The European Commission has approved a €71.6m Hungarian state aid measure to support Hankook Tire & Technology Co. Ltd. in establishing a new tyre manufacturing line, in a project aimed at boosting employment and industrial capacity in central Hungary.

The aid, equivalent to HUF28bn, will support the construction of a truck and bus radial tyre facility in the Central Transdanubia region. The investment forms part of a broader €538m project to expand Hankook’s existing plant in Fejér County, which currently produces tyres for passenger cars and light trucks.

The measure will be provided as a direct grant and is expected to create 469 jobs, primarily in manufacturing.

The Commission assessed the scheme under EU state aid rules, notably Article 107(3)(a) of the Treaty on the Functioning of the European Union and the Regional Aid Guidelines. It concluded that the measure is necessary and appropriate to support economic development, competitiveness and employment in a disadvantaged region.

The Commission also found that the aid has an incentive effect, noting that the company would not have undertaken the project within the European Economic Area without public support. It further determined that the measure is proportionate and limited to the minimum necessary, remaining within the aid intensity thresholds defined in Hungary’s regional aid map.

The Commission said the scheme would have a limited impact on competition and trade within the EU and therefore approved the measure under state aid rules.

Comments (0)

ADD COMMENT

Link Copied!

Nexen Tire reported second-quarter revenue of KRW 891.3 billion and operating profit of KRW 34.3 billion, as growth in Europe and higher sales of premium products supported performance despite rising costs and geopolitical uncertainty.

Revenue increased 10.8 per cent from a year earlier, driven by demand in key markets, particularly Europe, the company said .

The tyre manufacturer said its strategy of expanding original equipment (OE) supply programmes and diversifying replacement (RE) tyre sales helped support growth amid weaker demand in the automotive market. Sales of 18-inch and larger tyres accounted for 38.8 percent of total sales, up 3.6 percentage points from a year earlier, reflecting a greater focus on premium products.

Profitability came under pressure as higher raw material prices and increased ocean freight rates raised costs. The company also incurred one-off expenses following the final ruling on US anti-dumping duties, which resulted in a higher tariff rate than previously expected.

Europe was the strongest-performing region during the quarter, with revenue reaching KRW 407.2 billion, the first time quarterly sales in the region have exceeded KRW 400 billion.

The company attributed the growth to higher OE sales from its European manufacturing plant, business expansion in the UK, Türkiye and other markets, and improved distribution and logistics following the addition of a finished-goods warehouse at the plant.

In South Korea, demand for electric vehicle (EV) and sport utility vehicle (SUV) tyres remained strong. Nexen Tire said its expanding OE portfolio, which includes the Hyundai IONIQ 6, Kia's EV3 to EV9 models and other domestic electric vehicles, supported higher OE revenue and increased sales of larger-diameter tyres.

The company also said continued growth in rental sales within the replacement market improved its product mix, while its first OE supply agreement with BYD strengthened its position in the global EV market.

Alongside its financial results, Nexen Tire said it had expanded its OE supply during the quarter to electrified models including BYD vehicles and the Hyundai STARIA EV. Supply to premium automotive brands also increased from a year earlier, supported by research and development initiatives, including AI-based performance prediction technologies.

"Despite growing cost pressures from external factors, we have continued to achieve top-line growth on the back of strong sales in key markets," said John Bosco (Hyeon Suk) Kim, CEO of NEXEN TIRE. "With the stable ramp-up of the second-phase expansion at our European plant and the results of our distribution improvements in North America, we expect more tangible improvements in earnings."

Comments (0)

ADD COMMENT

Link Copied!

Pirelli has officially communicated to all Formula 1 teams the tyre compound selections for the upcoming Dutch, Spanish and Italian Grands Prix. The Italian manufacturer has opted for the medium-range C2, C3 and C4 compounds for the events at Zandvoort and the new Madrid circuit, while the Monza race will see the softest available tyres, the C3, C4 and C5, deployed.

For the Dutch Grand Prix at Zandvoort, Pirelli has confirmed the same compound choice as the previous year. The coastal circuit is defined by its medium and low-speed corners, including two banked turns, which place significant vertical and lateral loads on the tyres and demand high aerodynamic downforce. The track surface itself offers low inherent grip, a challenge compounded by sand from the nearby beaches being blown onto the asphalt, further affecting tyre performance.

The Italian Grand Prix at Monza presents a contrasting challenge, with its recently resurfaced track encouraging teams to run low-downforce configurations. The pit lane loss time for a tyre change is among the highest of the season, incentivising teams to extend stints and manage degradation to achieve a one-stop race. However, the potential for high ambient temperatures could complicate this strategy, making tyre management more difficult.

Making its debut on the calendar as the Spanish Grand Prix, the semi-permanent street circuit in Madrid features 22 highly varied corners, significant elevation changes and the longest banked turn in the championship. Simulations indicate that the loads on the tyres are comparable to those at Silverstone and Spa-Francorchamps. Consequently, Pirelli’s selection of the medium-range compounds is designed to favour a two-stop strategy and offer greater protection against overheating, a risk to which the softer C5 compound would be particularly vulnerable in warm conditions.

Comments (0)

ADD COMMENT

Link Copied!

Vittoria has unveiled The Quest, a 25-minute technical documentary that grants unprecedented access to its factories, laboratories and production lines. The film meticulously answers what defines a world-class bicycle tyre by examining every facet of the Corsa PRO, the brand’s premier road racing tyre trusted by top WorldTour teams. From raw material sourcing and premium cotton casing construction to advanced compound development, the film chronicles the tyre’s complete journey.

Extensive laboratory testing and real-world validation alongside professional squads are featured, alongside the human expertise driving the process. The documentary also follows the tyre from natural rubber to test tracks and ultimately to the tarmac of cycling’s most prestigious races. Created for enthusiasts seeking deeper understanding over traditional advertising, the content reflects a growing consumer appetite for educational, long-form narratives.

Now available on Vittoria’s official YouTube channel, the film aligns with modern viewing habits on smart TVs and connected home platforms. By sharing the passion and knowledge behind each Corsa PRO, Vittoria responds to evolving rider trends with meaningful storytelling that respects viewers’ intelligence and time.

Comments (0)

ADD COMMENT

Link Copied!

The Goodyear Tire & Rubber Company has achieved the highest possible rating in the latest CDP Supplier Engagement Assessment, securing an ‘A’ score for its climate-related collaboration with vendors. This recognition from the global environmental disclosure organisation places the tyre manufacturer in the leadership tier for its supply chain emissions management.

The CDP evaluation scrutinises how corporations involve suppliers in climate strategy, focusing on emissions targets, Scope 3 greenhouse gases and cooperative initiatives. Goodyear’s top-tier score underscores its systematic approach to integrating environmental performance into procurement and partnership frameworks.

Central to this achievement is the company’s focus on value-chain emissions, supporting formal climate commitments. The firm has established science-based milestones for 2030 and a net-zero ambition for 2050. Goodyear initiated a supplier programme in 2023, mandating science-based target-setting, renewable energy adoption and transparent progress reporting from raw material providers.

The engagement strategy includes impact analyses by material type, customised development roadmaps and performance evaluations. Through structured assessments, Goodyear deepens understanding of vendor sustainability, identifies improvement areas and fosters collaboration on shared climate objectives throughout the production ecosystem.

Comments (0)

ADD COMMENT

Link Copied!