In a recent interview with Tyre Trends, David Chen, CEO of ARP Technologies, discusses the changing landscape of the tyre manufacturing industry, his company’s technological advantages and plans for global expansion amid geopolitical uncertainties.

INDUSTRY TRANSFORMATION

The tyre industry has undergone significant changes recently, with emerging manufacturers rapidly expanding their production capacity. David Chen, CEO of ARP Technologies, observes, “The tyre business has changed so much in the last two years. Much new capacity has been added up by many small tyre companies... when I say small, like outside the top 10 companies.”

Chen clarifies that these companies are ‘non-top 10 tyre companies’ that still make quality products, positioning themselves as serious contenders in the market.

“They’re still making good tyres,” Chen explains. “Not necessarily secondary in quality, but secondary by size.”

When asked about the impact of these changes, Chen seems thoughtful, considering the broader implications before responding. “This is changing the entire industry dynamic. The established players are having to rethink their strategies, and we’re seeing this reflected in the equipment needs of our customers,” he says.

GEOGRAPHICAL SHIFT

A notable trend is the migration of manufacturing centres from Western Europe to Eastern Europe and Asia. “Western Europe has no longer been the hub of tyre manufacturing,” Chen observes. This shift presents both challenges and opportunities for equipment suppliers like ARP Technologies.

Despite this migration, Chen maintains that ARP’s European business remains strong due to its established relationships with top global tyre manufacturers. “We have a good record and history with those top tyre companies worldwide. In this industry, history and record means a lot. Experience means a lot,” he explains.

The closure of European manufacturing plants due to rising labour and input costs has reshaped the market landscape. However, Chen sees this as an opportunity for ARP to showcase its value proposition of cost-effective, high-quality equipment with advanced technology.

“When manufacturers feel cost pressures, they’re more open to considering new suppliers who can offer better value. That’s where we come in,” says Chen.

PERCEPTION CHALLENGES

Chen acknowledges that the market perception of Chinese manufacturing presents a challenge. “It’s a people’s mentality. Oh well, it’s coming from China. So it will take longer for them to recognise that they are good products from China,” says Chen.

“We’re not just competing on price,” he insists. “That’s a misconception. We’re competing on technology and quality. I believe our technology is superior to many established players.”

The company has been developing electric curing technology for 6-7 years and has recently sold this innovation to customers. A key advantage of their approach is minimal modification requirements. “Our technology requires minimum modification on existing presses. That’s a big advantage because otherwise you must invest a lot,” explains Chen.

QUALITY AND RECOGNITION

Chen emphasises that while manufacturing curing presses isn’t particularly difficult from a technological standpoint, maintaining consistent quality at scale is the real challenge. “Curing press is not that difficult to manufacture. Technology wise, it’s not rocket science,”  he admits. But, to make hundreds of curing presses at the same high-quality level is not that easy. You have to have a perfect, solid quality system in order to make hundreds of curing presses at the same level, high level of quality.”

ARP Technologies received the Industry Supplier of the Year at Tire Technology Expo 2025. On receiving the Industry Supplier of the Year award, Chen says, “We have no idea why. One of the probably important elements is always remembering what the customer needs and is looking for. Customer value is number one. Many people understand this and know about it. But when you come to implementation and execution, it varies a lot,” explains the ARP CEO.

PRODUCTION CAPACITY AND GROWTH

ARP Technologies currently produces approximately 500 curing presses annually and plans to increase this by about 50 percent in 2025. When asked whether this ambitious target poses a challenge, Chen says, “We already have two factories in China producing curing presses. Of course, there will be challenges along the way, but we believe, with steady efforts and careful planning, we’ll be able to meet the goal.”

The production timeline for each curing press is approximately 5-6 months, representing a significant investment of resources. Despite this, Chen is confident in the company’s ability to scale production to meet increasing demand. “If we go from 750 to 1,000, then we’d need to add some facilities,” he concedes. “But for now, we’re well positioned to meet our growth targets.”

ARP offers a comprehensive range of products, from small motorcycle tyre presses to enormous OTR (off-the-road) equipment. “We do all types of curing press, from two wheels, motorbike, motorcycle tyres, PCR truck to OTR huge tyre... giant curing press,” Chen says.

GLOBAL PRESENCE AND EXPANSION

The company already maintains service centres worldwide, including South America, North America, Europe and India, supporting its turnkey project capabilities. “Turnkey means starting from design until we’ve finished the press and the customers coming in just to cure their tyres. So they don’t need to worry about anything in between,” Chen explains.

“This comprehensive service includes designing, commissioning, installation, execution till operation level and training, giving customers a complete solution rather than just a piece of equipment,” adds Chen.

When discussing potential expansion into Eastern Europe, Chen shares, “We are exploring the possibility of establishing a manufacturing site outside of China. Our main considerations are to be closer to our customers and to reduce unnecessary import tariffs.”

He mentions that the company is particularly interested in the Middle East and Eastern Europe and that the evaluation process is well underway. “Once we have completed all the necessary procedures and formalities, which should be very soon, we will make an official announcement,” he adds.

MARKET CHALLENGES AND FUTURE OUTLOOK

When asked about the trend of major tyre manufacturers shifting from mass production to premium tyres, Chen indicates this doesn’t significantly impact ARP’s business model. “For us, it’s indifferent. We do the same quality, same standard, no matter what tyre they’re making on our equipment,” he says.

Similarly, the increasing use of recycled materials in tyre production poses no challenges for ARP’s equipment. “It’s a curing process technology, so it doesn’t affect our machine,” Chen explains.

As for the biggest challenges facing his business, pointed to external factors beyond their control. “It’s the war and uncertainty of political [situation]... I think that’s the most uncertain. Other than we believe most other difficulties can be handled through our continuous efforts.”

Despite the challenges brought by geopolitical uncertainties and evolving market conditions, Chen remains quietly confident in ARP’s technology and product quality. “We believe we are heading in the right direction,” Chen says. “There’s still a lot of work ahead, but with steady effort and the support of our partners and customers, we hope it’s just a matter of time,” states Chen.

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Nokian Tyres has announced the promotion of Tiina Frazer to Senior Vice President of Brand, Marketing and Communications, effective 1 August 2026. In addition to her new executive role, she will join the company’s Management Team, operating from the headquarters in Helsinki, Finland, and reporting directly to President and CEO Paolo Pompei.

Frazer originally joined the Finnish tyre manufacturer in September 2025 as Vice President for the same functional area. Her professional background includes a tenure as Vice President of Brands and Marketing at HKFoods Finland Oy, along with prior senior leadership roles at Lumene, Roche Pharmaceuticals and Fiskars, bringing extensive cross-industry experience to her expanded responsibilities.

Paolo Pompei, President and CEO, Nokian Tyres, said, “I am delighted to welcome Tiina to the Nokian Tyres Management Team. Her experience in building impactful brands make her an excellent addition to our team as we continue to strengthen our premium position in our key markets.”

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Fornnax Technology has taken a decisive step to strengthen its European footprint by formalising a service partnership with industry veteran Lukas Baur of NOBA Maschinenservice. The agreement, ratified by company CEO Jignesh Kundaria, transitions the Indian manufacturer’s support model from remote coordination to an on-the-ground operational presence. This strategic alignment is designed to address the growing demand for immediate technical intervention across the continent’s recycling sector.

Based in Worbis, Germany, Baur commands a fully integrated service infrastructure that includes a 1,000-square-metre workshop fitted with a 5-tonne crane system, a dedicated hydraulic bay and specialised tooling for bearing replacements. His mobile response unit comprises 12 Mercedes Sprinter vans and a workforce of 24 certified technicians, enabling rapid deployment across a 1,000-kilometre radius. This setup guarantees that Fornnax customers can expect emergency assistance within 24 hours of a service call.

Baur’s professional history spans over 20 years of hands-on work with prominent shredder brands such as Eldan, Lindner and Vecoplan, giving him intimate knowledge of the operational challenges faced by European plant operators. His decision to join forces with Fornnax was driven by the manufacturer’s distinctive combination of competitive pricing, rugged construction and advanced wear-resistant engineering. He recognised that the current market turbulence – marked by tight margins, postponed capital expenditures and a dwindling labour pool – demanded a partnership capable of delivering both technical depth and logistical speed.

Under the new arrangement, Baur assumes full responsibility for the entire equipment lifecycle, covering system commissioning, scheduled upkeep, urgent breakdown recovery and the supply of mechanical, hydraulic and electrical components. He has also expressed a long-term vision to transform his Worbis facility into a regional spare parts consolidation centre, particularly if Fornnax opts to stock inventory at that location. To match anticipated growth, he plans to augment his fleet and technician count by two to three units annually.

This collaboration signals Fornnax’s broader commitment to building a dedicated European service network rather than relying on generalized support structures. With Baur’s proven capabilities now formally integrated, the company aims to deliver faster resolution times and technically nuanced assistance that aligns with the high-throughput demands of modern recycling operations. The partnership ultimately positions Fornnax as a formidable contender in the European shredding equipment landscape, with service excellence as its cornerstone.

Jignesh Kundaria, Director and CEO, Fornnax, said, "We strongly believe that by continuously improving our service quality and customer satisfaction index, we can build long-term relationships with our customers. Higher customer satisfaction leads to greater trust, which significantly increases repeat orders and ultimately drives sustained growth in our sales revenue."

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Apollo Tyres is accelerating investments in manufacturing technology, artificial intelligence and international expansion as the company seeks to strengthen its position in premium tyre markets while expanding its global production footprint.

The tyre maker said its long-term strategy, branded Momentum 2.0, is centred on financial discipline, product premiumisation, manufacturing expansion and sustainability, following a year in which it outperformed the industry across several segments and delivered strong international revenue growth.

The company has reinforced its global manufacturing network, operating six manufacturing facilities across India and Hungary and two global R&D centres in Chennai and the Netherlands. Its products are now sold in more than 100 countries, supported by continued investments in research, development and an expanding global distribution network.

Apollo is also increasing investment in digital manufacturing, describing technology as a key driver of future competitiveness. During FY26, the company rolled out its Advanced Manufacturing Execution System (AMES) across major manufacturing plants, enabling real-time production monitoring, end-to-end traceability and greater integration between factory operations and enterprise systems.

To accelerate digital transformation, Apollo established a dedicated AI Innovation Unit that is developing artificial intelligence and machine-learning applications for manufacturing, engineering and business operations. The company said generative AI and agentic AI assistants are being deployed to improve simulations, operational planning and enterprise-wide decision-making, positioning AI as a core element of future factory operations.

Research and development remains another strategic investment priority. Apollo said it invested INR 460.87 million in R&D during FY26 while establishing advanced DoJo Centres at its Chennai and Andhra Pradesh facilities to strengthen engineering capabilities and accelerate product innovation.

International manufacturing continues to underpin Apollo's export ambitions. The company's Gyöngyöshalász plant in Hungary has become a strategic hub for serving European markets, allowing Apollo to manufacture closer to customers while strengthening supply-chain resilience amid evolving global trade dynamics.

Management said Europe remains a key growth market, particularly in premium passenger car tyres, while North America offers opportunities through higher-value products. During the year, Apollo expanded its dealer network by adding more than 250 dealers across the United States and Canada, strengthening distribution for the Vredestein brand and improving access to replacement markets.

Despite ongoing geopolitical uncertainty, energy price volatility and changing trade policies, Apollo said it would continue investing in innovation, operational efficiency and manufacturing excellence rather than slowing capital deployment.

Looking ahead, the company said it will maintain a disciplined capital allocation strategy while continuing investments in product innovation, brand building, manufacturing efficiency and digital transformation, with a strong focus on improving return on capital employed and supporting sustainable long-term growth in both domestic and export markets.

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CEAT will invest about INR 12.05 billion to expand its manufacturing capacity by roughly 53,000 tyres a day over the next five years, as the RPG Group company prepares for sustained demand growth while reporting a weaker first-quarter profit.

The investment, which will be implemented in phases through the end of FY2031, will be financed through a mix of internal accruals and debt. The expansion comes as CEAT's existing manufacturing facilities are operating at around 95 percent capacity utilisation, with the company stating that production at its Nagpur two-wheeler tyre plant is approaching full utilisation. The additional capacity could be created through greenfield and/or brownfield expansion, depending on internal assessments.

The capital expenditure announcement accompanied CEAT's results for the quarter ended June 30, which reflected resilient revenue growth but pressure on profitability.

Standalone revenue from operations rose 18.2 percent year on year to INR 41.63 billion, from INR 35.21 billion a year earlier. However, net profit declined 27.4 percent to INR 980 million, compared with INR1.35 billion in the corresponding quarter last year. Profit before tax fell to INR 1.32 billion from INR 1.81 billion.

Material costs increased sharply to INR 28.80 billion from INR 22.39 billion a year earlier, reflecting continued input cost pressures, while finance costs and depreciation also rose. Total expenses increased to INR 40.46 billion, compared with INR 33.63 billion in the year-earlier period.

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