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.

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Synthos, recognised as Europe’s foremost synthetic rubber producer and a global leader in solution styrene butadiene rubber, has secured the EcoVadis Gold Medal once again. The company, also a top European manufacturer of expanded polystyrene, continues to rank among the world’s most sustainable businesses.

The 2026 assessment placed Synthos in the 97th percentile, with its highest marks received in labour rights, human rights, ethics and environmental stewardship. This achievement underscores steady advancement across multiple sustainability fronts and highlights a sustained dedication to responsible expansion and continuous innovation.

EcoVadis operates as a premier global evaluator of corporate sustainability, judging firms on environmental impact, social responsibility, ethical conduct and supply chain management using international standards. The Gold Medal’s annual renewal demands that Synthos consistently remain within the top three percent of all rated companies worldwide.

This recognition affirms that Synthos’ sustainability measures are both persistent and methodical. The company supports its long-range climate and circular economy goals through participation in the UN Global Compact and reporting aligned with ESRS and GRI standards. Synthos will keep leveraging EcoVadis feedback to refine future priorities and advance its ongoing sustainability journey.

Agata Gładysz-Stańczyk, CEO, Synthos, said, “Receiving the EcoVadis Gold Medal again confirms the importance of sustainability within our strategy and the commitment of Synthos teams across all locations. While we are proud of this achievement, we also see sustainability as a continuous journey. It is embedded in how we innovate, how we operate, and how we create value for our customers, employees, partners and communities. This recognition encourages us to continue strengthening our ambitions and driving further progress.”

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The Rubber Board Statistics Consultative Panel reviewed the performance of India’s natural rubber sector during its 29th meeting at the Rubber Board Headquarters in Kottayam. The panel, which includes representatives from small and large growers, producers’ societies, dealers, processors and tyre manufacturers, examined key indicators such as production, consumption, imports and exports. India remains the sixth-largest natural rubber producer globally.

Indian natural rubber production grew by 3.4 percent in the 2025-26 period, rising to 905,000 tonnes from 875,000 tonnes the previous year. Favourable weather across major rubber-growing regions increased tapping days and productivity. Board initiatives like rain guarding, self-tapping, scientific practices, skill programmes and disease control supported output, while Kerala’s Rubber Production Incentive Scheme also encouraged continued tapping.

Domestic natural rubber prices strengthened, renewing grower interest in tapping. Prices that rose sharply in 2024–25 showed relative stability in 2025–26, narrowing the gap with international rates. The trend continued into early 2026, with RSS-4 peaking at INR 262 per kg on 14 May. Meanwhile, total natural rubber demand rose 1.2 percent, though the auto tyre sector, accounting for nearly 64 percent of consumption, declined by 4.0 percent. The general rubber goods sector posted robust growth instead.

The panel noted a 16.7 percent decline in natural rubber imports, falling to 459,000 tonnes from 551,000 tonnes. However, imports of compounded rubber under HS Code 4005 increased significantly, reaching 349,000 tonnes from 245,000 tonnes in the previous year. Consumption of natural rubber rose 1.2 percent to 1,427,000 tonnes from 1,410,000 tonnes in 2024-25.

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Pyrum Innovations AG has secured unlimited delivery approval from Continental for its ThermoTireBlack (TTB), a recovered carbon black produced at the company’s new milling and pelletising facility in Dillingen/Saar. Following the approval, Continental officially commissioned all units tied to the plant expansion at Pyrum’s main site.

The milling and pelletising plant shifted to regular production in April 2026, operating at a capacity of 750 kilogrammes per hour. A short-term capability analysis conducted by Pyrum confirmed that ThermoTireBlack delivers consistent process conditions and stable, reproducible quality. After a subsequent audit, Continental granted full supply approval, specifically praising the new machine’s excellent short-term performance metric (Ppk).

This latest approval for TTB follows previous clearances granted in 2024 for the shredding plant and the TAD2 and TAD3 thermolysis reactors, giving Pyrum complete supply approval for its Dillingen/Saar facility. Through added improvement measures, the company expects to reach the target maximum TTB production volume after a planned modification in the third quarter of 2026, significantly expanding capacity and strengthening Pyrum’s role as an industrial raw material producer and pyrolysis technology leader.

Pascal Klein, CEO, Pyrum Innovations AG, said, “Continental’s unlimited delivery approval for our new milling and pelletising plant is a major milestone for Pyrum. It confirms not only the consistently high quality of our ThermoTireBlack but also the industrial maturity of our entire production chain. We are proud to meet the automotive industry’s high standards and to further expand our close and trusting partnership with Continental. With the approval of the new plant, we are laying the foundation for further growth and a significant increase in revenue in the current year.”

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The German Rubber Industry Association (wdk) has sounded an alarm over an exceptionally difficult economic situation facing the rubber sector. Soaring raw material prices and persistently high energy costs, exacerbated by the Iran war, are coinciding with weak industrial demand. wdk Chief economist Michael Berthel noted an almost unprecedented economic disparity, as raw material costs approach historical highs from 2011 and 2022 while a lack of demand prevents any offset for manufacturers.

Since the final quarter of 2025, prices for key inputs have risen sharply. Natural rubber has jumped more than 40 percent within months, while butadiene-based synthetic rubbers have increased over 30 percent. EPDM synthetic rubber, carbon black and oil-based plasticisers have all risen more than 20 percent, with some individual chemicals exceeding 40 percent cost growth in just a few weeks.

Energy prices remain a major burden, with Middle East developments fuelling market uncertainty. Risks to international transport and supply chains persist, and German rubber companies are closely watching potential impacts on raw material availability and global logistics flows.

Berthel warned that firms face mounting pressure from high costs, geopolitical instability and structural disadvantages in Germany, with no short-term relief in sight. The industry depends heavily on fair and reliable partnerships across the value chain, as processing companies alone cannot absorb the current strain. He called for fair solutions and a shared understanding of this exceptional situation.

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