Covestro has successfully completed the modernisation of its TDI (Toluene Diisocyanate) plant in Dormagen, Germany. The facility was formally commissioned by Covestro as it unveiled its new goal of boosting production energy efficiency during an event attended by over 60 visitors from the commercial, political and personnel sectors, including Oliver Krischer, North Rhine-Westphalia Environmental Minister.

By using 80 percent less energy than traditional methods, the modernised plant reduces CO2 emissions by 22,000 tonnes annually. This is made possible by a new reactor that is over 20 metres high and weighs more than 150 tonnes. It produces steam using the reaction energy that is created. Covestro began the modernisation process in the summer of 2023. Over 3.5 kilometres of new pipes, over 14 kilometres of cables and hundreds of new pieces of equipment, valves and monitoring devices were placed throughout the facility. Through its federal subsidy programme for energy and resource efficiency, the Federal Ministry for Economic Affairs and Climate Action (BMWK) has provided assistance for this modernisation.

The company targets a 20 percent reduction in CO2 emissions from energy use per tonne of product by 2030 compared to 2020, underlining energy efficiency as a key component in reaching operational climate neutrality by 2035. With a 300,000-tonne-per-year capacity, the Dormagen TDI facility stands as a shining example of how to successfully convert current manufacturing facilities to be more energy-efficient.

Dr Philip Bahke, Head of the North Rhine-Westphalia Site Network, said, "The successful completion of this project shows that climate protection and competitiveness can go hand in hand. The modernised plant sets new standards in energy efficiency and underlines our path toward climate-neutral production. In light of persistently high energy costs, the project significantly strengthens the competitiveness of TDI production in Europe. My special thanks go to the entire project team, who professionally implemented this complex modernisation during ongoing operations."

Dr Christine Mendoza-Frohn, Head of Sales Performance Materials for the EMEA and LATAM regions, said, "In Dormagen, we operate Europe's largest TDI production plant. With the successful modernisation, we can now offer our customers TDI with an even better carbon footprint. This supports our customers in achieving their own sustainability goals and strengthens our position as a reliable partner for climate-neutral and circular solutions."

Perth-based CTS Tyre Recycling is forging ahead with its plans to reshape the options for disposal of end-of-life tyres in Western Australia.

The company, a part of the wider Cometti Group, a family-owned business with more than 40 years of experience in the tyre industry, has invested more than USD 40 million in a state-of-the-art recycling plant at Neerabup, north of Perth, that processes waste tyres into crumb rubber, tyre derived products, reusable high tensile steel wire and reusable textile. The company also made some additions to its management ranks and expanded its links with industry associations as it moves forward with its strategy. These tyres, along with all other sizes, will be remanufactured in the new Neerabup factory into new, high-value goods like load-restraining matting, gym matting, equestrian and farm matting and acoustic underlay.

Leigh Cometti, the company’s Managing Director, identified a potential to diversify into the recycling of end-of-life tyres, concentrating on some of the huge off-the-road tyres utilised in the mining services and agricultural industries. Over 90 percent of the bigger OTR tyres now in use in Western Australia are thought to end up in landfills. Tyres are commonly buried in pits left behind during excavation, which results in the greatest landfill disposals in the Pilbara area. The recycling programmes will lessen the need for more virgin products in addition to decreasing landfill discharge.

Cometti has brought on two seasoned senior level managers to support him as the company grows. Joseph Jeevaraj has joined as Chief Financial Officer, while Darren Rodwell has been named Chief Operating Officer. Both positions work for the Cometti Group, which also owns the Bunbury Trucks Sales and Service dealership, CTS People and Mechanics Recruitment.

Continental and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH have extended their project to improve sustainability in smallholder natural rubber farming by three years. About 5,000 indigenous smallholders in West Kalimantan, Borneo, Indonesia, have already received training since 2018 on how to grow premium natural rubber in accordance with well-defined sustainability standards. Co-funded by Continental and the German Federal Ministry for Economic Cooperation and Development (BMZ), the initiative aims to engage an additional 1,000 smallholders by 2027.

Lack of knowledge and low farmer income are two major issues in natural rubber farming that are addressed by the Continental and GIZ initiative in the region of Kapuas Hulu, which is home to a UNESCO biosphere reserve. Farmers are taught sustainable agriculture practices and cultivation techniques through the training offered by Continental and GIZ. This enhances the rubber's quality, boosts yield, streamlines the supply chain and raises rubber producers' profits. Additionally, this aids in putting into practice the crucial subject of preserving or reviving biodiversity in the project region. Transparency is also guaranteed across the natural rubber supply chain, from the rubber tree to its usage in Continental's manufacturing, thanks to the implementation of a digital tracking system.

In addition to increasing local capacity, both the companies are actively assisting in enhancing smallholders' quality of life and encouraging environmentally friendly methods of growing natural rubber. The objectives of the EU Regulation on Deforestation-Free Supply Chains (EUDR) are clearly supported by Continental, which has long been actively dedicated to increased supply chain sustainability and transparency. In addition to Continental's tyre facilities, other manufacturers can purchase the sustainably sourced natural rubber produced as part of the project, and more partners are being invited to join.

Dr Michael Radke, Head of Sustainability in Purchasing, Continental, said, “As one of the largest tyre manufacturers in the world, we have a particular responsibility in the natural rubber supply chain. That is why we are committed at all levels and are building capacity locally. Over the past few years, together with GIZ, we have shown that we can make the natural rubber supply chain transparent and at the same time increase farmers’ incomes. Now we want to reach even more smallholders and create the framework conditions for the successes achieved to be sustained.”

The German speciality chemicals company recently inaugurated the first India Application Development Centre (IADC) in the country’s financial capital, reinforcing its commitment and outlook for the country. 

For Lanxess India, tyre industry accounts for almost 25 percent of its business, as against global average of around 10 percent. And the company’s management continues to be upbeat about the growth story for Indian tyre makers.

“India, from our point of view, will play a very important detrimental role (for Lanxess). Because when you want to grow your industry, which Prime Minister Narendra Modi clearly has as an ambition, you need the chemical industry and all their precursors. And if you want to help the Indian industry to further develop (new solutions), you need to have local application for local needs,” remarked Matthias Zachert, Chairman of the Board of Management of Lanxess.

He was speaking on the sidelines of the inauguration of the India Application Development Centre (IADC) in Thane, Mumbai, which also marks a significant commitment by the German chemical major for the country.

Lanxess is said to be the world’s largest supplier of rubber additives focusing on solutions around rubber chemicals, speciality chemicals and processing aids for the rubber industry. The company’s solutions find their way in high-performance rubber products such as tyres, treads, seals and even drive belts.

At present, Lanxess has established two production facilities in India – Jhagadia in Gujarat and Nagda in Madhya Pradesh. The tyre industry is primarily supported by Lanxess Rhein Chemie Additives Divisions, which manufactures Rhenogran and Rhenodiv at the Jhagadia facility. The company has invested over EUR 70 million in the Jhagadia facility, which not only supports the domestic customer base for Lanxess but also its customers in the Asia-Pacific region. The company has a longstanding presence in India, with representation from all 10 of its business units and a workforce of around 800 employees.

It comes as no surprise that Zachert sees India as a critical growth region for Lanxess, offering immense opportunities for collaboration and innovation.

INDIAN TYRE INDUSTRY A KEY GROWTH DRIVER

Globally, the automotive industry in particular is transitioning from being seen as a seller of products to a mobility solutions provider, what’s with new business models or service solutions.

Zachert sees that while the tyre market was consolidated for many years, it has started opening up in the last decade.

“The global tyre market has opened up, strongly driven by Chinese tyre manufacturers but also Indian tyre manufacturers. We have rising stars here in India. Mobility has always led to liberty and flexibility for mankind. This will be a trend that in the next 10-20 years is not going to vanish. Mobility will be important, which means the tyre industry is important. And therefore, I look positively at the tyre industry going forward, notably the one that is located here in India,” said an optimistic Zachert.

It is important to understand that the company has almost 25 percent of its business exposure to the Indian tyre segment, which could be amongst the highest for the company.

“For our group, the mobility exposure that we have worldwide as a company is 10 percent. We are over-proportionally present here in India, which is good and normal because the industry is expanding. The Indian tyre market is expanding not only locally but globally,” he said.

The recent setting up of IADC is part of Lanxess’ strategic focus on India as a key market and innovation hub. The strengthening of R&D will enable the company to enhance its ability to deliver high-value, specialised solutions tailored to local needs.

To begin with, the company has integrated expertise from two key businesses in India: Lubricant Additives (high-performance additives and additive systems, synthetic base fluids and ready-to-use lubricants) and Material Protection Products (antimicrobial, disinfection and preservation solutions). Going forward, the idea is to be present with all business units’ expertise at the IADC.

Namitesh Roy Choudhury, Vice-Chairman and Managing Director, Lanxess India, said, “By establishing the IADC, we are bringing our expertise closer to our Indian customers. This centre will not only support innovation but also strengthen our ability to address evolving market trends with speed and precision.”

For Lanxess India, the IADC aligns with its transformation journey towards a speciality chemicals company. The aim is to focus less on cyclical business areas and solutions for critical applications and move towards a partner for sustainable mobility or consumer protection. And the company sees India’s growing industrial base and expanding consumer markets as an ideal platform for driving such advancements.

SUPPORTING THE TYRE INDUSTRY

The production of the plain looking black tyre is more than just moulding of rubber; it is a complex process, which includes incorporating various raw materials and scientific steps to ensure that the tyres are built up to a particular specification. After all, tyres remain and are supposed to be the sole point of contact between a vehicle and the road when in motion.

Lanxess, for its part, supplies solutions across mixing, batch-off, extrusion & tread marking, tyre inspection & repair, tyre curing, green tyre spraying and tyre building processes.

According to the company, a durable car tyre is the result of a complex manufacturing process in which the tyre is built-up from various rubber compounds and reinforcing materials. It explains that by using rubber chemicals and various fillers, the raw material rubber is turned into a high-performance product. This is because rubber is soft and not very durable until vulcanisation. By selecting the type of rubber, the crosslinking chemicals and additives required for the desired technical properties of the end-product, high-performance products such as tyres and other rubber products are created.

EUROPEAN COMPANIES TO STEP OUT OF PETROCHEMICALS

The chemicals industry has undergone a sea of change, especially given the evolving trend from geography-focused development to globalisation. For the last few years, there has been a growing pressure, especially given the focus on sustainability.

To support the sustainability drive, the company recently introduced Vulkanox HS Scopeblue, a next-generation rubber additive designed to help tyre manufacturers produce more durable and environmentally friendly tyres. The anti–degradant effectively protects tyres from the damaging effects of oxygen and heat while offering reduced environmental impact. Its low volatility and minimal migration tendency further enhance tyre performance and longevity, making it an optimal solution for modern, eco-conscious manufacturing.

The company claims that the Vulkanox HS Scopeblue boasts a carbon footprint more than 30 percent lower than its conventionally produced counterpart thanks to the use of bio-circular acetone and renewable energy in its production process. It is being currently manufactured at an ISCC PLUS-certified plant in Germany; this mass-balanced additive retains the same chemical structure as the original product, allowing tyre manufacturers to adopt it seamlessly without altering their existing production processes.

Zachert further said, “Times lead to change. The industry dynamics of chemicals has been adjusting to change for the last decade and will continue to see changes for the next decades. If I look into the next 10 years of the chemical industry, my personal prognosis is that you will see that the European chemical companies will more and more step out of petrochemicals and go upstream. And this is happening as we speak. My thesis also is that the European industry will focus more on niche polymers and speciality chemicals. The upstream and volume polymers will go elsewhere, where you have the raw materials and cheap energy. Countries that are destined to dominate these kinds of chemicals over the next 10 years, is the Middle East and the United States. Europe used to be the epicentre of chemicals 20-30 years ago from polymers to chemicals to pharmaceuticals.”

Then there is the shift from global supply chain to more of regional supply chain given the geopolitical situation.

“I see that with the current world with geopolitical tensions, the likelihood is high that we will go back to trade zones. And therefore, the global value chain in chemicals is one where many companies will have to rethink the global approach and turn towards a more regional approach,” added Zachert.

Japanese speciality chemicals manufacturer Zeon Corporation and US-based biotechnology firm Visolis Inc. announced plans to begin preparatory steps towards constructing a commercial-scale production facility for bio-based isoprene and sustainable aviation fuel (SAF).

The companies are evaluating multiple potential sites for the new facility, which will use Visolis’ proprietary fermentation and downstream processing technology. The announcement follows a successful joint feasibility study that confirmed the platform’s competitive advantage for commercial-scale production.

“Visolis has proven to be a valuable innovation partner, and we are excited to take this important next step together,” said Tetsuya TOYOSHIMA, President and CEO of Zeon. “Bio‐based isoprene and SAF are key to our long‐term vision for sustainable growth, and this project reflects our commitment to delivering impactful technologies in collaboration with leading startups."

According to the companies, the next phase of planning activities will include detailed engineering, site assessment, permitting, and stakeholder engagement.

The initiative forms part of Zeon’s broader sustainability objectives and decarbonisation strategy while advancing Visolis’ mission to commercialise its technology.

The two companies have collaborated for several years to develop and scale next-generation, bio-based materials.

Industry analysts note that bio-based alternatives for chemical production and aviation fuel have gained significant attention as companies across various sectors seek to reduce their carbon footprint.

Both companies indicated that further updates will be provided as the project advances.