ERJ Business Briefing: Global Tire and Rubber Industry Developments in May 2026

The May 2026 edition of the ERJ Business Briefing highlights a series of major commercial and market shifts across the global tire and rubber industries. Indian tire manufacturer JK Tyre reported its highest-ever annual consolidated revenue of $1,746 million for fiscal FY26 (ending 31 March), marking an 11% year-on-year increase. The company attributed this growth to record volumes across segments, supported by buoyant demand, GST and personal tax reforms, softer interest rates, and improved economic activity. Earnings before interest, taxes, depreciation, and amortization (EBITDA) surged 25% to $222 million compared to the prior year. Elsewhere, Saudi Aramco and Petronas finalized an agreement for the transfer of Aramco’s equity stakes in the PRefChem refining and petrochemical complex in Johor, Malaysia, to Petronas. Upon completion—subject to customary closing conditions—PRefChem will operate as a wholly owned subsidiary of Petronas, encompassing stakes in Pengerang Refining Company Sdn. Bhd. and Pengerang Petrochemical Company Sdn. Bhd. within the Pengerang Integrated Complex. In financial markets, Wacker completed the sale of 2.1 million shares in silicon wafer manufacturer Siltronic AG via a private placement at €89.35 per share, generating gross proceeds of approximately €188 million. The transaction reduced Wacker’s stake in Siltronic to 24%, though it remains the company’s largest shareholder. Pirelli’s three-year shareholders’ agreement involving China National Tire & Rubber Corp. (CNRC), Marco Polo International Italy, Camfin, and Marco Tronchetti Provera & C. SpA (MTP) expired on 18 May and was not renewed. The original agreement, signed on 16 May 2022 and effective from 19 May 2023, governed Pirelli’s governance structure. Celanese announced global price hikes for a range of engineered materials, including TPVs, effective 1 June. Flame-retardant Santoprene TPVs will see increases of $0.30/kg in Asia, $0.10/lb in the Americas, and €0.15/kg in Europe, while Hytrel, Bexloy, and Neolast TPCs will rise by $0.20/kg in Asia, $0.10/lb in the Americas, and €0.15/kg in Europe. BASF launched its “CoreShift” initiative, targeting a 20% reduction in net cash fixed costs across its core operations by 2029 compared to a 2024 baseline. The program aims to strengthen competitiveness and grow earnings in core segments—Chemicals, Materials, Industrial Solutions, and Nutrition & Care—which collectively generate around €40 billion in annual sales. BASF also established a Core Transformation Office led by Julia Raquet, reporting directly to CEO Markus Kamieth. The company is restructuring its Ludwigshafen Verbund site and reshaping global service units to simplify operations and improve profitability. HF Group received Continental’s Supplier Award 2025 in the “service, maintenance, repair” category, recognizing its after-sales support and service performance. The award highlights HF’s expertise in mixing and curing solutions, emphasizing minimal downtime, reliable machine performance, fast response times, and proactive spare parts planning. Dutch group TKH reported a 6.0% year-on-year decline in Q1/26 turnover for its ‘automated machinery – smart manufacturing systems’ division, with VMI accounting for 86% of division sales in 2025. The decline was linked to lower order intake in tire building machines (TBMs) in previous quarters and continued geopolitical impacts. TKH reiterated its expectation for organic turnover and EBITA growth in 2026. Omya Performance Polymer Distribution expanded its partnership with BASF to distribute Elastollan TPU across France, Switzerland, North Africa, Israel, and the Middle East, effective 1 July. The agreement builds on Omya’s existing Elastollan TPU business in the UK and Ireland through Distrupol. BASF’s Elastollan TPU is used in automotive components, industrial parts, consumer goods, and electrical products. Additionally, Wacker Group announced it will raise prices for certain products effective 1 June or as customer contracts allow.