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.

BDI-BioEnergy International GmbH, Prismore Capital and JR New Horizons (the investment arm of the Rieckermann Group) have jointly acquired Grupo BB&G’s advanced tyre pyrolysis technology through a newly established subsidiary, BB&G Recycling. The joint acquisition marks a significant step in sustainable tyre recycling and the circular economy.

The deal was finalised after Prismore Capital identified BDI-BioEnergy International, co-acquired by Rieckermann in January 2024, as a strategic technology and investment partner. The proprietary pyrolysis technology transforms end-of-life tyres into high-value outputs, including tyre pyrolysis oil (TPO) and recovered carbon black (rCB). These materials can be reintegrated into manufacturing processes, serving as sustainable alternatives for producing new tyres, rubber-based products and plastic compounds.

Through BB&G Recycling, the joint venture aims to further develop the BB&G brand by focusing on three core areas. First, ongoing process optimisation and technological advancements will enhance the efficiency and marketability of the pyrolysis system. Second, the construction of dedicated industrial plants will operationalise the technology at scale, reducing the environmental impact of tyre waste and advancing circular economy principles. Third, the consortium plans to expand internationally, marketing the technology to global markets to address pressing environmental challenges related to tyre disposal.

Miguel Gil Mata, CEO, Prismore Capital, said, “This strategic investment marks a significant milestone in our efforts to strengthen and scale our circular economy vertical. We are excited to collaborate with BDI and Rieckermann to bring this cutting-edge technology to market.”

David Niederl and Manfred Baumgartner, Managing Directors of BDI, said, “BDI is proud to be the technology partner in this joint venture. The innovative tyre pyrolysis technology not only addresses a critical environmental issue but also promotes a circular economy by converting end-of-life tyres into valuable products. This strategic investment also allows us to diversify and strengthen our position in pyrolysis technologies, thereby fostering innovation and technological advancements within the industry.”

Flynn Seidel, Chairman, Rieckermann GmbH, said, “With the tyre pyrolysis technology, our customers in Asia can look forward to the development of new and improved products and high-quality, sustainable options. Leveraging on the Rieckermann Group’s extensive operating network in Asia and MENA, we can effectively market the technology licenses and solidify BB&G’s position and ours as the first-choice industrial solution provider.”

Chinese industrial equipment manufacturer Sinochem Rubber & Plastics Machinery shipped its first batch of export machinery for 2025 to a high-performance all-steel radial tyre manufacturing project in Vietnam after the liquid-press vulcanising machines passed client acceptance trials at its Yiyang manufacturing facility.

The equipment was transported to Vietnam via sea-rail intermodal routes through Guangxi province, with additional shipments of liquid-press and servo-hydraulic vulcanising machines scheduled for delivery to the Southeast Asian nation.

The shipment represents the initial delivery from Sinochem Rubber & Plastics Machinery’s expanded production of overseas orders this year as the company capitalises on growing demand from Belt and Road Initiative markets across Southeast and South Asia.

Sinochem Rubber & Plastics Machinery has secured multiple large-scale international contracts whilst simultaneously expanding its domestic operations, targeting rubber machinery markets in the region where industrial development has accelerated.

The Vietnamese client, operating from an industrial park near Ho Chi Minh City, previously purchased equipment from Sinochem in 2023 for the high-performance all-steel radial tyre manufacturing project. The Chinese manufacturer customised and upgraded its machinery to support the client’s transition towards more intelligent and environmentally sustainable production methods.

Production lines utilising Sinochem’s vulcanising equipment are currently operating at full capacity, with the all-steel radial tyres demonstrating consistent performance metrics. The Vietnamese-manufactured tyres have gained acceptance in local markets and achieved international sales, generating substantial revenue for the client company.

The Association of Natural Rubber Producing Countries (ANRPC) has released its Monthly NR Statistical Report for April 2025.

A statement from the association says that this month saw the natural rubber market continue to fall for the second consecutive month, primarily as a result of increased tapping activities brought on by favourable weather and worries about the tyre industry's poor demand in the face of ongoing trade tariff uncertainty. Early in April, market mood was negatively affected by worries about the upcoming US tariffs.

According to recent reports from ANRPC member nations (AMC), worldwide NR output will increase by a small 0.5 percent in 2025 over 2024. In 2025, the demand for NR is anticipated to rise at a slower rate of 1.3 percent. The report also emphasises that a slowdown and some correction in demand are anticipated, particularly from the United States, Mexico and the rest of the world. The statement goes on to say that the anticipated slowdown in growth is the result of growing worries about a possible global economic downturn, which are impacted by the difficulties surrounding US tariffs and the likelihood for decreased trade activity with higher import costs for rubber goods.

Michelin has announced the construction of an initial industrial demonstration unit for the 5-HMF molecule, a bio-based and non-toxic molecule capable of replacing fossil fuel-derived chemicals in a wide range of industrial applications.

The CERISEA2 project was created as part of a collaboration that included several academic, institutional and industrial interested parties. With partial funding from the CBE JU1 at the European level and the ADEME in France, this project represents a total expenditure of EUR 60 million. About 30 direct jobs will be created by it, and operations are anticipated to start in 2026. Located on the Osiris platform in Péage en Roussillon, France, this demonstration unit will have the potential to produce 3,000 metric tonnes of this molecule annually, making it the biggest manufacturing site in the world.

5-HMF, or 5-Hydroxymethylfurfural, is a platform molecule that can have several different derivatives. Because it is non-toxic and bio-sourced, it may be used in lieu of substances that come from oil or other problematic sources. Because of its adaptability and capacity to substitute a variety of traditional molecules, it is referred to as the ‘Sleeping Giant’. This molecule is made from fructose that has undergone green chemistry transformations. As a result, 5-HMF will be among the few monomers that are bio-sourced, non-toxic, industrially accessible in thousands of metric tonnes and made in Europe using European raw materials.

This molecule is already utilised in the production of non-toxic adhesive resins created by Michelin ResiCare, which lowers the exposure of operators and consumers to hazardous materials. The manufacturing of this first industrial-scale equipment will enable cost reduction and supply protection for Michelin ResiCare. Additionally, it opens the door for novel materials to be marketed in a wide range of industries, including electronics, transportation, manufacturing, agriculture, cosmetics and aeronautics. By 2030, the projects show that there might be a market of more than 40,000 metric tonnes.

To establish a manufacturing network for this bio-sourced chemical, 20,000 metric tonnes will be replicated through a licensing system in collaboration with the project's industrial partners. These sophisticated composite materials are opening up areas with significant development potential since they were designed to assure crucial functionalities at a scale smaller than the micrometre.

After finding a source at a high cost and little volume, 5-HMF was added to the Michelin ResiCare formulas for resins meant for use other than tyres in 2016. Initially, this was done for plyboard. Following an early effort with a different partner, Michelin partnered with the IFPEN in 2021 to create a more reliable fructose manufacturing method. Through engineering research and experiments at different sizes, the project will be completed by the end of 2023. 5-HMF is included in all of the new Michelin ResiCare formulas, including those for plyboard, abrasives and moulded components, even though it isn't currently utilised in tyres.

Maude Portigliatti, Director of the Polymer Composite Solutions division at Michelin and a Member of the Group’s Executive Committee, said, “The launch of this initial unit in France, to produce a bio-sourced molecule essential for green chemistry, is a major milestone for taking Resicare’s activities to an industrial scale. Created at Michelin in 2016, this start-up at the cutting edge of innovation will be able to speed up the development of its high-performance and non-toxic resin offers for manufacturers. This new demonstration of the Group’s innovative power, the fruit of years of joint research with our partners, also heralds the creation of a new European industry.”