Capital Carbon Expands rCB Capacity To Tackle Supply Chain Issues

Capital Carbon

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.

Dr Gerard Nijman


How Dr Gerard Nijman de-mystified the ‘black magic’ of tyre engineering.

In the high-stakes, multi-billion-dollar world of automotive engineering, where the screeching captures the headlines, Dr Gerard Nijman focuses on the quiet, molecular drama happening just inches from the asphalt. To the uninitiated, a tyre is a simple black circle of rubber. To Nijman, it is a visco-elastic masterpiece, a complex soup of polymers, fillers and oils that behaves according to laws of physics that many in the industry once dismissed as ‘black magic’.

Recently, the Rubber Division of the American Chemical Society announced Dr Nijman as the recipient of the Fernley H. Banbury Award. It is one of the highest honours in the field, a recognition of a lifetime spent bridging the gap between the ‘black magic’ of the factory floor and the cold precision of laboratory rheology.

Now, two months after it was announced, I feel proud of being awarded and it is an acknowledgement of my contributions to rubber processing,” Dr Nijman says, reflecting on a career that has spanned nearly four decades. “However, if I consider the enormous lineup of previous winners, I still cannot realise that I am a part of it... I am probably still too humble to really enjoy it.”

THE FRIDAY EVENING CALL THAT CHANGED EVERYTHING

Dr Nijman’s journey into the world of elastomers didn’t begin with a lifelong passion for tyres, but rather with a fortuitous interruption. In 1987, he was deep into a PhD project focusing on molecular orientation in injection-moulded products. His trajectory seemed set for a traditional academic or specialised research path until a Friday evening phone call changed his life.

The caller was the P&O Manager of Vredestein, the Dutch tyre manufacturer. He was looking for a process engineer, specifically someone who understood the complexities of extrusion. For Dr Nijman, it was an opportunity to apply his theoretical knowledge to a massive industrial scale without abandoning his roots.

“For this position, I did not really have to leave my comfort zone, so I decided to join Vredestein on a 50 percent basis while I completed my PhD project,” Dr Nijman recalls. At the time, the industry’s understanding of material flow was rudimentary. The ‘gold standard’ was the Mooney viscosity test – a simple measurement that Nijman knew was insufficient for the high-speed, high-heat world of modern manufacturing.

“I was fascinated by rheology and especially how the material morphology was related to the processing behaviour. At Vredestein, the common understanding of Rheology was ‘Mooney viscosity’, but somehow, I could make them clear that understanding processing means that one must understand the (thermo-)rheological behaviour and morphological characteristics of rubber compound in much more detail,” he says.

SEEING THROUGH ‘SCIENTIFIC GLASSES’

Dr Nijman attributes much of his success to a trio of mentors who helped him synthesise his disparate skills. His PhD supervisor, Prof Ingen Housz, taught him the fundamental skill of ‘looking at industrial processes through scientific glasses’. It was this ability to analyse a complex, messy industrial problem until the root cause was exposed that set Dr Nijman apart.

At Vredestein, his first boss, Albert Dijks, built his confidence by handing him immense responsibility early on. Meanwhile, Kees Hettema taught him the art of the deal – how to negotiate with customers – and Matthias Sieverding of KraussMaffei Berstorff eventually gave him the reins to lead an entire business unit.

“What I learned from all of them is that, while believing in what you are doing, you should not be afraid of answering difficult questions from your stakeholders,” Dr Nijman notes. This philosophy allowed him to navigate the friction that often exists when a scientist tries to tell a factory veteran that their decades-old ‘gut feeling’ might be wrong.

BREAKING THE SPELL OF ‘BLACK MAGIC’

In the 1980s and 90s, rubber manufacturing was often viewed as more art than science. When a production line ran into trouble, solutions were often found through trial and error. “Suddenly, problems were solved without really knowing why,” Dr Nijman explains. “It was commonly called ‘black magic’.”

Dr Nijman became one of the first engineers to replace that magic with math. He realised that the complex technological hurdles of the industry – irregular shrinkage, surface defects and inconsistent quality – could be solved through a rigorous rheological approach.

His most transformative moment came during the ‘Green Tyre’ revolution of the early 90s. Michelin had just introduced silica-based compounds, which offered lower rolling resistance and better wet grip. While industry giants like Goodyear were still scrambling to adapt, the smaller Vredestein successfully implemented the technology.

The secret weapon was Nijman’s understanding of the microstructure. He recognised that silica compounds were a different beast entirely from the traditional carbon black mixtures. “We looked at the compounds’ processing behaviour by looking to the degree of freedom of the rubber molecules moving around in their microstructure,” he says.

By understanding how silica hindered or helped the ‘relaxation’ of rubber molecules after extrusion, Dr Nijman was able to control ‘extrudate swell’ – the tendency of rubber to expand like a sponge after being squeezed through a die. Without this scientific insight, manufacturers faced uncontrolled shrinkage, leading to tyres that simply didn’t fit the rim.

THE PORSCHE 911 CHALLENGE: WHEN THEORY MEETS THE ROAD

Perhaps the most gruelling test of Dr Nijman’s career wasn’t a tyre at all, but a piece of high-performance aerodynamics: the active front spoiler for the Porsche 911 Turbo. This rubber lip had to deploy at high speeds via air bellows and retract perfectly through its own elasticity once the car slowed down.

The stakes were astronomical. Porsche demanded ‘A1 surface quality’ – meaning the rubber had to be absolutely flawless, with zero visual defects and uncompromised functionality, all while meeting the strict Start of Production (SOP) deadlines of one of the world’s most iconic cars.

“Naming it a challenge was an understatement,” Dr Nijman admits. The project required a total immersion in the material’s behaviour. Dr Nijman describes his method as almost meditative: “I try to be part of the microstructure of the rubber compound on its way from rubber slab to the shape in which it is conveyed. Then I am able to ‘observe’ my surrounding and to ‘see’ what happens with the rubber molecules in their world of fillers, process oils and chemicals.”

THE DIGITAL TRAP: A WARNING TO THE NEXT GENERATION

As Dr Nijman prepares to retire at the end of this year, he looks at the current state of engineering with a mix of admiration and concern. Today’s engineers have access to powerful simulations and AI that Dr Nijman could only dream of in 1987. However, he warns that these tools can be a double-edged sword.

“Engineers tend to believe the results of such simulations are true without critical interpretation,” he says. “In the world of rubber, where chemistry and physics are constantly shifting during the heat of production, a computer model can only go so far. A rubber compound behaves truly visco-elastic. This is not something you can ignore.”

He has observed a shift where younger engineers prefer to solve problems via the Human-Machine Interface (HMI) rather than walking the shop floor. To Dr Nijman, the smell of the rubber and the heat of the extruder are essential data points that a laptop cannot capture. “Both must be done to successfully solve the production problem.”

A SUSTAINABLE FUTURE: THE FINAL FRONTIER

Dr Nijman isn’t using his retirement to slow down; instead, he’s refocusing on the industry’s biggest challenge: sustainability. He believes the next decade of tyre technology won’t just be about grip or speed, but about energy.

“Both tyre manufacturers and extrusion line suppliers should focus more on how to save energy and how to recover heat,” he asserts. He points out a glaring blind spot in current research: while everyone wants ‘sustainable’ compounds, few are looking at reducing the viscosity of the rubber itself – the single biggest factor in how much energy a factory consumes to shape a product.

Reducing scrap and optimising heat recovery, he argues, will require a deeper cooperation between research institutes and manufacturers. “There is still a lot more to be explored scientifically,” he says.

THE LEGACY OF A ‘HUMBLE’ EXPERT

For those entering the field today, Dr Nijman’s advice is simple: love the work, or leave it. But if you stay, never stop asking ‘why’.

“Pursue to deeply understand the problem before you start solving it,” he counsels. “Rubber processing and tyre manufacturing is very exciting... especially if you love being on the shop floor and, at the same time, if you are able to continuously interpret your observations.”

As he prepares to accept the Banbury Award, Dr Nijman remains the same engineer who once spent his Friday nights thinking about molecular orientation. He has spent his career making the complex simple – so simple, in fact, that he measures his success by a unique metric.

“It helped me a lot to realise to explain very complex situations in a way that my mother-in-law would understand,” he says. “That is how I could realise breakthroughs.”

The ‘black magic’ of rubber is gone, replaced by the lifelong work of a man who decided to step out of his comfort zone and look at the world through scientific glasses. Dr Gerard Nijman didn’t just engineer tyres; he engineered a more precise, sustainable and understood future for the entire industry

HS HYOSUNG Powers Vietnam Subsidiary With 17.5-MWp Solar Power Installation

HS HYOSUNG Powers Vietnam Subsidiary With 17.5-MWp Solar Power Installation

HS HYOSUNG ADVANCED MATERIALS has completed and commenced operation of a 17.5-MWp rooftop solar power installation at its facility in Vietnam’s Nhon Trach Industrial Park, located within Dong Nai Province. This marks a significant step in the company’s broader effort to reshape its Vietnam operations – its largest global manufacturing base for tyre cords and technical yarns – into what it terms a ‘Smart Green Factory’. By merging renewable energy infrastructure with digital energy management systems, developed in partnership with the energy IT specialist Nuriflex, the firm is positioning this site at the forefront of its transition towards becoming a global eco-friendly manufacturing hub.

A key element of this transformation is the deployment of an Internet of Things based energy management system, which allows for real-time oversight of electricity generation and equipment performance. This digital layer not only streamlines operational efficiency but also contributes to greater equipment reliability and overall productivity gains, ensuring that the integration of renewable energy delivers tangible improvements beyond simple power generation.

With further solar installations set to be completed by August, total rooftop capacity at the Nhon Trach site will reach 37.5 MWp. Once fully operational in the latter half of the year, HS HYOSUNG ADVANCED MATERIALS anticipates annual electricity cost savings exceeding KRW 6 billion (approximately USD 3.94 million), bolstering its cost competitiveness. The expansion is also expected to deliver meaningful reductions in greenhouse gas emissions, reinforcing the company’s long-term commitment to sustainable management practices.

Through advanced energy IoT solutions, the Vietnam subsidiary now systematically manages carbon reduction data generated from its solar power operations. This capability enables a more structured response to rising demands from major global customers – including Michelin, Bridgestone, Goodyear, Continental and Pirelli – for verified renewable energy usage and carbon emissions information. By strengthening its ESG performance across the supply chain, the company is leveraging its solar infrastructure and smart energy management not merely as facility investments but as strategic tools to enhance environmental responsibility and competitiveness in a market where sustainable value chains are increasingly essential.

“Starting with our Vietnam production base, we are simultaneously promoting renewable energy transition and energy efficiency improvements across our operations. By expanding solar power facilities, we will strengthen both cost competitiveness and ESG capabilities while proactively responding to the evolving requirements of our global customers,” said an official from HS HYOSUNG ADVANCED MATERIALS.

ANRPC Publishes Monthly NR Statistical Report For February 2026

The Association of Natural Rubber Producing Countries (ANRPC) has released its Monthly NR Statistical Report for February 2026, detailing a period of significant market activity influenced by geopolitical tensions, macroeconomic changes and shifting supply-demand dynamics within the global natural rubber sector.

As per the report, global natural rubber production for 2026 is forecast to reach 15.324 million tonnes, a 2.2 percent increase from the 14.996 million tonnes recorded in 2025. February output alone is projected at 994,000 tonnes, marking a 3.4 percent year-on-year rise due to favourable weather and higher rubber prices. Despite this overall growth, production trends vary among member nations. While Thailand is expected to remain the top producer, Indonesia and Vietnam face short-term constraints from structural and agronomic issues. Meanwhile, Malaysia is advancing efforts to restore abandoned plantations, with the Rubber Production Incentive activated in Sarawak and Sabah and the Malaysian Rubber Board targeting the rehabilitation of 4,137 hectares of idle land in 2026.

Physical and futures markets saw notable price increases across major grades in February. In Kuala Lumpur, SMR-20 averaged USD 2.01 per kilogramme, a 5.13 percent monthly gain, while STR-20 in Bangkok rose 5.12 percent to USD 2.11 per kilogramme. Sheet rubber grades also strengthened, with RSS-3 increasing 7.84 percent to USD 2.35 per kilogramme and RSS-4 in Kottayam surging 10.38 percent to USD 2.34 per kilogramme. Centrifuged latex in Kuala Lumpur closed the month at USD 1.61 per kilogramme. Futures mirrored this firming trend, as the Shanghai Futures Exchange May 2026 contract averaged roughly 16,508 CNY (approximately USD 2,388) per tonne and the SGX contract averaged USD 1.92 per kilogramme, supported by strong demand and tightening supply expectations ahead of the seasonal low-yield period from February to May.

Crude oil volatility added further complexity, with Brent averaging USD 70.89 per barrel in February – up 6.43 percent from January – before spiking to approximately USD 104 per barrel in early March following military actions in the Middle East and the closure of the Strait of Hormuz, a conduit for nearly 20 percent of global oil supply. This has introduced a risk premium with implications for synthetic rubber competitiveness and natural rubber demand. Currency shifts also play a role, as the Malaysian Ringgit appreciated modestly to 3.89 MYR per USD and the Thai Baht strengthened to around 31.08 THB per USD by late February, affecting trade competitiveness. Looking ahead, rising automotive production, especially of new energy vehicles in China, India and Southeast Asia, is expected to sustain demand and support prices. However, risks persist from US-China trade tensions, Middle East geopolitical instability, weather uncertainties during the low-yield season and currency fluctuations tied to US monetary policy, all of which could disrupt supply chains and export revenues.

Tokyo Zairyo Expands Indian Operations With New Chennai Branch Office

Tokyo Zairyo Expands Indian Operations With New Chennai Branch Office

Tokyo Zairyo Co., Ltd., a wholly owned subsidiary of Zeon Corporation, marked a significant milestone in November 2025 by establishing a new branch office in Chennai, Tamil Nadu, India. Following the completion of all necessary preparations, this location has now commenced full-scale operations. The move represents a deliberate effort to broaden the company’s commercial reach across the Indian market while simultaneously constructing an organizational structure capable of responding with greater agility to the evolving and increasingly diverse requirements of its customers.

This southern expansion comes approximately 15 years after the company first established its Indian subsidiary, Tokyo Zairyo (India) Pvt. Ltd., with an office in Gurugram, Haryana, in 2011. By positioning a second office in Chennai, the firm now operates a coordinated network spanning the northern and southern regions of the country. Close collaboration between the two locations is intended to strengthen information services and enhance user support, leveraging both internal capabilities and external partnerships to better serve Japanese automotive parts manufacturers and processors operating throughout India.

Through this dual-office structure, Tokyo Zairyo is poised to advance its core business of purchasing and selling a broad spectrum of materials, including rubber, resins and elastomers. The synchronised operations in Gurugram and Chennai enable the company to deliver more responsive support, ensuring that clients across the Indian automotive supply chain benefit from efficient service and a reliable supply of essential materials.