Non-tire rubber companies have a hard time this year

Medical-related rubber materials may become better

A few days ago, the 2020 ranking of the top 50 non-tire rubber products in the world organized by the European Rubber Journal (ERJ) was announced. The rankings 

show that in 2019, most of the non-tire rubber companies saw a decline in sales revenue, a decline in profits, and a decline in gross profit margins. The non-tire rubber

 industry as a whole has entered a downward channel. In 2020, the new crown pneumonia epidemic will have a great impact on downstream industries such as the 

automobile industry. The non-tire rubber industry will continue to decline, and the situation is not optimistic. However, medical-related rubber materials may become a

 new hot spot for non-tire rubber products.

Little change in pattern

Compared with the previous rankings, this ranking has not changed much. The top ten companies on the list remain unchanged, and their positions have been slightly

 adjusted. Mainland China once again topped the list with US$6.475 billion in sales. Freidenberg followed closely with 6.361 billion US dollars. Hutchinson ranked third 

with $4.831 billion. Sumitomo Recco ranked fourth with US$3.8886 billion, further widening the gap with the top three. Bridgestone, who was ranked seventh last year, 

advanced 2 places and ranked fifth. The Gates Group still ranks sixth. The seventh place is Cooper Standard Auto Parts, Parker-Hannifin ranks eighth, NOK ranks ninth, 

and Lehrerberg AB ranks tenth.

According to the country of the company, among the top 50, the United States has 15 companies, making it the country with the largest number of top 50 companies; 

Japan has 13 companies, ranking second; there are 16 companies in the European Union, including 5 in Germany, 3 in Sweden, and 3 in France. , 2 in Switzerland, 1 in 

the UK, 1 in Austria, and 1 in Italy. In addition, there are 2 in China, 2 in Malaysia, 1 in Australia, and 1 in South Korea. There are still 11 "2 billion dollar clubs" among 

the top 50.

Enter the descending channel

Although the industry pattern has not changed much, as the non-tire rubber industry as a whole has entered a downward channel, coupled with the continued impact 

of the epidemic, the downward trend of the industry has become more obvious, putting pressure on enterprises.

In 2019, the total sales of the world's top 50 non-tire rubber industries were US$77.76 billion, a year-on-year decrease of 4.6%. In the top 50, 35 companies have negative

 growth, and 8 of the top 10 companies have negative growth. Among them, the largest decline is Supermax, which is down 81%. Industry profits have also fallen 

significantly, with the majority of profit declines. Of the 38 companies reporting profits, 29 companies have declined, and 6 of them have lost money. In addition, the 

sales revenue of the top three companies was 17.667 billion U.S. dollars, accounting for 22.7% of the total, a decrease of 1.7 percentage points from the previous year. 

The top ten sales revenue was 39.534 billion U.S. dollars, accounting for 50.8% of the total, a decrease of 0.8 percentage points from the same period last year.

In recent years, industry restructuring has been active and has a greater impact on sales and rankings. Federer Modal, Borg Elastomers and Lord all dropped out of the 

list due to acquisitions. At the same time, some companies sold assets, such as Cooper Standard Auto Parts sold two assets, Eaton sold its hydraulic system unit and so

 on. This will affect its next year's sales and rankings.

Facing the impact of the epidemic

Despite the addition of rubber medical supplies, the new crown pneumonia epidemic still has a greater impact on the world's non-tire rubber industry, making the

 industry's downward trend more obvious.

As the non-tire rubber industry still relies on the automotive industry, the epidemic has had a serious impact on the industry as a whole. Related companies are also 

responding to this shock.

A spokesperson for Freidenberg said that the global economic recession has had a greater impact on its business activities, especially the automotive-related industries.

It is predicted that the company's sales revenue will fall by 10% to 15% in 2020. The company focuses on diversified operations and continues to enhance its cash flow 

capabilities, which will help buffer the impact of the epidemic. The company is expected to recover rapidly in 2021. Hutchinson did not release financial data, but from 

the layoff information released earlier, it can be seen that its operations have been affected by the epidemic. It is understood that many business sectors of Hutchinson 

have been greatly impacted by the emergency measures and isolation policies of various countries in response to the epidemic. The company is taking measures to reduce

 the impact, but the decline in sales revenue for the whole year is a foregone conclusion.

In the first quarter, the German Continental Company's sales revenue was 1.52 billion euros, down 8.1% year-on-year, and its profit was 117 million euros, which was 

basically the same year-on-year. Trelleborg AB’s sales fell by about 8% in the first quarter and operating profit fell by 5%. In the second quarter, the impact of the 

epidemic was even greater. The forecast for the full-year operating situation is not optimistic.

Non-tire rubber companies that produce pharmaceuticals and protective equipment are exceptions. For example, the spread of the epidemic is a business opportunity

 for Malaysia's top gloves. Top Glove said that in the first quarter, sales increased by 42%, pre-tax profit increased by 413%, net profit increased by 365%, the company's 

monthly orders increased by 180%, and the company's operating rate is above 95%, and the product is still in short supply. As the epidemic continues and the signs of 

prolongation are obvious, the company is making every effort to expand production capacity to meet the needs of responding to the epidemic. Earlier, Top Gloves 

planned to invest 3 billion ringgit to build 450 production lines by 2026, increasing the production capacity of 60 billion sets of gloves.

In addition, under the new crown pneumonia epidemic, the demand for nitrile latex gloves has increased sharply, which is positive for Austrian Semperit. The company

 postponed the integration plan announced not long ago to ensure production. Due to the rapid development of the medical rubber industry due to the epidemic, the 

ranking and situation of the world's non-tire rubber industry next year, whether more companies join the medical rubber industry, let the industry wait and see.