ARLANXEO, one of the world's largest synthetic rubber producers and a wholly owned subsidiary of leading energy and chemicals producer Saudi Aramco, and TSRC have inaugurated their newly relocated and expanded joint venture NBR (nitrile-butadiene rubber) plant in Nantong, Jiangsu Province.

Stephan van Santbrink, CEO of ARLANXEO; Joseph Chai, CEO of TSRC and Chaoyang Jiang, Chairman of the ARLANXEO-TSRC joint venture, addressed the inauguration event. Customers, JV firm officials and senior leadership from ARLANXEO and TSRC also attended the ceremony. With a planned capacity expansion to 40,000 tonnes annually, the new facility produces a wider range of high-quality NBR products to meet China's long-term market demand development and fortify the worldwide NBR supply chain.

ARLANXEO-TSRC (Nantong) Chemical Industrial Co. Ltd. was founded in 2010 and is a 50:50 joint venture that is ultimately controlled by TSRC Corporation and ARLANXEO. In December 2021, ARLANXEO and TSRC announced that the joint venture company would be moving from the northern to the southern section of the Nantong Economy and Technology Development Area (NETDA) Chemical Park, Jiangsu Province, in order to support the government's agenda for environmental protection along the Yangtze River.

The new JV facility has continuously maintained high standards for safe operations with enhanced performance in resource efficiency, energy consumption and environmental protection since moving in and starting up. While continuing to produce Krynac and Taipol NBR products, the joint venture company has further enhanced its business competitiveness in response to the increasing demand for premium synthetic rubber by introducing Perbunan, a fast-cure NBR grade that is well-suited for specialised applications in automotive, aviation, oil and gas and food contact materials.

Stephan van Santbrink, CEO, ARLANXEO, said, "The new JV plant underscores our commitment to strategic growth in the China market and the sustainable development of the rubber industry. Built on a decade-long partnership and deep engineering expertise, this new JV plant strengthens our production capabilities, ensuring a reliable supply of high-quality NBR products to our customers.”

Joseph Chai, CEO, TSRC, said, “This project marks yet another successful collaboration with ARLANXEO to support the NBR customers. We remain confident in the long-term growth of the China chemical market and this new JV plant to capture new industry opportunities and deliver sustainable growth leveraging on ARLANXEO’s global leading position in NBR and the JV’s strong local operation.”

For decades, China has stood as the world’s dominant supplier of raw materials across industries, making it a significant player in the global supply chain. However, Gujarat-based Lead Reclaimed Rubber, an Indian MSME, has achieved a remarkable feat by exporting reclaimed rubber crumb to Chinese manufacturers. The company capitalised on India’s abundant scrap tyre supply and favourable policies, tapping into China’s massive demand for reclaimed rubber. As Lead Reclaimed Rubber continues to expand its production capacity and export markets, the company also faces challenges such as labour shortages, supply delays and regulatory concerns. Despite these obstacles, it remains optimistic about its growth prospects.

China has been the largest supplier of raw material for every industry known to man since decades. While there are many companies in different markets trying to sell back to China, an Indian MSME has unachieved the feat of selling to the ‘seller’.

Gujarat-based end-of-life tyre (ELT) recycler Lead Reclaimed Rubber has been exporting its reclaimed rubber crumb to Chinese manufactures. Commenting on how the company achieved this feat, Chief Executive Officer Jayeshh Patel told Tyre Trends in an exclusive interview, “China is the largest importer of reclaimed rubber, sourcing the material not only from India but also from countries like Vietnam and Sri Lanka. This demand is driven by a vast domestic market for tyres and inner tubes, with numerous brands operating in the aftermarket segment as well as in OEM manufacturing. As a result, the growth potential is significant.”

“While China has its own reclaim rubber plants, it faces limitations due to inadequate scrap tyre availability. In contrast, India has an abundant supply of scrap tyres supported by both domestic generation and strong import volumes. Additionally, India’s favourable government policies and the availability of skilled labour further enhance its position as a competitive and reliable supplier of reclaimed rubber to China. Hence, our company capitalised on the situation and started exporting,” he added.

Lead Reclaim Rubber was established in 2012 and is an NSE-listed company. It operates both in domestic and export markets with plans to grow its current production capacity as the reclaimed rubber market unfolds its potential.

Moreover, Patel noted that the Extended Producer Responsibility (EPR) framework by the Indian Government is playing a crucial role for the recycling industry for reaching greater heights.

EPR IMPACT

According to Patel, EPR has emerged as a transformative force in the recycling industry. Given the industry’s dynamic nature and its drive to adopt advanced technologies, EPR presents a timely and impactful mechanism to support growth particularly for micro, small and medium enterprises (MSMEs).

“While the recycling sector is evolving, recyclers often operate on thin profit margins, which limits investment in new technologies and process upgrades. EPR has helped bridge this gap. Under the scheme, we are awarded green credits for every kilogramme of end-of-life tyres we recycle. These credits are a compliance requirement for tyre manufacturers, who purchase them from registered recyclers like us. For every 100 kilogrammes of tyre recycled, we receive approximately 130 green credits, each valued at INR 2.5, resulting in a direct financial incentive. This additional income strengthens our balance sheet and can be reinvested in research and development, capacity expansion and technology upgrades. In this way, EPR indirectly fosters innovation and scaling in the recycling ecosystem,” said Patel.

To maintain accountability and transparency, the Central Pollution Control Board (CPCB) has developed a digital portal where all stakeholders must report data.

“We record our incoming feedstock (purchase data) and outgoing materials (sales invoices) on the CPCB portal. This data forms the basis for calculating green credit eligibility. Our operations are routinely audited by both government agencies and the tyre industry. These audits verify that we meet all technical and environmental standards before credits are approved. The government has also established baseline electricity usage norms for tyre recycling. We are required to submit our electricity bills to demonstrate compliance. If our energy consumption does not meet the defined threshold, we are ineligible for green credits, preventing fraudulent claims,” he Patel.

He optimistically contented that EPR is rapidly becoming the backbone of the tyre recycling industry. For over a decade, recyclers have struggled with limited access to capital. EPR is now enabling financial stability, paving the way for recyclers to professionalise operations, scale sustainably and drive forward-looking initiatives. This policy is not just a support mechanism but a growth enabler.

AN OVERVIEW

The recycling company focuses on sustainable practices and high-quality output. “Our core operation involves sourcing EOL tyres and tubes from various states across India for recycling into value-added rubber products. Our recycling process begins with a proprietary feedstock checking system to ensure quality. The tyres are then sorted, cut and processed into crumb rubber powder. Currently, we produce crumb in 30–40 mesh sizes with plans to expand into finer 80 and 120 mesh grades in the near future,” explained Patel.

For the domestic industry, crumb rubber serves a wide range of applications. Finer meshes (80 and 120) are used in various rubber and dye industries, while 30–40 mesh is commonly used in bitumen modification for road construction, in line with the Central Government’s CRMB 30 guidelines.

Furthermore, the company employs a green devulcanisation system that utilises steam, oil and pressure to break down and re-bond the rubber polymers from EOL tyres. This method is 100 percent sustainable, producing zero discharge and zero wastage. Even the steam generated during the process is condensed and reused. “We are in the process of acquiring a Z-Certificate for our zero-waste operations,” divulged Patel.

Post-devulcanisation, the rubber material becomes soft and slightly sticky due to the restructured cross-linking. It then undergoes further processing in the reclaim section, which includes refiners, mixing mills and a cleaning stage.

During cleaning, all metallic and non-rubber impurities are extracted using strainers with 60-millimetre wire mesh. The purified compound is extruded into noodle form and sent to the refiners to produce the final reclaimed rubber product, typically in seed form.

“We tailor our reclaimed rubber to meet the specific requirements of our customers including thickness, size and performance properties. Each product is made to specification. The reclaimed rubber is used across various industries including tyre and tube manufacturing, conveyor belts, packaging and other rubber-based products. As industries increasingly shift from virgin to reclaimed rubber, we position ourselves as a reliable and environmentally responsible supplier,” noted Patel.

PRODUCTION AND SUPPLY

According to Patel, virgin rubber contains about 90–100 percent RSPL, while reclaimed rubber has around 50–52 percent. It’s more affordable than virgin rubber, but the use of 100 percent reclaimed rubber in tyre manufacturing is still a distant thought.

However, it’s widely used in rubber mats. Tyre manufacturers are gradually increasing reclaimed rubber usage, encouraged by government directives to reduce dependence on natural resources and imports. Since local virgin rubber production is insufficient, it’s being imported from countries like Vietnam.

Currently, large tyre manufacturers in India use only a small percentage of reclaimed rubber, around two to three parts per hundred

rubber (PHR). For cycle and three-wheeler tyres, it goes up to 20 PHR. Conveyor belts use up to 30 percent, and in non-critical applications with almost no performance impact, reclaimed rubber can be used up to 95 percent.

The company’s plant is located in Katlal, Kheda, near Ahmedabad, and it uses Indian machinery sourced from Punjab. “We started production at 250 metric tonnes per month. After Covid, we scaled up to 490 metric tonnes and recently reached 960 metric tonnes per month. Within the next year, we plan to expand further to 2,000 metric tonnes per month,” said Patel.

He added, “We run our plant with TBR tyres both nylon and radial. We’re centrally located in Ahmedabad and as Gujarat shares borders with Rajasthan, Madhya Pradesh, Maharashtra, and the southern states, it helps us with tyre sourcing. We collect tyres through a three-layer supply chain consisting puncture shops, rag pickers and aggregators. The aggregators sort the tyres as per our requirements.”

For nylon tyres, the company only uses the centre portion, specifically from 1020 tyres and discards the sidewalls. For radial tyres, it recycles the entire tyre. The recycling technology is the same for both, but the processing recipe differs. Radial tyres have cords in the centre, so the devulcanisation process is slightly modified to handle the added strength. Its research and development facility are located inside the plant.

Commenting on what sets the company apart from competitors, Patel explained, “Our focus on consistency and timely delivery sets us apart from competitors. We maintain a 95 percent consistency ratio. From raw material to the final product, everything is monitored and controlled by our control plant, which is also a key differentiator. We also have an in-house development department that not only ensures quality consistency but also works on improving the benefits for our customers. On top of that, we conduct awareness programmes to educate our customers on which materials are best suited for different use cases. That’s something others in the industry usually don’t do.”

MARKET SPREAD

Lead Reclaim Rubber serves both domestic and international markets. Among the industries it caters to, conveyor belts account for 30 percent of its business, tyres for 20 percent and the remainder comes from rubber products and packaging. Although the tyre and tube segments currently represent a smaller share of revenue, Patel anticipates significant growth in these areas. Over the next five years, it expects tyres and tubes to become its largest consumer segment followed by conveyor belts.

The company attributes this projected growth to the government’s strong emphasis on the circular economy and the rapid expansion of the automobile industry, both of which are likely to increase demand for reclaimed rubber.

The company exports to several countries including Sri Lanka, China, Bangladesh, Turkey and Philippines. China is currently the largest consumer in its export portfolio, followed by Sri Lanka. According to the Patel, export markets generally use more reclaimed rubber due to their larger production capacities.

The export market continues to show strong demand and the company currently has pending orders from China.

However, as European nations vie for restricted EOL tyre exports to India, the scenario for indigenous recyclers can be precarious. Commenting on the potential impact of such restriction, Patel highlighted, “India recycles a significant portion of the scrap tyres it generates. However, unregulated and illegal pyrolysis operations remain a critical concern. These units often operate without environmental compliance, posing risks to public health and the environment. Stronger government intervention and regulatory enforcement are urgently needed to eliminate such practices and ensure sustainable recycling.”

“India’s tyre recycling ecosystem is diverse and imbalanced. While there are numerous recyclers, the segment is dominated by pyrolysis players (approximately 70 percent), with reclaim rubber manufacturers constituting only around 30 percent. This heavy skew towards pyrolysis is problematic, especially since many of these players depend on imported scrap tyres for feedstock. If the import of scrap tyres into India is disrupted, it will create a significant supply shortage, driving up the price of ELTs. Currently, the price of scrap tyres ranges between INR 18–21 per kilogramme, but a halt in imports could potentially increase this to INR 40 per kilogramme, a nearly 50 percent spike, which would severely impact the entire recycling value chain,” cautioned Patel.

Besides this looming issue, Patel highlighted several pending challenges for the industry. One of the primary issues is a shortage of skilled labour. Interestingly, even as the industry moves towards greater automation, the demand for labour continues to rise.

Another challenge is supply delays caused by aggregators, who often fall behind on delivery timelines due to their own labour shortages. Additionally, maintaining quality consistency is difficult as scrap tyres vary in composition from batch to batch. As a result, the company must closely monitor and control its processes.

A significant concern affecting future growth is the regulatory environment. The company remains cautious about expanding production because of the current ban on scrap tyres.

Although the business is regulated, there’s an underlying fear that stricter government action could further limit the supply of scrap tyres. Such restrictions could leave newly built expansion units underutilised.

Patel believes that unless government policies become more supportive, major investments and expansions will remain risky.

Looking ahead, Lead Reclaim Rubber is planning both forward and backward integration. On the forward side, the company aims to start manufacturing rubber tiles made entirely from rubber granules, a by-product of its current process. It also plans to enter the cycle tyre industry.

As part of its backward integration strategy, the company intends to set up more tyre collection centres both internationally and within various Indian states to secure a more consistent supply chain.

Despite two decades of reform, Europe’s tyre recycling ecosystem remains mired in regulatory inertia and market fragmentation. While the EU successfully curbed tyre landfilling in the early 2000s and achieved high collection rates, true circularity remains elusive. Over half of collected tyres are still incinerated rather than recycled into new products. The lack of mandatory recycled content targets, harmonised end-of-waste criteria and coherent eco-design regulations continue to stall progress. As environmental stakes rise and end-markets like artificial turf face bans, EuRIC’s latest manifesto lays bare the urgent need for systemic reform, spotlighting persistent policy voids, legal ambiguities and missed opportunities across the value chain.

Europe’s tyre recycling challenges have been building for over two decades. Back in 1999, the European Union banned tyre landfilling under Directive 1999/31/EC. This forced a major shift, and by 2003, landfilling tyres was officially prohibited. At that point, Europe still struggled to manage the sheer volume of end-of-life tyres (ELTs), often resorting to incineration or exporting them for disposal elsewhere.

Since then, collection rates improved dramatically, from around 25 percent in the mid-1990s to nearly 95 percent by 2010, but recycling quality remained substandard. Although most ELTs were collected, half were used for energy recovery, not material recycling. True circular solutions like reusing rubber in new tyres have lagged due to technological and regulatory hurdles

Complex EU regulations, limited mandates on recycled content and ecological concerns slow innovation. Over the past few years, initiatives like Life Green Vulcan, BlackCycle and policy push from the European Recycling Industries’ Confederation (EuRIC) show growing momentum, but real impact is yet to be seen.

EuRIC has been constantly advocating reforms that would change the course of the continent’s tyre recycling space with its recent manifesto delving into the immediate steps that ought to be undertaken to strengthen the tyre recycling industry.

EuRIC, through its Mechanical Tyres Recycling Branch (MTR), outlined a comprehensive vision for strengthening Europe’s tyre recycling sector. With over five million tonnes of tyres produced annually in the EU and around three million tonnes becoming ELTs, only about half are recycled – the rest are incinerated. EuRIC underscores the environmental advantages of mechanical tyre recycling and advocates for prioritising it over energy recovery to align with circular economy goals.

Speaking to Tyre Trends on the biggest obstacles to implementing mandatory recycled rubber content targets in new tyres and how industry collaboration can help overcome them, EuRIC’s Technical Advisor for tyres, Gabriel Gomez, mentioned, “Currently, the main regulatory challenge is the lack of a mandate from the authorities to define how and when the mandatory recycled content targets are to be implemented. We have received good feedback from the manufacturers in Europe regarding their willingness to include these targets. However, there is a need for a solidly defined regulatory framework that guarantees a level playing field in the tyre value chain and promotes innovation in this area.”

“The main risk of failing to implement harmonised end-of-waste criteria lies in the growing, practical need for a defined set of criteria to determine end-of-waste status. If the EU delays further in the creation of harmonised end-of-waste criteria, this will push member states to create their own national criteria, which could vary significantly and prove incompatible. This fragmentation would lead to market disruption, create confusion across the value chain and introduce legal uncertainty – all of which would ultimately weaken the European recycling industry and its competitiveness,” he added.

He noted that EuRIC strongly supports a complete ban on the export of tyres and tyre shreds for incineration or landfilling. These practices represent a misuse of valuable resources that should be reintegrated into the economy and clearly contradict the waste hierarchy in the European Waste Framework Directive.

“EuRIC, representing Europe’s tyre recyclers would welcome swift implementation of such a ban, especially since existing tools such as the Waste Shipment Regulation are already being used to prevent exports to operators and facilities that do not ensure environmentally sound treatment of these materials,” noted Gomez.

THE MANIFESTO

The recently published manifesto by EuRIC proposes five key policy actions to address systemic barriers and unlock the potential of tyre recycling. First, it calls for mandatory recycled content targets – 10 percent for new tyres and 20 percent for automotive parts – to stimulate demand and reduce reliance on virgin rubber. Public procurement and financial incentives like VAT reductions are also suggested to support this demand shift. Currently, artificial turf accounts for a major share of ELT-derived rubber, but impending bans on micro-plastics threaten this end-market, making policy support more critical.

Second, EuRIC demands a ban on the export of unprocessed and shredded waste tyres outside the EU. ELTs are often exported to regions with weak environmental controls, where they are landfilled or incinerated. Countries like India have become significant importers, raising environmental and regulatory concerns. To counter this, EuRIC stresses the need for strict enforcement of the EU’s Waste Shipment Regulation and advocates for EU-wide end-of-waste (EoW) criteria to facilitate trade within the EU and promote high-value recycling.

Thirdly, the manifesto emphasises the importance of eco-design in tyres, urging that tyres be made retreadable, recyclable and free from hazardous substances. Innovations like self-sealing and noise-reducing foams, while performance-enhancing, impede recycling and can even cause fires during shredding. EuRIC supports the Ecodesign for Sustainable Products Regulation (ESPR) and wants tyre manufacturers to bear the cost of non-recyclable designs.

Fourth, EuRIC promotes the Digital Product Passport (DPP) as a key enabler of recycling efficiency. Current data on tyres is insufficient; hence, they propose leveraging RFID technology to track chemical composition and recyclability through a centralised database. This transparency would help recyclers better handle materials and comply with chemical regulations.

Lastly, the manifesto addresses the need for a science-based chemicals policy that supports recycling rather than undermining it. The current trend towards hazard-based regulation with near-zero thresholds for certain chemicals risks sidelining recycled materials. EuRIC urges a shift towards risk-based assessments, transparent

testing methods and harmonised standards to ensure recycled materials remain viable in the EU’s green transition.

TOWARDS RECYCLABILITY

According to Gomez, mechanical tyre recycling is a recycling method for rubber that has stood the test of time. It remains the most common and best-established route for recycling tyres in Europe with the technology offering high-quality output. It also has the added value that it can serve as a reliable supplier for further processing technologies dealing with vulcanised rubber. Recycled rubber from ELTs offers significant potential for technologies that require a uniform and predictable input to maintain control over industrial processes.

Nonetheless, over three years after rubber from ELTs was prioritised, no regulation has materialised yet. Commenting on what lead to the stalling, Gomez noted, “The past year has brought major changes at EU level with the start of a new Commission mandate, which may explain the shift in priorities. However, at EuRIC we are working closely with manufactures and policymakers to keep the issue high on the agenda. We see harmonised EoW criteria as a key opportunity to align the interests of recyclers and manufacturers. Harmonised EoW criteria would bring significant benefits for the entire value chain, from boosting investment and legal certainty to increasing the uptake of recycled materials.”

Alluding to whether the current EU chemicals legislation, especially restrictions on substances like PAHs, appropriately balances environmental protection with the needs of a circular economy or does it unintentionally favour virgin materials, he stated, “It is not a matter of favouring virgin materials. The main issue is that the current legislation is not designed to consider that the materials in an article may have more than one life. Whenever the legislation targets the content of a substance in a recycled material, sometimes it fails to consider the real exposure to the substance based on the application and the nature of the material.”

Digital Product Passport is another vital tool for the entire industry’s circularity goals. While it is still in its early stages, EuRIC notes that there are projects that target the implementation of the DPP in tyres and it is optimistic about the possibilities this tool offers to the industry. Amongst the information that the DPP should make available for recyclers is the contents of substances of concern and hazardous substances as well as any substances or features that would hinder the recycling of the tyres. With this information in hand, the recyclers will be able to sort the tyres in a manner that allows for safer recycled products and more efficient processing.

PERSISTENT HURDLES

According to Gomez, illegal or poorly regulated exports of tyres create serious problems both economically and environmentally. They drain valuable raw materials from the EU and risk harming the environment and public health in importing countries if ELTs are not treated in an environmentally sound manner.

Furthermore, the loss goes beyond the economic aspect when it comes to the materials used on tyres. Incinerating ELTs destroys a valuable resource like rubber and locks us into a linear economy model that’s no longer fit for purpose. Recycling, on the other hand, and overall circularity of tyres, keeps materials in the loop, boosts resilience and contributes to EU sustainability and competitiveness.

A strong starting point to combat illegal exports would be the rigorous enforcement of the Waste Shipment Regulation, specifically targeting ELT exports. If recyclers can count on a steady, reliable supply of materials, they will invest. Increased availability of material and supply security are essential to encourage investments in recycling.

“An important take-away of the policy related to tyre recycling is that tyres should be treated as strategic resources, not just waste. Tyres are essential to every economy activity and inevitably reach its end-of-life stage. This makes it critical to regulate the full lifecycle, from design to disposal, with circularity in mind. Aligning on principles, like prioritising recycling over landfilling or incineration, would already be a big step forward globally,” averred Gomez.

Commenting whether Europe’s mechanical recycling infrastructure is equipped to handle a sharp increase in ELTs if exports are banned, he mentioned, “The mechanical tyre recyclers in Europe are determined to meet the challenge and tackle the increase in ELTs if an export ban is implemented. However, unlocking further capacity and investments in future development projects depend on regulatory certainty. That means a guaranteed level playing field through harmonised EoW criteria, recycled content targets and eco-design for improved recyclability. With the right framework and tools, uncertainty can be removed and investments will follow.”

While the mandatory recycled content requirements are essential to boost recycling, complementary short-term financial incentives, whether market-based or fiscal, are equally necessary to close the price gap between primary and recycled materials. Fiscal incentives, such as reduced VAT rates for recycled materials and products made from recycled materials, can play a major role in encouraging uptake. Green public procurement also holds substantial potential to stimulate demand for more sustainable and circular products.

Recycled materials from ELTs have real potential in the EV supply chain. Interest is growing, and EuRIC is confident that recycled rubber can be a reliable, high-quality material to support the shift to greener mobility.

Gomez noted that there are many encouraging examples of manufacturers incorporating recycled and sustainable materials into tyre design. A great advantage that recycled materials from ELTs offer is the availability of high-quality recycled raw materials that reliably allow manufacturers to experiment and innovate as they know that the recycling industry is capable and ready to deliver.

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TAILORED TYRE SOLUTIONS FROM A TEAM OF GLOBAL EXPERTS

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Ergon’s tyre oils, including naphthenic oils, are carefully monitored to meet stringent regulatory requirements, ensuring compliance with the amendment (EU) 2015/326 of Annex XVII to the REACH regulation (EC) 1907/2006; the European standard EN 16143:2013, which governs the determination of Benzo(a)pyrene (BaP) and selected polycyclic aromatic hydrocarbons in extender oils.

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ERGON PRODUCTS USED IN TYRES

Ergon Mineral Oil Products – Low-PAH Naphthenic Oils

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A new proposed standard (WK91069) from ASTM International’s recovered carbon black (rCB) committee aims to dramatically improve production monitoring and productivity for manufacturers. Currently, quality testing for rCB can take as long as 18 hours using an existing method adapted from ASTM’s carbon black standards.

The proposed standard, developed by the committee’s rCB subcommittee, would reduce testing time to just a few hours. According to Pieter Ter Haar, Director of rCB at Circtec and an ASTM member, this change will allow producers to make faster process adjustments, minimise off-spec material and provide end-users with quicker, more reliable results. The initiative reflects an industry effort to enhance efficiency and quality assurance in recovered carbon black production.

Ter Haar said, “The method currently used, which has been adopted from ASTM’s carbon black committee, results in a testing time that can take up to 18 hours. This is very inconvenient for producers for whom this is an important quality parameter.”