The priority for the newly elected president of All India Rubber Industries Association (AIRIA), Dr Sawar Dhanania, is to create an ecosystem in the Indian rubber sector with the help of all stakeholders, especially small ones, for sustainable growth. "I find the rubber ecosystem is not in place, and every sector that has to go forward or meet the challenges has to have an ecosystem. All the links should be in place to take the MSME sector forward along with big players in the industry," said Dr Dhanania.

"We have identified the issue and are working on it. To have the ecosystem, we require the participation of all stakeholders in the sector to make it stronger," added Dr Dhanania.

Due to the erratic supply chain, buyers are losing price negotiation powers, especially MSMEs. Meanwhile, soaring prices of raw materials are adding fuel to the challenges. According to Dr Dhanania, the MSME sector requires special-purpose rubbers, such as EPDM, Nitrile, Neoprene, SBR and others to make the goods. However, suppliers from other countries are dictating the terms due to the current situation. "Currently, manufacturers in the MSME sector are facing challenges as they cannot increase the prices of finished goods even though the demand is picking up, and they have to buy raw materials at soaring prices," explained Dr Dhanania.

Coupled with skyrocketing raw material prices, the lack of testing facilities for raw materials and finished rubber goods for the MSME players is another primary concern, as per Dr Dhanania. "Due to growing exports and quality requirements in the local market, we too are getting quality conscious. We need testing facilities at the door level according to the standards," said Dr Dhanania.

In May, the AIRIA will approach the government to avail special-purpose rubber and other raw material at fair prices through imports to meet domestic demand being infused by the growing infrastructure development and export demand. 

The association will also urge the government to make FTAs more favourable to the domestic industry and boost local supplies of speciality rubber to lessen dependency on imports. "To tap the opportunities in new markets, we will motivate our rubber goods manufacturers to export goods. We will focus on exploring the new market for our members. Currently, we are collecting and analysing the data for MSMEs. We will provide data to the manufacturers about the export details for the countries where they can possibly supply their rubber goods," expressed Dr Dhanania.

The Arab and European countries are currently the largest export market for the Indian rubber goods companies. Rubber sheeting, cycle tyre & tubes, footwear and moulded products are among India's largest export rubber goods. However, India contributes merely one percent of the total global rubber export, which stands at around USD 200 billion. 

The association also seeks stimulus packages for the rubber industry. "With the technological changes, we want to upgrade our processing technology and add some new machines. But since we are facing so many problems like increasing raw material prices and inverted duties, we don't have a surplus in our hands to invest in the machines," said Dr Dhanania.

The AIRIA will also enhance its activities to hone workers' skills in the MSME sector. According to the new president, the association did face some challenges in providing training in the rubber sector in the past, but it will soon launch training and educational courses for academia and industry. "Even for the people working in the rubber industry for a long time, we will launch reskilled training programmes. We will be discussing with RCPSDC how the technical expertise will provide the practical training to the industry people as lots of machines are required for such training," added Dr Dhanania. 

The AIRIA will soon introduce an e-portal where the association members can market their products digitally. "With this portal, job seekers can also get connected to companies," said Dr Dhanania.

Dr Dhanania sees the greater demand will come from the automotive sector. He averred, "The auto companies are not running at the full capacities due to shortage of semiconductors, but for the long term, the demand will pick up, and the government too is spending on building infrastructure. Electric vehicles will generate demand for new types of high-performance rubbers." 

The size of the Indian rubber industry is about INR 1 trillion, out of which INR 700 billion is contributed by the tyre segment and the rest by rubber goods manufacturers. The MSME units in the rubber sector employ about 400,000 people. 

In India, there is a deficit of over 400,000 tonnes of natural rubber, which is being met by imports. However, the government has been serious to narrow the gap between demand and supply. 

Recently, four major tyre companies, part of the Automotive Tyre Manufacturers Association (ATMA), have decided to contribute INR 10 billion for rubber plantation development on 200,000 hectares of land in the North East states of India, over five years.

The AIRIA has postponed the India Rubber Expo (IRE) due to Covid outrage. According to Dr Dhanania, the IRE is likely to be held in 2024 . "As the situation (Covid-19) is improving, we are planning to hold the IRE in 2024. Meanwhile, we will have industry outreach programmes every month in different states, and we may unfold the programme in April," concluded Dr Dhanania.

Renowned Scottish businessman and philanthropist Sir Tom Farmer, founder of Kwik-Fit, passed away peacefully at his home in Edinburgh at the age of 84, according to a family statement issued on Friday.

A veritable titan of the tyre industry, Sir Tom established the Kwik-Fit chain of garages in 1971. Before being sold to Ford Motor Company in 1999 for more than GBP 1 billion, the company grew to become the largest independent tyre and automotive repair specialist in the world, with over 2,000 locations across 18 countries.

The influence of Sir Tom was not limited to the automobile industry. His varied financial skills were demonstrated by his major roles as a director of Scottish Power and MyTravel Group. He has always been a football fan and owned majority stakes in Hibernian Football Club for 28 years before selling it to American billionaire Ron Gordon in 2019.

His family stated that Sir Tom's charity will be remembered and that his life and profession impacted many facets of Scottish and UK life. According to the businessman's family, he was happy to be an uncle to his three brothers, three sisters and numerous nieces and nephews. “More than anything, Sir Tom was a family man. Born in Leith, Edinburgh, in 1940, he was the youngest of seven children. He frequently spoke of the love, care and attention that was bestowed upon him by being the youngest in such a large family,” said the statement.

Speciality materials provider Trinseo reported a first-quarter net loss of USD 79 million on Monday, despite restructuring efforts that boosted adjusted EBITDA by 44 percent compared to the same period last year.

The Pennsylvania-based company, which manufactures plastics, latex and rubber, saw its net loss widen slightly from USD 76 million a year earlier, weighed down by USD 25 million in refinancing costs from debt transactions completed in January.

Trinseo's quarterly revenue fell 13 percent to USD 785 million, as the company grapples with weak demand across all business segments and its strategic reduction of low-margin sales.

“Core business results in the first quarter were in line with expectations and sequentially higher due to prior quarter customer destocking and seasonality," said Frank Bozich, President and Chief Executive Officer of Trinseo. “Despite persistent market weakness, the first quarter was Trinseo’s 7th consecutive quarter of year-over-year Adjusted EBITDA improvement driven by the various management actions we took early in this industry downturn."

Adjusted EBITDA rose to USD 65 million from USD 45 million a year ago, bolstered by USD 26 million in polycarbonate technology licensing income and cost-cutting measures, though partially offset by lower volumes and reduced income from its Americas Styrenics joint venture.

Cash used in operations totalled USD 110 million, whilst capital expenditures reached USD 9 million, resulting in a negative free cash flow of USD 119 million. The company ended the quarter with USD 128 million in cash, of which USD 2 million was restricted, and total liquidity of USD 421 million.

Among its business segments, Engineered Materials recorded a 2 percent drop in sales to USD 278 million, yet saw adjusted EBITDA jump by USD 16 million to USD 26 million. Latex Binders sales declined 13 percent to USD 209 million, with adjusted EBITDA slipping USD 2 million to USD 24 million.

Polymer Solutions, despite a 22 percent sales decrease to USD 298 million, posted a USD 15 million increase in adjusted EBITDA to USD 44 million, benefiting from fixed cost reductions and licensing income. Americas Styrenics fell to a negative USD 2 million in adjusted EBITDA, down USD 8 million from the previous year.

Looking ahead, Trinseo forecasts a second-quarter net loss between USD 61 million and USD 46 million, with adjusted EBITDA ranging from USD 55 million to USD 70 million. The company expects approximately break-even free cash flow, which includes USD 21 million from polycarbonate technology license income.

The company has withdrawn its full-year guidance previously provided during its debt refinancing, citing high macroeconomic uncertainty limiting its ability to assess future end-market demand.

Bozich expressed confidence in the company's outlook, stating: "We anticipate Adjusted EBITDA of USD 55 million to USD 70 million in Q2 with seasonally higher volumes, lower costs in Engineered Materials, and improved AmSty performance offsetting the first quarter polycarbonate technology license income."

Trinseo expects limited direct impact from current tariffs, as it generally manufactures products and procures raw materials in the regions where they are sold.

Nokian Tyres Plc reported strong year-on-year sales growth of 14.2 percent  in the first quarter of 2025, with net sales reaching €269 million in comparable currency, reflecting solid performance across all regions. However, earnings were impacted by rising raw material costs and ramp-up expenses linked to new production facilities.

“We had strong sales growth in quarter one,” said President and CEO Paolo Pompei. “This is continuing our journey and strong sales growth that we had also in quarter four and quarter three last year.”

Segment EBITDA was reported at €12.25 million, or 4.6 percent  of net sales, while the segment operating profit stood at a loss of €18.5 million — a deterioration from the €15.1 million loss in Q1 2024. “Obviously, we are not fully satisfied actually with the financial performance, and we have accelerated actions to improve our financial performance in the next quarters,” Pompei added.

€800 Million Investment Phase Nears Completion

The Finnish tyre manufacturer is now in the final year of a three-year investment cycle totalling close to €800 million. “Two major investments to build on our new Nokian will be done by the end of this year,” said CFO Niko Haavisto. “We are returning back to the more maintenance type of investments... estimating that to be around €120 million starting next year.”

Key among those investments is the state-of-the-art Romanian factory, which began delivering tyres at the end of March and will ramp up through 2027. “I've been myself 28 years in the business. I can tell you that the investment we've made in Romania is really state-of-the-art... also a factory that is providing us the same flexibility... that we had in Russia,” said Pompei.

Meanwhile, the Dayton, U.S. plant is expected to reach 80 percent  capacity this year. “The land plot and the layout would allow us to triple the capacity there. However, it's not something that we are planning at this moment,” Haavisto said.

Margin Pressures from Raw Material and Tariff Impacts

Margins remain under pressure, largely due to input costs. “The decline was mainly driven by the higher raw materials, and obviously, the necessity as a cost to reinforce our market position in the growing market areas,” said Pompei. Price increases have already been implemented in Q1 and are expected to take effect from Q2 onwards. “We are expecting a positive development or pricing mix already starting from quarter two,” he added.

In North America, tariffs are a growing concern. “The tariffs, of course, are causing some disturbances and some uncertainties,” Pompei noted. “The effect of the tariff will be visible in quarter two. This will require... a lot of discipline from our side.”

Despite this, the CEO sees strategic upside: “The US market is today importing more than 50, actually 60 percent, of the tyres that are sold in the US. Obviously, for us, having a direct presence in Dayton can represent an extremely good element to play in the near future if the tariff remains there.”

Long-Term Outlook: Growth with Leaner Cost Structure

While the company posted a Q1 operating loss, executives remained firm on long-term financial targets: €2 billion in annual sales, a 15 percent  EBIT margin, and 23–25 percent  EBITDA margin. “Those are all intact, and that’s what we believe in,” said Haavisto.

Pompei summarised the strategic vision: “We want to play in the profitable niches of the market, which today are winter tyres... all-season... and heavy tyres as well. Those are extremely profitable niches.” He added, “We are a small player... and of course, we are still a small market player when we look at the global tyre market, which is approximately €250 billion. We have plenty of opportunities to grow.”

On capital structure, the company expects net debt — now around €800 million — to peak in Q3 before tapering off. Liquidity remains “on the safe side,” supported by a commercial paper programme and committed credit lines.

“We are working very hard, really, to deliver growth and at the same time to improve our financial position,” Pompei said. “We can really position Nokian Tyres growing above the market level with our unique value proposition — safe and sustainable, and high-performing products in demanding weather conditions.”

Goodyear Tire & Rubber Company has reported its first quarter 2025 results, showing progress in its transformation strategy despite mixed financial performance.

The tyre manufacturer posted net sales of USD 4.3 billion, with tyre unit volumes reaching 38.5 million. The company recorded a net income of USD 115 million (40 cents per share), compared to a net loss of USD 57 million (20 cents per share) in the same period last year.

However, after adjustments, Goodyear reported a net loss of USD 11 million, or 4 cents per share, contrasting with adjusted net income of USD 29 million, or 10 cents per share, in Q1 2024.

The quarter’s results included several significant items, notably an estimated USD 260 million gain from the sale of its Off-the-Road (OTR) tyre business, completed in February 2025. This was partially offset by USD 81 million in rationalisation charges and USD 7 million in costs related to the company’s Goodyear Forward transformation initiative.

Segment operating income totalled USD 195 million, representing a USD 52 million decline year-on-year. After adjusting for the OTR business sale, the decline was USD 40 million, which the company attributed primarily to higher raw material costs.

“Our team kicked off the year by delivering the strongest quarter to date in benefits from Goodyear Forward and advanced our goal of building a high-performance culture that is designed to win,” said Chief Executive Officer and President Mark Stewart. “With the sale of the Dunlop brand, we are further optimising our portfolio while strengthening our balance sheet – a critical component of our transformation plan. We remain committed to our targets, including segment operating margin of 10 percent and leverage of 2.0x-2.5x in the fourth quarter of this year.”

The company reported that its Goodyear Forward programme delivered USD 200 million in benefits during the quarter. However, these gains were more than offset by USD 113 million in unfavourable pricing versus raw material costs, USD 56 million in inflation, USD 33 million in lower tyre volume, USD 19 million in unabsorbed fixed costs, and USD 12 million in unfavourable foreign currency translation.