Sumitomo Rubber Singapore, a natural rubber procurement company for the Sumitomo Rubber Group, recently participated in ‘Project Tree,’ an initiative led by Itochu Corporation to improve the sustainability of the natural rubber industry. 

Through participation in this project, the company aims to improve the traceability and sustainability of the natural rubber supply chain.

Natural rubber is a natural resource that is vital in modern society, with about 70 percent of global natural rubber consumption going towards the production of tyres. However, approximately 85 percent of global production relies on smallholders, mainly in Southeast Asia such as Thailand and Indonesia. The existing agricultural practices used by smallholders have limitations and there is also concerns about illegal logging, human rights issues and traditional farming techniques among others.

As part of its responsibility, the Sumitomo Rubber Group states it has been actively engaged in various efforts to improve the sustainability of its business activities. One of the most important of these efforts is working toward achieving sustainable natural rubber, which is the primary raw material in its main product: tyres. 

The Group says it promotes initiatives including carrying out risk assessment/reduction activities using application software that enables the mapping of natural rubber supply chains.

By participating in Project Tree, it expects to further drive initiatives that will help improve traceability and sustainability of the supply chain. Through this project, it aims to promote activities to support smallholder farmers, such as activities to identify/mitigate smallholder farmers’ risks associated with sustainability and their capacity building for yield increase. In addition, it will also strive to comply with the EU Deforestation Regulation by using blockchain technology and through the ‘Tree + (plus) rubber’ procurement, which provides excellent traceability.

It was in March 2023, Sumitomo Rubber unveiled its unique circular economy concept for the tyre industry called ‘TOWANOWA’. The Towanowa features a two-ring structure, with a ‘Sustainable Ring’ consisting of five processes in the value chain and a ‘Data Ring’ linking big data collected from each process. The aim is to provide new value by sharing/using data between the two rings.

Furthermore, it targets sustainable raw material procurement for natural rubber in the ‘Material Development & Procurement’ process of Towanowa. 

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Kraton Corporation, a leading global producer of speciality polymers and high-value bio-based chemicals derived from pine wood pulping co-products, a global price increase for all polymer products with effect from 1 April 2026. The price hike will range from USD 440 per MT to USD 700 per MT, or as individual contract terms permit, with the exact price change varying according to the polymer type and production location.

The driving forces behind these significant pricing actions are multifaceted, rooted in substantial disruptions to global supply chains. These disruptions are largely attributed to the ongoing conflict in the Middle East, which has had a cascading effect on logistics. Compounding this issue are the sharply rising costs associated with transportation and essential raw materials.

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German specialty chemicals company LANXESS has announced a global price increase for its portfolio of functional additives for the manufacture of tyres and speciality rubbers. These changes, which are set to take effect immediately or as soon as individual contract terms permit, will see prices rise by 15 to 50 percent.

The driving forces behind these significant pricing actions are multifaceted, rooted in substantial disruptions to global supply chains. These disruptions are largely attributed to the ongoing geopolitical conflict, which has had a cascading effect on logistics. Compounding this issue are the sharply rising costs associated with transportation and essential raw materials.

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Orion S.A., a global speciality chemicals company, has announced a global price increase for its portfolio of speciality carbon black. These changes, which are set to take effect immediately or as soon as individual contract terms permit, will see prices rise by up to 25 percent.

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German chemical group WACKER has announced a price hike across its global polymers portfolio, responding directly to significant upheavals in international commodity markets triggered by the recent military conflict in the Middle East. This geopolitical instability has created pronounced distortions throughout the supply chain, leading to a sharp escalation in the costs of essential inputs. The company is experiencing substantially higher prices for crude oil and natural gas as well as for various other raw materials and logistics services.

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