The tyre is an amazing example of something that has served its purpose for more than a century with no drastic functional changes but has yet undergone constant improvement and sometimes fundamental structural changes. Materials have changed from leather to natural rubber, and then to ever-developing compounds of natural and synthetic rubber, as well as chemicals. Structurally, the largest change has been from bias to radial casing construction, and while some tyre products are now largely only radial tyres – passenger car tyres, for example – other vehicle segments still consume a large quantity of bias tyres; in some regions of the world more than others.

While the equipment required to produce bias tyres is fairly simple, and the costs of establishing a production line therefore relatively manageable – roughly speaking it’s a textile production line combined with vulcanizing in simple 2-part moulds – the costs of establishing a radial tyre production line are massive. From rubber calenders to radial steel belt production and angle cutting over bead ring building and green tyre building drums, until finally curing in 8-segment moulds – and many more steps and essential equipment not mentioned in between. Each machine and process is as important as the next, and only the most skilled management of the entyre production flow can ensure that a quality product comes out at the end. So, needless to say, many of the quality improvements of the past decades have come from improving production equipment and knowledge as much as from improving tread designs and rubber compounds.

Chinese factories

Further, as many tyre production equipment manufacturers have expanded to supply all over the world, many production lines have become much more similar to each other as they approach the worldwide optimal standard for balancing production costs and quality. I won’t mention any specific manufacturer names here, but anyone who has visited a tyre factory in China will have had an employee guide proudly point out that they use only the best equipment from manufacturers in the Netherlands, Japan, Germany, and the USA. I’ve always been tempted to ask if the hammer is more important or the person who wields it, but I digress. The fact is that most Chinese factories have also improved drastically in terms of management and comply with IATF 16949 standards to ensure consistently high-quality levels and constantly reduce defects. The main driver and reason for the current standards is the reduction of manual work stations and a large manual labour workforce to largely automatic or at least semi-automatic machinery, reducing the manual labourers to employees simply moving materials or finished products from one place to another. Over time, these will also be made redundant, as machines will also handle this part.

The question remaining is just how factories located in low-wage countries will keep competitive as the necessary equipment costs the same all over the globe, and less hands are needed to operate the massive production lines. When the lines all over the world only need core staff to monitor and make technical adjustments and maintenance work, the difference in the product cost structure can only come from land and building use, logistics and handling costs, as well as water, heating, and electricity fees. Especially the latter, utility fees, probably soon make up the most important factory when it comes to differentiating tyre cost structures across the world.

Global supply

What will this mean for the global tyre supply? Most likely, it will be good news for the environment, as it won’t make as much sense as previously to send products across the globe, because the transportation costs will make the products more expensive than locally produced ones – regardless of production country. Given that all countries play fair, that is, so maybe I should say in a perfect world. There is no doubt that some countries favour their large factories with subsidies or tax rebates more than the developed countries do. But, with the recent massive rise in sea freight charges caused by the pandemic, and amplified by the Ever Given blocking the Suez Canal, the tables could be turned faster than anyone expected. Just until a month ago we all expected the extremely high sea freight levels from Asia to the rest of the world to last just a few months, now the carriers expect that we won’t see normalization – and thereby decreasing rates – again until 2024. As tyre prices from low-cost manufacturing countries have been gradually closing the gap to second tier brands over the past decade (and quality levels have followed suit and in rare cases even surpassed them), they have now very suddenly lost all competitiveness when solely looking at pricing. Surely, it has been the strategy of all these manufacturers for many years to ultimately surpass the competition on quality and performance, but not before surpassing them on price.

So, what will happen now? Nobody knows, but it will be equally interesting and nerve-wracking to follow. For the tyre building machine manufacturers, the dilemma has grown bigger than ever before; should they continue to develop better machines, as they risk killing their clients by doing do? There’s a very narrow path to tread between staying competitive against other machine manufacturers and sustaining the financial health of one’s own clients. (TT)

As part of a strategic effort to increase its presence in the region's premium original equipment (OE) market, Kumho Tire has confirmed its plans to establish its first tyre production facility in Europe by 2027.

The company has shortlisted Poland, Serbia and Portugal as possible locations for the plant, which is projected to need an investment of more than KRW1 trillion (USD 705 million). The decision is closely linked to Kumho’s ambition to strengthen its partnerships with European automakers and was revealed by Kumho Tire CEO during the South Korean premiere of Kumho's new Ecsta Sport tyre line.

Kumho has recently secured OE supply contracts with major brands such as Mercedes-Benz, BMW and Volkswagen Group. At the moment, Kumho runs eight tyre production plants in China, Vietnam, South Korea and the US. Its capacity to compete in the premium OE market, however, has come to be perceived as being constrained by the absence of a European production base. Through the benefits of local production, the new facility will improve response to European client requests, save freight costs and shorten delivery times, all of which will strengthen the company's partnerships.

Sentury Tire USA has opened pre-enrolment for its two associate dealer programmes (ADPs), the Delinte HYPERDRIVE Associate Dealer Program and the Landsail Elyte Associate Dealer Program, underscoring the company’s commitment to rewarding dedication and partnership to the Landsail and Delinte brands.

The ADPs, which are customised for each brand and intended to encourage dealers, will formally start on 1 June 2025. Both programmes give dealers access to special benefits, incentives and strong tools to help them expand their businesses. This involves dependable customer service, effective marketing and worthwhile financial incentives to promote dealers' success at every stage.

Beginning in Q3, dealers may earn up to USD three per tyre through the Delinte HYPERDRIVE Associate Dealer Program. Dealers can receive retroactive benefits for purchases completed in Q2 if they register before 1 June. The awards are available for all Delinte PTR, LTR and the new DV3 LMD AS last-mile delivery tyres. For all Landsail PTR and LTR tyres, independent dealers that sign up for the Landsail Elyte Associate Dealer Program can also earn up to USD three per tyre. For customers who sign up by June 1, the new LMD 100 AS last-mile delivery is also eligible for the benefits and will get the same early bird incentive for Q2 2025.

No initial order is necessary. Dealers only need to register to begin making money. According to the monthly programme rewards structure, 48 tyre purchases each month are eligible for a reward of USD one per tyre, 120 tyres are eligible for a reward of USD two per tyre and 240 or more tyres are eligible for a reward of USD three per tyre.

ENSO, a London-based tyre manufacturer engaged in the production of sustainable tyres specially designed for electric vehicles (EVs), has launched its new ENSO Premium range of EV-specific ultra-high-performance (UHP) tyres aimed at drivers of high-performance EVs such as the Tesla Model 3 and Model Y.

Specifically designed for electric passenger vehicles, the ENSO Premium range comes with A/A EU-label ratings for both energy efficiency and wet grip. The tyres are designed to provide safety, increased range and a reduced total cost of ownership. Conventional tyre designs frequently fall short of the special performance needs of electric vehicles, which include greater vehicle weight, regenerative braking and higher torque loads. By lowering tyre wear and rolling resistance, ENSO Premium takes care of these issues.

The company is an authorised provider of replacement tyres for LEVC's electric taxis and has partnered with Uber to install its tyres in high-mileage metropolitan areas. The company now plans to grow throughout Europe and North America, and with ENSO Premium, it is now offering its services to individual EV owners throughout the United Kingdom. According to ENSO, the range offers advantages including longer tyre life and fewer replacements, lower energy usage, fewer charging stops and lower CO₂ emissions and tyre particle pollution.

Gunnlaugur Erlendsson, CEO and Co-Founder, ENSO, said, “We’re plugging a long-standing gap in the tyre market by offering EV drivers a purpose-built, affordable, premium EV tyre alternative that matches the innovation of their EV.”

Kraton Corporation, a leading global sustainable producer of specialty polymers and high-value bio-based products derived from pine wood pulping co-products, has announced a general price hike in North America for its SBS, SIS and HSBC product lines with effect from 1 May 2025.

Following a careful analysis of the effects of recently implemented tariffs, related cost increases and a conclusion that the company cannot independently absorb these repercussions, Kraton is adopting these pricing hikes, according to a company statement. The company further said that it will keep an eye on the scene and reassess these measures promptly in the event that conditions and US import tariffs alter.