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.

Bekaert has entered into a strategic cooperation agreement with CITIC Special Steel, a prominent Chinese producer of specialised steel products. The partnership establishes a formal framework for technical collaboration aimed at addressing the viability of reintegrating steel reclaimed from scrap tyres into the production of new tyre reinforcement materials. The core objective is to determine whether end-of-life tyre steel can be effectively processed into wire rod suitable for manufacturing fresh reinforcement components.

The initiative merges CITIC Special Steel’s advanced capabilities in steelmaking and rod production with Bekaert’s specialised knowledge in tire reinforcement technologies. Together, the firms will conduct a technical assessment of material flows to gauge the feasibility of establishing more circular loops within the tyre manufacturing value chain. Their joint efforts will prioritise the examination of closed-loop steel usage on a significant scale.

This proof-of-concept endeavour is in its nascent stages and will concentrate on cooperative technical assessments, industrial-scale trials and exhaustive material analyses. The resulting data will clarify the technical, operational and financial consequences of integrating substantial proportions of circular steel. The programme seeks to ensure that any potential solutions adhere to the rigorous quality and performance benchmarks demanded by the sector while also mapping out future strategic directions.

The official signing ceremony occurred in Jiangyin, China, with delegations from both entities convening to deliberate on innovation and sustainability. As demand for eco-friendly alternatives intensifies across the automotive and materials sectors, this collaboration is designed to expand current knowledge and test technical limits. It represents a continuation of Bekaert’s wider sustainability agenda, which includes solutions like Dramix LoopTM, and reaffirms a mutual dedication to pioneering future industry standards through ecosystem-wide innovation.

Jim Dobson, SVP – Technology & Quality, Bekaert, said, "The transition towards more circular industries requires innovation and close collaboration throughout the value chain. Through this cooperation, we are bringing together complementary expertise to explore the technical feasibility of tyre-to-tyre circularity.”

Jiang Qiao, General Manager Sales Company, CITIC Special Steel, said, "We are pleased to deepen our relationship with Bekaert through this strategic cooperation. Together, we will explore how innovation in steelmaking and materials technology can help advance new approaches to circularity in tyre reinforcement applications."

Zeon Corporation has been included in three major ESG investment indices, marking its debut selection for the FTSE4Good Index, the FTSE JPX Blossom Japan Index and the FTSE JPX Blossom Japan Sector Relative Index. These benchmarks are administered by FTSE Russell and serve as key performance measures for enterprises with robust environmental, social and governance practices.

The FTSE JPX Blossom Japan and its Sector Relative counterpart are specifically utilised as reference points for the Government Pension Investment Fund of Japan, while the FTSE4Good Series holds international recognition for tracking leading global firms. FTSE Russell’s evaluation framework examines a broad spectrum of criteria, spanning climate action, ecological footprint reduction, supply chain integrity, human rights, workplace safety, governance structures and anti-bribery protocols.

Operating under a founding principle dedicated to environmental preservation and human welfare, Zeon perceives this acknowledgment as validation of its ongoing sustainability efforts. The company remains steadfast in advancing social contributions through its commercial operations and intends to persistently strengthen its long-term enterprise value.

Michelin and Axens have entered exclusive negotiations on a strategic partnership to accelerate the industrial deployment of 5-Hydroxymethylfurfural (5-HMF), a bio-based chemical developed with IFP Energies Nouvelles (IFPEN) for use in sustainable industrial applications.

Under the proposed agreement, Axens would contribute its licensing and engineering expertise to support the global rollout of the technology, while Michelin, through its ResiCare brand, would continue to develop production capacity. The companies said the partnership is intended to help replace selected fossil-derived chemicals with renewable alternatives sourced from plant materials.

A first production unit, located at Péage-de-Roussillon in France, will be operated by Michelin ResiCare. The facility will have an annual production capacity of about 3,000 tonnes and is expected to begin operations in early 2027.

The technology is the result of a joint research and development programme between Michelin ResiCare and IFP Energies Nouvelles, supported by France's ADEME and the European Union's Circular Bio-based Europe Joint Undertaking (CBE JU).

5-HMF is a bio-based platform molecule used in the manufacture of resins, adhesives and polymers. It can also be used to produce polyethylene furanoate (PEF), a bio-based plastic regarded as an alternative to polyethylene terephthalate (PET), with potential applications in food packaging, bottles and textile fibres. The molecule can also be used in solvents, specialty chemicals and intermediates, while replacing selected petroleum-derived compounds, including formaldehyde, in existing industrial processes.

Jacinthe Frecon, vice-president of Process and Equipment Innovation at Axens, said: “This project fully illustrates Axens’ ambition to turn breakthrough innovations into concrete industrial solutions on a global scale. By combining a technology born from leading research collaborations with IFP Energies Nouvelles with our licensing and engineering know-how, we have the opportunity to accelerate the deployment of key bio-based solutions for the transition to more sustainable chemistry.”

Laurent Lemonnier, chief executive of Michelin ResiCare, added: “We are convinced that 5-HMF is set to become a reference platform molecule for sustainable chemistry. Our planned partnership with Axens is a decisive lever to accelerate its global deployment and meet growing demand for high-performing bio-based solutions. This collaboration confirms the strong development potential of 5-HMF across a wide range of applications, as well as the performance of our technology developed with IFPEN. It fully reflects Michelin ResiCare’s commitment to developing innovative solutions that contribute to a safer, more sustainable world.”

Michelin said its work on alternatives to formaldehyde and resorcinol in adhesive resin formulations began in 2008. Since 2021, the company has collaborated with IFP Energies Nouvelles to develop a production process for 5-HMF based on fructose. The molecule is now used across all new Michelin ResiCare formulations for composites, plywood, abrasives and moulded compounds.

As Extended Producer Responsibility (EPR) frameworks expand globally, the tyre industry is undergoing a structural transformation. Collection systems are improving, traceability is increasing and investments in recycling technologies are accelerating. However, one critical tension remains insufficiently addressed: the speed of industry evolution is outpacing the agility of public policy. And within that gap, one key question emerges: where does retreading fit in this new circular economy architecture?

A STRUCTURAL PARADOX

Retreading represents one of the most efficient forms of resource optimisation in the tyre lifecycle. It extends product life, reduces raw material consumption and lowers emissions. Yet, in many regulatory frameworks, it is still treated ambiguously – often grouped with recycling rather than recognised as prevention or preparation for reuse. This distinction is not semantic. It is strategic. Because when policy fails to differentiate, markets fail to prioritise.

A FAST-MOVING INDUSTRY, A SLOW-MOVING FRAMEWORK

The tyre market is evolving in real time:

1. Increasing penetration of low-cost imports.
2. Growing variability in product quality.
3. Accelerated turnover cycles.

Retreading, in this context, becomes more than a circular solution. It becomes a filter of industrial quality. Not all tyres are equally retreadable. And that difference defines their real contribution to circularity. Yet most EPR systems continue to operate with uniform economic signals, failing to distinguish between products that enable multiple lifecycles and those that exit the system after a single use.

SIGNALS FROM EUROPE

Recent developments in countries like Portugal – where eco-fees applied to retreaded tyres approach those of low-cost, non-differentiated new tyres – highlight a concerning trend. Similarly, in Spain, industry representatives continue to advocate for a clearer institutional recognition of retreading within EPR systems. These cases illustrate a broader issue: circular policies can unintentionally undermine higher-value circular strategies.

THE MISSING LINK: PERFORMANCE-BASED POLICY

What is missing is not regulation. It is regulatory precision. EPR systems have successfully organised waste flows. But they have not yet evolved to reward performance within the lifecycle. This is where eco-modulation becomes critical.

ECO-MODULATION AS A STRATEGIC LEVER

Eco-modulation should not be a marginal adjustment. It should be a core industrial policy tool. Properly designed, it can:

• Differentiate tyres based on real circular
• performance.
• Incentivise durability and retreadability.
• Penalise short-lifecycle, non-recoverable products.
• Align market behaviour with system objectives.
• To operationalise this, we need new metrics.

FROM COMPLIANCE TO PERFORMANCE: A PROPOSED FRAMEWORK

The next step for EPR systems is to move towards performance-based differentiation. This could be implemented through instruments such as:

• Retreadability Index (RI)
• Performance Score (CPS)

These would measure:

• Number of effective retreading cycles per tyre.
• Structural durability and casing quality.
• Real contribution to lifecycle extension.

Under such a system:

• Tyres with higher retreadability would receive lower eco-fees.
• Products that systematically fail to re-enter the cycle
• would face higher costs.
• This is not just a technical refinement. It is a shift from:
• Generic compliance.
• To intelligent market shaping.

THE LATIN AMERICAN PERSPECTIVE

In Latin America, the stakes are even higher.

The region faces:

• Structural dependence on imported tyres.
• Strong presence of low-cost, low-durability products.
• Emerging EPR frameworks (Chile, Costa Rica, Peru, Ecuador)

Chile, for example, through its EPR law (Ley REP), has made significant progress in structuring collection and recovery targets. However, like many systems, it still faces the challenge of fully integrating reuse strategies into its economic logic. Under these conditions, retreading is not just an environmental solution. It is a strategic industrial capability.

BEYOND WASTE MANAGEMENT

Latin America has a unique opportunity to design EPR systems not only to manage waste

but to govern resources and shape markets.

This means:

• Incentivising retreadable tyres
• Strengthening local retreading industries
• Reducing dependence on short-lifecycle imports
• Building resilience into supply chains

But this requires something critical: policy agility. Because if regulation lags behind market dynamics, it will not transform the system – it will merely formalise its inefficiencies.

A STRATEGIC CONCLUSION

If EPR systems are designed without properly integrating retreading – and without differentiating based on actual circular performance – they risk reinforcing a linear logic under a circular narrative. For emerging regions, this would be a critical mistake

The discussion around repair, reuse and retreading can no longer be treated merely as a waste management issue. It is increasingly becoming a matter of industrial resilience, strategic autonomy and economic security.

As global supply chains face growing pressure from geopolitical fragmentation, logistics disruptions and volatility in raw material markets, extending the useful life of products is emerging as a strategic capability for nations and industries alike.

In this context, Right to Repair should not be understood only as a consumer right but also as an industrial policy tool capable of strengthening local economies, reducing external dependency, preserving technical capabilities and supporting more resilient production systems.

Retreading, remanufacturing and reuse are part of a broader transition where value creation is no longer based exclusively on extraction and disposal but increasingly on intelligence, efficiency and lifecycle management.

CIRCULARITY WITHOUT HIERARCHY BECOMES INEFFICIENCY. REGULATION WITHOUT DIFFERENTIATION BECOMES DISTORTION.

Final note

The future of the tyre industry will not be defined only by how we recycle, but by how intelligently we extend the life of what we already produce. And that requires alignment between:

• Industry dynamics.
• Policy design.
• And strategic vision.

In that equation, retreading must move from the margins to the centre. Because properly understood, it is not just a process. It is a strategic filter, an industrial policy tool and a geopolitical lever.