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.

PCBL Chemical is positioning itself for significant growth through strategic expansions and capacity additions across multiple business segments, capitalising on emerging global chemical market opportunities. 

The company is making substantial investments in its manufacturing capabilities, with a notable recent development being the allocation of 116 acres of land in Andhra Pradesh’s Naidupeta region.
This new site represents the company’s sixth manufacturing location, which can house roughly 400,000-450,000 metric tonnes per annum (MTPA) of carbon black capacity. It is strategically positioned near major ports like Kattupalli and Krishnapatnam, enabling efficient logistics and cost-effective goods movement. 
“The first phase of this expansion will involve establishing a 150,000  MTPA carbon black plant, with an estimated investment of approximately INR 9.5-9.6 billion and a projected timeline of 2-2.5 years,” said Raj Gupta – Chief Financial Officer – PCBL Chemical Limited.

Current manufacturing capacity has already been expanded, with the company recently commissioning a specialty line of 20,000 MTPA in Mundra, bringing its total capacity to 790,000 MTPA. The company is simultaneously pursuing multiple expansion tracks, including a brownfield expansion of 30,000 tonnes in Tamil Nadu and a second phase expansion of 60,000 tonnes, accompanied by a 12 MW green power project.

In the speciality chemicals domain, PCBL is making significant strides. The company has launched ECOZENTM6000, a new product grade based on recycled materials, demonstrating its commitment to sustainability. 
The company has also been certified with International Sustainability and Carbon Plus (ISCC) certification, underscoring its dedication to responsible production and circular economy principles.

The company is particularly bullish about its export markets, especially in Europe and North America. Despite current geopolitical challenges stemming from restrictions on Russian Carbon Black exports, PCBL sees this as an opportunity to expand its market presence. The company has increased its international sales volumes, with western market contributions rising from 7-8 percent historically to approximately 35 percent currently.

The specialty Carbon Black segment shows promising growth, with projected full-year sales volume expected to reach 63,000-64,000 tonnes, compared to 57,000 tonnes last year. “Management anticipates gradual margin improvements in this segment over the next 2-4 years as they move up the value chain,” said Gupta.

A particularly exciting development is the company’s nano-silica project. PCBL is currently establishing a pilot plant for sampling, with plans to develop a 2,000-tonne commercial facility. “Now, this 2,000 tons, based on our back of the envelope calculation, should give us somewhere around INR1,700-1,800 crores kind of a top line and roughly about INR800-900 crores kind of EBITDA,” said Gupta.

Tokai Carbon Co., Ltd., Bridgestone Corporation, Kyushu University and Okayama University have started a technology development project to perform secondary processing on recovered carbon black (rCB) extracted from polymer products like end-of-life tyres containing rubber in order to create new eco carbon black (eCB) from these and other sources. With rubber reinforcing qualities comparable to those of virgin carbon black (vCB), which is made from coal and petroleum, the initiative seeks to transform these resources into eCB. Through the development of cutting-edge recycling technologies, the collaborative project partners want to contribute to the attainment of a circular economy and carbon neutrality.

This project is a component of the ‘Technology Development for Carbon Recycling from Polymer Products Including End-of-Life Tires’ demonstration programme, which was put out by Tokai Carbon in collaboration with Bridgestone, Kyushu University and Okayama University. The New Energy and Industrial Technology Development Organisation (NEDO) chose the project on 23 December 2024, under the heading of ‘Green Innovation Fund Project/Technology Development for Manufacturing Plastic Raw Materials Using CO₂ etc’.

In order to recover and utilise rCB, efforts are already in progress to pyrolyse polymer materials, including rubber from tyres that are nearing the end of their useful lives. Nevertheless, there are still obstacles to overcome before rCB may be used practically in new tyres. Because it contains so many contaminants, rCB performs worse than vCB when it comes to rubber reinforcement. Additionally, heat recovery produces CO2 emissions even if many end-of-life tyres are successfully used as fuel. The demand for tyres is predicted to increase in tandem with the projected expansion in the automotive and transportation sectors. The goal of these initiatives is to improve resource circulation by making it easier to recycle vCB, a crucial component of tyres.

Bridgestone, Kyushu University and Okayama University's knowledge and technologies will be combined with Tokai Carbon's own technologies and skills gained from manufacturing carbon black. The goal of the collaborative project is to create technologies that will eliminate impurities from rCB and create eCB with better rubber reinforcing qualities. By fiscal year 2032, the initiative aims to set up a demonstration unit that can produce 5,000 tonnes of eCB annually. The research will also concentrate on creating unique polymer/carbon composites that allow carbon black to be reused without pyrolysing tyres that have reached the end of their useful lives. With these efforts, the collaborative project participants hope to achieve enhanced recycling of scarce materials and contribute to lowering the CO2 emissions linked to the manufacturing of carbon black and the recycling of end-of-life tyres.

The Synthetic Turf Council (STC) has expressed strong opposition to the proposed motion to ban synthetic turf in Santa Clara County. Melanie Taylor, President and CEO of the organisation, submitted a testimony in this regard to the Santa Clara County Board of Supervisors, highlighting the significant environmental and community benefits of synthetic turf while addressing concerns related to safety and accessibility.

There was strong resistance to the proposed turf ban from parents, football players and business owners when the Santa Clara County Board of Supervisors last discussed the proposal in August. In fact, several of these people spoke out against the proposed turf ban at a Board meeting on August 13. Seventy-five percent of public remarks were about synthetic turf, despite the fact that it was not on the official agenda that day. Notably, pro-turf speakers exceeded anti-turf ones by a 2:1 ratio.

Over the last few months, STC has taken a number of initiatives to express its strong objection to the prohibition. Before the Board tabled the proposal to limit turf usage throughout the county for reconsideration in January, Taylor sent written evidence to the Board in August. In an article arguing against the proposed ban before to that August hearing, STC emphasised the industry's dedication to coming up with creative ways to preserve fields nearing the end of their useful lives and guaranteeing the safety of its goods by removing purposefully added PFAS from synthetic grass.

Taylor said, "Recreational fields are more than just playing surfaces, they are essential community infrastructure. Families, schools and businesses choose synthetic turf because it provides year-round access to affordable, durable and eco-friendly fields, especially in drought-prone states like California. A ban on turf in Santa Clara County will only hurt communities by depriving them of these long-term benefits and cost savings that turf uniquely provides."

The Association of Natural Rubber Producing Countries (ANRPC) has released its Monthly NR Statistical Report for December 2024.

According to the report, robust market fundamentals and increased trading activity brought on by year-end orders before the Lunar New Year holidays in January helped to somewhat raise the average monthly prices for natural rubber (NR) in December. But because of poor economic conditions, this increasing trend – which was first fuelled by China's stimulus measures, which were implemented in late September – lost steam. Furthermore, ongoing threats from US tariffs impacted market stability and caused anxiety.

With more import orders and more rubber coming from Thailand as a result of less rainfall, China's natural rubber stockpile began to grow by the middle of December. Although there were some encouraging advances overall, the report also notes that the market continues to face the previously highlighted difficulties that might affect future price stability.

With the revision on Indonesian and Cambodian output, the prognosis for worldwide NR production in 2024 is up 2.8 percent from the previous year, according to the performance and updates from ANRPC member countries (AMC). With the change from Indonesia and Malaysia, the global demand growth projection for 2024 is up 1.8 percent.