Short‑term market ups and downs are only superficial phenomena. What shapes the tire supply chain and phases out outdated production capacity are the structural changes in the tire industry. This long‑term, far‑reaching industrial transformation keeps reshaping the capacity landscape of global tires and related raw‑material sectors, with multiple legacy overseas supporting facilities exiting the market.
Recently, Bekaert, global leading supplier of tire reinforcement solutions, announced a major asset adjustment. The company has entered a preliminary agreement with Nuova Icom, a Sardinian‑based industrial engineering and metalworking enterprise in Italy, to divest its Macchiareddu tire‑cord manufacturing plant. The divestment is fundamentally driven by structural shifts across the tire industry, rather than temporary issues including operating losses or seasonal market slumps.
The agreement includes two core terms: full transfer of the Macchiareddu production site in Sardinia, and priority re‑employment of existing on‑site Bekaert employees, to minimize negative impacts on local jobs and regional economy. The transaction value remains undisclosed. Closing is expected in October 2026, subject to completion of employee consultation procedures and standard customary closing conditions.
Different from common plant shutdowns and capacity contractions caused by short‑term market cycles, Bekaert’s site divestment results directly from tire‑industry structural changes, acting as a key benchmark case for the global tire‑materials supply chain.
Bekaert pointed out that shrinking output and unviable tire‑cord operations at the facility are long‑term and irreversible outcomes brought by structural changes in the tire sector, instead of cyclical supply‑demand imbalance. Such difficulties cannot be reversed through short‑term operational adjustments or cost‑cutting initiatives.
In recent years, structural changes have gained momentum throughout the tire industry. Global tire demand patterns, downstream manufacturing footprints and regional competitive advantages have undergone disruptive shifts. Legacy overseas tire‑cord plants, which once benefited from early industrial dividends, have lost their competitive edges. Coupled with tire makers’ capacity relocation, product portfolio upgrading and raw‑material cost restructuring, the Macchiareddu plant has suffered continuous erosion of market competitiveness.
Profound structural changes in the tire industry have undermined the plant’s commercial viability. Tire‑cord output has declined year by year alongside lower capacity utilisation rates. Its traditional production model and ageing overseas site can no longer adapt to current market realities, making local tire‑cord production commercially unfeasible. Accordingly, Bekaert decided to divest the site and step back from local tire‑cord manufacturing.
Instead of simple shutdown or complete market withdrawal, Bekaert partners with a local firm to carry out site re‑industrialisation. This flexible disposal model fits the global trend of phasing out inefficient legacy capacity amid tire‑industry structural changes, while preserving local employment and regional industrial stability. It provides a practical reference for capacity renewal and structural optimisation within the global tire raw‑material industry.
In the global tire supply chain, short‑term price volatility and capacity fluctuations represent normal market behaviour. Structural changes in the tire industry constitute the core driving force reshaping long‑term industry patterns and determining the survival of production capacities.
These structural shifts go well beyond price competition or partial overcapacity. They represent comprehensive industrial reconfiguration covering market demand, geographic capacity layout, product technology iteration and cost‑competition frameworks. Legacy overseas supporting capacities relying on location and era‑based dividends are rapidly losing competitive barriers.
Bekaert’s divestment of its Sardinia tire‑cord plant serves as a typical case of tire‑industry structural transformation. The industry has moved away from extensive high‑speed growth. Elimination of old‑aged, inefficient and poorly‑positioned capacity has become inevitable. Moving forward, capacity, orders and resources in the global steel tire‑cord market will further concentrate on high‑end manufacturers with cost advantages, technical strengths and proximity to core markets. Industrial consolidation driven by structural transformation will keep advancing.
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