According to a new study by Report Ocean, the rubber processing chemicals market size is expected to reach USD 7.97 billion by 2028. That’s very close to Finorchem’s vision of being in the lead in chemical supplies to the tyre industry by 2030. We talk to the rubber processing chemicals manufacturer about the Acmechem-Merchem merger, how India can be at the forefront of the tyre industry and how quality speaks for everything.

In spite of Covid, tyre companies have come up with a lot of investments; green field projects are taking place and expansion has been happening. For the next 10 years, tyre organisations are talking about the growth of the domestic industry, which was seven to eight percent earlier. Plus, we can’t forget about the export market and another industry along with the tyre sector – the automobile sector. Along with the rubber industry, rubber chemical consumption will also grow.

One such company that believes it is in the right place at the moment, with all that’s going on across the world and because of the pandemic and the Russia-Ukraine war, is Finorchem, a leading manufacturer of rubber processing chemicals in the APAC region. Speaking in this context, Kishor Katkar, Director – Sales & Technical Services, Finorchem, says, “The supply chain is disturbed, and with the Acmechem and Merchem merger, we now have a wide range of rubber chemicals. We are ready to support the rubber industry with sustainable quality products from the rubber plant.”

The Acmechem-Merchem merger
Further sharing information on the Acmechem and Merchem merger, Rishabh Holani, Director, Finorchem, asserts that Acmechem is originally into a lot of speciality rubber chemicals and Merchem was more into mainstream rubber chemicals. “So the merger was a perfect fit in the synergy for us as we were already in the chemical field with specialised products,” he points out and goes on, “But with the merger with Merchem and the new entity named Finorchem, we have also entered mainstream rubber chemicals, catering to a wider range of customers that are using these mainstream chemicals. Hence, this fits well within our portfolio which didn’t exist. So it has opened up a lot of opportunities for our company, in both India and the world.”

So, is it true that the future is of collaborations and mergers? We can’t help asking, to which Holani answers with a yes. He further explains, “That’s because a lot of consolidation is happening across the industries. So it was a good synergistic move for us to get involved in mergers.”

Why R&D is important
Finorchem is paying rapt attention to how it is flourishing in its R&D department. Dr Raj B Durairaj, Director of R&D, Finorchem, has been in the R&D of the chemical industry for at least 45 years and joined Finorchem about three months ago. “I have been involved with a lot of R&D activities in the last 45 years. So my products developed in the US and China are well known throughout the world,” Dr Durairaj tells us.

                       Rishabh Holani, Director, Finorchem
  

He further goes on to enlighten us that his concept is that any growth of a company depends on the strength of the R&D. “Hence, we want to put the infrastructure in such a way that our R&D can develop not only in the final product but from scratch,” he shares and continues, “We want to produce our own raw material so that we can develop the final product that is of high quality for our customers’ needs. If we do that, then we don’t need to depend on countries like China, or even Europe. With our knowledge in the chemical and rubber industry, we can develop advanced technologies. Right now, we are planning to develop advanced technologies in order to meet the challenges of the tyre industry, like rolling resistance, wet grip and dry grip. And those concepts are put in our developments.”

The company’s vision
It is just the beginning, definitely. Finorchem’s vision is that by 2030 it will be the dominant player in India, not only to supply raw materials for the Indian tyre industry but around the globe. So it is the right time where the company is putting its infrastructure in the manufacturing sector, R&D and the pilot plant facilities. With this, it plans on being at the forefront of chemical supplies to the tyre industry by 2030.

China’s impact on the tyre industry
Speaking of lands like China and Europe, China is still struggling with Covid and so is its tyre industry. China plays a huge role in the rubber chemical space; 70 percent of the supply comes from China, and it has impacted the whole industry because of the lockdowns that have taken place, Holani mentions. “However, we have made strategic moves in delinking ourselves from China and have strategically sourced our raw material partners and suppliers from different regions, whether it be India, the US, Europe or Japan,” he tells us.

Therefore, Finorchem was much more insulated from this entire tyre chaos that was taking place in China. This has helped the company in expanding its range while China was facing these difficult times.

However, the cost element needs to be taken into account. Today’s market situations are very volatile, and in some situations, China is much more expensive when even compared to countries like Europe or the US. Hence, the cost factor depends on situation to situation.

Shedding more light on this, Katkar elaborates, “We are talking about the China plus one policy, which even Japan is talking about. They have shifted their manufacturing base, so our tyre industry, as well as non-tyre industries, has really understood that over-dependence on China is going to fail miserably in the supply chain issue. With that, Finorchem is in the right position to supply locally, with quality and an economical product.”

Putting across his view, Holani adds, “In today’s industry, price is not the only factor. In fact, supply security has become a major question for every tyre industry and they are working towards the security of raw materials for themselves. This also happens to be one of the learnings from the Covid pandemic, which is why people are not going today for prices alone – they are making more strategic moves while selecting their raw materials supplier.”

                       Dr Raj B Durairaj, Director of R&D, Finorchem

 
How India is at an advantage
While China was a major exporter of tyres to the US, this developed market is also looking for a sustainable second source, and India is the best second source, Katkar informs us. “We are already exporting 30 percent, which will eventually increase. Therefore, it is not only the raw material; if the industry wants to export, it will obviously require the raw material and rubber chemical, which is a major factor,” he avers.

Katkar goes on to mention that the major production of off-road tyres was in China. But now we see India bucking up, too. That’s because these are not very huge in volume and are specialised. “India can take up a major role after China,” he says and adds, “Initially, we were talking about quality tyres. But our tyre industry has really come up well to match European legislations, the tyre labelling etc. so that they can export passenger cars as well as truck tyres. And when talking about exports in the automobile industry, our tyres will also go well with OEMs.”

Reaching the hotshots
Finorchem already has a presence of almost 20-30 percent in the export market and is looking to grow that further in light of the problems present in China. “Everybody is looking at India as an alternate option in the China plus one policy, and we are definitely going to encash on that opportunity. The entire world is our market now, and we are certainly trying to make an impact in the global space,” Holani puts across.

Katkar further remarks that global tyre companies are already there in India in terms of footprint. So when they use Finorchem’s products locally and when the approval comes (which are global approvals), it automatically makes Finorchem flexible to supply to their global plant as well.

However, the bottom line is that foreign companies, like Michelin, are quality-conscious companies. Dr Durairaj states that their company’s goal is that if they can develop a quality product, with a high- performance product and the infrastructure that they are building in their R&D, then they can develop the chemical, test it, take it to the big players and convince them that, technically, theirs is a technologically driven company. Therefore, convincing them will definitely lead to their using it.

Giving an example, Dr Durairaj pronounces, “My product that I invented in the US is well known globally. The product has set the benchmark for all the tyre industries across the globe. Likewise, I want to do the same at Finorchem – developing a new chemical, which we have already started working on. For example, carbon black coupling agent is a new concept for our company. But we have already started developing that kind of a chemical. Every tyre industry is looking for that kind of a chemical so that it improves the magic triangle in the tyre. Likewise, if the chemical works, then not only can we get the patents to protect Indian technology, but at the same time, we can convince the big tyre players like Bridgestone, Michelin etc. to try to consider our chemicals in their tyre foundations. Thus, quality speaks for everything, which is our goal.

Going a little deeper, Katkar tells us, “The global organisations usually take a little time. Once they know that a company gives quality, they don’t go for just one quality product; they talk about the quality system. Once they are convinced that the company is a quality system, they may take a little time for the approval. But once the approval comes, it is through. In fact, we are already supplying to Goodyear and Continental that come under the first six in company ratings globally.”

Challenges to deal with
With every vision and strategy, the share of challenges is inevitable. Holani says that for Finorchem, the challenges are what everyone is facing. For example, there’s supply security. Like we know, China controls almost 70 percent of the market, and sourcing raw materials from other strategic sources can be very challenging, which is due to the supply and logistics constraints that the company has seen due to Covid.

“But I think that Covid has really prepared us for seeing the worst and how we can channel ourselves even in these difficult phases. So not only us but the entire industry is prepared to meet these challenges,” Holani further expresses and adds, “It won’t happen overnight, of course. It will take a lot of time, maybe decades. Thus, we are working in that direction, especially in the direction of Atmanirbhar Bharat. We are trying to develop raw materials in-house, go local and become self-sufficient.”

Room to manoeuvre
The Covid pandemic, despite the losses it brought to the world, taught it a lot, too, including the tyre and other industries associated with it. While going global is important, being significant locally is as pivotal. It’s important that the Indian tyre and rubber chemicals industries spot the prospects various scenarios in the world bring them and strategise accordingly. Where cost alone won’t play a crucial role, the truly effective factor that will vanguard the industry is quality. And that comes with being opportune, investing in R&D and being judicious about making available exactly what the customer is looking for.

 

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Hankook Tire concluded Round 2 of the 2026 FIA World Rally Championship, Rally Sweden, on 15 February in the Umeå region, where its Winter i*Pike SR10W tyre was put to the ultimate test. As the championship’s sole rally tyre supplier, Hankook equipped all competing crews with this dedicated winter tyre, which features specially engineered ice-rally stud pins. Designed to conquer the most severe icy environments, its asymmetric tread pattern works in tandem with the studs to provide exceptional grip, powerful braking and unwavering high-speed stability on frozen surfaces.

Rally Sweden, first held in 1950, is unique on the calendar as the only event contested entirely on snow and ice. Crews were challenged by 18 special stages covering around 300 kilometres, with competition intensified by speeds reaching up to 200 kmph and rapid temperature fluctuations. These punishing conditions demanded precise car control, reliable tyre traction and steadfast braking performance, making the choice of the Winter i*Pike SR10W critical for success.

Following a fierce contest, Toyota GAZOO Racing’s Elfyn Evans and co-driver Scott Martin claimed victory by a margin of 14.3 seconds, securing their second consecutive win in Sweden. Having also finished second in the season opener at Rallye Monte-Carlo, this result propelled the pairing to the top of the championship standings with 60 points.

The WRC now turns its attention to the formidable Safari Rally Kenya, scheduled for 12 to 15 March 2026 near Naivasha. This event is renowned as one of the most gruelling on the circuit, where crews must navigate extreme heat, mud from heavy rainfall and rapidly changing weather.

Hankook’s commitment to the sport extends beyond event supply. The company continues to refine its high-performance rally technology through intensive collaboration with the FIA and major automotive manufacturers, having completed over 2,000 kilometres of real-vehicle testing across eight countries. With its exclusive tyre supply agreement for all WRC classes covering the 2025 to 2027 seasons, Hankook is reinforcing its premium brand identity and solidifying its leadership in motorsport engineering.

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Ecolomondo Corporation, a leading Canadian innovator in sustainable scrap tyre recycling technology, has appointed Craft Capital Management, LLC as its strategic investment banking advisor. This partnership is designed to bolster Ecolomondo’s capital markets strategy, with a focus on financing initiatives and a planned uplisting to the NASDAQ. Securing this position is a key step for the company to obtain the necessary capital for its global expansion.

Eliot Sorella, Ecolomondo’s Executive Chairman, highlighted that Craft Capital’s successful history of providing capital solutions is well-aligned with the company's goal to scale up as a major supplier of recovered carbon black and tyre pyrolysis oil. These materials are produced using Ecolomondo’s proprietary Thermal Decomposition Process. As worldwide demand for circular and sustainable materials grows, this advisory engagement is seen as a vital move to advance the company's market position and support its next growth phase.

Craft Capital, a full-service brokerage firm with over a century of combined financial experience, offers customised investment banking services and connects clients to a broad network of family offices and institutional investors.

Sorella said, “Craft Capital’s proven track record in delivering capital solutions aligns strongly with our strategy to scale as a leading producer of recovered carbon black (rCB) and tyre pyrolysis oil (TPO) using Ecolomondo’s proprietary Thermal Decomposition Process (TDP). As global industries accelerate their transition towards circular and sustainable materials, this engagement is an important step in advancing our capital markets strategy and supporting our next phase of growth.”

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Continental is set to make a significant impact at the upcoming Tire Technology Expo in Hannover with a strong presence at the technical conference scheduled for 3 March 2026. The company will kick off the event with a major presentation centred on the evolution of tyre technologies designed to meet the demands of autonomous driving. Dr Andreas Topp, who leads Platform Development and Industrialisation for passenger car tyres at Continental, will illustrate how the vision of autonomous vehicles is transitioning into everyday reality and how the tyre manufacturer is proactively developing innovative solutions to support this shift.

In addition to the opening session, Continental experts will deliver three further presentations, each addressing critical areas of tyre science and environmental regulation. One of these will explore the use of recovered carbon black derived from end-of-life tyres as a filler material. Professor Jorge Lacayo-Pineda, a specialist in materials evaluation, will delve into the complexities of identifying this material within vulcanised rubber compounds. Recovered carbon black, primarily obtained through pyrolysis, represents a milestone as the first industrially scalable filler sourced from discarded tyres. It is not considered a direct substitute for conventional carbon black but rather a distinct category of filler due to its unique composition, which includes carbon residues and a specific thermal background. Professor Lacayo-Pineda will examine the technological and regulatory possibilities that arise from detecting this material in new tyre compounds, focusing on reliable identification techniques such as electron microscopy and molecular spectroscopy.

Another key presentation will broaden the conversation around tyre emissions. Dr Frank Schmerwitz, a senior test engineer specialising in tyre wear, will address the limitations of current discussions that predominantly focus on tyre and road wear particles. He will highlight additional pathways of mass loss that are not captured by conventional measurements. His talk will consider the release of nanoparticles, the persistence of wear residue on road surfaces and the chemical degradation of this material due to environmental factors like oxygen and ultraviolet light, aiming for a more complete scientific picture.

The final presentation will tackle the complexities of modern tyre development in the context of new regulatory frameworks. Dr Pavel Ignatyev, an expert in rubber friction and wear physics, will discuss how the introduction of standardised abrasion limits and measurement methods under the Euro 7 regulation is reshaping innovation in the industry. He will explain the various parameters influencing tyre wear and how they interact with these new requirements. Through simplified models, he intends to demonstrate the intricate nature of tyre wear and outline the collective challenges that remain for the industry, emphasising that a deep understanding of these dynamics is crucial for translating regulatory mandates into effective technological advancements.

Dr Topp said, “The future of self-driving vehicles has begun. We are developing tyre technologies and products that meet the unique technical requirements of these vehicles. This includes topics such as interaction with smart vehicle dynamic controls, optimised fleet operations and tailored solutions for specific use profiles.”

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The concluding day of 2026 F1 Pre-Season Testing at the Bahrain International Circuit saw Charles Leclerc set the overall fastest lap of the entire six-day programme. The Ferrari driver delivered a time of 1:31.992s on the C4 compound Pirelli tyres during the final hour of running, improving by eight-tenths of a second on the previous benchmark established by Kimi Antonelli. This performance placed him ahead of Lando Norris in the McLaren, who recorded a 1:32.871s on the C3 tyre. Max Verstappen and George Russell followed, with times of 1:33.109s and 1:33.197s, respectively, both also set on the C3 compound. Notably, none surpassed Leclerc's own leading time on that particular compound, a 1:32.655s. Pierre Gasly rounded out the top times, utilising the softest C5 tyres to post a 1:33.421s.

The C5 compound saw limited use on the final day, employed only by Alpine and Williams for short-run simulations. Aston Martin, despite having the tyre available, opted not to run it and instead completed just six laps on C3s before their session was curtailed. In contrast, teams focused on different aspects of performance. Gabriel Bortoleto and Arvin Lindblad set the pace on the harder C1 and C2 compounds, respectively. The day was also notable for the absence of several drivers, including Fernando Alonso, Lewis Hamilton and Alex Albon, who did not participate in any track action.

Beyond outright speed, teams dedicated significant effort to long-distance evaluation. Gabriel Bortoleto completed 25 laps on the C2 compound for Audi, while Esteban Ocon undertook 24 laps on C1s for Haas. Ocon was also the sole driver to run intermediate tyres, completing four laps to assess front wing behaviour. Over the entire six-day test, a total of 41,366 kilometres were covered across all 11 teams, a distance exceeding the Earth's circumference. The C3 compound proved the most popular, accounting for 61 percent of all laps. In total, 591 sets of slick tyres were utilised throughout the pre-season, with 326 of those deployed in the final three days alone.

Mario Isola, Pirelli’s Motorsport Director, said, “The radical changes introduced to the cars have inevitably shifted the teams’ focus towards power units and aerodynamics rather than tyres over the last few days. The final stages of testing are usually dedicated to optimising the car-tyre package, but it is clear some teams haven’t reached that point yet. Generally speaking, track feedback has been consistent with our simulation expectations. Drivers were able to gain confidence with the entire Pirelli range through both performance trials and long runs, even using the C4 and C5 compounds which aren’t particularly suited to a circuit like Sakhir.

“Mechanical resistance appeared strong across all options, with no signs of graining or blistering. Degradation levels are almost certainly higher now than what we expect for the Bahrain race, when temperatures will be lower and cars more developed. A central theme this season will certainly be balancing temperatures between the axles, especially ahead of the first race in Melbourne. The lower loads of a street circuit might require more intensive tyre preparation or differentiated tyre blanket temperatures, particularly in qualifying. In any case, it will be interesting to discover in Australia how much teams have been ‘sandbagging’ their engine power to avoid showing their hand. We only have to wait a couple of weeks to see the true pecking order.”

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