Continental is accelerating its transition towards a circular economy by systematically increasing the use of renewable and recycled materials in its tyres. The company, which averaged a 26 percent sustainable material share in 2024, has set an ambitious target to raise this to at least 40 percent within five years. This strategy involves not only internal innovation but also actively encouraging its supply chain to develop and provide more sustainable raw materials.

A critical area of development is finding green alternatives for reinforcement materials like steel and textiles, which are essential for tyre safety, durability and performance. These materials can constitute over 18 percent of a passenger car tyre, and even more in commercial vehicle tyres. Continental is already integrating recycled steel and is pioneering the use of polyester yarn made from recycled PET bottles. Depending on the tyre size, the carcass of a single passenger car tyre can incorporate the equivalent of up to 15 bottles. This recycled polyester, developed with partner OTIZ, is verified to cut CO₂ emissions by approximately 28 percent compared to conventional materials and is already featured in production tyres like the UltraContact NXT.

The company's sustainable material portfolio extends beyond reinforcements. It includes synthetic rubber derived from used cooking oil, bio-based resins from waste streams and silica obtained from rice husk ash. Complementing these material advances is a commitment to greener manufacturing processes. Together with Kordsa, Continental has developed COKOON, an adhesion technology that bonds textiles to rubber without harmful chemicals. In a move to uplift the entire industry, this innovative solution has been made available to all tyre manufacturers as a free, open-source license, demonstrating Continental's broader commitment to fostering industry-wide sustainability.

Dr Matthias Haufe, Head of Material Development and Industrialization, Continental Tires, said, “We are not reinventing the wheel – but we are reinventing the tyre, with more sustainable materials and more environmentally compatible production processes. It’s not just about the rubber itself. We also focus on the materials that give the rubber its shape and make tyres stable and safe. Recycled steel and polyester yarn made from recycled PET bottles are important for more sustainable tyre production. Our goal is to use at least 40 percent renewable and recycled materials in our tyres within five years. Every alternative material brings us an important step closer to this goal. When it comes to sustainability, it’s not just the materials we switch to, but also those we deliberately do without.”

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In a strategic move to bolster its international presence, HS HYOSUNG ADVANCED MATERIALS is establishing a new production subsidiary in India. The company will invest USD 30 million to form HS Hyosung India Private Limited, located in the industrially significant state of Maharashtra. This region is an economic powerhouse within India, making it an ideal location for the new tyre cord manufacturing plant, which is scheduled to be operational by 2027.

This significant investment is a direct response to India's emergence as the world's third-largest automobile market. The country's ongoing infrastructure development and a rapidly expanding logistics sector are creating a surge in demand for tyres, and consequently, for the materials used to make them. By localising production, the company aims to build a more resilient supply chain, increase its market share and respond more dynamically to the needs of the Indian market. The facility, situated on a 230,000-sqm site in the Nagpur Industrial Complex, is planned not only for tyre cord production but also for future expansion into other product lines like airbag fabrics.

As the global leader in polyester tyre cord manufacturing for over two decades, HS HYOSUNG ADVANCED MATERIALS commands approximately half of the worldwide market share. These cords are critical reinforcement components inside tyres, enhancing their safety, durability and overall performance. The company supports its market position with a global production and research network spanning Vietnam, China and United States. It is also actively innovating to meet new mobility demands, having created advanced products such as high-strength and high-modulus tyre cords tailored for electric vehicles, which has solidified its reputation with major tyre producers globally.

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According to a recent analysis by the International Rubber Study Group (IRSG), an inter-governmental organisation composed of rubber producing and consuming stakeholders located in Singapore, India's rubber industry demonstrated robust performance in the first half of 2025. The sector saw demand for both natural and synthetic rubber continue to outpace supply. Natural rubber consumption grew by 2.1 percent against a 1.9 percent production increase. The synthetic rubber market expanded even more rapidly, with consumption rising 5.6 percent and production increasing 5.4 percent.

The automotive tyre industry remains the primary market force, consuming 62.8 percent of all natural rubber and 68.9 percent of synthetic rubber. This sustained demand from tyre manufacturers occurred alongside mixed vehicle sales figures. While passenger car sales experienced a slight decline of 0.1 percent, this was counterbalanced by healthy growth in the two-wheeler and three-wheeler segments, which increased by 0.9 percent and 6.5 percent, respectively.

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The Association of Natural Rubber Producing Countries (ANRPC) has released its Monthly NR Statistical Report for September 2025, providing an overview of key developments in the global natural rubber sector.

The ANRPC Statistics and Information Committee (ISC) presented an updated perspective on the global supply-demand landscape for 2025 and examined updated 2024 statistics and growth rates during the October 2025 Annual Assembly Sessions. September saw price volatility and pressure as output increased while demand stayed low. However, tapping activities were limited in several producing regions due to rains and labour limitations, which contributed to a passive production rise that was not anticipated during the peak production season.

Global natural rubber (NR) output is expected to increase slightly by 1.3 percent in 2025 compared to 2024, according to recent reports from ANRPC member nations, after Indonesia's production base was revised downward. Concurrently, it is anticipated that NR demand would increase by 0.8 percent in 2025 due to an increase in Indonesia's consumer base. Although there were some indications of recovery in the tyre sector in a few countries, market mood remained divided.

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ARLANXEO, a leading global producer of synthetic rubber, is significantly increasing its synthetic rubber production capabilities at its Brazilian facility in Triunfo. This strategic investment is designed to boost the plant's annual capacity by nearly one-quarter, a direct response to growing customer demand across Latin America and other international markets.

The initiative underscores the company's dedication to the region through a 'local-to-local' strategy, which aims to foster regional economic growth and sustainability. By enhancing local production, the company ensures a more balanced and secure global supply network. The expansion is scheduled to be operational in 2027, promising a more efficient and reliable supply chain for clients. The Triunfo plant is already recognised for its operational excellence and adherence to rigorous international quality and safety standards, a reputation this new project will further solidify.

Angelo Brazil, Chief Manufacturing Officer, ARLANXEO, said, “After a successful installation that increased capacity to 65kt at our polybutadiene plant, the response from our customers has been outstanding. We are now taking the next step and will further expand our capacity by 25 percent. This underscores our confidence in the Latin American market, and our commitment to providing reliable, high-quality products close to our customers. With strong performance, a well-run operation and a market with solid customer demand, we’re perfectly positioned for continued growth.”

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