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)

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Chinese tyre manufacturer Sailun Group has begun construction on a new USD-1-billion tyre facility in Egypt. The plant is situated within the Sokhna integrated industrial zone, part of the Suez Canal Economic Zone (SCZONE). This investment, one of the largest Chinese industrial projects in Egypt, was officially launched at a ceremony attended by SCZONE General Authority Chairperson Walid Gamal El-Din.

The expansive 350,000-square-metre factory will be developed in three phases over a three-year period. The initial phase is scheduled to become operational in 2026, with a planned production capacity of three million passenger car tyres and 600,000 truck and bus tyres annually. This first stage is expected to generate 1,500 new jobs. Upon full completion, the facility's total output is projected to surpass ten million tyres each year.

As a global leader in tyre manufacturing with an extensive international sales network, Sailun Group will utilise this new factory as a strategic hub. The facility is designed to meet rising demand within the local Egyptian market while also creating substantial opportunities for export to regional and international markets.

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With the rise of electric vehicles reducing exhaust emissions, attention is shifting to non-exhaust emission like Tyre and Road Wear Particles (TRWP). These microscopic particles, generated from tyre and road surface friction, are a growing environmental concern and will be addressed in the upcoming Euro 7 emissions standard. To tackle this challenge, Nynas has joined a major research consortium coordinated by the Royal Institute of Technology (KTH), alongside Volvo Cars, Scania and the Karolinska Institute.

The project aims to close a significant scientific knowledge gap by thoroughly investigating the formation, characteristics and environmental impact of TRWP. Nynas contributes a unique dual perspective to this interdisciplinary effort, bringing deep expertise in both tyre rubber compounds and bitumen-based road materials. Pär Nyman, Technical Manager – Tyre & Chemical Industries, Nynas, represents the company in the project alongside the company’s Chief Scientist, Dr Xiaohu Lu, who brings extensive expertise in bitumen and asphalt to the collaboration. A key focus will be understanding how different materials contribute to wear mechanisms.

The research scope extends beyond particle analysis to include measuring the rolling resistance of various tyre and bitumen combinations, a parameter directly linked to vehicle energy efficiency and greenhouse gas emissions. By uniting industry and academia, this collaboration is poised to drive innovation and set new benchmarks in sustainable mobility research.

Pär Nyman, Technical Manager – Tyre & Chemical Industries, Nynas, said, “While Sweden lacks domestic tyre manufacturers, Nynas' research capabilities fill that gap by providing foundational insight into the chemistry and physics behind TRWP generation. Nynas' rubber and asphalt labs are at the heart of this contribution. One of the core insights driving this initiative is that wear particles cannot be fully understood by analysing tyres or roads in isolation. It's the interaction – the system – that matters. By studying both tyre composition and road structure, the project aims to develop a holistic view of TRWP formation, dispersion and toxicity. At Nynas, we are excited to contribute our unique knowledge of materials to help solve an important challenge for both the environment and human health. Through collaboration and scientific inquiry, we aim to pave the way for cleaner roads and cleaner air – one particle at a time.”

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Ecolomondo Corporation, a Canadian developer of sustainable tyre recycling technology, has released its unaudited financial results for the second quarter ending 30 June 2025. The period was marked by significant progress in commercialising its Hawkesbury thermal decomposition facility, particularly within the recovered carbon black (rCB) department. A major milestone was reached with the installation and commissioning of new milling equipment, a critical step for the plant to achieve full operational capacity, as rCB is its primary revenue generator.

Following the quarter's end, the company's main rCB client formally approved the product quality, leading to five consecutive purchase orders for multiple truckloads delivered between July and August. A separate US-based customer has also approved the rCB quality, with bulk purchase orders anticipated imminently.

Financially, Ecolomondo secured USD 1.5 million through private placements and finalised a significant agreement with Export Development Canada (EDC). This arrangement provides a temporary postponement of principal and interest payments on three existing loans, improving the company's working capital and investor confidence. This debt modification resulted in a gain of USD 2,495,209, which contributed to a reported net profit of USD 1,452,712, for the quarter, despite an operating loss, which stood at USD 1,042,497 for the quarter, compared to USD 443,418 for the same period of 2024.

Revenue saw substantial growth, increasing by 212 percent to USD 395,149 compared to the same period in 2024, driven by product sales and tipping fees at the Hawkesbury plant. Capital expenditures for the Hawkesbury TDP turnkey facility totalled USD 51,358,723 after accounting for depreciation, while the company’s cash and cash equivalents stood at USD 1,508,645. Over the coming 12 months, Ecolomondo anticipates utilising an additional USD 2.0 million, which will be primarily allocated to covering ongoing working capital requirements and essential capital purchases for the Hawkesbury facility.

The company also advanced its global expansion strategy, signing a definitive agreement with ARESOL, a renewable energy group, to construct four turnkey recycling facilities in the European Union. The first plant is planned for Valencia, Spain. At its Annual General Meeting, all management proposals were unanimously adopted by shareholders.

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The European Tyre and Rubber Manufacturers’ Association (ETRMA), alongside 13 other European business organisations, has signed a Joint Statement urging the European Commission to ensure a strong and ambitious implementation of the Data Act.

The coalition, including numerous SMEs and Small Mid-Caps from the digital and industrial sectors of European companies, has urged the European Commission to uphold the regulation against pressure to dilute its core provisions, identifying it as a crucial framework for unlocking industrial data across the EU economy. The signatories contend that a robust implementation is vital for fostering a competitive market and unleashing innovation, particularly for smaller businesses.

The coalition highlights the Act’s benefits, which include empowering SMEs with data portability rights, protecting them from unfair contractual terms and mandating that data sharing occurs on fair, reasonable and non-discriminatory (FRAND) terms. A key provision requires cloud providers to facilitate switching through open standards, combating vendor lock-in. The statement expresses concern that lobbying efforts for delayed enforcement, weaker interoperability definitions and reliance on global standards without fairness guarantees threaten to undermine these objectives.

For the Data Act to be effective, the coalition insists on full implementation to open data markets to genuine competition and prevent SMEs from being excluded by legal complexity. The statement also calls for a proportionate approach, requesting practical guidance, standard contractual clauses and well-resourced enforcement authorities to support smaller companies. It notes that in certain sectors, supplementary legislation may be needed for full clarity.

The coalition concludes that strong enforcement is paramount, asserting that without it, the Act's rights will remain theoretical. They warn that any delay or softening of key provisions risks reinforcing the very market barriers the regulation was designed to eliminate. The signatories urge the Commission to ensure robust enforcement to secure a competitive and innovative Single Market for all companies.

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