 years of Continental agricultural tyre production
  4. Conti UK: High quality service to continue following Aachen tyre factory closure
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Continental sells South Africa agricultural and industrial tyre factory assets

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Continental AG

Continental Tyre South Africa has sold the manufacturing assets it used to make industrial and agricultural tyres in Port Elizabeth, South Africa. Prior to the sale, Continental manufactured bias-ply and radial agricultural tyres at the Port Elizabeth location. Continental’s ongoing production operations, such as its passenger car and light truck lines, are not affected by the news.

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Related news:

  1. New investors expected to restart GTEA production
  2. Titan acquires Russian tyre maker
  3. Conti begins Chinese run-flat production
  4. Apollo, Sumitomo close African deal
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Sentury Tire intends to build 523m euro Spanish tyre plant

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Sentury Tire, the tyre manufacturer behind the global Landsail tyre brand, has outlined its plan to construct a 522.59 million euro car and light truck tyre plant in the Galicia region of northwest Spain. Qingdao Sentury Tire Co, Ltd’s board of directors approved the proposal to build capacity for 12 million high performance and light commercial tyres on a three-year schedule at a meeting in the last quarter of 2021, announcing this intention to the Shenzhen Stock Exchange on 19 December. The company has implemented a 100 per cent owned subsidiary, Sentury Tire (Spain) Co, Ltd, via its Hong Kong trading company for the project, and wants to ramp up production in two phases; it expects the plant to reach 50 per cent capacity (six million tyres) after two years, with the second half added after three years. Sentury wants to achieve these milestones in 2024 and 2025 respectively, pending construction conditions in Spain and the availability of funding, which Sentury plans to self-raise.

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Related news:

  1. First Landsail tyres produced at new Thai factory
  2. Sentury internationalising with US tyre factory investment
  3. Sales of the Sentury
  4. Warren Rudman leaves Sentury Tire Spain project
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Who cares what tyres are made from? – BTMA

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Mike’s Photography

The US Energy Information Administration recently forecast that the global light-duty vehicle fleet (essentially cars, vans and pick-ups) would increase by 70 per cent by 2050. Closer to home, the UK Department for Transport has forecast that car and van traffic will increase by 35 per cent and 70 per cent respectively over the next 30 years. By another measure and more immediately, global consumption of natural rubber for tyre manufacture is forecast to increase by 33 per cent by 2030.

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Related news:

  1. Bridgestone to Use New BIRD Production System
  2. Bridgestone’s Financial Results
  3. Construction Underway at Bridgestone’s Hungarian BIRD Plant
  4. Ceat Ramping Up Radial Imports, Production
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Sailun: 7 million tyres sold in Europe and counting

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Sailun

As 2021 draws to a close, Sailun reports that it has sold 7 million tyres in Europe “and counting”. Sailun is the 16th largest tyremaker by turnover according to our 2021 ranking of leading manufacturers. The company’s newest production base, which is located in Cambodia, started making tyres on 21 November 2021.

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Related news:

  1. Decennial shift in global PCLT tyre volume market share
  2. Sailun’s Cambodia factory begins tyre production
  3. Deruibotire Targets 24 Million Tyres Produced in 2011
  4. A European plant for Nexen?
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Prometeon ramps up tyre production in Gravataí, Brazil

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Prometeon announced plans to increase production at its Gravatai, Rio Grande du Sul, Brazil at the end of September. According to several local news sources, the expansion plans were announced during a meeting with local Governor Eduardo Leite at the Piratini Palace.

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Related news:

  1. DriveRightData opens Brazil office
  2. Conti to End Argentina Licensing Partnership
  3. Pirelli Slatina factory extension to make car tyre plant its biggest
  4. Bridgestone increasing consumer tyre capacity in Brazil
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