Being a global supplier of tyre oil, Nynas supplies its products to major tyre companies worldwide. However, the Covid-19 pandemic brought unforeseen challenges in transporting goods through all three modes of transportations, and Nynas is no exception! In an interview with Sharad Matade of Tyre Trends, Rogier van Hoof, Head of Secondary Distribution Naphthenics at Nynas, says enhanced communication and exchange of information digitally will help the company handle the new challenges. He also added that the container availability is expected to be normalised in 2022 but road transportation will remain a challenge.

Ever since Covid-19 engulfed the world, the job of Rogier van Hoof, Head of Secondary Distribution Naphthenics at Nynas, has become more challenging. Though tyre production is coming back on track speedily, the challenges at the logistic front are still demanding. Recollecting the initial impact of Covid, van Hoof says, "For Nynas, it all started in early 2020, when the lockdowns in China forced factories to close down manufacturing activities. However, the initial shock was largely seen in truck movements. As part of the measures, drivers had to go into quarantine after a long haul drive. They could pick up a container, but they had to go into quarantine when they were back at the delivery point. So we saw an immediate effect on the truck availability. The cascading impact, I don't think anybody could have predicted. We are on a steep learning curve since the beginning of 2020."

van Hoof and his team swung into action and immediately enhanced the communication with its customers, forwarders and logistic partners to evaluate options to tackle the unprecedented challenges. "I don't think anyone was prepared for what had happened afterwards. Before Covid, people used to take logistics for granted that you order something and it's there when you want it. But with the Covid situation, people have realised to approach things differently, not only on the factory levels but also on the logistics sides on a day to day basis. There are still many limitations we have to deal with," says van Hoof.

According to van Hoof, in the last one and a half years, the just-in-time concept is out of the window and long-term planning has become the priority. "In the past, we knew there was a vessel going every week, and we had substantial free times in getting the containers in, getting them loaded and bringing them to the quay. Even if we would miss a vessel, we always could ship it next week, so the delay was manageable – but that has gone completely out of the window today. It is clear that if you miss a vessel, the next vessel with space will be there maybe in a month. This means everyone needs to plan much further ahead," says van Hoof.

Most countries are now recovering from the Covid impact; however, many major export destinations are still grappling with severe restrictions. Many main ports are congested and containers are either stacking up at cargo ports or in inland depots. This imbalance results in waiting time for space on vessels, according to reports, between three to eight weeks. The logistics supply chain is struggling to get back in balance resulting in extreme price spikes and unpredictable delays. "This is a situation which is unprecedented; we have never seen it before," adds van Hoof.

van Hoof says loyalty and predictability are helping the company sail through the rough time. "We have been working with our logistic partners for a long time and, therefore, they know that what we promise them, we deliver. Predictability towards the stakeholders like transporters, shipping lines, forwarders has become key. In desperation, many companies are making overbooking of containers but failing to utilise the booking fully. In our relationship with our forwarders and the shipping lines, we have been able to show loyalty and keep our promise. If we tell the shipping line that we will ship 50 containers this week, we will make sure that these 50 containers are there. Our loyalty is rewarded by the fact that they will treat us as a preferential client. Price is no longer the highest priority, and this is something people need to realise. There's always somebody who is prepared to pay more,” explains van Hoof.

van Hoof feels the container availability situation will be normalised by 2022, but the driver availability issue will remain a more significant issue.

Currently, the company has 23 depots worldwide, of which Antwerp, Houston and Singapore are central storage facilities and blending stations. Last year, the company transported around 700,000 tonnes of oil by sea. There were also 30,000 deliveries by road tanker, 10.000 container transports and 250,000 drums delivered to customers worldwide.

However, opening more depots to tackle the logistic challenges is not viable, thinks van Hoof. Around 2018-19, shipping costs for containers were at the lowest level ever; companies always preferred shipping over setting up depots. "Now our shipping costs have not only increased substantially, but the reliability of the shipping has gone down to the lowest ever. I think that less than 60 percent of the vessels arrive at the bars on time. So we are continuously looking at what is now the best solution. But you also have to consider that opening a depot in a country is not a temporary thing. It is something you do for the long run," explains van Hoof.

van Hoof also sees a possibility of working with its clients to manage container utilisation. "There are customers who are logistically shipping more than we do. So can we use the strength of both companies to find a solution? For instance, let's say we ship 100 containers to India and our customer ships 200 containers from India, so we are seeing if we can help each other, can we use their containers? We see more and more openness among the stakeholders in tackling logistic challenges," says van Hoof.

Nynas is currently implementing a transport management system within the company, which will allow it to digitalise the information. The transport management system allows exchanging data between stakeholders, including Nynas' depots, transporters, forwarders, inspectors and customs agents. "Today, everybody's under stress, and people need real information in real time," adds van Hoof.

The company plans to go into the second phase to integrate all that information with other stakeholders.

The Nynas executive advises the youngsters in the transporting job to be agile and eager to learn to tackle unusual situations. "You need to deal with much information and make sense of that information and use it correctly. So if you are somebody who gets up in the morning and goes to work, and has no idea what will happen during the day, then you're a suitable candidate for the job. For me, I make a little list of two or three things to do every day, and at the end of the day, I'm always happy that I've done two or three jobs, because, during the day, there are so many other things that need attention or immediate attention," concludes van Hoof. (TT)

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NEXEN TIRE reported third-quarter 2025 sales of 780.7 billion won and operating profit of 46.5 billion won, the company said on Thursday, as stronger demand in Europe and South Korea helped offset the impact of item-specific tariffs in the United States.

Sales in Europe were supported by an expansion of original equipment supply for newly launched vehicles and higher demand for winter products following tighter seasonal tyre regulations. In South Korea, the company posted its highest-ever quarterly revenue, aided by peak summer demand and continued growth in its tyre rental business.

Profit margins improved from the previous quarter, helped by lower raw material costs and reduced logistics expenses, with prices for natural and synthetic rubber and the Shanghai Containerized Freight Index (SCFI) remaining on a downward trend.

The company has been rolling out region-specific product strategies. In South Korea, it launched the N’FERA Supreme EV ROOT in August, designed for both electric and internal combustion engine vehicles. It also brought the WINGUARD SPORT 3 winter tyre to Europe and Japan, and strengthened its U.S. high-performance line-up with the N’FERA SPORT, already supplied as original equipment to premium European carmakers. In Australia, it added the ROADIAN ATX for larger sport utility vehicles.

NEXEN TIRE is also expanding its international footprint, with new sales bases recently opened in Spain and Poland, and additional hubs planned in Southeastern Europe, Latin America and the Middle East.

The tyre maker said it is enhancing R&D efficiency through the adoption of a High Dynamic Driving Simulator, the first of its kind in South Korea's automotive sector, allowing reduced reliance on physical prototypes and road tests. The firm also received approval for its near-term emissions reduction targets from the Science Based Targets initiative (SBTi) in September.

“The solid performance in the third quarter, even after factoring in tariff-related costs, indicates that our strategy for managing external uncertainties is yielding positive results,” CEO John Bosco (Hyeon Suk) Kim said. “We will continue to pursue sustainable growth through product portfolio diversification and the optimisation of global production operations.”

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MAXAM is set to showcase its advanced agricultural tyre solutions at Agritechnica 2025 in Hannover from 9 to 15 November. Visitors can find the company at Stand A04 in Hall 20, where the exhibition theme ‘More Pull. Less Fuel’ will guide the presentation. This philosophy underscores the company's dedication to developing tyres that enhance operational efficiency and contribute to more sustainable farming practices by reducing fuel consumption and soil compaction. The event provides a significant opportunity for MAXAM to demonstrate its commitment to innovation and the expansion of its product portfolio.

On display will be a range of DLG-awarded tyres, including robust models for high-horsepower tractors and versatile options for specialised implements, illustrating the company's technical breadth. Beyond presenting products, MAXAM considers the trade fair a vital meeting point for industry collaboration. It serves as a platform for direct engagement with farmers, partners and machine manufacturers, whose feedback provides invaluable, real-world insights that directly influence the future direction of product and service development, ensuring they remain precisely aligned with evolving market needs.

As a part of SAILUN Group, one of the 10 largest tyre manufacturers in the world, MAXAM leverages its extensive international presence and collaborative research initiatives to drive continuous innovation. The company is dedicated to advancing agricultural tyre technology, creating sophisticated solutions that directly address the evolving demands of modern farming. This focus encompasses critical areas such as enhanced sustainability, improved cost-efficiency and superior field performance.

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Radar Tires has expanded its US distribution network with the opening of two new domestic distribution centres in Knoxville, Tennessee, and Parkesburg, Pennsylvania, as part of efforts to strengthen product accessibility and service reliability for its growing customer base.

The expansion increases the brand’s domestic distribution centres from one to three. It aims to improve delivery efficiency and inventory availability across key regions, particularly in the Southeast and Northeast of the United States.

“Stocking domestic tyre inventory is a key part of the Radar strategy going forward,” said Rob Montasser, Vice President of Sales for Radar Tires, USA. “It ensures our distributors and retailers have easy access to the products that their customers need, without the long lead times or supply chain uncertainty. These new locations allow us to be faster, more flexible, and more dependable.”

The company said the additional facilities will reduce delivery times and ensure that its core product range remains readily available to meet rising market demand.

With existing operations in Texas, the addition of centres in Tennessee and Pennsylvania underscores Radar Tires’ long-term strategy to enhance supply chain responsiveness and reinforce its position as one of the most customer-focused distribution networks in the tyre industry.

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Cabot Corporation reported lower quarterly earnings, as weaker demand in its Reinforcement Materials segment and softer volumes in Performance Chemicals weighed on results. However, the company ended fiscal 2025 with solid cash flow and continued shareholder returns.

For the fourth quarter ended 30 September, Cabot posted net income of USD 43 million, or USD 0.79 per share, compared with USD 137 million, or USD 2.43 per share, in the same period a year earlier.

Full-year diluted earnings per share were USD 6.02, while adjusted earnings per share rose 3 percent year-on-year to USD 7.25.

“I am very pleased with another strong year of Adjusted EPS growth where we achieved USD 7.25, up 3 percent year over year, in a year with a challenging macroeconomic backdrop,” said Sean Keohane, Cabot’s President and Chief Executive Officer. “This performance was driven by higher EBIT in our Performance Chemicals segment, which increased 18 percent year over year, partially offset by EBIT in our Reinforcement Materials segment, which declined 5 percent.”

Cabot’s revenue for the quarter fell to USD 899 million from USD 1.0 billion a year earlier, while full-year sales declined to USD 3.7 billion from USD 4.0 billion.

The Boston-based speciality chemicals manufacturer said fourth-quarter cash flow from operations totalled USD 219 million, enabling USD 64 million in shareholder returns through dividends and share buybacks. For the full fiscal year, Cabot generated USD 665 million in operating cash flow, funding USD 274 million in capital investments, USD 96 million in dividend payments and USD 168 million in share repurchases.

Keohane said the company’s balance sheet remained strong, with a net debt-to-EBITDA ratio of 1.2 times, providing flexibility to invest in growth while continuing to return capital to shareholders.

The company’s Reinforcement Materials segment reported a USD 4 million decline in EBIT from the prior-year quarter, reflecting lower volumes in the Americas and Asia Pacific, partly offset by cost efficiencies. Global volumes fell 5 percent, including a 7 percent drop in the Americas, where lower tyre production by customers was attributed to increased Asian tyre imports.

Performance Chemicals EBIT decreased USD 2 million year-over-year, mainly due to a 5 percent drop in volumes led by weaker demand in Europe, particularly from construction-related applications.

Cabot ended the quarter with  percent 258 million in cash and spent percent 64 million on capital expenditures. The company recorded a 55 percent effective tax rate in the fourth quarter and an operating tax rate of 27 percent for fiscal 2025.

Looking ahead, Keohane cautioned that market conditions remain challenging, particularly in the Reinforcement Materials sector. “We do not yet see signs of improvement in the external environment, particularly as it relates to regional demand trends in Reinforcement Materials due to the impact of elevated Asian tire imports into western regions,” he said.

The company anticipates improvement in Performance Chemicals, led by growth in battery materials and infrastructure-related applications, while maintaining strong cash flow to support investment and shareholder returns.

“While market conditions remain challenging, we continue to execute on our foundation of commercial and operational excellence, and we remain focused on managing costs, strengthening operations, and positioning the company for long-term growth,” Keohane said.

In fiscal 2025, Cabot also announced an agreement to acquire Bridgestone Corporation’s reinforcing carbons plant in Mexico and released its 2024 Sustainability Report, noting it had achieved 11 of its 15 sustainability goals ahead of schedule and established new 2030 targets.

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