Tire trends: OTR acquisitions, plant closures, sustainability define 2024

Evolution is necessary, particularly for an industry dedicated to greater sustainability.

And for the tire industry—which is laser-focused on moving the sustainability needle with big technological and manufacturing strides—2024 was a year of evolution.

Companies across the industry made big sustainability strides this year as they innovated and partnered to find solutions to some of the biggest challenges.

They also found ways to grow—both organically and through acquisition—ultimately changing the landscape of the industry, particularly on the off-the-road tire side.

Here's a look at just three of the trends that emerged within the tire industry this year.

The ag tire landscape is shifting as major players make moves to expand their portfolio of offerings and strengthen their brand's recognition.

Titan International first made waves in February when it closed on the acquisition of Carlstar Group L.L.C. At that time, Titan President and CEO Paul Reitz said the $296 million deal was "transformative" for the tire maker as it expanded Titan's manufacturing and distribution footprint and diversified its portfolio in the specialty tire and wheel space.

Meanwhile, Yokohama Rubber Co. Ltd. doubled down on its vision to grow in the off-road tire sphere. A year after finalizing its blockbuster $2.3 billion acquisition of Trelleborg Wheel Systems, the company went all-in to secure a deal with Goodyear.

Yokohama agreed to purchase Goodyear's OTR business in a cash deal valued at $905 million. For perspective, Goodyear's OTR business posted fiscal sales of approximately $678 million in 2023, with earnings before interest, taxes and amortization (EBITA) of about $129 million. The OTR unit employs around 500.

The deal, expected to close early next year, includes specialized tires for mining and construction, among other industries. The sale does not include Goodyear's operations in Topeka, Kan., where Goodyear announced a $125 million investment in September 2022. That plant manufactures commercial tires.

For Yokohama, the purchase provides an even stronger foundation for its growing OTR business, which also includes the former Alliance Tire Group assets. Goodyear, meanwhile, benefits from a more streamlined company in line with its Goodyear Forward vision.

In December, Ceat Ltd. shook things up when it announced its intention to purchase Michelin's Camso brand and its Sri Lankan assets for $225 million. The sale includes a bias-ply tire plant and rubber track plant in Colombo, Sri Lanka.

Ceat, which has strengthened its brand identity with its recently awarded Deming Grand Prize, called the acquisition a "significant milestone" as it works to establish its place as a leading player in the off-road tire segment.

Ranked No. 23 in this year's Global Tire Ranking, Ceat recorded fiscal 2023 sales of $1.42 billion.

Sumitomo made headlines in November when it announced the closure of its 102-year-old Tonawanda, N.Y., facility—the company's only North American tire plant. The move results in the loss of 1,500 jobs.

But even as it is pulling back on its production in North America, the Japanese company is adamant that the region is key to its future growth. Just weeks after announcing the plant closure, Sumitomo officials emphasized that they see production returning to the region in the near future.

Shortly after the Sumitomo announcement, Yokohama Rubber Co. Ltd. said it will close an off-the-road plant in Hadera, Israel. Yokohama pointed to high operating and logistics costs as the reason for the closure of the more than 70-year-old plant, which has an annual capacity for 42,000 metric tons of OTR tires.

Michelin, in 2023, announced closures of TBR plants in Karlsruhe and Hamburg, Germany; a passenger car tire factory in Ardmore, Okla.; and a tooling facility in Trier, Germany.

That was just the start.

Because the French tire maker is rolling out a plan to right-size and right-fit its global operations. In other words, Michelin is focusing on in-demand, high-value tire production.

To this end, Michelin is ceasing TBR production at its plants in Shenyang, China, and Olsztyn, Poland. Michelin's also ending steel cord reinforcement production in Shanghai. These three facilities, however, will find new lives.

Because while Michelin is closing plants, it's also eyeing growth. And that means investing in operations that strengthen its position globally. So those plants in Olstzyn, Shanghai and Shenyang are being converted for production of passenger vehicle tires.

Bridgestone, like Michelin, is scaling back on its truck/bus tire production while shifting its focus to more in-demand tire products. In February, Bridgestone said it would exit China's TBR market by winding down the manufacturing and commercial sale of truck and bus tires during first half of 2024.

As a result, the Japanese tire maker was better positioned to shift its focus to the premium passenger tire market.

Also worth noting is the planned closure of Bandag Europe N.V.'s tread rubber plant in Lanklaar, Belgium, in 2025 due to a decline in demand. Bandag is a subsidiary of Bridgestone Corp.

Goodyear, for its part, continues to execute its Goodyear Forward plan and is eyeing production cuts as well, particularly in Malaysia where it intends to close its 52-year-old plant, impacting 550 workers. The plant makes a range of tires from passenger to ag and OTR.

When it comes to sustainability, the tire industry's biggest players have pledged to make big strides.

Just look at Bridgestone Americas Inc., which has proven its commitment to sustainability, especially in the racing tire space where it trials and debuts its cutting edge sustainable technologies like guayule and bio-butadiene. These technologies eventually make their way into passenger, commercial and OTR tires.

And proof of that transition lies in Akron where the tire maker is building a butadiene plant that relies on the end-of-life tires to produce the ethanol that will be used to make butadiene.

The Department of Energy has backed Bridgestone's big idea with a grant, the amount of which was not disclosed.

Nokian Tyres P.L.C. took its sustainability pledge further with its new tire factory in Oradea, Romania. The tire maker pledged to operate the plant without the use of fossil fuels, an aim that its partner Energy Development GmbH will help to ensure.

The new plant—the first in the world to operate without CO2 emissions, according to Nokian Tyres—is set to open early in 2025.

Continental A.G. is increasing the use of post-consumer recycled PET bottles in its tires. The German tire maker said in November that is had increased the use of recycled materials by 3 percent in many of its tire lines.

Depending on the tire size, as many as 15 bottles could be used per tire through the ContiRe.Tex technology, which transforms the plastic into tire cord.

When it comes to recovered carbon black, every major tire maker is embracing the technology. Some have established partnerships to ensure quality supply and others have invested in companies that are scaling the technology.

For Hankook Tire and Technology Co. Ltd.'s part, it's started mass production of tires made with three different types of carbon black.

The key to more sustainable tires is putting all of the sustainability technologies together. And major tire makers are doing just that. Goodyear, for instance, launched its EcoReady passenger tire in the U.S., one made with 70 percent sustainable content, according to the company.