With India’s first integrated carbon black complex, Epsilon Carbon Private Limited will have secured raw materials supply with better yield. In an interview, Vikram Handa, MD, Epsilon Carbon, shared the company’s aggressive expansion plans with top-notch manufacturing capabilities.

With the commission of India’s first integrated carbon black plant, Epsilon Carbon Private Limited (ECPL) is upbeat on producing more quality-consistent products with better yield and lesser carbon footprint than its peers.

ECPL, India’s leading coal tar derivatives company, recently commissioned the production at its carbon black complex located in Bellary, Karnataka, which has a capacity of 115,000 tonnes per annum (TPA). The plant produces both tread and carcass grades of ASTM carbon blacks for tyre, non-tyre rubber and plastic masterbatch.

Established in 2010, today ECPL has manufacturing units in Karnataka, Chhattisgarh and Odisha in India. To be a leader in the carbon and coal tar industry globally, the company focuses on environment-friendly and energy-efficient processes. It currently produces coal tar derivatives such as graphite pitch, binder pitch, carbon black oil, anthracene oil and naphthalene used to make aluminium, carbon black, tyres, mechanical rubber goods, graphite and speciality chemicals and other products.

Manufacturing Advantages

ECPL’s Bellary carbon black unit is located in the JSW Steel complex, where it procures coal tar. ECPL has been operating a coal tar distillation plant for the last seven years, and one of the by-products of cold tar distillation is carbon black oil, which it sells to other carbon black manufacturers. The anthracene oil generated in the coal tar distillation process is used as a clean feedstock in the carbon black unit. “Over the last five years, many carbon black manufacturers have been buying the feedstock from us to make their products. When we saw more raw material was becoming available to us, we forward integrated to use our oil to make carbon black. We are the only carbon black manufacturer who is completely backward integrated,” says Vikram Handa, MD, Epsilon Carbon.

Carbon black is used as a reinforcement agent in tyres. Though carbon black is being replaced with silica in passenger vehicle tyres, it is still widely used in commercial tyres. ECPL produces hard and soft grades of carbon black to cater to both tyre and non-tyre applications in domestic and international markets.

One unique advantage that ECPL enjoys is the lower sulphur content in its feedstock. The company uses captive low-sulphur feedstock, which has between 0.3-0.5 percent sulphur as against feedstock with around three percent sulphur used by its peers. The ECPL plant also uses waste coke oven gas from the steel plant as fuel, and tail-gas from the carbon black unit is fed back to the steel complex for pre-heating operations.

The Handa-led company has implemented many first-time pollution control measures in a carbon black plant in India. “The water requirement is very high in carbon black manufacturing. Our plant recovers and reuses water. We have also installed bag filters to collect dust in our warehouses. We really want to set high standards for the first time in India that are accredited and recognised globally,” adds Handa.

The company has already obtained REACH certifications for its products. With the high standards, ECPL focuses on higher Cpk value to maintain consistency in the manufacturing processes that customers look for.

Poised For Growth

According to Handa, in the next four to five years, the carbon industry in India is poised to witness higher growth in line with the tyre industry’s production expansion. According to ICRA, the Indian tyre industry is likely to have a capital expenditure of over INR 200 billion between FY2022 and FY2025. Explaining the growing expectations of tyre companies, Handa says, “In general, if you see, the carbon black industry is coming closer to its customers – mainly tyre companies. For instance, many carbon black producing companies are moving to Eastern Europe – an emerging hub of tyre manufacturing companies. The same trend is expected across the globe.”

“The carbon back is a very voluminous product, shipped in jumbo bags to different parts of the world. So it is challenging to move carbon black around the globe effectively. Though it’s not a very expensive product, the cost of freight becomes a big component in the prices of carbon back. Being closer to your customers always gives an advantage on the cost front,” adds Handa.

In India, many carbon black producers are located near ports, which is logical to import oil feedstock to make carbon black. However, in India, leading tyre companies are situated in the South. Being a backward integrated carbon black producer and closer to the major tyre companies, ECPL will enjoy certain advantages, believes Handa. “Being strategically located in Karnataka, we can send our products to the tyre companies located in the southern part of India in a day, whereas our competitors may take two to three days.” For its customers in other parts of the country, the company will build depots and a strong distribution network. It aims at servicing global markets and has appointed over 30 partners who will assist with local service, warehousing and logistics support to provide just on-time delivery to its customers.

Out of its current total production, around 80 to 85 percent is of ASTM grades, while the rest is speciality grades. For the time being, the company will continue to focus on ASTM grades to cement its position in the market. “I think in our future expansion, we will look at niche products, but currently, we’re focused on just ASTM goods,” explains Handa.

The company currently exports to Brazil, Indonesia, Vietnam and China. In its Phase- 2 expansion plans, ECPL will invest INR 3.5 billion, which will bring the total investment close to INR 9 billion, to expand its capacity by another 65,000 TPA. The company plans to further expand its capacity of carbon black to a total of 300,000 TPA. “So, engineering, environmental clearance and all these things are envisaged for a 300,000 TPA-complex, which will be the largest single-location carbon black plant in India that will bring cost efficiency and consistent quality products for its customers,” says Handa.

Right now, around 60 percent of production is consumed locally, and the rest is exported. In the future, it targets to take up local supply to 80 percent in the next three months. On the segment side, the company aims to supply around 70 percent to tyre companies and the remaining to non-tyre companies. Currently, the ratio is other way around.

Handa also stresses the need for effective collaboration between tyre companies and carbon black makers. He says his company looks at the growth synergies with tyre companies catering to demand generated due to the aggressive expansion of the tyre production. “We at Epsilon Carbon Black look at developing better products tapping into all types of demand of tyre companies in future. So it’s essential to work with tyre companies jointly. You don’t want a situation where tyre companies are expanding production, and the larger requirement of carbon black will be met through imports. And we, as a carbon black manufacturer, also do not want to be an opportunist and export our product to take price advantage. We look for long term partnerships,” explains Handa.

At the start, the company’s focus is really to qualify as a supplier to our customers. “Today, more than 1,000 customers have used carbon black. Some of them might have bought 25 kg, some 100 tonnes, but the fact is that everybody is trying a carbon black, getting used to it, qualifying it, and that opens the door to sell more to the customers hopefully,” concludes Handa. (TT)

Eurogrip Tyres, the leading tyre manufacturer in India, showcased its premium two-wheeler tyres at the 17th edition of Feria 2 Ruedas (F2R) International Motorcycle exhibition held at Plaza Mayor, Medellin, Colombia. The dates of this high-profile business event in South America's two-wheeler sector are 15–18 May 2025.

For more than 17 years, the Feria de las 2 Ruedas (F2R) has been the leading motorcycle industry event in Latin America. The expo, which takes place every year in Medellín, Colombia, is a vibrant venue for commerce, innovation and growth in the motorcycling sector. Additionally, it gives aficionados the chance to investigate the most recent developments and trends in the industry. The company showcased its premium lineup at exhibit N24 in the Tented Pavillion, which included a range of sport touring, off-road and trail tyres. High-performance versions including the Roadhound, Protorq Extreme, Trailhound STR, Climber, Bee Connect, Terrabite DB+ and Badhshah LX were on display.

P Madhavan, Executive Vice-President – Marketing & Sales, TVS Srichakra Ltd, said, “Eurogrip is focused to deliver innovative products for the global markets. Latin America is a priority market for us, and F2R Expo is a promising platform to engage with our target audience. We are looking forward to interesting business opportunities arising from this expo. Such specialised industry tradeshows add exceptional value to our quest in becoming a leading global tyre brand delivering world class tyre technology.”

Denka Company Limited announced it would record an extraordinary loss of approximately 16.1 billion yen (£85.8 million) as an impairment on manufacturing facilities at its US subsidiary. It will indefinitely suspend chloroprene rubber production at the Louisiana plant.

The Japanese chemical manufacturer, which holds a 70 percent stake in Denka Performance Elastomer LLC (DPE), cited mounting operational challenges, including unexpectedly high costs for pollution control equipment and declining production volumes at the American facility.

“DPE has faced significant cost, production and other challenges at its facility in the United States,” the company said in a statement. “Rising costs are attributable to, among other factors, identification, design, purchase, installation, and operation of pollution control equipment to reduce chloroprene emissions that DPE did not anticipate being required when it acquired the facility from E.I. DuPont de Nemours and Company.”

The subsidiary was established in December 2014 and acquired the chloroprene rubber business from DuPont in November 2015. The Louisiana facility was intended to serve as a second manufacturing site in North America, complementing Denka’s Omi Plant in Itoigawa, Niigata, Japan.

However, according to the company statement, DPE has struggled with multiple operational issues, including “rising energy costs and a shortage of qualified staff necessary to operate new pollution control equipment and implement other emission reduction measures. “

Production volumes have declined partly due to “operational restrictions arising from the pollution reduction measures and unscheduled plant outages associated with supply chain disruptions and severe weather events,” Denka said.

The company noted that these challenges, combined with changes in the global economic environment for chloroprene rubber, have pressured profitability, making near-term improvement difficult.

Denka confirmed that DPE employs 250 people as of December 2024 and will not restart its chloroprene rubber manufacturing facilities following a regular maintenance shutdown. Instead, “all options for the business, including a potential sale of the business or its assets, will be considered,” the statement said.

The company emphasised that “no decision regarding a permanent closure of the facility has been made at this time.”

Customers will continue to be supplied from current inventories and production at the company’s Omi Plant in Japan.

DPE is 70 percent owned by Denka USA LLC, a wholly owned subsidiary of Denka Company Limited, and 30 percent by Diana Elastomers, Inc., a subsidiary of Mitsui & Co., Ltd.

Yokohama Rubber reported a 56.9 percent year-on-year decline in profit attributable to owners for the first quarter of 2025, despite posting a 9.0 percent increase in sales revenue.

The Japanese tyre maker recorded a profit of 8.53 billion yen for the three months ended 31 March, down from 19.8 billion yen in the same period last year. Business profit fell 3.2 percent to 24.07 billion yen, while sales revenue rose to 275.12 billion yen.

The company maintained its full-year forecast, projecting an 11.4 percent increase in sales revenue to 1.22 trillion yen and an 8.8 percent rise in profit to 81.5 billion yen for the fiscal year ending 31 December 2025.

Yokohama Rubber attributed the profit decline to one-time costs related to its February acquisition of Goodyear’s off-the-road (OTR) tyre business, which it purchased for approximately 143 billion yen.

“Profit from existing businesses was strong,” the company said in its earnings statement. “In addition to increased sales volume for the company’s consumer tyres, mainly in overseas markets, and continued expansion of sales of high-value-added ADVAN, GEOLANDAR, and Winter tyres as well as high-inch tyres, profit was boosted by the MB segment’s MIX improvements and structural reforms.”

The tyre segment, which accounts for 91percent of the group’s consolidated sales revenue, saw a 10.4 percent increase in sales to 250.32 billion yen. Original equipment tyre sales were higher year-on-year, driven by “strong sales in Japan of vehicle models equipped with YOKOHAMA tyres and expansion of shipments for Chinese automakers’ new energy vehicles,” the company said.

Replacement tyre sales also increased, supported by higher sales of summer and winter tyres in Japan, increased sales of high-inch tyres in Europe, and stepped-up sales efforts in Asia.

The MB (Multiple Businesses) segment, which represents 8.4 percent of total sales, experienced a 3.2 percent revenue decline to 23.02 billion yen. This was attributed to lower demand from construction machinery makers in Japan and automakers in North America.

The company described an “upbeat” business sentiment in Japan for the quarter, noting that “a steady recovery in inbound demand and increasing orders for construction and logistics projects compensated for weak consumption by domestic households curbing spending in response to rising prices of consumer goods.”

Overseas, the company observed rising inflation concerns weighing on consumer spending in the United States, while in Europe, “manufacturing industries are rebounding and corporate business sentiment is improving.” In China, personal consumption was boosted by the Spring Festival holiday, but high US tariffs “reduced China’s exports and created uncertainty about the future that is weakening industrial activity.”

Swedish speciality chemicals firm Nynas reported solid financial results for 2024, posting an Adjusted EBITDA of 1,333 million Swedish kronor, marginally higher than the 1,316 million kronor recorded in 2023.

The company, which specialises in naphthenic speciality oils and bitumen products, attributed its performance to operational efficiency and commercial success in its niche markets.

“We are delighted with the progress made during 2024, evidencing our right-sized cost base and a more targeted commercial and manufacturing footprint. We have redefined our strategic direction, positioning Nynas as a speciality chemicals company, enabling the energy transition and setting our course for 2035,” Nynas CEO Eric Gosse said in a statement.

The firm highlighted strong cash generation from operations, which it said would support planned investments and longer-term growth initiatives. Nynas also mentioned the ongoing transformation of its Harburg site with plans to monetise the asset eventually.

All three of the company’s production facilities maintained high operational reliability between 95 percent and 99 percent. The Nynäshamn refinery achieved a notable milestone: in May 2024, it set a new monthly production record for naphthenic speciality oils at 42,000 tonnes.

Strategic pivot towards sustainability

Nynas outlined a strategic shift focused on higher-margin speciality materials with sustainable characteristics. The company aims to strengthen its position in European markets through innovation and sustainability initiatives.

“Nynas is uniquely positioned to contribute to the energy transition. Our strategy reflects our purpose to advance a more sustainable society, and our product development pipeline is fully aligned with this goal," Gosse added.

In 2024, the company received an EcoVadis Gold rating, placing it in the top 5 percent of globally rated businesses for sustainability performance.

With consecutive years of strong financial performance, Nynas indicated it continues to monitor debt capital markets to optimise its capital structure “at the appropriate time potentially”.

The Swedish chemicals producer noted that, having ceased operations in the United States in 2022, it remains largely insulated from recent global trade tensions surrounding US import tariffs. The company imports only minimal feedstock from America, shielding it from potential cross-border trade disputes.