According to a new study by Report Ocean, the rubber processing chemicals market size is expected to reach USD 7.97 billion by 2028. That’s very close to Finorchem’s vision of being in the lead in chemical supplies to the tyre industry by 2030. We talk to the rubber processing chemicals manufacturer about the Acmechem-Merchem merger, how India can be at the forefront of the tyre industry and how quality speaks for everything.

In spite of Covid, tyre companies have come up with a lot of investments; green field projects are taking place and expansion has been happening. For the next 10 years, tyre organisations are talking about the growth of the domestic industry, which was seven to eight percent earlier. Plus, we can’t forget about the export market and another industry along with the tyre sector – the automobile sector. Along with the rubber industry, rubber chemical consumption will also grow.

One such company that believes it is in the right place at the moment, with all that’s going on across the world and because of the pandemic and the Russia-Ukraine war, is Finorchem, a leading manufacturer of rubber processing chemicals in the APAC region. Speaking in this context, Kishor Katkar, Director – Sales & Technical Services, Finorchem, says, “The supply chain is disturbed, and with the Acmechem and Merchem merger, we now have a wide range of rubber chemicals. We are ready to support the rubber industry with sustainable quality products from the rubber plant.”

The Acmechem-Merchem merger
Further sharing information on the Acmechem and Merchem merger, Rishabh Holani, Director, Finorchem, asserts that Acmechem is originally into a lot of speciality rubber chemicals and Merchem was more into mainstream rubber chemicals. “So the merger was a perfect fit in the synergy for us as we were already in the chemical field with specialised products,” he points out and goes on, “But with the merger with Merchem and the new entity named Finorchem, we have also entered mainstream rubber chemicals, catering to a wider range of customers that are using these mainstream chemicals. Hence, this fits well within our portfolio which didn’t exist. So it has opened up a lot of opportunities for our company, in both India and the world.”

So, is it true that the future is of collaborations and mergers? We can’t help asking, to which Holani answers with a yes. He further explains, “That’s because a lot of consolidation is happening across the industries. So it was a good synergistic move for us to get involved in mergers.”

Why R&D is important
Finorchem is paying rapt attention to how it is flourishing in its R&D department. Dr Raj B Durairaj, Director of R&D, Finorchem, has been in the R&D of the chemical industry for at least 45 years and joined Finorchem about three months ago. “I have been involved with a lot of R&D activities in the last 45 years. So my products developed in the US and China are well known throughout the world,” Dr Durairaj tells us.

                       Rishabh Holani, Director, Finorchem
  

He further goes on to enlighten us that his concept is that any growth of a company depends on the strength of the R&D. “Hence, we want to put the infrastructure in such a way that our R&D can develop not only in the final product but from scratch,” he shares and continues, “We want to produce our own raw material so that we can develop the final product that is of high quality for our customers’ needs. If we do that, then we don’t need to depend on countries like China, or even Europe. With our knowledge in the chemical and rubber industry, we can develop advanced technologies. Right now, we are planning to develop advanced technologies in order to meet the challenges of the tyre industry, like rolling resistance, wet grip and dry grip. And those concepts are put in our developments.”

The company’s vision
It is just the beginning, definitely. Finorchem’s vision is that by 2030 it will be the dominant player in India, not only to supply raw materials for the Indian tyre industry but around the globe. So it is the right time where the company is putting its infrastructure in the manufacturing sector, R&D and the pilot plant facilities. With this, it plans on being at the forefront of chemical supplies to the tyre industry by 2030.

China’s impact on the tyre industry
Speaking of lands like China and Europe, China is still struggling with Covid and so is its tyre industry. China plays a huge role in the rubber chemical space; 70 percent of the supply comes from China, and it has impacted the whole industry because of the lockdowns that have taken place, Holani mentions. “However, we have made strategic moves in delinking ourselves from China and have strategically sourced our raw material partners and suppliers from different regions, whether it be India, the US, Europe or Japan,” he tells us.

Therefore, Finorchem was much more insulated from this entire tyre chaos that was taking place in China. This has helped the company in expanding its range while China was facing these difficult times.

However, the cost element needs to be taken into account. Today’s market situations are very volatile, and in some situations, China is much more expensive when even compared to countries like Europe or the US. Hence, the cost factor depends on situation to situation.

Shedding more light on this, Katkar elaborates, “We are talking about the China plus one policy, which even Japan is talking about. They have shifted their manufacturing base, so our tyre industry, as well as non-tyre industries, has really understood that over-dependence on China is going to fail miserably in the supply chain issue. With that, Finorchem is in the right position to supply locally, with quality and an economical product.”

Putting across his view, Holani adds, “In today’s industry, price is not the only factor. In fact, supply security has become a major question for every tyre industry and they are working towards the security of raw materials for themselves. This also happens to be one of the learnings from the Covid pandemic, which is why people are not going today for prices alone – they are making more strategic moves while selecting their raw materials supplier.”

                       Dr Raj B Durairaj, Director of R&D, Finorchem

 
How India is at an advantage
While China was a major exporter of tyres to the US, this developed market is also looking for a sustainable second source, and India is the best second source, Katkar informs us. “We are already exporting 30 percent, which will eventually increase. Therefore, it is not only the raw material; if the industry wants to export, it will obviously require the raw material and rubber chemical, which is a major factor,” he avers.

Katkar goes on to mention that the major production of off-road tyres was in China. But now we see India bucking up, too. That’s because these are not very huge in volume and are specialised. “India can take up a major role after China,” he says and adds, “Initially, we were talking about quality tyres. But our tyre industry has really come up well to match European legislations, the tyre labelling etc. so that they can export passenger cars as well as truck tyres. And when talking about exports in the automobile industry, our tyres will also go well with OEMs.”

Reaching the hotshots
Finorchem already has a presence of almost 20-30 percent in the export market and is looking to grow that further in light of the problems present in China. “Everybody is looking at India as an alternate option in the China plus one policy, and we are definitely going to encash on that opportunity. The entire world is our market now, and we are certainly trying to make an impact in the global space,” Holani puts across.

Katkar further remarks that global tyre companies are already there in India in terms of footprint. So when they use Finorchem’s products locally and when the approval comes (which are global approvals), it automatically makes Finorchem flexible to supply to their global plant as well.

However, the bottom line is that foreign companies, like Michelin, are quality-conscious companies. Dr Durairaj states that their company’s goal is that if they can develop a quality product, with a high- performance product and the infrastructure that they are building in their R&D, then they can develop the chemical, test it, take it to the big players and convince them that, technically, theirs is a technologically driven company. Therefore, convincing them will definitely lead to their using it.

Giving an example, Dr Durairaj pronounces, “My product that I invented in the US is well known globally. The product has set the benchmark for all the tyre industries across the globe. Likewise, I want to do the same at Finorchem – developing a new chemical, which we have already started working on. For example, carbon black coupling agent is a new concept for our company. But we have already started developing that kind of a chemical. Every tyre industry is looking for that kind of a chemical so that it improves the magic triangle in the tyre. Likewise, if the chemical works, then not only can we get the patents to protect Indian technology, but at the same time, we can convince the big tyre players like Bridgestone, Michelin etc. to try to consider our chemicals in their tyre foundations. Thus, quality speaks for everything, which is our goal.

Going a little deeper, Katkar tells us, “The global organisations usually take a little time. Once they know that a company gives quality, they don’t go for just one quality product; they talk about the quality system. Once they are convinced that the company is a quality system, they may take a little time for the approval. But once the approval comes, it is through. In fact, we are already supplying to Goodyear and Continental that come under the first six in company ratings globally.”

Challenges to deal with
With every vision and strategy, the share of challenges is inevitable. Holani says that for Finorchem, the challenges are what everyone is facing. For example, there’s supply security. Like we know, China controls almost 70 percent of the market, and sourcing raw materials from other strategic sources can be very challenging, which is due to the supply and logistics constraints that the company has seen due to Covid.

“But I think that Covid has really prepared us for seeing the worst and how we can channel ourselves even in these difficult phases. So not only us but the entire industry is prepared to meet these challenges,” Holani further expresses and adds, “It won’t happen overnight, of course. It will take a lot of time, maybe decades. Thus, we are working in that direction, especially in the direction of Atmanirbhar Bharat. We are trying to develop raw materials in-house, go local and become self-sufficient.”

Room to manoeuvre
The Covid pandemic, despite the losses it brought to the world, taught it a lot, too, including the tyre and other industries associated with it. While going global is important, being significant locally is as pivotal. It’s important that the Indian tyre and rubber chemicals industries spot the prospects various scenarios in the world bring them and strategise accordingly. Where cost alone won’t play a crucial role, the truly effective factor that will vanguard the industry is quality. And that comes with being opportune, investing in R&D and being judicious about making available exactly what the customer is looking for.

 

Bridgestone will supply tailored-made tyres for Lamborghini’s Huracán STO, which will be launched in 2021.

Bridgestone ensured the high-performance tyre can maximise the Huracán STO’s traction, handling, control, and extreme overall performance.

Key to the tyre’s success in maximising the super sports car’s performance is the combination of pattern and cavity design. The Potenza tyres apply an asymmetric tread design for enhanced steering response and cornering stability, and an internal crown structure that distributes footprint pressure evenly when cornering.

As well as the road-focused, custom-developed Potenza fitment, Bridgestone will also be providing a track-oriented, road-homologated version of the tyre that applies “race” technologies to maximise the vehicle’s track performance, especially in dry conditions.

Steven De Bock, VP Consumer Replacement and OE at Bridgestone EMIA, said, “It’s been a pleasure for our team to work so closely with Lamborghini for the first time, and on such an exciting project. The Huracán STO is an incredible piece of engineering that deserves a custom tyre that can fulfill its full potential. I can proudly say that Bridgestone has delivered such a high-performance tyre. It has been fantastic for the team to have worked on a project that is at the forefront of technology in so many ways.”

Hankook, one of the major global tyre brands, has started testing and development operations at its new ultra modern facility in Spain.

The testing facility has been set up on the premises of the Applus+ IDIADA Group and can also cater to European premium car manufacturers that have their own demanding tyre tests. The facility is completely automated and will host a 20-member team from the Spanish testing centre, which is affiliated to the Hankook Europe Technical Centre.

Klaus Krause, Head of European Research and Development Centre, said, "With the further expansion of our testing capacities in Spain, we are reaching the next level together with our local partner Applus+ IDIADA."

He also added, "We are confident that the newly installed testing facilities in particular will significantly improve our efforts to provide the best tyre testing conditions and services to our employees and customers. In addition, we will also be able to conduct significantly more tests on site." (TT)

ASCENSO introduced a construction tyre - BLB 730- which is used for boom lift vehicles used in construction and other industries. It comes with several features that cater to the unique needs of aerial lifting equipment.

The BLB 730 tyre is available in different sizes to fit various boom lift vehicles. This range of sizes provides versatility and compatibility with different types of aerial lift work platforms.

“ASCENSO's BLB 730 tyre is a significant advancement in specialised equipment for the construction industry. It focuses on load capacity, stability, traction, and durability to improve the performance and safety of boom lift vehicles. Whether working at heights or manoeuvring on tough terrains, this tyre offers reliability and durability for efficient operations,” said the company in a statement.

The BLB 730 tyre is built to handle heavy loads and stabilise boom lift vehicles. It has solid lugs and a more extended shoulder design, which ensures good traction and prevents slipping during operation. This is important for safely carrying heavy weights at high elevations. ASCENSO has used a special rubber compound in making the BLB 730 tyre, making it durable and long-lasting, resulting in less downtime and more productivity on construction sites.

To make the tyre even better, the company has optimised its inner volume to reduce tyre fill consumption, reducing the risk of tyre punctures, minimising the need for maintenance, and keep the vehicles running smoothly.

Falken Tyre Europe is an official IHF Men's World Championship 2023 partner for the upcoming tournament, the company has announced. The tournament is taking place at nine venues in Sweden and Poland from 11-29 January, 2023. Falken Tyre claims that the partnership was organised by the sports marketing agency SPORTFIVE. SPORTFIVE is responsible for exclusive marketing and media rights for all IHF World Championships until 2031.

Falken Tyre claims that this is its second agreement with the International Handball Federation. In addition to title and logo rights (Official IHF Men's World Championship 2023 Partner), the company has also secured advertising rights, including the Falken logo in each goal and centre circle of the courts, as well as the presence of Falken branding in the official tournament social media communications and print materials. According to Falken Tyre, this is complemented by 30-second video ads that will be shown on the big screens in the nine sports halls before the start of each match and at half-time.

Sharing his views, Robert Müller von Vultejus, Chief Growth Officer at SPORTFIVE, said, “With Falken, the IHF World Handball Championships have secured a great partner who is positioned with far-reaching influence in the relevant core markets. We are delighted to have been able to bring two global partners together for one of the most exciting sporting events of next year.”

Markus Bögner, COO and President of Falken Tyre Europe GmbH, explained, “Handball isn’t just of great importance in Europe, but all over the world, which has led us to partake in this top-level tournament once again. The fact that the international tournament is taking place in countries that are among our core markets is another great reason for our involvement. We can also look back on a long partnership with our colleagues at SPORTFIVE, who always offers us excellent opportunities that are an excellent fit for the Falken brand, which stands for enthusiasm, performance and achievement.”