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.

Circtec is building the world's largest chemical recycling plant for car tyres in Groningen. The company expects the new plant to be functional by the end of the summer.

The company already has plants in Poland and Germany where it recycles tyres on a smaller scale. The plant in Groningen will be the first large-scale facility with a capacity to process about 20 million (200,000 tonnes) waste tyres annually, which is six percent of all waste tyres in Europe each year.

The tyres are chemically deconstructed at high temperatures and broken down into tiny molecules that evaporate and mostly condense again as part of a process developed by Circtec to recycle car tyres. Following recycling, the different compounds found in tyres may be utilised as raw materials to make sustainable biofuel and new car tyres. The firm produces Naphtha from a portion of the rubber used in car tyres. This material has the potential to be utilised as a raw material for the manufacturing of plastic and synthetic rubber. Another portion of the rubber is used to make HUPA, a cutting-edge ship biofuel. Additionally, after recycling, the carbon may be used again.

According to Pieter ter Haar, Director – Sustainable Carbonaceous Materials, Circtec, some 3.5 million car tyres end up in Europe's waste every year and much of it is burned for cement production. In addition, many European tyres are shipped to India, so that the tyres can be burned and processed there without regard to the environment, public health or CO2 emissions. "We have a responsibility to make new raw materials and valuable products from our own waste products and not to pollute other parts of the world with our waste and its unregulated incineration," he said.

"We handle the recycling of tyres from the moment they come off a car to the production of the various new chemical products. That makes us unique from our competitors," Ter Haar said.

Asserting his determination to make an impact by making the chemical industry more sustainable, Ter Haar said, "With the new plant, we are contributing to both the energy and materials transition. The plant will offset about three percent of the Dutch chemical industry'sCO2 emissions."

Kordsa, a global player in advanced material technologies, displayed its sustainability and innovation-driven solutions at Tire Technology Expo 2025, one of the leading trade fairs for the tyre industry, which was held in Hannover, Germany, from 4–6 March 2025.

Kordsa shared its objective of offering solutions to the global tyre market with the advantage of local production while highlighting its achievements in tyre reinforcing technology. Kordsa demonstrated REV Technologies, its umbrella brand created to meet the expanding need for high-performance electric car goods, as part of its dedication to sustainable transportation. The firm also demonstrated its commitment to sustainable, next-generation reinforcement solutions by showcasing its RFID tyre label products and cord fabric manufactured from rPET, which is derived from recycled plastics.

Kordsa and Continental jointly delivered a presentation on Cokoon, a formaldehyde-free, environmentally friendly bonding technology, as part of the conference schedule. Dr Cornelia Schmaunz-Hirsch, Senior Reinforcement Developer, Reinforcement Development Tires at Continental, and Dr Mustafa Yasin Şen, Expert Researcher, Chemicals and Materials at Kordsa, spoke about the advancements made by Cokoon technology in textile reinforcement applications during a session on the first day of the expo. Furthermore, in a separate session, ‘Accelerating Sustainable Solutions for Tires: Sustainable Reinforcement Solutions of Nylon 66 and Polyester’ was the subject of presentations by Begüm Aytuğar, Kordsa Marketing Manager, and Seda Aracı, Kordsa R&D Technology Manager, Tire Cord Fabric.

Doğan Sevim, Chief Global Sales and Marketing Officer, Kordsa, said, “Tire Technology Expo 2025 is one of the most strategic events in the tyre industry, offering us a valuable opportunity to emphasise our sustainability and innovation-focused approach while engaging with our customers. Through REV Technologies, we continue to differentiate ourselves in the sustainable solutions, particularly by addressing the specific needs of electric vehicle tyres. We are not only delivering innovative solutions to our customers but also addressing their specific requirements in different markets by combining our global expertise with our local manufacturing capabilities. Our ability to leverage both local production and a global supply chain aligns seamlessly with our sustainability strategy, allowing us to provide more effective and tailored services.”

German specialty chemicals company Lanxess has introduced its new rubber additive Vulkanox HS Scopeblue, which it said supports tyre manufacturers in producing more sustainable, longer-lasting tyres.

Tyre makers will now be able to use sustainable variant of the antioxidant Vulkanox HS to effectively protect their products from adverse effects of oxygen and heat. The additive also provides low volatility and low migration tendency.

Lanxess claims that compared to conventional manufactured products, tyre makers using Vulkanox HS Scopeblue will be able to reduce their footprint by more than 30 percent. This is possible by utilizing biocircular acetone and renewable energy in production.

At present, the product is manufactured in an ISCC PLUS-certified plant in Germany. What’s interesting to note is that since the overall chemical structure of the product remains unchanged, tyre makers will not need to make any modifications to their existing manufacturing process.

Dr. Holger Graf, Head of the Functional Tire Additives business line at Lanxess Rhein Chemie business unit, said, “With Vulkanox HS Scopeblue, we have developed another product that enables our customers to manufacture tires more sustainably and meets the growing demand for sustainable and environmentally friendly materials. With this antioxidant, we extend the lifetime of tires while reducing their ecological footprint.”

Worcestershire-based Reddiplex Group, a manufacturer of plastic and rubber extrusions, has acquired Veker Extrusions, a Birmingham-based manufacturer specialising in rubber extrusion products.

Reddiplex aims to expand its product range and strengthen its position in the market through the acquisition of Veker, a company known for providing rubber extrusions, gaskets, seals and mouldings for the construction, marine, automotive and rail industries.

Evolve Corporate Finance helped the Veker Extrusions transaction by offering advice to Paul Kersel and Kevin Crossley, the company's directors and shareholders. David Neate led the consulting team at Evolve Corporate Finance, while Richard Wrigley of Penningtons provided legal counsel.

David Neate, Partner and Co-Founder, Evolve Corporate Finance, said: “We are delighted to have supported the shareholders on the company’s sale to Reddiplex. This sale represents the culmination of a life’s work for Paul and Kevin and a great result for them. In addition, under the ownership of Reddiplex, Veker has a bright future and is well positioned for future growth.”

Richard Wrigley, Corporate Partner, Penningtons, said, “We are delighted to have advised Veker on this strategic sale to Reddiplex. I have no doubt Veker has a bright future as part of the Reddiplex Group and will continue to prosper and grow.”