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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German chemical group WACKER has announced significant price increases for a wide range of silicone products, effective from 1 February 2026. These adjustments, which will see prices rise by up to 25 percent or even higher in specific instances, will be applied across existing customer contracts as necessary. The decision is a direct response to unprecedented surges in raw material costs, most notably for the precious metal platinum, a critical catalyst used in the production of addition-curing silicone products and crosslinking silicone release agents.

According to Tom Koini, Head of Silicones, the extreme market dynamics have made this step unavoidable, as internal efficiency measures can no longer absorb the cost pressure. Platinum prices on international commodity exchanges have more than doubled since the beginning of the previous year. WACKER states that the price adjustments are essential to maintain its high standards of product quality, customer service and technical support moving forward. The increases will specifically affect addition-curing silicone rubber grades, silicone resins, silanes and silicone-based release coatings.

The company’s Silicones division, a global leader with a portfolio of over 2,800 specialised products, serves key industries including automotive, pharmaceuticals, medical technology, electrical engineering and energy transmission. The portfolio encompasses silicone fluids, elastomers, resins, sealants, silanes and release coatings, all designed to enhance the performance and value of end products. In 2024, this division accounted for approximately 49 percent of the Group’s total sales.

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ARLANXEO, a leading performance elastomers company, has officially opened its new Therban hydrogenated nitrile butadiene rubber (HNBR) production facility in Changzhou, China. This advanced plant, dedicated to producing the Therban brand, is designed to meet rising demand across vital industries including new energy, automotive, aerospace and next-generation battery technologies, where materials must endure extreme operational conditions.

Strategically positioned within ARLANXEO’s existing Changzhou complex, which also houses an EPDM plant and a Regional Technology Centre, the new installation strengthens the company’s integrated approach from innovation to manufacturing. It forms a crucial part of a global production network that includes sites in United States and Germany, establishing Changzhou as a central hub for the Asia-Pacific region.

The facility boasts an annual design capacity of 5,000 tonnes, with the first phase of 2,500 tonnes having successfully commenced operations in October 2025. It was completed with an exemplary safety record, achieving over 1.1 million incident-free work hours throughout its construction and commissioning, which was concluded within 13 months.

Engineered for high efficiency and environmental responsibility, the plant incorporates state-of-the-art finishing technology for consistent product quality. A key feature is an advanced thermal oxidation system that recovers energy and cuts carbon emissions in core processes by approximately 80 percent compared to traditional methods. Furthermore, the facility employs a closed-loop design that eliminates routine process wastewater discharge, supporting ARLANXEO’s commitment to reducing greenhouse gas emissions.

The inauguration was marked by a ceremony attended by senior leadership from ARLANXEO and its shareholder committee, alongside representatives from key customers, local authorities and community partners. This expansion significantly enhances ARLANXEO’s ability to supply reliable, high-performance elastomer solutions to its regional customer base.

Dr Faisal Al Faqeer, ARLANXEO Shareholders’ Committee Chairman and Aramco Senior Vice President of In-Kingdom Liquids to Chemicals Development, said, “China is important in supporting Aramco’s downstream growth. ARLANXEO’s new Therban® HNBR plant is the most recent demonstration of Aramco’s downstream expansion strategy of portfolio diversification and integration, underscoring our confidence in China’s innovation and manufacturing strength. We look forward to deepening our cooperation and further contributing to China’s high-quality and sustainable growth.”

Stephan van Santbrink, CEO, ARLANXEO, said, “Today’s inauguration marks an important milestone for ARLANXEO and a strong demonstration of our long-term commitment to China. We sincerely thank the Changzhou government, Aramco and all stakeholders for their trust and continued support. With the new HNBR plant now fully operational, we are further integrating our local production and R&D capabilities to strengthen the resilience of our global supply network. By delivering locally produced, high-quality rubber products, we will continue to collaborate with our customers and accelerate application innovation, creating greater economic and social value across our value chain.”

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Taiwan-based performance materials company CHIMEI has secured a distinguished A rating in the CDP Climate Change assessment for the second consecutive year, positioning it within the leading four percent of global organisations evaluated in 2025. This recognition from the prominent environmental disclosure platform underscores the company’s sustained excellence across critical areas such as climate governance, comprehensive risk management and transparent emissions reporting. CHIMEI’s performance demonstrates tangible progress in lowering product emissions intensity, driving self-managed reduction projects and rigorously measuring greenhouse gas outputs in accordance with international standards.

Central to the company’s strategy is its ‘Clean & Green’ vision, which directs a thorough low-carbon transformation. This commitment is operationalised through internal carbon pricing, optimised manufacturing processes and a shift towards renewable energy. CHIMEI further ensures accountability by obtaining third-party verification for the carbon footprints of its entire product range. The pursuit of sustainability extends beyond its own facilities, as the company actively promotes the use of sustainable materials and fosters collaborative decarbonisation efforts throughout its value chain.

Looking forward, CHIMEI is dedicated to engaging with customers, suppliers and partners to advance shared climate objectives, including its ambitious 2050 net-zero target. By continuously investing in innovative technologies and eco-friendly solutions, CHIMEI aims to be a catalyst for industry-wide change, supporting the transition toward a more resilient and low-carbon future for all.

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Kraton Corporation, a leading global producer of speciality polymers and high-value bio-based chemicals derived from pine wood pulping co-products, has achieved International Sustainability and Carbon Certification (ISCC) PLUS for its manufacturing facility in Panama City, Florida, United States. This independent certification tracks sustainable materials via a mass balance approach. The achievement allows Kraton to issue a formal ISCC PLUS Sustainability Declaration with shipments of its biobased polyterpene resins, providing its customers with the documentation needed to validate the renewable content in their own products.

The Panama City site becomes the company’s fourth production plant to gain this certification, building upon a commitment that started with the certification of its Sandarne, Sweden, facility in 2021. By securing these certifications across its network, Kraton strengthens its leadership in supplying circular and renewable solutions. This effort supports broader industry shifts, as customers can now more seamlessly integrate verified, sustainable materials into their supply chains and end products.

Ultimately, the company’s pursuit of such certifications aligns with a larger transition towards a more sustainable and circular economy, demonstrating how specialised chemical producers can enable tangible environmental progress through verified chain-of-custody systems.

Lana Culbert, Kraton Pine Chemicals VP of Marketing, said, “Our SYLVARES™ and SYLVATRAXX™ brands feature a portfolio of high-performance polyterpene resins. They are widely recognised for their use in adhesives and tyre applications, yet their versatility extends to other industries, like agriculture, with more opportunities ahead. While we can measure bio-based content of our pine chemicals using Carbon-14 analysis, certifying our Panama City facility under ISCC PLUS strengthens supply chain transparency, supporting the growth of the circular economy.”

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