Capital Carbon Expands rCB Capacity To Tackle Supply Chain Issues
- By Gaurav Nandi
- January 14, 2025

The Tamil Nadu-based company’s greenfield expansion will propel its rCB capacity from 5,000-20,000 metric tonnes. Director Ravi Rathi explained that there has been a change in attitude towards rCB within tyre companies, leading to heightened demand.
Tamil Nadu-based Capital Carbon is expanding its recovered carbon black (rCB) capacity by 15,000 metric tonnes with a new greenfield project at Gummidipoondi. The plant is slated to become operational by January 2025 and boost the capacity from 5,000 metric tonnes to 20,000 metric tonnes, annually.
Speaking to Tyre Trends, Director Ravi Rathi explained, “The decision to pursue a greenfield expansion in the rCB sector stemmed from the rapid development of this innovative product over the past four to five years. Given our background in the pyrolysis business, expanding into rCB felt like a natural progression. rCB is still a relatively new product and both manufacturers and users are in the process of learning about its applications. When we first began exploring this market, around four years ago, it was challenging. Many tyre manufacturers would dismiss our proposals even before we could present our case as they were hesitant to incorporate recycled materials into their mainstream formulations.”
“However, in recent years, attitudes have shifted significantly due to increasing emphasis on sustainability and circular economy principles. The industry is now more open to integrating green products. We started with a modest capacity of 5,000 metric tonnes per annum, which allowed us to gain insights into customer needs. Gradually, we scaled our operations from small quantities to commercial sales. The key driver for our recent expansion is customer demand. We have obtained product approval, and customers are eager to purchase rCB,” he added.
He also noted that companies wanted assurance that the demands could be met consistently, which was also a factor behind the expansion. Furthermore, having multiple units also allows the company to manage any potential supply chain issues, effectively. “If a minor problem arises in one unit, we can still supply material from another, minimising disruptions for our customers,” said Rathi.
The entire CAPEX for the greenfield plant is set at INR 20 crore.
Pyrolysis to rCB
Capital Carbon commenced operations in 2012 with a modest pyrolysis capacity of 10 tonnes per day. Over the years, it has consistently expanded its capacity, increasing to 150 metric tonnes per day. The company has also bolstered its backend operations, enhancing sourcing capabilities and adding substantial shredding and crumbing capacity.
Additionally, Capital Carbon has focused on value-added products including pyrolysis oil distillation and rCB. As of now, it operates a shredding capacity of 120,000 metric tonnes per annum for captive consumption. This capacity is supplemented by sourcing contaminated tyre bales, which typically have 20-30 percent rubber contamination. This material is cleaned to yield 98 percent pure steel, with the remaining rubber used for pyrolysis, creating a separate business vertical.
Currently, the company processes approximately 50,000 to 52,000 metric tonnes of tyres per annum through its pyrolysis operations. In terms of value addition, Capital Carbon produces between 20,000 to 24,000 tonnes of pyrolysis oil, annually.
When asked about the motivation behind establishing a pyrolysis plant, Rathi noted, “My father worked at Birla Carbon and retired in 2019. Although we lacked prior business experience, we were inspired by the industrial upbringing and the promising potential of the pyrolysis sector. Following the completion of my chartered accountancy studies, I decided to pursue this opportunity.”
He acknowledged that pyrolysis often has a negative reputation in India, where it is sometimes viewed as a ‘dirty business’. To combat this perception, Capital Carbon prioritises quality management and environmental responsibility in its operations. IT employs fuel-based heating methods in its pyrolysis process as electric heating is generally not feasible due to the high volumes involved in tyre pyrolysis. The initial heating requires some fuel, which can include biomass or pyrolysis oil, but the system becomes self-sufficient once it reaches a certain temperature.
The primary outputs from the pyrolysis process include fuel oil, carbon char (used as raw material for rCB or as an alternative energy source for cement plants), steel wires and pyrolysis gases, which are utilised for heating purposes.
He highlighted that the pyrolysis oil produced is of high quality with low sulfur and carbon content, making it cleaner than many conventional heating fuels used in India.
Quality control
The company’s sourcing strategy primarily focuses on domestic suppliers. It procures rejected tyres and dealer returns from various companies, which constitute a substantial portion of the feedstock. This local sourcing approach ensures that it maintains a steady supply of raw materials
Following sourcing, the production of recovered carbon black involves several critical steps. Initially, tyres are shredded to extract carbon black, steel and other components. The distinction in product application necessitates tailored processing methods.
For instance, producing carbon char for energy requires less stringent technical specifications compared to producing carbon black intended for high-performance applications, such as tyre manufacturing or footwear.
“The quality of the final product begins with meticulous sorting of tyres to determine suitability for pyrolysis. This initial step is vital for ensuring consistent output quality. Following sorting, the tyres are shredded into steel-free rubber chips of 15-20 millimetres. During pyrolysis, we focus on maintaining specific quality parameters for the pyrochar produced. This includes stringent controls to limit ash content, which must remain below 20-22 percent to ensure product consistency. The handling of impurities such as wires and stones in the pyrochar is essential. Post-processing, the pyrochar is milled to fine particle sizes (10-15 microns), enhancing its surface area for better compatibility with rubber compounds,” explained Rathi.
Once the recovered carbon black is processed, palletisation becomes the next step. This method streamlines handling and ensures that the product meets industry standards. While the equipment resembles that used for traditional carbon black, adaptations are necessary to accommodate the unique characteristics of recovered carbon black.
“To facilitate customer adoption, we offer tailored packaging solutions including 25kg paper bags, EVA / LDPE bags and FIBC bags, allowing clients to integrate our products seamlessly into their existing production processes,” he added.
As the industry evolves, the need for standardised quality benchmarks for recovered carbon black has become increasingly clear. Major corporations have driven this change, leading ASTM to establish a dedicated committee (D36) focused on developing specific standards for recovered carbon black. Unlike conventional carbon black, which adheres to existing standards, recovered carbon black requires new metrics to account for its varied origins and compositions.
The committee is currently validating a series of standards including moisture content, pallet hardness and particle size analysis, specifically for rCB. This ongoing development is slated to enhance product credibility and facilitate broader market acceptance.
Commenting on the same lines, Rathi mentioned, “We maintain a dedicated quality lab to refine our production processes continually. Our focus on evolving our offerings has resulted in the introduction of two new grades of recovered carbon black, aimed at meeting diverse market needs. Our commitment to leveraging advanced machinery and improved grinding techniques reflects our proactive approach to quality enhancement and capacity expansion.”
Optimistic market outlook
The demand for recovered carbon black in India is poised for significant growth, driven by a strong shift toward sustainability. Customers are increasingly seeking high-quality suppliers, indicating a burgeoning market for rCB.
“Globally, rCB production currently accounts for less than one percent of total carbon black production, underscoring a substantial opportunity for expansion. As customer awareness and demand for sustainable products increase, we anticipate a corresponding rise in rCB consumption,” informed Rathi.
He added, “Many major corporations have committed to achieving carbon neutrality by 2050, necessitating immediate action to integrate green and circular products into their supply chains. As these companies strive to meet their net-zero targets, they are turning to recovered materials such as rCB to fulfil sustainability mandates. Our role is crucial in assisting these customers to achieve their goals through the production of eco-friendly and circular products derived from end-of-life tyres.”
Speaking on market opportunities, he said, “India remains our largest market, but we are also making significant inroads into Sri Lanka. The European market is particularly promising, though it presents challenges related to certifications and distribution. We are currently working on obtaining the necessary certifications, including ISCC Plus, to unlock this market potential.”
“Our immediate focus is on completing our current expansion project, after which we will enhance our pyrolysis capacity to align with the growing demand from our customers. As the volumes of recovered carbon black usage increase, we aim to be ready with sufficient supply,” he added.
He expects to penetrate the European market by the first half of FY26, following the completion of the current plant expansion.
Challenges in scaling production
“One of the primary challenges in scaling rCB production is the scarcity of raw materials. The supply of suitable feedstock is diverse and scattered, making it difficult to source consistently. In the past, customers struggled to understand the differences between recovered carbon black and virgin carbon black grades, often asking if we could produce specific grades like L550 or L660. However, as knowledge in the market has matured, customers are increasingly recognising that rCB is a distinct material requiring tailored processing approaches,” informed Rathi.
Michelin Collaborates With Murfitts For Tyre Pyrolysis Plant
- By TT News
- July 01, 2025

Murfitts Industries, the UK’s largest tyre recycling company, has unveiled plans for a state-of-the-art materials recovery facility at Michelin’s Stoke-on-Trent tyre plant. This groundbreaking initiative will transform end-of-life tyres into valuable resources while significantly reducing the site’s environmental footprint. The advanced recycling process will recover energy to power Michelin’s manufacturing operations, cutting annual CO₂ emissions by 1,500 tonnes. Additionally, the facility will produce high-quality recovered carbon black (rCB) and tyre pyrolysis oil (TPO), supporting sustainable material production.
Under the agreement, Michelin will supply Murfitts with 12,500 tonnes of discarded tyres annually – equivalent to 1.35 million car tyres. This capacity far exceeds local demand, with the plant able to process the equivalent of two tyres from every car registered in Stoke-on-Trent and Staffordshire. Slated for completion by late 2026, the facility will apply Murfitts’ proprietary pyrolysis technology at commercial scale, extracting reusable raw materials from tyres. The rCB will serve as a sustainable alternative in tyre manufacturing and other industrial applications, while TPO will be used in material production and alternative fuels, displacing virgin petroleum feedstocks.
Beyond material recovery, the process generates steam that will directly supply Michelin’s tyre-curing operations, replacing natural gas and further reducing fossil fuel reliance. Murfitts, which already recycles 20 million tyres yearly for applications like sports surfaces and road asphalt, continues to pioneer circular economy solutions – ensuring tyre-derived materials re-enter production cycles, closing the loop on waste. This collaboration marks a major step toward greener tyre manufacturing and resource-efficient industrial practices.
Mark Murfitt, Founder, Murfitts Industries, said, “We believe this plant could be a breakthrough in the life cycle of a tyre. It moves tyre recycling on from recovering energy and material for other uses to being able to feed it directly back into factories for new tyre production. Our core ethos at Murfitts has always been that end-of-life tyres are a valuable resource and we need to do all we can to maximise the use of the energy and materials within them. We have been developing our pyrolysis process for a number of years and our results now show we can produce material from end-of-life tyres which can perform better than the virgin equivalent for some applications. This plant will be a win-win for the tyre industry, the local and national economy and the environment.”
Christina Peloquin, Site Director, Michelin UK, said, “This is a really exciting project which reduces our environmental impact at the same time as helping us stay competitive by lowering our energy costs. The team has worked exceptionally hard on this project, and we’re looking forward to welcoming Murfitts to our Stoke-on-Trent site.”
Maria Röttger, CEO and President, Michelin Europe North, said, “At Michelin, we see every challenge as a chance to lead positive change – and end-of-life tyres are no exception. As shapers, innovators and pioneers of sustainable mobility, Michelin is committed to transforming the way tyres are handled at every stage of their life cycle. Through our deep expertise and forward-thinking approach, we are co-building a robust recycling ecosystem that redefines what has previously been possible. This project with Murfitts Industries is a powerful reflection of Michelin’s enduring commitment to sustainability and responsible leadership in the tyre and rubber industry.”
Evonik to Boost Asia Supply Chain with Shanghai Production Expansion
- By TT News
- June 30, 2025

Evonik Industries will localise production of a key tyre additive in Shanghai, marking a strategic shift to enhance supply security across Asia amid growing regional demand.
The Essen-based company announced plans to establish the final production step of its POLYVEST ST-E 60 product at its Shanghai facility, with operations expected to commence by the third quarter of 2025. The expansion will significantly increase the global production capacity of silane-functionalised polybutadienes.
The move represents Evonik’s latest effort to strengthen supply chains and reduce dependency on European manufacturing for Asian markets. POLYVEST serves as a reactive plasticiser in tyre formulations and is also used in rubber compounds, adhesives, tyres, coatings, and sealants.
“This strategic investment will enhance our production capabilities and ensure that our customers in Asia benefit from improved supply security and shorter lead times,” said Dr Anna Maria Ickert, Head of Evonik Coating & Adhesive Resins. “In today’s environment, fostering independent supply chains and bringing our products closer to our customers is essential, enabling us to respond more effectively to their needs.”
The Shanghai expansion comes as global chemical companies reassess manufacturing footprints following supply chain disruptions experienced during the pandemic and ongoing geopolitical tensions. China remains a crucial market for speciality chemicals, particularly in the automotive and construction sectors.
Evonik’s decision reflects broader industry trends towards regionalisation of production, with companies seeking to reduce logistics costs whilst improving responsiveness to local market demands. The tyre industry, a key end-market for POLYVEST, has experienced robust growth in Asia driven by expanding automotive production.
Dr Jürgen Herwig, Head of Evonik’s polybutadienes and speciality acrylics business, emphasised the expansion’s strategic importance. “This expansion aligns with our long-term strategy to strengthen our global footprint while maintaining a strong focus on sustainability and operational excellence,” he said. “The new capacity will enable Evonik’s customers to achieve their business goals while participating in the region’s growth.”
POLYVEST products utilise rubber-based chemistry to ensure compatibility with tyre tread compounds, thereby addressing performance requirements in an increasingly demanding automotive market. The localisation strategy aims to reduce lead times whilst maintaining product quality standards.
Collaboration Is A Growing Need!
- By Sharad Matade & Gaurav Nandi
- June 30, 2025

The tyre industry has undergone significant changes over the past century, particularly in material composition and performance optimisation. While the external appearance of tyres may remain similar, advancements in rolling resistance and the integration of sustainable materials have reshaped the sector. Michelin, alongside its competitors, has been embracing innovation through collaborations to meet its ambitious 2050 sustainability goals, focusing on using 100 percent renewable and recycled materials. However, the challenge lies in scaling up recycling technologies and ensuring effective sorting. As the industry shifts, RFID technology and extended producer responsibility (EPR) regulations are emerging as critical tools for achieving material circularity and enhancing recycling efficiency.
Tyres have changed in the last 100 years. While the basic shape and colour might look the same, the internal composition has evolved significantly. Over the past century, and especially in the last 30 years, there have been major advances. One of the most significant has been the improvement in rolling resistance. Achieving lower rolling resistance without compromising grip has been a major technical challenge, and it has had a direct impact on fuel efficiency. In parallel, there’s been increasing focus on using more sustainable materials in tyre manufacturing. So, while it might not be obvious from the outside, there’s been substantial innovation under the surface.
However, it is a well-known fact that the tyre industry is secretive. Companies keep their research and development as tight as possible, but endeavours for including recyclable materials seem to break that ceiling, prompting towards collaborations.
Speaking exclusively to Tyre Trends, Sander Vermeulen, Vice President for End-of-life Rubber Products Recycling Business at Michelin, said, “There is a growing need and momentum for tyre companies to work more closely together, particularly around sustainability and materials innovation. Many companies have set ambitious goals for 2050, which include using 100 percent sustainable materials, achieving full recyclability or becoming carbon neutral. While each company may define these goals differently, the overarching direction is very similar.”
“A good example of this shift is our recent collaboration with Bridgestone through the ‘Call for Action’ initiative. We discovered that both companies shared similar long-term ambitions. One major challenge we identified was the scalability of innovations, especially from recycling companies. Many of these innovations work well at small scale, but scaling them up to meet the needs of the global tyre industry is a different story. What’s promising is that instead of working in silos, we began engaging in open dialogue. Both Michelin and Bridgestone were receiving proposals for new materials but often found them unsuitable for tyre applications. Rather than simply rejecting these proposals, we asked that how we can help these suppliers improve the products,” he added.
He noted that together the tyre makers started defining shared specifications that outline the minimum criteria a new material must meet to be viable for tyre manufacturing. “It’s not a guarantee of adoption, but it provides a clear, transparent benchmark. And if a material doesn’t fall within that box, we can save time for ourselves and the suppliers,” added Vermeulen.
He also quipped that he had never imagined working so openly with a competitor like Bridgestone whilst strictly respecting antitrust rules. But the experience has been incredibly constructive.
Michelin’s 2050 target is bold as it seeks to make 100 percent of its tyres from renewable, recycled or sustainable materials. Recycling sits at the core of that ambition. Internally, the company is aligning efforts across departments to meet this goal with a near-term milestone of 40 percent sustainable content by 2030.
That percentage includes both recycled and bio-based materials. However, Michelin isn’t developing recycling technologies in-house. Instead, it’s working with a network of external partners to identify and scale promising innovations.
Among its collaborators are Enviro and Infiniteria as well as broader initiatives like Biobutterfly and the WhiteCycle consortium, which focuses on recovering textile fibres for tyres. The company remains open to any solution that can help close the loop on tyre materials.
As of the most recent annual report, Michelin reported that 31 percent of the materials used in its tyres are either renewable or recycled. This figure reflects the combined share of both categories, not recycled content alone.
Opining on whether recycled materials are easier to use in commercial or passenger tyres, Vermeulen said, “It really depends on the specific application. Some applications allow for a higher percentage of renewable or recycled content than others. But we don’t break down our targets or current performance by tyre category. The current figure we’ve communicated in our annual report is a global average across all types of tyres.”
EVOLVING VALUE CHAIN
As tyre companies remain steadfast towards the respective goals of using recycled and renewable materials, a glaring question that remains is the fate of current suppliers. Explaining how the value chain will be impacted once tyre companies reach the goals, Vermeulen stated, “They will also need to adapt. The entire value chain must evolve. That means synthetic rubber producers and oil suppliers need to develop renewable or recycled versions of the materials they currently provide. Everyone, from upstream raw material providers to downstream manufacturers, will need to contribute if we’re going to meet these ambitious goals.”
Commenting on whether such shift will restructure the entire tyre industry, he said, “It’s hard to make specific predictions, but one thing is clear that the entire value chain is already beginning to change. All raw material suppliers now understand the direction tyre manufacturers are heading. We’re already seeing many traditional suppliers exploring new approaches to reduce the reliance on fossil-based materials. Some are developing recycled alternatives, while others are exploring biobased feedstocks.”
“In this effort, a concept we explored in a large-scale European project was called BlackCycle. It brought together various actors from the entire tyre industry value chain including raw material suppliers and other stakeholders to map out how we can extract maximum value from end-of-life tyres. It looked at viable recycling pathways including how pyrolysis oil can be integrated into chemical supply chains. We all need to work together to co-create solutions based on renewable and recycled materials,” he added.
Michelin doesn’t plan to produce recycled materials itself. Instead, its focus is on defining performance and quality specifications, then partnering with companies ranging from start-ups to established suppliers that can deliver materials meeting those standards.
Commenting on the same lines, he added, “The entire tyre industry has a strong interest in gaining access to recycled materials that can be reused in new products. And to achieve that, partnerships are essential. There’s no way we can meet these ambitions if every company stays within its traditional boundaries and works in isolation. We believe in collaborating across the value chain. Often, smaller companies have breakthrough technologies or innovative ideas but lack the resources or infrastructure to scale. In those cases, if we can help them access funding or industrialise the processes, it’s a win-win for the industry as a whole.”
While performance gaps between recycled and virgin materials are a known concern, Michelin sees scalability as the more critical barrier. Many recycling innovations show promise at the lab or prototype level, but few are ready for industrial-scale production.
To bridge that gap, Michelin and others in the sector are working closely with innovators to help mature these technologies to meet industry demands.
REGULATION & TECHNOLOGY
The extended producer responsibility (EPR) has been a staunch advocate for recycling end-of-life tyres across countries. The regulation is not only limited to European markets but has expanding into countries like India too.
Commenting on whether EPR regulations will help drive more effective recycling, Vermeulen said, “Extended producer responsibility plays a key role in tyre recycling by making manufacturers responsible for collecting and recycling tyre after use. In countries with EPR laws, such as most of Europe, producers and importers must ensure proper tyre collection and recycling. This legally mandates tyre producers to manage the end-of-life stage of the products. However, EPR is not the only model that can ensure effective recycling. In regions without EPR, like the United States, tyre recycling is still managed through a free-market system driven by industry and service providers. Even in Germany, which lacks an EPR law, tyres are still collected and managed properly through industry-driven solutions.”
“While EPR can certainly help in places with limited infrastructure, the key to effective tyre recycling lies in how well the system is organised. Whether through EPR or free-market models, both can be effective as long as the collection and recycling infrastructure is well established,” he added.
Vermeulen also views RFID technology as a crucial enabler for achieving material circularity in the tyre industry. By embedding RFID tags, tyres can be tracked and identified with precise information about its composition, helping to streamline the recycling process. This technology allows for better sorting of tyres based on specific material make-up, which is critical for maximising the quality of recycled materials.
Just as with household recycling, the challenge is to ensure that materials are sorted effectively. With too many sorting categories, costs rise without guaranteeing better quality. RFID makes it easier to identify the correct ‘bin’ for each tyre, whether it’s a winter, truck or passenger car tyre.
Additionally, RFID can help differentiate between new, retreaded and partially worn tyres, which often have varying materials and recycling needs. This enables more efficient sorting, improving the overall quality of the recycling output while keeping costs manageable. Michelin sees RFID as an essential tool in making the recycling process more effective and economically viable.
Pyrum Advances Construction Plans For New Tyre Recycling Plant In Perl-Besch
- By TT News
- June 28, 2025

Pyrum GreenFactory II GmbH, a wholly owned subsidiary of Pyrum Innovations AG, has secured approval to begin early construction of its new tyre recycling plant in Perl-Besch. This marks Pyrum’s second independently operated facility, expanding its recycling footprint in Saarland. The plant will occupy a 25,000 m² site near the Germany-France-Luxembourg border, with an annual capacity to process 22,400 tonnes of end-of-life tyres.
The location offers strategic logistical advantages, including access to the Moselle River, existing rail connections and nearby highways, facilitating efficient transport of raw materials and recycled products. Pyrum is currently evaluating multiple delivery routes to optimise operational efficiency and minimise environmental impact.
With the early construction approval now in place, the company can immediately initiate tender processes. A groundbreaking ceremony is planned for July 2025, with commissioning targeted for the first quarter of 2027, assuming construction stays on schedule. The new plant reinforces Pyrum’s commitment to sustainable tyre recycling and circular economy solutions in the region.
Pascal Klein, CEO, Pyrum Innovations AG, said, “Now that the permits have been granted, nothing stands in the way of breaking ground. Our second own plant marks the next important step in our rollout plan. We are delighted to finally be able to move on to the construction phase. With the new plant, we are not only doubling our recycling capacity, but also setting another example for sustainable tyre recycling.”
Kai Winkelmann, CFO, Pyrum Innovations AG, said, “The first part of the EUR 25 million credit line from BASF, which was agreed at the end of 2023, will be used in particular to finance the equity share of the new plants in Perl-Besch and the Czech Republic. In addition, we are in advanced, positive discussions with various financing partners, including a major European bank. If the financing talks are successfully concluded, both projects would be fully financed and the basis for accessing the second part of the loan granted by BASF in the amount of an additional EUR 25 million would also be established. This would provide the company with additional financing in the high double-digit million range for further projects in the rollout plan.”
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