Capital Carbon Expands rCB Capacity To Tackle Supply Chain Issues

Capital Carbon

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.

Nynas Powers Croatia's First Green Transformer With NYTRO BIO 300X Renewable Insulating Fluid

Nynas Powers Croatia's First Green Transformer With NYTRO BIO 300X Renewable Insulating Fluid

Nynas has played a pivotal role in a landmark achievement for Croatia's energy sector by supplying its advanced NYTRO BIO 300X insulating liquid. This fully renewable fluid has been used for the first time in the Croatian market to fill a 630 kVA distribution transformer. The unit, manufactured by KONČAR – Distribution & Special Transformers, was recently installed in Zagreb for HEP ODS, the national Distribution System Operator.

This collaboration marks the inaugural deployment of a ‘Green Transformer’ in Croatia, representing a significant advancement for the country's distribution network. The project underscores a unified drive towards greater sustainability and a reduced environmental footprint for critical power infrastructure. For Nynas, this milestone highlights the practical application and reliability of its bio-based product portfolio.

NYTRO BIO 300X is engineered to provide a drop-in solution that combines high oxidation stability and superior cooling performance, allowing operators to enhance their ecological standards without compromising on operational reliability or transformer longevity. The successful installation stands as a testament to how industry partnerships are actively accelerating the transition to a more sustainable energy future.

Ivanka Radić, responsible for transformer oils at KONČAR - D&ST, said, “The thermal and dielectric tests on the transformer filled with NYTRO BIO 300X were successfully completed, and the unit is now fully operational. As expected, all test results were within the required limits, confirming the reliability and stability of this innovative fluid.”

Daniele Frustagli, General Manager Italy & the Balkans at Nynas, said, “We are very proud to have been entrusted with this project by KONČAR - D&ST and HEP ODS Zagreb, allowing us to showcase to them and the entire electrical industry the advantages of this fully renewable, bio-based hydrocarbon liquid. In addition to meeting and exceeding the IEC 60296 ed. 5 (2020) specification, the product is readily biodegradable, fully bio-based and has ultra-low viscosity.”

Vanja Burul, President of the Management Board at KONČAR - D&ST, said, “This project reflects our ongoing efforts to explore more sustainable insulating fluids. We see great potential for further use of NYTRO BIO 300X in future applications.”

Rhodia Expands Polyamide Production In Brazil

Rhodia Expands Polyamide Production In Brazil

Rhodia, the Latin American polyamide leader and a Solvay Group company, has unveiled a major new multi-year investment initiative for its Santo André industrial facility in São Paulo. This strategic programme, valued at BRL 100 million (USD 18.56 million approximately) and scheduled from 2025 to 2028, is designed to drive modernisation, enhance energy efficiency and foster innovation. The funds are allocated for the creation of advanced technologies and an increase in production capacity, with a particular emphasis on high-value-added products. These include smart wires and sustainable solutions that position the national industry at the global forefront.

This substantial investment underscores Rhodia's confidence in the Brazilian market's potential, which is supported by a business environment moving toward greater competitive balance. The company highlights that predictable market rules and effective trade defence measures are crucial for enabling such long-term commitments. By expanding its operations, Rhodia will not only solidify its leadership in polyamide 6.6 production but also advance the spinning processes for polyamide 6. This move is a fundamental step in securing a reliable supply chain and strengthening Brazilian sovereignty, spanning from raw chemical materials to finished part manufacturing. Ultimately, the initiative reaffirms Rhodia's enduring commitment to the national chemical and textile sectors, ensuring enhanced competitiveness and sustained value generation for the local industry.

Daniela Manique, President – Latin America, Rhodia, said, “These investments reflect our confidence in the Brazilian market and its capacity for innovation. We are prepared to offer advanced and sustainable solutions that meet the demands of the dynamic textile sector. We believe that a fair and predictable competitive environment is the main factor for growth, the preservation of skilled jobs and technological development in Brazil.”

Birla Carbon Announces Expansion Of Continua SCM

At the recent Reuters Events – Sustainability Europe 2025 conference in London, Birla Carbon’s President and CEO, John Loudermilk, outlined ambitious plans for the company’s circular product, Continua Sustainable Carbonaceous Material. He revealed a strategic vision to significantly expand its availability, with a target for it to eventually comprise up to 10 percent of the company’s global product portfolio. Sourced from end-of-life tyres, Continua SCM is an industrially-produced material designed to offer the same quality, consistency and technical performance as traditional carbon black.

This innovative material allows manufacturers to integrate greater sustainability and circularity into diverse applications such as tyres, plastics and coatings without sacrificing product performance. Loudermilk emphasised that accelerating this transition requires a multi-faceted approach, including supportive regulatory frameworks, deeper collaboration with tyre pyrolysis technology partners and strengthened customer engagement.

Beyond its circular offering, Birla Carbon is also progressing other sustainability initiatives. These include developing carbon black derived from bio-based feedstocks and exploring advanced carbon capture and conversion technologies. These combined efforts support the company’s overarching aspiration to achieve net-zero carbon emissions by 2050, alongside ongoing work to enhance process efficiency and resource utilisation.

Loudermilk said, “While global carbon black consumption typically grows in line with GDP, the demand for sustainable and circular products is increasing at a much faster pace. At Birla Carbon, we see an opportunity to displace up to 10 percent of the carbon black consumption in the world with circular materials like Continua™ SCM, our brand that is derived from end-of-life tyres.”

Continental To Discontinue Operations At Aldora Mills Textile Plant

Continental To Discontinue Operations At Aldora Mills Textile Plant

Continental has initiated a strategic consolidation of its operations in the United States, which includes the planned closure of its Aldora Mills textile plant in Barnesville, Georgia, by the conclusion of 2026. This decision, impacting approximately 230 employees, follows an extensive review of the company's long-term competitiveness in the Americas. The facility, which produces textile reinforcement materials, including tyre cord fabric, hose yarn and knitted fabric, for exclusive use within Continental’s Tires and ContiTech group sectors, had faced persistent cost challenges for years, with shifting global market conditions ultimately making its continued operation unviable. The company's immediate priority is to provide comprehensive support to the affected staff through career counselling and local employment resources.

Despite this specific closure, Continental is reinforcing its substantial commitment to the US market through continued and significant capital investment. In the past decade alone, the company has directed around USD 1.5 billion into its American manufacturing footprint. This is evidenced by recent projects, such as a major expansion of the ContiTech plant in Mount Pleasant, Iowa and the construction of a new, company-owned tyre distribution centre in the Dallas-Fort Worth area scheduled to open in early 2026.

The company's enduring presence in the country remains robust, with a workforce of over 8,800 people spread across its Tires and ContiTech sectors. Its tyre manufacturing plants located in Illinois, Indiana, Mississippi and South Carolina possess a combined annual production capacity of more than 16 million tyres. The closure of the Aldora Mills facility is therefore presented as a necessary step to safeguard the overall health and future performance of Continental's broader operations across the Americas.