What are the immediate impacts of COVID-19 on the Indian tyre industry?

Currently, the tyre industry is battling one of the worst crises. The demand for tyres has fallen drastically given consecutive lockdowns and restrictions on mobility. The auto industry is also in the grip of a slowdown. Moreover, the cash flow situation in the tyre industry is under severe stress because of the prolonged shutdown. The industry is poised to lose sales of around Rs 10000 crore for nearly 40-day lockdown and the time taken to resume normal operations. There is massive blockage of funds by way of inventories of raw materials and in the form of finished goods in the supply chain process.

The industry has resumed operations in a limited way. However, it may take another six months for the entire operations to stabilise since the industry is passing through huge cash flow problem following supply chains getting stuck.

What kind of support does the industry expect from the government in this tough time?

Support to the tyre industry both in the forms of fiscal stimulus and a policy push to address challenges being faced by the industry is vital to set the wheels of economy in motion.

To overcome this unprecedented situation, ATMA has submitted that tyre industry concerns are addressed on top priority. Partial reduction of customs duties has been sought for raw materials of the tyre industry as some of these critical raw materials are either not domestically manufactured or there exists a demand-supply gap locally. Also, a majority of raw-materials of the tyre industry attracts anti-dumping duties notwithstanding the domestic demand-supply deficit, thereby impinging adding to the cost for the domestic tyre industry. ATMA also seeks long outstanding correction of inverted duty structure as the customs duty on the critical raw material of tyres, viz. natural rubber is significantly higher, which is 25%, than the basic customs duty on the finished product, i.e. tyres, which is between 10% and 15%. In contrast, the effective or actual rate of duty is even lower, at times as low as ‘nil’ to 5%, under various trade agreements. These are some of the support measures we have asked for to ride through the current crisis.

Being the largest stakeholder, what kind of support tyre companies can give small players in the supply chain?

We believe we are in it together. The tyre industry has generously contributed in monetary and other terms in the country’s fight to contain the pandemic. The interest of the entire value chain is important to us. The tyre sector is a raw material intensive industry, and for it to be competitive, the entire supply chain must be competitive.

Much before the pandemic came to disrupt operations; we have been holding ATMA Partners Summit, a ‘by invitation only’ event wherein the raw material partners across the board are invited to exchange notes on overcoming concerns and making the most of emerging opportunities. In its width of participation, ATMA Partners’ Summit is perhaps unparalleled.

Talking about MRF, we have committed a sum of Rs 25 crore to PM Cares Fund to support various government measures in those States where MRF’s factories are located. Just before the lockdown got implemented, MRF purchased large quantities of natural rubber, even beyond our requirement, to avoid a fall in its price which would have hurt the planters. When the lockdown was announced, around 100 trucks were outside of our warehouses to deliver rubber when all our warehouses were full. So, the tyre industry is a responsible corporate citizen conscious of its role in the value chain.

Cost-cutting is inevitable that will also lead to curbing in investments in technologies. Do you think such circumstances will put us (Indian tyre companies) behind in the competition for the new mobility / CASE?

The pandemic is not India specific. It has caused an existential crisis for the entire world. Cost-cutting measures will be the norm worldwide. India is poised to bounce back faster, given the policies of the government with a sharp focus on Self-reliant India and the trust surplus that India has gained during the crisis.

The investment in R&D is there to stay. However, plant expansions could be delayed considerably due to uncertainty of demand coupled with limited liquidity.

Industries in China are ramping up production. Do you think that going forward Chinese tyre companies will able to increase the market share in India?

Yes, dumping of tyres from China is a looming threat. Though an Anti-Dumping Duty (ADD) and a Countervailing Duty (CVD) is in place on Truck and Bus Radial (TBR) tyre imports into India from China. Total tyre imports from China have increased at an alarming rate of 20% YoY during Apr-Jan, FY20. What is of bigger concern is that in recent years, tyre imports into India have increased significantly from Thailand, mainly since Anti Dumping Duty and CVD was imposed on Radial CV tyre imports from China. Likewise, tyre production originating from Vietnam, Indonesia and other ASEAN countries pose a significant threat to the tyre industry in India as a majority of such output and imports can be directly or indirectly traced to be of Chinese ownership or collaborations. Steep and significant increase in radial CV tyres from Thailand confirms this development. ATMA has sought immediate imposition of interim Anti-Dumping Duty (ADD) on such indiscriminate and dumped imports and awaits an early action by DGTR, Ministry of Commerce.

Do you think that we need to revive the outlook for the long-term and what will it be?

Nothing has caused the kind of uncertainty as Covid-19 has led to. Yes, the outlook needs to be revised, but by how much that depends a lot on the growth projected for the overall economy and the auto sector.

As of now, we believe it will take another six months for operations to normalise at tyre plants if there is no sudden spike in Covid-19 cases and lockdowns are not prolonged or implemented again. However, tyre plants have started operating in all earnestness, supply chain issues notwithstanding.

Comments (0)

ADD COMMENT

Link Copied!

Kraton Corporation, a leading global producer of speciality polymers and high-value bio-based chemicals derived from pine wood pulping co-products, has named Sangwoo Ryu as its new Chief Executive Officer. Ryu possesses over 25 years of leadership in finance and operations within international markets. He is currently the CEO of Cariflex Pte Ltd, a former Kraton spin-off now under DL Chemical, where he initially served as Chief Financial Officer starting in February 2020. He assumed the Cariflex CEO role in April 2025 following the promotion of its former CEO, Prakash Kolluri, to President of Kraton's Polymer business.

Ryu’s deep expertise in financial strategy, investment controls and operational planning is expected to strengthen Kraton’s standing as a reliable leader in global Pine Chemical and Polymers markets. In his new position, he will collaborate with Kraton’s Executive Leadership, Board of Directors and Cariflex Leadership to guide strategic decisions and operational excellence, reinforcing the company’s commitment to sustained growth and organisational stability.

Ryu said, “I want to express my gratitude towards the members of the Board of Directors and the Kraton Leadership Team for their unwavering dedication to Kraton’s success. I’m looking forward to leading Kraton into the next era of excellence, building upon the strong foundations and principles set forth in our vision and values.”

Comments (0)

ADD COMMENT

Link Copied!

As part of its strategic growth into Central Europe, FORNNAX TECHNOLOGY, a global leader in recycling equipment manufacturing, has established a new sales partnership in Germany. The company has appointed industry veteran Dieter Jerschl as its representative for the region to drive the promotion and implementation of its recycling systems. Jerschl’s extensive expertise, built over two decades with prominent firms like BHS, Eldan and Vecoplan, encompasses a deep understanding of diverse waste streams such as tyre, cable, municipal solid waste and e-waste.

This collaboration, initially targeting Germany, Austria and adjacent countries, is designed to be flexible and scalable. Its primary aim is to cultivate a strong project pipeline and solidify FORNNAX’s regional footprint. The partnership extends beyond sales to include comprehensive technical support, with Jerschl’s team providing vital value-added services like installation, maintenance and spare parts assistance. This local service framework is intended to ensure efficient project execution, minimise operational downtime and elevate customer satisfaction.

By leveraging Jerschl’s profound market insight and established networks, FORNNAX seeks to accelerate the adoption of its high-performance shredding and pre-processing technologies. The move underscores the company’s global strategy of embedding local expertise within key markets, which it deems crucial for developing technically sound solutions tailored to specific regional waste challenges. This initiative reinforces FORNNAX’s dedication to innovation and environmental stewardship, advancing its mission to deliver sustainable recycling solutions worldwide.

Jerschl said, “I’ve known FORNNAX for over a decade and have followed their growth closely. What attracted me to this collaboration is their state-of-the-art technology; it is powerful, sustainable, and economically viable. There is great potential to introduce FORNNAX’s innovative systems to more markets across Europe, and I am excited to be part of that journey. We are committed to increasing market awareness and establishing new reference projects across the region. My goal is not only to generate business but to lay the foundation for long-term growth. Ideally, we aim to establish a dedicated FORNNAX legal entity or operational site in Germany over the next five to 10 years.”

Jignesh Kundaria, Director and CEO, FORNNAX, said, “We see tremendous potential in the Central European market. Partnering with someone as experienced and well established as Jerschl gives us a strong foothold and allows us to better serve our customers. This marks a major milestone in our efforts to promote reliable, efficient and future-ready recycling solutions globally.”

Comments (0)

ADD COMMENT

Link Copied!

Dr Gerard Nijman of KraussMaffei Extrusion has been selected as the 2026 recipient of the prestigious Fernley H. Banbury Award, one of the rubber industry’s highest international honours, presented by the Rubber Division of the American Chemical Society (ACS). This award annually recognises outstanding scientific and technological contributions to the field.

The award commemorates the inventor of the internal mixer and highlights sustainable innovations in production technology, instrumentation, process control and the development of processing methods for rubber and similar materials. Dr Nijman’s career exemplifies such innovation, having significantly advanced rubber rheology, pioneered new mixing and multiplex extrusion technologies and modernised the production of silica compounds for the tyre industry.

His work has effectively bridged the gap between scientific research and industrial application. Notably, in the 1990s at Vredestein, he introduced novel mixing technologies and multiplex extrusion to tyre manufacturing. He also contributed to pioneering processes for silica compound processing, foundational to technologies like Michelin’s ‘Green Tyre’. Furthermore, his rheology-based designs for extruder screws and flow channels have helped shape enduring industrial standards.

Dr Nijman, who joined KraussMaffei Extrusion in 2017, brings decades of expertise from previous roles at Apollo Tyres Ltd and Vredestein Banden BV. His ongoing collaborations with the German Institute for Rubber Technology (DIK) and the University of Twente have also profoundly influenced his approach. KraussMaffei Extrusion itself is globally recognised for its tyre technology, building on longstanding Berstorff expertise to deliver advanced extrusion solutions for treads, sidewalls, innerliners and other components, as well as high-performance multiplex and calender systems.

The award acknowledges not only his specific technical achievements but also his distinguished career and lasting impact on rubber processing. The official presentation will be held in September 2026 during the Global Polymer Summit in Louisville, Kentucky, US.

Dr Nijman said, “It is a great honour for me to receive the Fernley H. Banbury Award. This recognition confirms the importance of the close connection between research and industrial practice in rubber processing and motivates me to continue to drive forward innovative solutions for our industry.”

Ralf Benack, Managing Director, KraussMaffei Extrusion, said, "We warmly congratulate Dr Nijman on this outstanding award. With his in-depth knowledge, many years of experience and tireless dedication, he has had a decisive influence on the rubber and tyre industry and has further developed our technologies in a targeted manner. This recognition is more than deserved. We are very proud to have Dr Nijman in our team!"

Comments (0)

ADD COMMENT

Link Copied!

Michelin has appointed James Dimmock as its new Commercial Communications Manager for the United Kingdom and the Republic of Ireland. Based at the company's Stoke-on-Trent headquarters, he will report to the Northern European Communications team. In this capacity, Dimmock will oversee all commercial communications, including public relations, social media and influencer partnerships.

His mandate involves crafting the brand's commercial narrative, fostering stronger connections with media and content creators and producing innovative digital content to support the brand's growth. He brings more than two decades of extensive experience with Michelin to the role, having held various senior marketing and communications positions both internationally and domestically. His most recent role was as Social Media and Influencer Manager. He will now lead these efforts locally while integrating with the broader communications team.

John Howe, Managing Director, Michelin UK, said, “James has already made a significant contribution to Michelin communications activity in the UK & ROI. His deep understanding of our business and products, combined with his strategic and creative approach, makes him ideally placed to lead our commercial communications as we continue to evolve our brand.”

Dimmock said, “I am excited to be taking on this new role at Michelin. It is a privilege to continue building on the work we have already achieved and to help drive the next phase of our commercial communications strategy across the UK & ROI.”

Comments (0)

ADD COMMENT

Link Copied!