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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Germany's rubber industry continues to face significant headwinds, with fresh data from the German Rubber Industry Association (wdk) revealing a persistent downturn. The figures show employment falling for the fifth year in a row, while production levels have declined for the fourth consecutive year, underscoring the sector's struggle to regain its footing.

The association attributes this stagnation to waning enthusiasm for German rubber goods in both domestic and international markets. Michael Berthel, wdk Chief Economist, described a fundamental shift in procurement behaviour, even within Germany. He noted that purchasing decisions are now driven almost exclusively by price, a stark departure from the historical emphasis on quality and reliability. This change has opened the door to intense international cost competition, placing immense pressure on Germany's medium-sized suppliers. Berthel highlighted that prohibitive domestic costs related to energy, bureaucracy, taxation and labour make it nearly impossible for these firms to compete effectively. Consequently, many are compelled to relocate their investments abroad as a necessary escape from these local burdens, even though their preference would be to maintain and revitalise their operations within Germany after years of strategic transformation.

Against this backdrop, wdk President Michael Klein issued an urgent appeal to the federal government. He acknowledged that the broader struggles of German industry are well documented but stressed the immediate need for decisive political intervention. Klein called for concrete measures to stimulate demand and bolster the nation's competitive edge within Europe without further delay. He warned against allowing the rubber sector to decline quietly, emphasising its critical role in essential areas such as healthcare, infrastructure, security and mobility.

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Punia Metox Private Limited has commenced production at a new manufacturing facility in Thottambedu, Tirupati, Andhra Pradesh, with operations starting on 12 February 2026.

The plant has an initial production capacity of 12,000 tonnes a year. Its structural design allows capacity to be doubled within four to six months, providing scope for rapid scale-up as demand grows, the company said.

Punia Metox said the facility has been equipped with modern technology to support operational and energy efficiency, safety, sustainability and consistent product quality. The company added that the plant has been designed to enable smooth and seamless operations from the outset.

The expansion forms part of Punia Metox’s strategy to align capacity growth with customer requirements and strengthen its position as a long-term supply partner. The company said the new unit reflects its focus on customer satisfaction, ethical business practices and value-based growth.

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Cabot Corporation said it can now produce circular reinforcing carbons in the Asia-Pacific region after validating manufacturing capability at its plants in Cilegon, Indonesia, and Tianjin, China.

The materials are produced using tyre pyrolysis oil derived from end-of-life tyres and an International Sustainability & Carbon Certification (ISCC) PLUS mass-balance approach. With the addition of the two Asian sites, Cabot said it now has circular reinforcing carbon production capacity across Asia, Europe and the Americas.

Tyre manufacturers are pursuing targets to increase sustainable material use in tyre production, with many aiming for 40 per cent by 2030 and 100 per cent by 2050, the company said. Cabot’s circular reinforcing carbons are designed as a drop-in replacement for conventional carbon black, allowing manufacturers to increase sustainable content without affecting tyre performance.

Aatif Misbah, Vice-President and General Manager for sustainable solutions in Cabot’s reinforcement materials segment, said: “This achievement reflects our deep commitment to delivering sustainable solutions across Asia Pacific and globally. Scaling our circular reinforcing carbon capabilities helps strengthen our role as a trusted partner to the tire industry, while helping to drive meaningful sustainability progress. Looking ahead, we remain focused on supporting our customers’ evolving needs and helping enable a more sustainable future.”

Cabot’s facilities in Ville Platte, Louisiana; Mauá, Brazil; and Valasske Mezirici in the Czech Republic had previously demonstrated circular reinforcing carbon production capability. The products are ISCC PLUS-certified and marketed under the recovered category of Cabot’s EVOLVE Sustainable Solutions platform.

The company said it has 13 ISCC PLUS-certified sites supporting circular reinforcing carbon production across Asia, Europe and the Americas, along with two certified masterbatch and compounding sites in Europe.

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The Rathi Group has formalised a partnership with the Indian Tyre Technical Advisory Committee (ITTAC) through a Memorandum of Understanding aimed at advancing technical collaboration on recovered carbon black (rCB). The agreement focuses on the responsible integration of rCB into tyre manufacturing, with an emphasis on detailed evaluation and enhancement of its material properties. This initiative will be driven through structured engagement between industry and academia, supported by ITTAC’s technical expertise.

The collaboration is facilitated by the Automotive Tyre Manufacturers’ Association (ATMA) and ITTAC, which have brought together leading technical experts, tyre manufacturers and research institutions on a unified platform. Their coordinated efforts are fostering a science-based approach to accelerate the assessment and adoption of circular materials within the tyre sector. This partnership is seen as a significant step in strengthening industry–academia linkages to advance sustainable practices.

Through this alliance, the Rathi Group aims to contribute to the evolving landscape of tyre-to-tyre circularity. The joint initiative underscores a shared commitment to developing innovative solutions that support environmental responsibility while maintaining technical performance standards in tyre applications.

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