South Korean tyre maker achieves second consecutive quarterly revenue record despite raw material pressures

South Korean tyre manufacturer NEXEN TIRE reported record quarterly revenue for the second consecutive period on Thursday, posting consolidated sales of 804.7 billion won in the second quarter as increased European production capacity and recovering US demand offset global automotive sector uncertainties.

The company’s operating profit reached 42.6 billion won in the three months to June, remaining stable from the previous quarter despite ongoing pressure from elevated raw material costs that began in late 2024.

The strong performance was primarily attributed to enhanced production following the completion of Phase 2 expansion at NEXEN TIRE’s Czech Republic facility, combined with targeted regional sales strategies that secured key supply volumes across both original equipment and replacement market segments.

US sales strengthened further in the second quarter, building momentum from the first-quarter recovery after experiencing a temporary decline in the latter half of 2024. Expanded retail distribution partnerships supported the improvement, the company said.

In the Asia-Pacific region, Australia and Japan delivered record sales volumes, driven by continued investment in distribution network development.

Ocean freight costs provided some margin relief, though the company continued to face headwinds from raw material price increases that began in late 2024. However, NEXEN TIRE expects improved profitability in the second half as key input costs have been trending downward since early 2025.

During the first six months of 2025, the tyre maker began supplying original equipment tyres for 11 vehicle models, including the Hyundai NEXO, Kia EV4 and TASMAN, whilst deepening partnerships with global automakers, including premium brands.

The company said it would implement gradual price adjustments in the US market in response to recent tariff policy changes, focusing on expanding high-margin products and strategically reallocating global supply volumes to mitigate profitability risks.

“Despite persistent macroeconomic challenges, NEXEN TIRE achieved record-breaking sales for two consecutive quarters by maintaining balanced growth across both OE and RE segments,” said Chief Executive John Bosco (Hyeon Suk) Kim. “We will continue to reinforce our global competitiveness through strategic partnerships and region-specific initiatives.”

NEXEN TIRE has been building brand awareness through localised marketing efforts across North America, Europe, the Middle East, and the Asia-Pacific regions whilst expanding its retail presence through strategic distributor partnerships.

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Continental’s dedication to comprehensive environmental and social responsibility has been formally recognised with the 2025 Kalmar Sustainability Award. The honour was conferred at Kalmar’s Supplier Day event in Szczecin, Poland, following a rigorous independent evaluation.

Continental distinguished itself by earning the highest score on Kalmar’s supplier sustainability scorecard, which measures performance in critical areas like responsible sourcing, data transparency, hazardous substance compliance and active participation in sustainability initiatives.

This partnership is operationalised through Continental’s role as the premium supplier of V.ply and radial tyres for Kalmar’s port logistics vehicles, which include reach stackers, terminal tractors and container handlers. The collaboration is strengthened by a shared vision for a carbon-neutral future. Continental implements this vision by focusing on the entire tyre lifecycle, from employing energy-efficient production and sustainable materials to designing long-lasting products like the TerminalMaster tyre.

Digital tools such as ContiConnect further this mission by optimising tyre pressure and health, which reduces fuel consumption and extends tyre life, thereby minimising the overall environmental footprint. This award celebrates a synergistic alliance built on a mutual commitment to innovation and superior quality standards.

Christian Berner, Global Key Account Manager for Port Operations at Continental, said, “We are honoured to receive this award from Kalmar, a valued customer with whom we have enjoyed a strong partnership for more than 15 years. This award is a testament to our shared values: a strong commitment to sustainability and lifecycle responsibility as demonstrated in our yearly sustainability report.”

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In a unique cultural partnership, Goodyear and American rapper Ice Cube are collaborating throughout the year to celebrate his classic hits, including a notable lyric from his 1993 single: Even saw the lights of the Goodyear Blimp and it read, 'Ice Cube's a Pimp'. The campaign connects the 100th anniversary of the Goodyear Blimp with Ice Cube's Truth to Power: 4 Decades of Attitude tour.

The collaboration officially launched on 24th August with a blimp flyover at the BIG3 Championship basketball finals in Orlando, a league founded by the artist. This continues the airship's storied tradition of appearing at major events. The partnership will extend to select concerts on Ice Cube's upcoming tour. Attendees in cities including Denver, San Diego, Los Angeles and Cleveland will experience the iconic Goodyear Blimp both in the sky above the venues and through integrated elements inside the arenas, offering fans a distinctive concert experience. This initiative brings to life the classic lyric, merging music history with a century of aviation legacy.

Ice Cube said, "From the beginning, I always thought you had to dream big if you really wanted to make it big. The idea of the Goodyear Blimp championing my name was a metaphor for the sky being the limit, yet here we are with Goodyear as a partner and the blimp flying in the Orlando skies, saying, 'Ice Cube's a Pimp!'. I'm honoured to have Goodyear sponsoring my Truth to Power tour, where we will take people through a musical journey over my four-decade career."

Doug Grassian, Vice President – Global External Communications, Social Media and Partnerships, Goodyear, said, "When Ice Cube referenced the Goodyear Blimp in his iconic song, it became part of music history and made a cultural impact. Aligning together for his upcoming tour feels like we are bringing that lyric to life, both literally and figuratively, for fans across generations."

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In an unfortunate incident, a fire broke out at Contec’s tyre facility in Szczecin during the night of 23-24 August. The company confirms that all 10 employees on site were safely evacuated thanks to the effective response of emergency services, with no injuries reported. While the situation is now under control, the incident resulted in significant material damage and a complete halt to production operations.

The company has expressed profound disappointment at the damage to an installation that had operated safely for over a decade. The timing is especially difficult given recent operational achievements. As an independent entity, Contec had successfully been converting 85 percent of end-of-life tyres into circular raw materials for new tyre production. This process had established a key part of the circular ecosystem within tyre manufacturing, making the current interruption to this sustainable work particularly challenging. The company is now assessing the full impact of the event.

Krzysztof Wróblewski, CEO and CTO, Contec, said, “Our full attention is now focused on our team, ensuring their well-being, our clients to help them find solutions, as well as assessing the situation and our post-incident operations. I would like to express my sincere gratitude for the incredible support and concern we have received. Your kindness means a great deal to us during this challenging time. We are aware that this is a difficult situation not only for our company and shareholders but for the entire industry. We will provide updates regarding any impact on our operations on an individual basis as more information becomes available. Furthermore, we are committed to sharing our findings with others in the industry, as we believe that increasing safety standards benefits everyone.”

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The Automotive Tyre Manufacturers’ Association (ATMA) has received a historic Special Recognition Award from UK-based tyre safety charity, TyreSafe. This marks the first time the organisation has presented an international award, highlighting the global resonance of ATMA’s extensive efforts in promoting tyre safety across India.

TyreSafe’s award specifically commended ATMA for its profound dedication and highly innovative approach. The association’s multifaceted initiatives have successfully educated over 20,000 participants and conducted inspections on more than 30,000 tyres. A cornerstone of this effort has been the Ideathons programme, which engages youth to develop creative concepts and inspire future road safety advocates, aligning perfectly with TyreSafe’s global vision for safer roads.

This recognition follows years of expansive activity by ATMA and its technical arm, the Indian Tyre Technical Advisory Committee (ITTAC). Their nationwide outreach has included over 200 safety activations, such as roadside clinics, inspection zones at petrol pumps and workshops for schools and universities. They have forged significant institutional partnerships, providing comprehensive training for over 1,000 tanker drivers in collaboration with Indian Oil Corporation and working with various state transport departments.

Campaigns on major expressways have involved inspecting thousands of vehicles and distributing safety materials, while continuous education is provided through webinars, social media and publications. Supported by its member companies, including Apollo, Bridgestone, CEAT, JK Tyre and MRF, ATMA remains dedicated to scaling this crucial outreach. The association continues to urge all stakeholders – from vehicle users to policymakers – to join this vital movement, reinforcing that tyres are not just components but essential life-safety systems.

Arun Mammen, Chairman, ATMA, said, “We are immensely proud that TyreSafe has recognised ATMA’s work in tyre safety. This award underscores our commitment to elevating public awareness and encouraging responsible tyre maintenance through engagement with motorists and institutional partnerships. Our journey continues with the shared vision of making roads safer across India.”

Sudershan Gusain, Head – Tyre Safety Awareness, ATMA/ITTAC, said, “This recognition by TyreSafe validates our extensive grassroots efforts: from petrol pump tyre clinics and university workshops to Ideathons and expressway campaigns. Educating over 20,000 people and inspecting 30,000 tyres is just the beginning. We will keep amplifying our message: proper tyre maintenance is crucial not just for vehicle performance but for saving lives.”

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