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)

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Continental marked a major milestone on 22 May 2026 during opening ceremonies for the second expansion phase of its Rayong plant in Thailand. The development includes growth for the Passenger and Light Truck Tires division and the start of radial production for motorcycle tyres.

The Rayong motorcycle tyre facility operates with fully in-house manufacturing, from rubber compounds to finished products, using modern equipment. All processes adhere to Continental’s global quality and control standards, enabling production of both radial and diagonal tyres with capacity for future expansion. A high degree of automation and automatic monitoring systems eliminate manual errors while maintaining strict quality checks at every step.

Continental’s Rayong production serves diverse riding styles, including sport-touring and adventure touring segments, with popular radial and diagonal tyre models already in production. In March 2026, the plant received IATF certification, meeting international automotive standards that guarantee continuous quality processes and supply reliability for original-equipment customers.

The expansion also reflects Continental’s sustainability commitment, with solar energy supplying about 13 percent of the plant’s electricity needs. Additionally, the project has created new jobs, strengthening the regional economy.

Christoph Ettenhuber, Head of Business Field Motorcycle Tires, Continental, said, “By expanding our facility in Thailand, we are strategically strengthening our global production structure for Continental Motorcycle Tires. Together with our established operations in our Korbach plant in Germany, we are laying the groundwork for a faster, more flexible response to market demands. Rayong is a key component of our international motorcycle tyre strategy and underscores our clear commitment to growth and state-of-the-art production processes. For our customers, this means premium quality made by Continental – no matter which continent they’re on or which roads they travel."

Sahil Agrawal, Head of Manufacturing Operations in Rayong, said, “Quality is our top priority – for our original equipment customers as well as for end consumers. Our system captures every detail: all tyres are fully traceable at every production step. Online monitoring systems such as automatic scales, profilometers and camera systems ensure that every component is within specification limits. Automation – from the green tyre spray system to automatic tool management – enables us to achieve maximum quality levels while creating an ergonomic and safe working environment.”

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Bridgestone Corporation has once again been selected as a constituent of several globally recognised environmental, social and governance (ESG) indexes, including the Dow Jones Best-in-Class World Index, the FTSE4Good Index Series, the MSCI Selection Indexes, the FTSE JPX Blossom Japan Index, the FTSE JPX Blossom Japan Sector Relative Index, the MSCI Japan ESG Select Leaders Index and the MSCI Japan Equity ESG Select Leaders Index.

The Japanese tyre giant’s continued inclusion in these rankings serves as a concrete and objective embodiment of its corporate mission to serve society with superior quality. Company leadership views the ability to sustain such ESG initiatives over many years as a distinct organisational strength.

Regarding the Dow Jones indexes, Bridgestone has been selected for the Best-in-Class World Index for four consecutive years since 2022, which recognises the top 10 percent of sustainability leaders among 2,500 major global companies. The firm has also maintained a place in the Best-in-Class Asia Pacific Index for 16 straight years since 2010.

In the FTSE Russell assessments, Bridgestone has achieved eight consecutive years of selection for the FTSE4Good Index Series since 2018, alongside the same duration for the FTSE JPX Blossom Japan Index. The company has also been included in the FTSE JPX Blossom Japan Sector Relative Index for five consecutive years since 2021. For MSCI, Bridgestone has secured three straight years of selection for the MSCI Selection Indexes since 2023 while receiving the highest AAA rating in the MSCI ESG Ratings for three consecutive years.

The company has additionally earned high marks from the international non-profit CDP, receiving an A minus rating in both Climate Change and Water Security for 2025, marking six consecutive years at the leadership level. Bridgestone also obtained an A rating in the Supplier Engagement Rating for the seventh time. Key initiatives behind these recognitions include the expansion of its sustainability business model towards carbon neutrality and a circular economy, actions supporting nature positive goals such as sustainable natural rubber and water resource management, a comprehensive due diligence system based on Plan-Do-Check-Act cycles for human rights and environmental risk and global policy execution guidelines.

Bridgestone places sustainability at the core of its management, aiming to implement and evolve its unique business model across the entire value chain from production and use to renewal and raw materials. These efforts link business operations directly to the realisation of carbon neutrality, a circular economy and a nature positive world.

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Tegeta Green Planet and Shine Energy, both affiliated with Tegeta Holding, have launched a joint educational initiative to raise environmental awareness and a sense of responsibility among young people. The project addresses modern challenges such as environmental protection and sustainable development.

Company representatives are visiting schools across Tbilisi to hold informational meetings, presentations and workshops. The programme begins with presentations, followed by interactive games and activities designed to help students retain the information. At the end of each session, participants receive symbolic gifts and prizes as motivation.

Tegeta Green Planet focuses on teaching students the principles of specific waste management, including how to properly handle used tyres, batteries and oils. The sessions explain why proper waste management is essential for environmental protection and how it connects to the circular economy. Meanwhile, Shine Energy educates young people on the importance of energy, its everyday use and why developing renewable and sustainable energy resources is crucial.

The initiative is not limited to schools. In the near future, both organisations will expand their efforts to universities, aiming to broaden awareness about environmental protection, waste management and energy efficiency. The ultimate goal is to foster environmentally responsible attitudes among the younger generation, helping build a more sustainable and conscious society.

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Zeon has been recognised as a Supplier Engagement Leader in the 2025 Supplier Engagement Assessment (SEA) conducted by CDP, a United Kingdom-based international environmental nonprofit organisation. This achievement represents the first time the company has received the highest possible rating in this assessment.

The evaluation measures how corporations address climate change within their supply chains, focusing on responses to the CDP Climate Change Questionnaire across five critical areas. These include governance, emissions targets, Scope 3 emissions management, risk management and overall supplier engagement strategies.

Zeon earned the top rating for its efforts to reduce greenhouse gas emissions through supplier collaboration, a group-wide initiative, alongside continuous dialogue maintained via procurement activities. Guided by its philosophy of contributing to planetary preservation and human prosperity, Zeon remains committed to sustainable management. The company reaffirmed that it will continue working with suppliers and other stakeholders to tackle climate change and meet societal expectations.

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