Japanese chemical manufacturer Zeon Corporation reported a 10 percent increase in annual net sales to 420.6 billion yen ($2.75 billion) for the fiscal year ended 31 March 2025, buoyed by steady performance in specialty materials and improved elastomer shipments.

The Tokyo-based company supplies synthetic rubber and specialty chemicals to the tyre industry. Despite headwinds in some market segments, its operating income surged 43 percent to 29.3 billion yen.

Elastomer Business Shows Robust Growth

Zeon’s elastomer business, which includes synthetic rubbers for tyre manufacturing, posted a robust 65 per cent increase in operating profit to 10.9 billion yen on sales of 236.6 billion yen, up 10 per cent from the previous year.

The company’s synthetic rubber segment benefited from selling price adjustments that reflected rising raw material costs, particularly butadiene, which saw a 44 percent price increase in Asian markets during the fiscal year. The continued depreciation of the yen also contributed positively to overseas sales.

Production Recovery After Maintenance Periods

“Following the completion of regular maintenance at the Takaoka plants, shipments recovered quarter-on-quarter,” Zeon stated in its earnings presentation, though it noted that “a loose supply-demand balance, particularly overseas, led to flat shipments year-on-year” for speciality rubbers.

For general-purpose rubbers used in tyre manufacturing, the company reported a recovery in sales volumes following maintenance work at its Tokuyama and Takaoka plants, though shipment adjustments due to regular maintenance at its Singapore facility led to a year-on-year decrease.

Cautious Outlook For Fiscal 2025

Looking ahead, Zeon forecasts a 5 percent decrease in consolidated net sales to 409.5 billion yen for fiscal 2025, with operating income expected to decline 5 percent to 28 billion yen. The company cited anticipated yen appreciation and lower raw material costs as factors behind the projected decrease.

The elastomer business is expected to see a significant drop in operating profit to 7.5 billion yen, down 34 percent from the previous year, reflecting challenging market conditions.

Strategic Plan Forthcoming

Zeon will announce the third phase of its medium-term business plan on 11 June  2025. This phase is expected to outline the company’s strategy for navigating the changing landscape in the synthetic rubber and specialty materials markets.   

Leading global tyre manufacturer Nexen Tire has successfully concluded its global partnership event, 'Purple Summit 2025,' which was held in Munich, Germany, from 25 to 27 April. Following the company's recent partnership with FC Bayern München, this year's event was held in Germany for the first time. Its goal was to increase the company's presence in important global markets, including Europe, North America, Asia and Latin America.

Nexen Tire's strategic vision of increasing brand trust and providing more original equipment (OE) to international automakers is embodied by the Purple Summit. The company utilises its sponsorship of FC Bayern München as a crucial marketing tactic in addition to raising brand awareness. About 50 business partners from 24 countries attended the 2025 event to learn more about Nexen Tire's worldwide expansion strategy and market objectives. In order to have a firsthand understanding of FC Bayern München's brand values and Nexen Tire's high-end sports marketing strategy, partners also took a tour of Allianz Arena and attended a live game.

Travis Kang, Global CEO of Nexen Tire, said, “The Purple Summit is an important forum for sharing Nexen Tire’s strategic vision in close collaboration with our worldwide partners. We will continue to improve brand credibility in major markets global markets and achieve long-term growth with our valued partners.”

China's Shandong Linglong Tire announced plans to invest USD 1.19 billion in a new manufacturing facility in Brazil, marking one of the largest Chinese investments in South America's automotive sector this year.

The project, located in Ponta Grossa in Brazil's southern Paraná state, will be developed through a joint venture with local distributor SUNSET S.A., with Linglong holding a 70 percent stake and the Brazilian partner taking the remaining 30 percent.

Construction is slated to begin in the third quarter of 2025, with full completion expected by the end of 2032 after three construction phases spanning seven years.

The new plant aims to produce 14.7 million tyres annually, including 12 million passenger car radial tyres, 2.4 million truck and bus radial tyres, and smaller volumes of engineering and retreaded tyres. The facility will also manufacture 6,000 tonnes of liquid reclaimed rubber yearly.

Linglong plans to finance the project with USD 600 million in self-funded capital and USD 593 million in bank loans. The facility will include a 35-megawatt solar power plant to support sustainable manufacturing practices.

The investment comes as Brazil's government has been actively courting foreign direct investment through various incentive programmes.

Linglong's venture partner, SUNSET S.A., reported revenue of USD 650 million in 2024 with net assets of USD 200 million, according to the announcement.

The project still requires regulatory approvals from Chinese government bodies, including the National Development and Reform Commission and Ministry of Commerce.

The Federation of Automobile Dealers Associations (FADA), the apex body representing automotive dealers in the country, has appointed Shailender Luthra as the State Chairperson of its Delhi Chapter.

Luthra will closely work with authorised automobile dealers to solve their issues, as well work with the Delhi government and departments to protect the interests of the automobile retailer community in the NCT region. He comes with over three decades of experience and has been a key person behind Brite Group, which operates dealerships for Skoda, Nissan and Royal Enfield brand in the Delhi NCR region.

Shailendra Luthra, said, “Accepting the stewardship of FADA’s Delhi Chapter is far more than an appointment – it is an invitation to re-imagine what mobility can mean for our capital city and by extension, for India. Delhi has always been a trendsetter; now it must become the proving ground for a new era of automotive retail that is sustainable, digitally fluent, and deeply human-centred. My priority is to unite our dealer community, policymakers, innovators and financiers around a single, compelling mission: to make Delhi the benchmark for transparent, future-ready auto retail. With my team of Regional Directors, we will transform today’s challenges into tomorrow’s opportunities and position Delhi as the lighthouse that guides India’s automotive destiny.”

Italian tyre manufacturer Pirelli has announced a strategic partnership with CTS, an independent tyre services provider in Northern Europe, to strengthen its commercial presence in the Nordic region, particularly in Sweden.

Under the agreement, CTS will acquire Däckia AB from Pirelli, which operates a network of 60 direct points of sale and 42 affiliates throughout Sweden. Simultaneously, Pirelli and Däckia have signed a supply agreement through 2030 that ensures the distribution of Pirelli products and maintains Pirelli’s position as the main supplier.

The transaction, subject to customary closing conditions and regulatory approvals, is expected to be finalised by July 2025.

For Pirelli, the alliance aims to establish a more structured distribution system with increased market coverage in a region it considers strategic for its high-value product strategy. The Nordic market is particularly attractive to Pirelli due to its significant presence in electric and hybrid vehicles, a segment where the company claims leadership.

“The Nordic region is a strategic market, for both positioning targets and the quality of the car parc, with a significant EV presence, a segment in which the company has a leading role. The transaction with CTS consolidates our strategic focus on the market, in cooperation with a partner with a complimentary focus in this business,” said Livio Magni, Pirelli Senior Vice President Europe.

For CTS, which operates 52 tyre shops and five retreading sites across Sweden, Finland, Norway, and Poland, the deal represents a significant expansion of its Swedish operations and reinforces its business model focused on sustainability and quality.

“The intended strategic partnership with Pirelli reflects our commitment to sustainability, quality and innovation, reinforcing our promise to deliver outstanding products and services to our customers. Through the intention to acquire Däckia we are building a full-service offering that integrates tire service, distribution, wheel alignment and retreading – all anchored by local workshops and sustainability at the core,” said David Boman, CEO of CTS.

Pirelli has recently invested in extending its “Sottozero Center” proving ground in Sweden, where its R&D department tests products on different surfaces, from snow to ice. The company said this research facility was instrumental in developing its recently launched “Ice Friction” tyre, a high-performance winter product specifically designed for the Nordic market and new-generation vehicles.

The partnership underscores the importance of strategic distribution networks for premium tyre manufacturers as they navigate changing market conditions and the shift towards electric mobility, which requires specialised tyre technologies.