As far as Quality Management System (QMS) certification is concerned, my first exposure was to ISO 9000: 1994, about seven years after the first ISO 9000 standard emerged from the former BS 5750. The 20 + auditable QMS requirements has resulted in a bewildering and voluminous mass of documentations. It was virtually a system of documents, contrary to a documented system. According to the standard, the company was expected to establish, implement and maintain a documented procedure for all the auditable requirements of the standard. It was a period when the standard was spreading like bush fire, creating a gold mine for Consultants who thrived on the ignorance of the client companies. Preparation and maintenance of the documentation alone, engaged considerable managerial time, and hence the tendency to consider ISO 9000 based QMs as an area separate from the Quality Assurance and other operational functions which has still continued to the present day. This created some dichotomy between the ISO Department and the other functional sections resulting in conflicts. On doing the QMS audits, as an independent auditor for many companies, I have the experience of being confronted with a cart-load of files and documents. This was of course before, the soft copy methodology firmly got established. Many of the External Auditors, spent considerable time, in checking Document and Records, in scrutinizing document reference and revision numbers of even the less significant documents and formats, rather than concentration on the more important requirements. In this respect, I have a great respect for one of the very senior officers of the Sri Lanka Standards Institution, whose approach was to study the operational relationships and their effectiveness.

The transition in to ISO 9001:2000 saw some very significant and far-reaching changes, which the industries, took about one to two years to fully realize. It was a challenge for the auditors and the Certification bodies as well. A careful scrutiny of the eight principles of quality management, will show that they are nothing else but common business sense. The eight principles are:

• Customer focus
• Leadership
• Involvement of people
• Process approach
• Systems approach to management
• Continual improvement
• Factual approach to decision making
• Mutually beneficial supplier relations.

 A casual glance at the principles, will reveal that it is about common sense of good managerial practices., irrespective of whether one goes for certification or not. However, it was an uphill task to grapple these concepts and integrate them holistically in to the quality management systems. Process approach in very simple terms means how to relate the inputs to outputs through the value adding conversions and how to control the activities, realize the desired results. It is directly related to the traditional definition of productivity, namely the ratio of out puts to inputs. What was difficult to comprehend was the fact that, the other seven quality management principles also provide inputs for the process approach. As an example, the auditors found it a grey area when it comes to evaluating leadership, in the context of the process approach. Regarding the establishment of the Quality Policy, which in turn is a requirement under leadership, I have seen many quality polices with attractive wordings which more often serve as show pieces. Very few companies have used the quality policy to provide direction for the setting up of quality objectives. One of the meaningful but concise quality policies I have seen is “We do everything, correctly, right first time at all times’’.

While the 2008 version of the ISO 9001 standard consisted of some notional changes only, the 2015 version signified a complete change of the concept of quality stressing the importance of quality in business strategy, by considering the impacts of external and internal factors and the expectations of internal and external parties on quality and including risk management as an important aspect of quality. Although the prime focus on ISO is product or service quality, companies cannot ignore the impact on quality, which covers product quality (Q), Price (P), and Delivery (D). The recent impacts of Covid-19 pandemic on the above aspect of quality, was amply seen throughout the world. The above requirements under the Organization Context, is a move in the right direction, in integrating quality in to all aspects of the business. However, most companies and even auditors, consider this in isolation as another requirement of the ISO 9001, which need minimum compliance. Similar comments can have made on the Identification of the risks and opportunities of the operational processes.

Product and service quality is used by most companies as means of maximizing the profit. The Nobel Prize Winner in Economics, Milton Friedman in 1970, stated that the sole responsibility of a business is to “use its resources to increase its profits. As a result of the rapid growth in consumerism, both locally and globally, business firms operate in a challenging and continually changing business environment. The rapid change is supported by rapidly expanding technology, and particularly of information technology. Dynamic organizations are making serious efforts to keep abreast of developments, in the changing business environment, while many traditional and conservative organizations are failing. Change has become inevitable.”

While we cannot find any fault with this approach, one cannot overlook the Social and Environmental bottom lines, which together with the Economic bottom-line, constitute the Triple Bottom of Sustainable development. The role of quality management on the social and environmental bottom lines, is a concept that has great potential in the modern-day concept. The reduction of scarp and rejects, especially in the tyre industry, will improve the environmental performance, while reducing the health and fire risks, often caused by irresponsible dumping.

 Internal and external communications under the requirement 7.0, Support of the ISO 9001 and 14001:2015 standards are another area where adequate attention has been given. Despite the great advances in ICT, we can trace miscommunications as the root cause of most of the Non- conformance report raised during the QMS audits.

John Ruskin, the English author, (1819 -1900 ) once said, “ Quality is never an accident. It is always the result of intelligence effort.” I have seen this famous quote adorning the walls in some offices of CEOs and Senior Managers. However, the perennially repeating non-conformances related to quality in a large number of companies, make me to wonder whether the management and the mangers, “walk the talk.” Companies have in their procession, a handy tool, in the disguise of ISO 9001:2015, to enable them to establish the standard procedures, (SOPs), operate them and control, but many consider it as something to worry about only during the external audits of the certification bodies.

In this respect, it is worthy of mentioning that, in my country Sri Lanka, there is a famous Buddhist Cultural Pageant, in August every year, that attracts locals as well large numbers of tourists from across the globe. For the past 400+ years, this event follows the SOPs, without any, awareness of the ISO 9000, emphasizing that there is no magic or mystery about ISO, but the prevalence of good common sense. (TT)

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Tolins Tyres Ltd has announced that its wholly owned subsidiary, Terra Rubber Pvt Ltd, has entered into a purchase agreement with Cochin Reclaim and Rubbers Pvt Ltd to acquire plant and machinery as part of its capacity expansion and backward integration strategy.

The agreement, executed on 1 July 2026, involves the purchase of identified plant and machinery from Cochin Reclaim, an unrelated third party. According to the company, the acquisition is intended to strengthen Terra Rubber's manufacturing capabilities through increased capacity and greater backward integration.

Under the terms of the agreement, Terra Rubber will acquire the machinery on an "as-is, where-is" basis. The subsidiary is required to remove the equipment from Cochin Reclaim's premises within 60 days at its own expense. Ownership of each item will transfer only after full payment has been made and the machinery has been physically removed.

Tolins Tyres said the transaction is a routine purchase undertaken in the ordinary course of business and will have no impact on the management or control of the listed company. It added that neither Terra Rubber nor Tolins Tyres holds any shareholding in Cochin Reclaim.

The company also confirmed that the transaction is not a related-party transaction, has been negotiated on an arm's length basis, and that Cochin Reclaim has no relationship with the company's promoter group or board of directors.

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Nokian Tyres delivered a sharp improvement in second-quarter profitability as higher sales volumes, stronger pricing and lower manufacturing costs boosted earnings, while the company said it is entering a new phase focused on profitable growth after completing its major investment programme.

Net sales rose 10.6 percent year on year to €379.9 million in the April–June quarter, while operating profit more than doubled to €34.8 million from €14.8 million. Segment operating profit increased 71 percent to €45 million, driven by higher sales and improved manufacturing efficiency.

For the first six months of 2026, revenue increased 7.6 percent to €659.6 million, while segment operating profit climbed to €40.7million, more than five times the €7.8 million reported a year earlier. Operating profit returned to positive territory at €17 million, compared with a loss of €21.1 million in the first half of 2025.

"We delivered a strong quarter in line with our strategic ambition," said Paolo Pompei, President and Chief Executive. "Operating profit increased by 136 percent, driven by higher sales volumes and enhanced pricing."

Passenger car tyres lead recovery

The Passenger Car Tyres business remained the principal growth engine, with quarterly sales increasing 13.9 percent to €235 million, while segment operating profit more than doubled to €35.5 million. Heavy Tyres also returned to growth, posting a 10.4 percent increase in sales, although profitability at retail chain Vianor remained under pressure from cost inflation and seasonal factors.

Chief financial officer Timo Koponen said higher sales volumes remained the largest driver of earnings improvement.

"The Passenger Car Tyres continued their very strong performance also in Q2," he said, adding that the business had benefited from improved pricing, a richer product mix and lower raw material costs.

Management also highlighted six consecutive quarters of positive price and mix development, reflecting its strategy of moving further into premium products and larger rim-size tyres.

Romania becomes a strategic growth engine

Nokian Tyres said its new manufacturing facility in Romania is performing ahead of plan and is playing a key role in rebuilding capacity following the exit from Russia.

Sales in Central and Southern Europe rose 31.3 percent during the quarter, supported by higher production from the Romanian plant. "Everything is developing in this area according to plan," Pompei told analysts, referring to the Romanian factory.

He added that the new manufacturing footprint, together with recently launched products, was enabling the company to regain market share.

"We lost a significant amount of sales when we couldn't leverage our manufacturing facility in Russia at the end of 2022. Now, obviously, we are approaching the market with a new spirit, regaining market share in all the key markets where we believe we can be successful."

The company said contract manufacturing would continue to account for around 10 percent of total production, allowing it to focus internal capacity on strategically important products.

Investment phase winds down

Having invested heavily over recent years to rebuild its manufacturing network, Nokian Tyres is now shifting its attention towards cash generation and returns.

Capital expenditure in the first half fell to €24.5 million, compared with €89.7 million a year earlier. The company expects full-year capital expenditure to remain below €100 million, substantially lower than previous years.

"Following the successful completion of our major investment phase, capital expenditure will be somewhat lower this year than in the previous year," Pompei said.

Koponen said lower capital expenditure and stronger earnings had improved free cash flow, although higher receivables linked to increased sales continued to weigh on working capital. He added that net debt declined by €49m during the quarter while liquidity remained strong.

Premium positioning remains central

Nokian Tyres continues to focus on premium products rather than competing in lower-priced market segments.

The company said all-season tyres continued to outperform the broader market, while its flagship Hakkapeliitta 01 winter tyre had received a positive customer response.

Pompei said the strategy remains centred on strengthening brand equity and improving margins.

"We keep pushing our premium positioning, strengthening our brand through strong marketing investments, new products, and, in particular, better prices," he said.

Outlook unchanged despite uncertainty

Nokian Tyres maintained its full-year guidance, forecasting revenue growth in 2026 and a segment operating margin of 8–10 percent.

While management expects replacement tyre demand to remain broadly stable, it acknowledged that geopolitical tensions, tariffs and raw material price volatility continue to create uncertainty.

"We continue to focus on executing our strategy, strengthening our premium positioning, and improving profitability," Pompei said. "While there is still work ahead, we are on the right path to deliver profitable growth and create long-term value for all our stakeholders."

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Yokohama has announced the death of Simon Clarke, its Motorsport and Technical Manager, who was killed in a motorcycle collision on 12 July.

Clarke, who joined Yokohama HPT in 1993, spent more than three decades with the company and became a key member of its UK and European motorsport operations. He played a leading role in numerous domestic and international race series, while also supporting major European motorsport events at the request of Yokohama's global headquarters.

In addition to his motorsport responsibilities, Clarke led tyre development programmes for UK vehicle manufacturers. He also served as chairman of the Motorsport UK Production Tyre Panel and held a certified Claims Adjuster licence.

Yokohama said Clarke was a respected colleague and close friend to many across its UK business, the wider Yokohama organisation and the tyre and motorsport industries.

Outside work, Clarke was described as a devoted family man who enjoyed travelling and spending time with friends.

"Simon will be deeply missed by everyone who had the privilege of knowing him," the company said.

Yokohama extended its condolences to Clarke's family

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AZuR partner NEW LIFE has secured official recognition for its educational initiative, NEW LIFE macht Schule (NEW LIFE Makes School), following its inclusion in the national ESD (Education for Sustainable Development) actor index curated by the Federal Ministry of Education and Research and the German UNESCO Commission. This distinction positions the programme among Germany's prominent contributors to Education for Sustainable Development, underscoring its role in cultivating responsible environmental stewardship among younger generations.

Through a complimentary educational offering, the initiative bridges theory and practice by introducing students and trainees to the mechanics of circular economy models, resource efficiency and sustainable corporate conduct. Using tangible examples from mechanical tyre recycling, the programme illustrates how secondary raw materials directly support climate action and resource preservation while also highlighting the commercial and societal advantages inherent in circular systems.

Educators are equipped with an array of no-cost tools, including digital learning modules, project blueprints and vocational case studies tailored for trades such as landscaping, roofing, carpentry, administrative services and soon agriculture. The curriculum prioritises circular economy principles, secondary material flows, climate protection and judicious resource usage, with the aim of nurturing systemic thinking and empowering learners to devise and implement sustainable strategies in their future professions.

For AZuR, this achievement reinforces the conviction that educational institutions play a pivotal role in driving the transition to a circular economy. The recognition not only elevates the profile of NEW LIFE macht Schule among schools and educational bodies but also strengthens AZuR's ongoing commitment to advancing tyre circularity awareness in collaboration with the initiative.

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