Emerald Performance Materials L.L.C. is closing a chemical plant in Henry, Illinois, a move that will impact more than 50 workers at the facility. Layoffs at the plant will begin April 6 and be completed by June 30. News of the plant closure follows the February announcement that Lanxess A.G. would acquire Emerald Kalama Chemical, a business unit of Emerald Performance Materials, for $1 billion. That deal, which is expected to close in the second half of 2021, included Emerald’s operations in Kalama, Washington, Rotterdam, Netherlands, and Widnes, England, but did not include the Illinois plant. Among other products, the Henry, Illinois plant produces sulfenamide accelerators.
March 10, 2021
February 16, 2021
Sumitomo expanding tire capacity in NY, Thailand, and Japan
In a press release announcing the project, Sumitomo said the expansions were driven by strong demand in North America for its light truck, SUV, and medium truck tires. In particular, sales of the company’s Falken-brand high-performance tires continued to expand steadily in 2020 despite the impact of COVID-19.
In Asia, Sumitomo is expanding capacity for light truck and SUV tires at plants in Amati, Thailand, and Miyazaki, Japan. With the expansions, Sumitomo will have capacity to produce 4,150 units/day at the plant in Thailand by year-end 2023 and 1,600 units/day at the plant in Japan by year end 2024. These expansions will primarily be used to supply the North American market.
February 7, 2021
Linglong’s Serbian tire plant attracts EU environmental scrutiny
Shandong Linglong Tire Co.’s new tire plant in Zrenjanin, Serbia is attracting new environmental scrutiny as 26 members of the European Parliament have called on the legislative body to enforce existing environmental laws at the construction site. In a letter to EP Commissioner Oliver Varhelyi, the members, which collectively represent 15 EU nations, catalogued various complaints related to the plant’s construction and permitting, including issues with environmental impact and water usage. The letter calls upon the EP to require the Serbian government to “provide a clear action plan moving forward on how they are going to address the existing issues outlined above, as well as a commitment to honoring and following both their own domestic legislation and the regulations passed down as part of the EU accession process.”
Linglong broke ground in April 2019 on the $994 million factory, which will produce 12 million car tires, 1.6 million truck/bus tires, and 20,000 OTR tires per year at full capacity.
January 19, 2021
US Tire Manufacturers Association issues statement on California’s proposed actions on zinc and 6PPD in tires
On January 12, the U.S. Tire Manufacturers Association issued a statement in response to the California Department of Toxic Substances Control’s (DTSC) announcement that a petition to review zinc in automobile tires under the state’s Safer Consumer Products Regulations has been granted. The USTMA’s statement follows in its entirety:
The decision to grant a petition to add vehicle tires containing zinc oxide to the California Safer Consumer Products Regulations Priority Products list will not achieve its intended purpose. However, we support DTSC’s decision to include discussions about 6PPD in future workshops and we support designating 6PPD in automobile tires as a Priority Product for review under the state’s green chemistry program.
Zinc
Zinc is found naturally in the environment and is contained in many products including galvanized metal, fertilizer, paint, batteries, brake pads and tires. Research demonstrates that discharges of domestic wastewater and galvanized metal surfaces account for 75% of zinc in the environment, while tires typically account for less than 10%.Because zinc is widely used in many products, zinc water quality issues can only effectively be mitigated through a collaborative, holistic approach. Since 2016, USTMA has worked with the California State Water Resources Control Board, the International Zinc Association, and the California Stormwater Quality Association as part of a collaborative process to identify effective solutions to zinc water quality issues in the state. USTMA continues to believe that this effort is the most promising avenue to resolve California’s zinc water quality issues, and we urged DTSC to support this collaboration before moving to a narrow focus on zinc in tires under the Safer Consumer Products regulation.
Zinc oxide plays a critical and irreplaceable role in manufacturing tires. Zinc oxide serves as an “activator” in the vulcanization process that turns soft, sticky rubber into stable components that allow a tire to carry the weight of a vehicle and to stop safely. Manufacturers have tested a variety of other metal oxides to replace or reduce the use of zinc but have not found a safer alternative. Without the use of zinc oxide, tires cannot meet federal safety standards.
6PPD
Tire manufacturers recommended adding 6PPD to the Priority Products Work Plan following a recent study that suggests a link between Coho salmon mortality and a transformation product of 6PPD from tire and road wear particles (TRWP) called 6PPD-quinone. The tire industry uses 6PPD to help tires resist degradation and cracking, which is vital for passenger safety. 6PPD has been studied, but not enough is known about the newly discovered transformation product, 6PPD-quinone. We are committed to collaborating with researchers and regulators in California and Washington to better understand this material, fill knowledge gaps and determine next steps.Tire manufacturers’ commitment to sustainability
Tire manufacturers are dedicated to understanding and reducing the environmental impact of their products. USTMA members — both individually and through partnerships — are working to incorporate more renewable and recycled materials into tires, enhancing biodiversity and reducing dependence on non-renewable feedstocks. Cooper, Goodyear, Pirelli, and Continental are working with academic institutions and other partners to explore the use of dandelions as an alternative to rubber. Bridgestone, Goodyear, Yokohama and Hankook are replacing petroleum in tires with vegetable, soybean or orange peel oil.We intend to continue advancing this commitment to sustainability through collaboration with the California State Water Resources Control Board and California Stormwater Quality Association to help find effective solutions to the state’s zinc-related water quality issues.
September 18, 2020
Bridgestone closing French tire plant in 2021
On September 16, Bridgestone Corporation announced plans to cease production at its 60-year-old passenger tire plant in Bethune, France in 2021. The company said the decision came in response to the challenging long-term outlook for the European passenger tire market, and that the closure represents the only viable path to safeguard the competitiveness of Bridgestone’s operations in Europe. All manufacturing operations at the site would cease, affecting 863 workers.
The current industry context for passenger tyres is threatening Bridgestone’s competitiveness in the European market. For the last several years, the market for passenger tyres has been facing strong headwinds – even without taking into account the impact of the COVID-19 pandemic. The passenger tyre market has seen its volumes stabilize over the last few years (average annual growth < 1%) while competition from low-cost Asian brands continues to increase (market share of 6% in 2000 increased to 25% in 2018) leading to general production overcapacity. This has resulted in pressure on pricing and margins, as well as overcapacity in the Low Rim Diameter segment, given a declining demand in LRD. And within Bridgestone’s overall European footprint, the Bethune plant is the least well positioned and least competitive.
Over the last years, Bridgestone has taken several measures, including attempts to increase the competitiveness of the Bethune plant. These have proven to be insufficient and Bridgestone has been losing money on tyres produced in Bethune for several years. Considering the current market dynamics, no improvement in the situation is foreseeable.
The decision drew immediate protest from the union and workers, who protested outside the plant the day following the announcement.
August 24, 2020
Bridgestone to close tire plant in South Africa
Last week, Bridgestone announced a plan to close its bias tire manufacturing plant in Port Elizabeth, South Africa. The closure is in line with the company’s recently announced strategy to focus on premium profitable growth segments of its business. Bridgestone Southern Africa (BSAF) has initiated a Section 189 notice and a consultative process in compliance with the South African Labour Relations Act.
Bridgestone said that the Port Elizabeth plant, which is 84 years old, is specifically geared towards the production of older bias tires, which are globally in decline and being phased out in South Africa as it is an unprofitable market. The effects of a shrinking economy and an influx of cheap imports compounded by rapid changes in the tire industry has prompted BSAF to restructure its operations. The agricultural industry is shifting to radial tires, which are longer lasting, and the production of which is modern and high-speed. Converting the plant to produce radial tires would require a substantial investment that is not feasible in the current economy. The move will affect 252 employees. A second Bridgestone factory in Brits, South Africa, will remain in operation.
March 30, 2020
Prinx Chengshan Tire inaugurates Thai tire plant
Amid all the plant closures, some good news. Tire Business reports that Prinx Chengshan Tire has inaugurated production of truck tires at its new $300M plant in Chonburi, Thailand. The plant was completed one year after breaking ground and a few months ahead of schedule. Workers at the plant began production on March 25. Capacity is 800,000 unit/year at full capacity. The company also plans to add 4M units/year of capacity for PC/LT tires.
March 20, 2020
Bridgestone suspending production in North & South America
Bridgestone Americas is suspending production at its 15 factories in North and South America beginning March 21. All facilities plan to resume normal operations on or before April 12. The company will continue to monitor the situation closely and adjust response plans and activities as necessary. Bridgestone said it has sufficient inventory to meet current demand. The temporary shutdown also will help to align supply to projected demand.
Pirelli suspending production in Georgia and Romania
Pirelli Tire North America plans to suspend operations at its factory in Rome, Georgia due to concerns about the coronavirus. Pirelli plans to scale back production for one week beginning March 22 and then suspend production for one week beginning March 29. The factory will be cleaned and sanitized while closed. The week of curtailed production will allow the plant to meet demand while operating with fewer employees present. The reduced production also corresponds to reduced demand. Capacity at the Rome plant is 400,000 PC tires per year.
Pirelli also announced on Thursday that it as suspending production at its plant in Slatina, Romania from March 23-31.