Russia
Russia’s tyre makers are likely beneficiaries of the new EP-600 petrochemical complex that Sibur has now finished building at its Nizhnekamsk facility in Tatarstan. On 23 December, Russia’s leading rubber and polymer manufacturer reported that the facility has commenced operations, with raw materials supplied and the first production expected soon. Sibur has invested approximately 200 billion roubles (£1.54 billion) in the project.
The Cordiant Group of Companies reports that the former Bridgestone tyre plant in Ulyanovsk, Russia – now rebranded as a Gislaved facility – has resumed operations. In a statement, Cordiant shares that the relaunch of the Ulyanovsk facility begins with the production of a new Cordiant-branded summer tyre model. The plant’s product range will gradually expand in 2025, including the introduction of premium models under the Gislaved brand name. Winter tyre production is scheduled to commence in the first half of 2025.
Petrochemicals company Sibur has commenced construction of Russia’s largest industrial facility for producing n-Butyllithium, a key catalyst used in the manufacture of thermoplastic elastomers and synthetic rubbers, such as the styrene-butadiene (SBR) rubbers utilised in tyre production. The use of n-Butyllithium also plays a key role in the production of butadiene (SKD-L) and thermoplastic elastomers (SBS). The aim of this project is to ensure technological independence when making these products while opening up opportunities for developing several sectors.
In March 2024, the Court of Justice of the European Union’s General Court lifted some of the sanctions imposed on Belshina in December 2021. Journalists from the Belarusian Investigative Center (BIC) consider this decision a mistake and have published their investigation into the tyre maker’s activities.
Despite no longer manufacturing or even officially selling its products within the country, Nokian Tyres remains Russia’s best-selling brand of studded winter tyres. Statistics from major e-commerce platform Avito for September 2024 show that Nokian Tyres holds a 19 per cent share of this particular market segment, more than double the eight per cent share held by Pirelli. Ikon Tyres, the brand now produced in the former Nokian Tyres plant in Vsevolozhsk, holds a seven per cent stake in the studded winter segment. Cordiant and Michelin each hold a five per cent share.
On 30 October, approximately a month after gaining a new owner, Russian tyre maker JSC Cordiant found itself on a list of US sanctions affecting a total of 275 individuals and entities said to be “involved in supplying Russia with advanced technology and equipment that it desperately needs to support its war machine.”
In the first half of 2024, Guizhou Tyre’s revenue and net profit were 5.174 billion yuan (about £560 million; €670 million) and 427 million yuan (about £46 million; €55 million), up 16.51 per cent and 25.67 per cent year-on-year. During the reporting period, the company produced 4.7942 million tyres, up 18.81 per cent year-on-year, and sold 4.7175 million tyres, up 19.75 per cent.
Last month we reported on what Ukrainian government agency the National Agency on Corruption Prevention (NACP) had to say about aircraft tyres entering Russia, but imports are by no means restricted to this product segment. According to research conducted by Russia’s largest non-governmental leasing company, two of the three tyre brands that corporate and fleet users most favour are products no longer officially sold within the country.
Bridgestone, Dunlop, Goodyear and Michelin branded aircraft tyres worth over $30 million (£23 million) have found their way into Russia “via intermediaries” despite being banned, according to Ukrainian government agency NACP. The Russian military’s ongoing need for tyres is well-reported in these pages. As is the fact that old, poor-quality and sometimes low-cost Chinese tyre imports have been failing on the battlefield. But now is the first occasion when premium brand tyres have been linked with the Russia-Ukraine war. There is no suggestion of wrongdoing by Michelin, Goodyear, Dunlop or Bridgestone.
Russia’s government is supporting the construction of a new tyre plant in the east of the country. The Russian Far East and Arctic Development Corporation has entered into an agreement with Vladivostok-based limited liability company Vlad-Garant to set up a tyre manufacturing facility in Primorsky Krai, a region bordering both China and North Korea. According to the Corporation, the car tyre plant project will attract investments totalling 10 billion roubles (£84.0 million) and create 134 new jobs in the region. It anticipates that the plant will be operational by 2027.
At the start of July, Russian tyre maker JSC Cordiant announced completing rebranding of the former Continental tyre plant in Kaluga. The facility is now producing Gislaved tyres, thanks to a brand rights deal negotiated with Continental in May 2023. It appears the Gislaved name will also take centre stage when tyre production at the ex-Bridgestone factory in Ulyanovsk restarts.
Tyre maker Cordiant has signed a letter of intent with major Russian polymer and rubber producer Sibur to replace natural rubber with synthetic isoprene rubber in the formulations of various types of tyres. Sibur explains that this joint initiative aims to develop the “technological sovereignty” in Russia’s transport industry by substituting imported natural rubber from Asia-Pacific countries.
The 2024 outlook for sales and production of heavy trailers has weakened in comparison with the previous year. However, the 2024-2028 data is set to be record-breaking, according to the June 2024 forecast for the West European Heavy Trailer Market produced by Clear International.
Davydovo Tire Manufacturing Company LLC (Davydovo), the company formed after Michelin sold its Russian assets, is establishing a facility to process end-of-life tyres into crumb rubber. A key aim of this project is to reduce reliance upon imported products, and it has thus gained support from the Moscow Regional Government’s Industrial Development Fund.
Following the news that the former Michelin Russia tyre factory will be producing tyres under the Farlight and Selna brands in futures, according to the Russian Tyre Manufacturers Association (TMA), the tyre manufacturing operation has rebranded as Davydovo Tire.
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