Continental is making huge strides in using sustainable and recyclable raw materials.

Car tyres are round, black and made of rubber. Look closer, however, and you’ll see that the design of tyres and the interaction of the various materials that go into making them are extremely complex. But for some time now, material experts and tyre engineers at Continental have been bringing about a silent revolution. By 2050 at the latest, all tyres are to be made of sustainable materials. There is still a long way to go until then. But step by step, it is already becoming apparent which raw materials will find their way into tyre construction in the future. These include waste products from agriculture (such as the ash from rice husks), rubber from dandelions, recycled rubber or PET bottles.

Claus Petschick, Head of Sustainability at Continental Tires, is clear about Continental’s mission, saying, “Continental is on the road toward becoming the most progressive manufacturer in the tyre industry in terms of sustainability. We aim to use 100 percent sustainable materials in our tyre products by 2050 at the latest. Our innovative power enables us to break new and even more sustainable ground. This encompasses everything from the origin and sourcing of our materials through to the reuse and recycling of our tyres.”

Already today, around 15-20 percent renewable or recycled materials are used in a standard passenger car tyre from Continental. To further increase the proportion of sustainable materials and conserve valuable resources, Continental continuously analyses and reviews all raw materials used in tyre production.

Perfect material matching for maximum safety 
Depending on the application, season and environment, tyres have to fulfill specific requirements. This can be seen in, for example, the tread design. But in other areas – the composition of the rubber compound, for example – these changes are not so readily visible. Passenger car tyres from Continental consist of as many as a hundred different raw materials.

Their precise composition has a major impact on the tyres and their handling characteristics. The ability to deploy the various materials with their unique properties and interdependencies in specific ways is a complex balancing act for Continental’s engineers and material experts. Only when all the materials are ideally matched to each other can safe, energy-efficient and durable high-performance tyres be created.

Natural rubber still essential due to exceptional properties
Natural rubber is essential for ensuring outstanding tyre performance. This natural product accounts for between 10 and 40 percent of the entire weight of modern high-performance tyres. Its special properties include the high level of strength and durability, which are caused by the strain-induced crystallisation of the rubber. The tyre industry is the biggest consumer of global rubber production, accounting for more than 70 percent. However, Continental considers natural rubber a sustainable material only if it is sourced responsibly. Therefore, the company employs an integrated approach aimed at making the complex and fragmented supply chains for natural rubber more sustainable, including using cutting-edge digital technology, local involvement and close collaboration with capable partners with the goal of improving transparency and traceability along the entire value chain. Meanwhile, with its Taraxagum project, Continental is pursuing an innovative approach to ensure that it can become less dependent on natural rubber grown primarily in southeast Asia. The tyre manufacturer is working alongside partners on industrialising the extraction of natural rubber from specially cultivated dandelion plants.

Sustainable plant-based fillers 
In addition to rubber, fillers such as silica are essential to tyre assembly. Silica, for example, helps to optimise characteristics such as grip, rolling resistance and tyre life. In the future, rice husks will be used as the source material for sustainably-produced silica. Rice husks are a waste product of rice production and cannot be used as food or animal feed. Silica derived from the ash of rice husks is more energy-efficient when used in manufacturing than that obtained from conventional materials such as quartz sand.

Plant-based oils, such as rapeseed oil and resins based on residual materials from the paper and wood industries, already offer an alternative to crude-oil-based fillers in Continental's tyres. Only oils that meet technical quality standards and are not suitable for consumption are used. Oils and resins allow for flexibility in terms of tyre compounds and so improve the material’s grip.

Expanding the circular economy
Continental is aiming for fully circular operations in its tyre production by 2050 at the latest. In addition to the use of renewable materials, the company is working systematically on using recycled raw materials in tyre production. This is intended to ensure that carbon black – another crucial filler in rubber compounds – can be obtained on a large scale in the future. Continental recently signed a development agreement with Pyrum Innovations with a view to further optimising the recycling of materials from old tyres. To do this, Pyrum breaks the old tyres down into their constituent parts in an industrial furnace using a special pyrolysis process. This way, valuable raw materials contained in end-of-life tyres can be extracted and recycled. Both companies are working towards obtaining high-quality raw materials from the pyrolysis oil obtained for Continental's tyre production in the medium-term, in addition to the direct use of high-quality carbon black. In the long-term, the tyre manufacturer and Pyrum are aiming to establish a closed loop circular economy concept for the recycling of old tyres.

Recycled rubber from end-of-life tyres
In addition to pyrolysis, Continental is also making use of mechanical processing of end-of-life tyres. Rubber, steel and textile cord in particular are separated from one another in a highly sophisticated process. The rubber is then prepared for re-use as part of new rubber compounds.

Continental has a long history of working consistently to introduce end-of-life tyres into the circular economy to conserve resources and the environment. A material known as Conti-Reclaim has been obtained as part of the truck tyre retreading process at the company’s plant in Stöcken in Hanover since 2013. It has been used in tyre production at Continental for years. To expand the range of applications for the recycled rubber and optimise the properties for the various fields of application, Continental uses not only Conti-Reclaim but also recycled rubber from other suppliers.

Recycled plastic bottles in tyre casing 
“Recycled raw materials are going to play a big role in making tyres more sustainable. We use recycled materials whenever possible. Comparable quality and material properties to conventional raw materials are crucial for us,” says Petschick.

For example, Continental is working with partners to obtain high-quality polyester yarn for its tyres from recycled PET bottles. PET bottles often end up in incinerators or landfills otherwise. With its ContiRe.Tex technology, the tyre manufacturer has developed a more energy-efficient and eco-friendly alternative that allows it to reuse between nine and fifteen plastic bottles for each tyre, depending on the tyre size. The recycled PET has already replaced conventional polyester in the structures of some tyre casing. The PET bottles used are sourced exclusively from regions where there is no closed recycling loop.

Systematically moving toward greater sustainability
Continental is working to advance innovative technologies and sustainable products and services throughout its entire value chain, from sourcing sustainable materials to recycling end-of-life tyres. The company is aiming to achieve 100 percent carbon neutrality by 2050 at the latest.

Nouryon, a leading supplier of organic peroxides and a developer of organic peroxide solutions, has formally announced the completion of capacity expansion of its organic peroxides manufacturing facility in Ningbo, China.

The company's production capacity for Perkadox 14 and Trigonox 101 organic peroxide products, which are crucial components for altering polymer characteristics and crosslinking rubbers and thermoplastics, has increased to 6,000 tonnes each as a result of this capacity expansion. Furthermore, by improving the qualities of recycled polypropylene (R-PP), these solutions can also allow consumers to employ recycled polymers in applications that were previously exclusive to virgin plastics.

Alain Rynwalt, Senior Vice President – Performance Materials, Nouryon, said, “Nouryon is a world leader in essential ingredients for the polymer industry and this expansion highlights our dedication to supporting our customers’ growth across the entire polymer cycle. Customer interest in improving the properties of recycled polypropylene continues to rise, in line with increased consumer awareness and more stringent regulations.”

Sobers Sethi, Senior Vice President – Emerging Markets and China, Nouryon, said, “Asia Pacific is a key region for Nouryon and our most recent expansion in China strengthens our supply position even more in this growing region. Our customers rely on our existing network of manufacturing facilities and innovative technologies, and we are pleased to build more capacity to meet growing customer demand around the world.”

Trinseo, a speciality materials solutions provider, has signed agreements to supply its polycarbonate technology license as well as all proprietary polycarbonate production equipment in Stade, Germany to Deepak Chem Tech Ltd, a wholly owned subsidiary of Deepak Nitrite Limited, a diversified chemical intermediates company based in Vadodara, Gujarat, India.

The combined deals are worth USD 52.5 million. Subject to significant milestones, the business anticipates receiving around USD 9 million by the end of 2024 and an additional USD 21 million in the first part of 2025. The firm has made the decision to leave Stade, Germany, with this disposal of the production assets.

Frank Bozich, President and Chief Executive Officer, Trinseo, said, “While Trinseo recently announced its decision to exit virgin polycarbonate production, our polycarbonate technology is highly valued and the manufacturing equipment in Stade, Germany, can be utilised in India by Deepak. These are the initial steps of a strategic, collaborative partnership with Deepak, as we explore additional opportunities to leverage our technology portfolio and expand in higher-growth areas such as India.”

China's butadiene exports have experienced significant growth in recent years, particularly in 2021 and 2024. According to Sublime China Information (SCI), this surge is primarily driven by supply constraints in key regions, including the US and Southeast Asia.

Export Volume and Price Trends

In 2021, China's butadiene exports reached a historic high due to a supply gap in the US market. According to SCI, this trend continued in 2024 as reduced deep-sea cargo shipments and production challenges in Southeast Asia further tightened global supplies. From January to September 2024, China's total butadiene exports surged by 111 percent year-over-year to approximately 120.8 kilo tonnes.

The average export price of butadiene has fluctuated over the past five years. In 2023, weak demand in South Korea and competition from deep-sea cargoes led to a significant decline in export prices. However, in 2024, supply shortages from key regions drove prices to a five-year high. As of September 2024, the average export price reached USD 1,391 per metric ton, a 35 percent month-over-month increase, added SCI.

Export Destinations and Regional Dynamics

The majority of China's butadiene exports are directed to South Korea and Taiwan. In 2024, South Korea accounted for 74 percent of total exports, a significant increase from the previous year. This surge was driven by factors such as limited domestic supply and increased demand for spot butadiene.

While China's butadiene exports have been strong, the long-term potential for significant growth in deep-sea exports remains limited due to established supply chains and regional demand dynamics. Most of China's exports are currently concentrated in Northeast Asia, with limited opportunities for expansion into other regions.

Future Outlook

SCI added that 2025 China's butadiene supply is expected to be relatively sufficient, and export volumes may increase further. However, the sustained growth of exports will depend on various factors, including downstream demand in key markets, the availability of deep-sea cargoes, and the development of new production capacities in other regions.

Despite these uncertainties, China's butadiene industry is well-positioned to capitalize on global supply-demand imbalances and continue to play a significant role in the global market.

Cabot Corporation, a global speciality chemicals and performance materials company, has announced through an official statement that it will raise prices globally for carbon black products sold by its speciality carbons business. The price rise will be global and will come into effect for all shipments on or after 1 December 2024, or as contracts allow.

The company claims that the price rise is necessary owing to the impact of inflation on labour, maintenance and other production activities, as well as supply chain-related expenditures. The price increase will vary depending on the product and region.

The statement further elaborates that these price adjustments will help the company remain a dependable, long-term provider of high-quality products and services to its consumers. Cabot also underlined its commitment to guaranteeing supply security and the best service standards for its clients, as well as providing technological and process improvements and moving forward with its environmental goals.