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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The Rubber Board of India has announced the opening of an application window for financial aid for sulphur dusting to combat powdery mildew disease in rubber plantations for the year 2026. The scheme is open to all Rubber Producers’ Societies (RPS) operating in both traditional and non-traditional growing regions.

From 10 to 20 February 2026, eligible societies must submit their applications online through the 'ServicePlus' portal on the official Rubber Board website. Societies requiring help with the submission process are advised to contact their nearest Rubber Board regional office or field station, or to consult the board's website for further guidance.

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Pyrum Innovations AG has welcomed the official recognition by French authorities on 17 January 2026, which classifies tyre pyrolysis oil (TPO) as a legitimate raw material for the chemical sector. This pivotal regulatory milestone for pyrolysis oil derived from end-of-life tyres substantially enhances the product’s integration into established chemical value chains. It also provides greater predictability for future purchase and partnership frameworks, thereby accelerating the development of industrial material cycles.

For Pyrum, which processes scrap tyres through pyrolysis to recover pyrolysis oil, industrial carbon black and steel, this decision underscores the critical need for standardised and reliable regulatory conditions. Such clarity is fundamental for scaling investments, production volumes and supply chains, particularly as the chemical industry and circular economy converge. The establishment of clear product categories is essential to ramp up the market for high-quality recycled raw materials.

The company remains committed to tracking further developments in France and the wider European dialogue regarding the classification and application of recycled feedstocks. Pyrum’s overarching objective is to expand industrial-scale recycling solutions for scrap tyres. This regulatory progress directly supports the company’s mission to secure long-term, quality-assured supply agreements with partners across the chemical industry, thereby advancing a more sustainable and circular economic model.

Pascal Klein, CEO, Pyrum Innovations AG, said, “The decision in France is an important step for the industrial use of pyrolysis oil from waste tyres. It supports a trend that we are seeing in many markets, where the chemical industry is seeking reliable, technologically robust and clearly classified alternative raw materials.”

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In pursuit of its strategic vision, ‘Michelin in Motion 2030’, Michelin is expanding into high-value adjacent markets, including the development of its Polymer Composite Solutions. A key step in this growth is the acquisition of Flexitallic, a global leader in sealing solutions based in Houston, Texas. This move is set to substantially enhance Michelin’s sealing portfolio and extend its market access, particularly within the aftermarket sector.

Flexitallic serves critical industries such as energy and chemicals, providing high-performance gaskets, sheet products and specialty filler materials known for exceptional reliability and resistance in extreme, safety-critical environments. The company, which operates 17 facilities worldwide and employs about 1,200 people, reported sales of approximately USD 220 million in 2025.

The acquisition is a strong strategic fit, uniting two global organisations with a shared commitment to innovation and quality, thereby creating significant synergies for future growth. The transaction, for an undisclosed amount, will be fully financed from Michelin’s available cash. Subject to standard regulatory approvals and closing adjustments, it is anticipated to be finalised in the first half of 2026.

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Birla Carbon has inaugurated a dedicated production line at its Trecate, Italy facility, specifically engineered for the finishing and packaging of its Continua Sustainable Carbonaceous Material (SCM). This industry-leading circular material is produced from end-of-life tyres, and the new line enables its manufacture in large, consistent volumes. This expansion directly strengthens long-term supply security for the company’s worldwide customer base.

The Continua SCM range, including the 8000 series for tyres, rubber goods and plastics, provides a scalable sustainable solution. It allows customers to increase recycled content while gaining functional benefits such as blending flexibility and lower homologation costs. Importantly, it delivers assured regulatory compliance and consistent quality, supporting industries in their transition toward enhanced product circularity and reduced environmental impact.

John Loudermilk, President and CEO, Birla Carbon, said, “This is a pivotal moment for Birla Carbon. Continua SCM represents the most consistent, high-quality, circular material in the carbon black industry today and replaces a portion of carbon black in most rubber and non-rubber applications. It also reflects cross-industry collaboration for sustainability, with raw material sourced from our partner Circtec’s newly launched tire pyrolysis facility in the Netherlands and finished and packed at our state of-the-art processing line in Trecate. The launch of this line is a key milestone in our ambition to put back into industry 300,000 tonnes of end-of-life tyres annually by 2030, contributing to our aspiration to achieve net zero carbon emissions by 2050.”

John Davidson, Chief Sales, Marketing and Sustainability Officer, Birla Carbon, said, “The launch of the Continua SCM processing line in Trecate ramps up the availability of our circular product portfolio for customers globally. Continua SCM enables our customers to increase the use of sustainable materials in their products while maintaining the performance standards they expect. This expansion reinforces our commitment to supporting customer sustainability goals at scale.”

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