VMI’s CEO Harm Voortman was among the senior figures to celebrate the global smart manufacturing technology company’s new Indian engineering and service centre, which opened in Vadodara on 4th October. He gave a positive view on prospects for the Indian tyre market: “India is now among the top five global economies,” he said. “Prospects for the tyre market are exceptionally strong. Vadodara was the natural choice for our new engineering centre, which is now part of our global strategy for customer support, software engineering and long-term growth.”

VMI has been operating in India for years, but the new centre marks a step change for the company’s investment in the region. So what does VMI’s new strategy mean for the Indian tyre and automotive industry?

Helping to drive economic growth

India is the world’s fifth largest economy, and a key driver for growth is large-scale investment in road and transport infrastructure. There is growing demand for tyres, especially for trucks, with higher performance standards a must. Infrastructure investment will have a positive impact on the Indian economy, helping make India an even stronger global economic hub.

As we reported in July, VMI’s unique MILEXX automated truck tyre building machine is playing a major role in transforming access to the high-quality truck tyres the logistics industry needs inside India. With more and more Indian citizens also moving to electric vehicles, the need for improvement in quality and performance for car tyres is also clear.

Mike Norman, VMI’s Chief Commercial Officer, said, “We expect to see growth in production accelerate over the next five years – and that goes a long way to explaining why VMI has chosen this moment for major new investment in the Indian market.”

Global software engineering

Perhaps the most compelling reason for VMI’s Vadodara investment is the drive to create an integrated, international software engineering capability for the entire business. India is the world’s most important centre for software capabilities: with home-grown businesses becoming household names and foreign companies building their own Indian research and engineering centres, tapping into the outstanding engineering capabilities India provides.

Automation is the key distinguishing feature of VMI production platforms. From the launch of the MAXX TBM 15 years ago, the concept of ‘hands-off, eyes-off’ has dominated VMI’s design thinking. Stage by stage, new concepts, components and functionalities have been introduced to VMI machines, aiming to reduce human contact and deliver error-free, higher quality, maximum efficiency production.

Vision systems were introduced a decade ago to carry out such key tasks as centring materials correctly, making the right cuts and ensuring consistent quality in output. As improved camera and software options become available, VMI introduces them as standard components to new machines and offers retrofitting to the installed base, enabling customers to operate at best practice level always.

Artificial intelligence and machine learning (AI & ML) are now increasingly vital for VMI production platforms, which drives the need for software engineering capabilities of the highest quality. VMI has developed systems that use AI to identify anomalies (foreign bodies and faults in materials), enabling these issues to be dealt with at once, rather than causing scrap later. The same capabilities will soon be deployed to optimise production.

Smart software is the key to these emerging trends. As demand for new AI-related capabilities accelerates, VMI is building the high functioning, global software engineering team it needs to prosper in this emerging world. By creating an attractive, well-managed centre in Vadodara, VMI expects to mobilise some of the most qualified, ambitious and visionary engineers India can offer. The team is truly global in nature, using a common engineering platform to enable cross-border collaboration and deliver real benefits both to VMI and the Indian economy.

Why is software so important?

Most commentators believe the industry is at an inflection point, where the current business model is changing fast. We see a growing need for many more tyre variants (SKUs), caused by such factors as the move to EVs, need for lighter but stronger and more flexible tyres, introduction of more environmentally responsible new materials (due to lower levels of particulate pollution) and different patterns of demand in the market.

As Norman commented, “The industry is being challenged to move to a different model, with greater production flexibility, less waste and scrap, lower energy costs and reduced emissions.” That means greater process agility and even higher levels of automation. We will need to develop autonomous decision making (requiring AI & ML), near elimination of errors and scrap (better automation of all processes) and the ability to switch from one SKU to another, with short production runs that are still profitable.

None of these changes can happen without intelligent software. Norman added, “The Vadodara investment gives VMI the scale and skills to become the industry leader in flexible AI-enabled systems – with India at its heart.”

Service transformation

The Vadodara centre also means VMI now has a global network of service centres to provide 24/7 ‘follow the sun’ support to customers worldwide. Vadodara is a key part of VMI’s ‘Global but Local’ service approach, covering everything from maintenance, parts and troubleshooting, through to optimisation consulting and training, retrofits and upgrades and remote monitoring to ensure optimal operation.

The Global but Local concept means customers are always served by teams that speak their language and share their culture but operate to consistent, best-practice standards – everywhere. All VMI’s service engineers use the same tools and methods, covering service desk, innovation, core R&D, order engineering retrofits and upgrades.

The Vadodara centre builds on and extends the service support VMI delivers to Indian customers. Now, for example, it is easier and quicker to carry out a routine service on such key components as drums by ‘being local’, with a full maintenance and service facility, minimising downtime and cost. This makes it possible to use a ‘lifecycle approach’ for drums, with much faster swap-over than before.

Investing in the future of India

India is emerging as a highly attractive investment market – perhaps as important as China to foreign companies. Past infrastructure investment levels have been relatively low in India, so there is widespread support for the growth policy now being followed. With the tyre industry now going through a period of significant change, there is huge opportunity for the Indian economy to become one of the most important tyre-building centres in the world.

Norman said, “These are exciting times for us to expand our presence in India. We will be helping to growth the economy in a key sector while tapping into the most important pool of software expertise on earth. As the focus on smart software grows more intense in the next few years, we expect our new Indian colleagues to play a key role in growing both VMI and the Indian economy.”

Pyrum Innovations AG has announced that its Supervisory Board has extended the contract with Chief Financial Officer (CFO) Kai Winkelmann until 31 March 2030 to ensure continuity in the management of the company.

Winkelmann joined the firm in February 2021, and on 1 April 2022, he was initially named to the Executive Board as CFO. He has so far played a major role in obtaining the company's funding during his tenure at Pyrum, including last year's successful capital raise. Winkelmann is in charge of Finance, Compliance and IT in his role on the Executive Board.

Alf Schmidt, Chairman of the Supervisory Board, said, “We are pleased about the contract extension of Kai Winkelmann, who has proven his skills and in-depth expertise in the financial sector and at the management level in recent years. Over the last four years, he has made a significant contribution to the development of the necessary administrative structures and to the success of the company, and has promoted its rapid further development. We have confidence in his foresight and are convinced that Winkelmann will continue to play a central role in the successful implementation of the company’s goals in the years to come.”

Bridgestone Corporation (Bridgestone) has been selected once again to continue as a constituent of three internationally renowned environmental, social and governance (ESG) indexes: the MSCI ESG Leaders Indexes, the FTSE4Good Index Series and the Dow Jones Sustainability World Index (DJSI World).

Bridgestone has been a part of the MSCI ESG Leaders Indexes for two years in a row since 2023, the DJSI World for three years in a row since 2022 and the FTSE4Good Index Series for seven years in a row from 2018. Bridgestone's specific Mid Term Business Plan (2024-2026) has been steadily implemented, putting sustainability at the centre of its operations. The company's 2020 vision and Mid-Long Term Business Strategy served as the foundation for the plan.

According to the company statement, “Setting forth the vision of ‘Toward 2050, Bridgestone continues to provide social value and customer value as a sustainable solutions company’, Bridgestone links its business to the realisation of carbon neutrality, a circular economy and nature positivity across the entire value chain. From the ‘produce and sell’ phase and the ‘use’ of its products through to their ‘renewal’ to raw materials, Bridgestone aims to build a foundation for creating sustainability value.”

The following initiatives have contributed to Bridgestone's inclusion in these indexes:

• Contributing to a circular economy and attaining carbon neutrality by using ENLITEN technology to make tyres from recycled and renewable resources, using BCMA and switching to ‘Green & Smart’ manufacturing at Bridgestone locations to increase resource productivity and energy efficiency.
• Encouragement of nature positivity through initiatives for the sustainable use of water resources and natural rubber that are closely related to the commercial operations of the firm, including strengthening assistance for natural rubber smallholders.
• Strengthening of a thorough structure and procedure for human rights due diligence that aims to identify, mitigate, avoid and disclose human rights concerns.
• Visualisation and disclosure of the impact of social contribution actions that are in line with the global goals.

German automotive company and tyre major Continental has been added another feather to its cap with bagging the ‘Tire Manufacturer of the Year’ at this year’s Tire Technology International Awards for Innovation and Excellence at this year’s Tire Technology Expo.

With this, Continental becomes the only tyre maker to have won two concurrent awards – Tire Manufacturer of the Year and Environmental Achievement of the Year – Manufacturing. The company’s Lousado facility in Portugal was also recognised for manufacturing tyres CO2-neutrally since last year.

Edwin Goudswaard, Head of Research & Development, Continental Tires, said, "We are especially proud to be the only manufacturer to be honoured twice at the Tire Technology Awards in an extremely competitive field. Both awards highlight our strong commitment to sustainable tire development and manufacturing. In such a highly competitive market, this success demonstrates our innovative prowess and our ability to actively shape the future of the industry."

Interestingly, this also marks it the fourth time that the German company has bagged the Tire Manufacturer of the Year award. The awards took into consideration tyre makers globally and were evaluated by a jury of 27 independent industry experts.

Going forward, Continental has outlined its ambition to switch all of its tyre plants to fully carbon-neutral production processes by 2040 at the latest.

Hankook Tire & Technology (Hankook Tire) has appointed Jongseon Ahn and Sanghoon Lee as Executive Directors and new Co-CEOs, following a resolution passed at the Annual General Meeting and Board of Directors meeting held on 26 March.

Ahn will be in charge of Hankook Tire's global innovation, R&D, procurement, production and quality, while Lee will be in charge of global sales and marketing initiatives to strengthen the premium positioning of the company's unified global brand, Hankook, as well as the supply of original equipment (OE) tyres for new vehicles. In addition to the leadership nominations, shareholders approved all eight agenda items at the Annual General Meeting, including the approval of the consolidated financial accounts, partial revisions to the Articles of Incorporation and director appointments.

Ahn has extensive leadership expertise and a proven track record of advancing technology innovation in the operational holding firm, Hankook & Company. He oversaw general management and spearheaded innovative initiatives in 2021 while serving as COO of Hankook & Company and Head of ES (Energy Solution) Business Headquarters. He became the CEO in 2022 and oversaw the company's expansion of premium Absorbent Glass Mat (AGM) battery sales into important international markets, which greatly increased profitability and strengthened the company's platform for long-term success.

Lee's vast worldwide leadership experience serves as the foundation for his profound understanding of marketing and global sales strategy. He has held important regional leadership positions in China and Europe since 2018, during which time he has played a crucial role in bolstering the company's premium brand positioning internationally and continuously promoting creative business performance, both of which have greatly increased revenue. At the conclusion of last year, he was nominated as Hankook Tire's Co-CEO due to his success and leadership.