Orion, a global speciality chemicals manufacturer, appointed Natalia Scherbakoff as chief technology officer, effective immediately.

Scherbakoff succeeds David Deters, who led Orion’s innovation efforts for nearly a decade. Deters will remain with the company through year-end to ensure a smooth transition.

Based at Orion’s main innovation hub in Cologne, Germany, Scherbakoff will oversee the company’s technical centres in China, South Korea and the U.S. She will focus on further developing Orion’s innovation capabilities, including leveraging its new Battery Innovation Centre in Cologne.

Additionally, Scherbakoff will lead a €12.8 million project, partially funded by the German government and European Union, to develop and demonstrate a climate-neutral process for producing carbon black from alternative carbon sources. This technology aims to improve Orion’s yield and production efficiency using circular feedstocks.

“Natalia has broad global experience, a track record of moving ideas through the development process to successful product launches, and commercial savvy. She combines strong people skills with a passion for driving innovation and achieving tangible outcomes,” Orion CEO Corning Painter said. “She is arriving at an exciting time here at Orion, and I am looking forward to her building on the success we have had under David’s leadership in batteries, circular products, coatings, and other customer applications.”

Scherbakoff joins Orion from Trinseo, a speciality materials company, where she served as vice president of technology and innovation. She oversaw global research, development, and technology innovation in that role, focusing on sustainability and circular solutions. Additionally, she supported key growth initiatives and mergers and acquisitions while serving on Trinseo’s Corporate Environmental, Social and Governance Council.

Scherbakoff brings a wealth of experience across diverse industries. Prior to Trinseo, she held leadership positions at Plastic Omnium (now OPmobility), a French automotive supplier; Owens Corning, a building materials manufacturer; and Clayens NP, a speciality materials producer, where she currently serves as a non-executive board member. She is also a member of the Forbes Technology Council.

Bansal Wire Industries, India’s largest stainless steel wire manufacturing company, is charting a dynamic course in the Indian tyre market with innovative solutions aimed at enhancing performance and sustainability. Leveraging its expertise in the automotive sector, the company is introducing advanced steel cords and bead wire products designed to improve tyre efficiency, rolling resistance and fuel economy.

Bansal Wire Industries is optimistic on capitalising on the growth of the Indian tyre market as tyre makers endeavour to offer more efficient rubber wheels. The Delhi-based conglomerate is planning to introduce products within its tyre-industry portfolio that will improve performance. The company already caters to the automobile industry with products spanning outer and inner spring, circlips and washer categories.

Speaking to Tyre Trends on upcoming products, Managing Director Pranav Bansal iterated, “Our modern manufacturing setup enhances product performance; this is particularly in line with current industry trends as we move towards producing super tension and super tensile plus steel cord products. These innovations are expected to improve rolling resistance and reduce tyre weight, both of which contribute to better fuel efficiency and performance. We are actively embracing complete digitalisation and bringing more automation into our processes, helping us increase efficiency and ensure product consistency.”

He added, “We pride ourselves in being the only Indian company manufacturing steel cord for the PCR and TBR sectors with offerings in normal tensile, high tensile and super tensile (ST). Additionally, we have expanded our bead wire manufacturing capabilities with facilities in both South and North India and we continue to explore innovations to serve the evolving needs of the tyre industry.”

Alluding to the reason behind expanding into the tyre industry, he noted, “Our expansion into the tyre industry is driven by the increasing demands of durable, high-quality materials and products, as supported by industry research reports done by Invest India, among others. By diversifying our product portfolio, we aim to meet this demand for efficient materials. By focusing on high-quality steel cords and bead wires, we help improve tyre performance, which in turn enhances vehicle stability, handling and safety, especially under challenging road conditions.”

“The Indian tyre industry has witnessed a significant growth over the past few years, which is driven by an exponential increase in production, domestic sales, exports and overall revenue. An integral growth factor in this is the increase in the ownership of vehicles, which further aids the tyre industry. Additionally, the surge in demand for tyres for trucks and buses, fuelled by expanding mobility and industrialisation, has given a boost to the sector,” he added.

The company caters to over 5,000 customers, offering more than 4,000 different wire products across industries such as automotive, infrastructure and consumer durables. While its primary market is India, the manufacturer also exports products to over 50 countries. The US and Europe are among its largest markets, where it continues to see significant demand for products.

Industry talk

Bansal mentioned that the increasing demand in the automotive industry, domestically, presents tremendous opportunities for the company. “Our high-performing products allow us to constantly evolve. However, challenges like fluctuating raw material prices as well as the changing regulatory requirements could impact. Expansion internationally, specifically in regions like the US and Europe, provides significant opportunities, but geo-political risks and trade regulations could challenge the operations on a global level,” he noted.

Alluding to the strategies implemented by the company to meet the growing demands, he iterated, “In the automotive and tyre industry, collaboration with stakeholders is key to driving innovation and meeting the growing demand for high-quality wire products. We focus on building strong partnerships with manufacturers, suppliers and research institutions to align our solutions with industry needs. Regular engagement through industry forums, trade shows and feedback mechanisms allow us to understand evolving requirements and deliver solutions that enhance performance, safety and sustainability. By participating in joint development projects, sharing technical expertise and staying updated on emerging trends, we ensure our products remain at the forefront of technological advancements.”

Quality and sustainability

The company has manufacturing facilities for bead wire in both South and North India. The production capacity at its South India facility is 50 kilotonnes per year, and at the North India facility, it is 30 kilotonnes per year. Additionally, it has a pilot manufacturing site for steel cords in North India, which currently has a production capacity of 20 kilotonnes per year. The company plans to gradually scale up this capacity to meet the growing demand of the tyre industry. 

Commenting on quality measures implemented to derive industry-grade materials, he explained, “We are committed to ensuring the highest product quality and will soon be the only company in India with dedicated in-house research and development wing for both steel cord and bead wire. Our research and development facility spans 12,000 square feet and is equipped with state-of-the-art equipment to drive innovation. To achieve 'First Time Right' production, we have conducted extensive gap analyses of our processes and implemented all necessary improvements. Additionally, our manufacturing facilities are equipped with cutting-edge machinery, all integrated with a complete digital interface to capture real-time data, ensuring the highest standards in production and quality.”

The company also puts focus in the principles of circularity with several initiatives. “Sustainability is a core focus area for us and we are addressing it in several ways. Our use of renewable energy has reached 70 percent in some of our plants and we are dedicatedly moving towards water positivity in many of our facilities. We are exploring the use of green steel in both our steel cord and bead wire products. To further reduce our environmental impact, we are investing in energy-efficient machinery and continuously seeking ways to minimise emissions across our operations,” said Bansal.

Future course

According to Bansal, the company is anticipating several key trends that will influence its business, including a strong focus on product innovation to enhance performance and quality. “We are committed to show resilience to maintain operational stability in dynamic markets. We work dedicatedly to improve the customer experience through feedback and satisfaction while also fostering diversity and inclusion within our workplace culture. Sustainability and corporate social responsibility remain priorities, alongside embracing technological advances to optimise our operations and product offerings for the future. These trends will guide our growth and ensure we stay ahead in a competitive market,” explained Bansal.

Besides, the company is also focused on significant growth opportunities through the establishment of new facilities and capacity expansions. “Our new manufacturing site in North India for both steel cord and bead wire has a current steel cord capacity of 20 kilotonnes per year with plans to scale it to 200 kilotonnes per year over the next five years. In bead wire, we now have two new state-of-the-art manufacturing facilities in South and North India with a combined production capacity of 80 kilotonnes per year, ensuring that we are well positioned to meet the increasing demand from our customers in the coming years,” concluded Bansal.

A study of the 2024 Global Tire Report recently released by Tire Business has been a gratifying experience. From a turnover of USD 93 billion in 2004 to USD 192 billion in 2023, the Global Tyre Industry has added nearly 100 billion dollars in the last 20 years, which can only be termed significant. After a flat growth in 2022, the industry witnessed a resurgence in 2023 with a growth of 4 percent to reach the highest-ever turnover of USD 192 billion, breaching the earlier high of USD 189 billion achieved way back in 2012. 

The number of global tyre plants has gone up consistently from 497 in 2012 to 573 in 2022 to 584 in 2023. Michelin, Bridgestone, Goodyear and Continental continue to be the four largest global tyre majors for several years now. Interestingly, all these four have a manufacturing presence in India too, making the Indian market a vibrant one.

Asia's dominance continues with the presence of 360 tyre plants (62 percent of total) in the continent. A closer study reveals that India has the second largest number of tyre plants in the world (65) only after 156 of China. With nine plants, MRF holds the second rank in Asia in terms of number of plants after Bridgestone’s 23.

 What’s striking is the steady march of Indian tyre companies. Yet again, five Indian companies find pride of place in the top 30 global companies in the world. These include Apollo, MRF, JK, CEAT and BKT, in order of ranking.

Moreover, Indian tyre companies have been moving up the charts. In the last 10 years, MRF has moved up one rank, Apollo has moved up three ranks. In the same period, JK has moved up six ranks, while CEAT has moved up by a full 10 ranks. BKT has made an entry in the top 30 by moving up 12 ranks in the last 10 years.

What has propelled the upward journey of Indian tyre majors is the steady increase in tyre manufacturing footprint in the country and expansion in exports. In the true spirit of Make in India and Atma Nirbhar Bharat, tyre production in India has nearly doubled in the last 10 years. Industry turnover has gone up from INR 450 billion to INR 900 billion during this period and is expected to conclude the ongoing year with a turnover of INR 1 trillion.

Tyre exports too have nearly doubled in the last five years, from INR 128.44 billion in FY20 to INR 230.73 billion in FY24. This expansion in exports underscores India's growing role as a player in the global tyre supply chains, contributing significantly to meeting international demand.

Indian companies rank amongst top five in terms of the number of plants manufacturing different categories of tyres. In the case of TBB, India continues as a major hub of manufacturing, with JK, MRF and Apollo counting amongst the top five. Amongst motorcycle plants, MRF and CEAT are in the top five. BKT is in the top five when it comes to OTR and industrial tyre plants. MRF leads the world with the highest number of racing tyre plants (three) followed by JK. 

In terms of Capex spending as a percent of sales, MRF and BKT rank at 2^nd and 3^rd place amongst top 30 tyre majors in the world. What’s more, CEAT, JK and Apollo are all in the top 20.

When it comes to R&D spend as a percent of sales, all five Indian tyre companies are in top 20 in the world, underscoring the unmistakable accent on innovation and R&D. CEAT leads the chart amongst Indian tyre majors with 1.5 percent of sales apportioned for R&D spend.  

The R&D investments are enabling Indian companies to produce high-performance tyres that cater to diverse requirements, from passenger vehicles to specialised uses in agriculture and industry. Another area where R&D effort is directed is the focus on sustainable materials and eco-friendly practices that align well with a global shift towards greener, more responsible manufacturing.

As is evident, Indian tyre manufacturers are not sitting on their laurels. Looking to the future, they are exploring digital technologies, such as IoT and data analytics, to improve efficiency and product performance. This tech-forward approach will be essential for meeting the evolving needs of the automotive industry, especially as electric vehicles (EVs) and autonomous vehicles (AVs) become more prominent.

Here it is important to underline the Indian government’s supportive policies that have been instrumental in the growth of the tyre industry. Initiatives encouraging local manufacturing and favourable trade policies have supported the growth of the Indian tyre industry.

The achievements of the Indian tyre industry are a testament to the resilience and adaptability to rise to the occasion. As the industry evolves, a bright future is promised in the years to come. 

The author is the Director General of the New Delhi-based tyre industry association, Automotive Tyre Manufacturers’ Association (ATMA). The views expressed here are personal.

Russia's tyre recycling industry has grown significantly in recent years due to increasing environmental concerns and government regulations aimed at reducing landfill waste. The country generates millions of tonnes of used tyres annually, with many initiatives focusing on recycling them into rubber granules, fuel and construction materials. Key players in the industry include local companies and a few foreign investments with major recycling plants concentrated around Moscow and other industrial regions.

However, the Russian Far Eastern region, referred to the vast, easternmost part of the country that borders the Pacific Ocean, still struggles to deal with the disposing of end-of-life (EOL) tyres.

According to Ecostar Factory Co-founder Sergei Lazarev, “Vladivostok, the largest city in Russia's Far East, ranks fifth in the country for vehicles per capita, making it the region's leader in vehicle density. This results in a growing volume of waste tyres annually, posing a significant environmental challenge. Due to the vast distances, transporting used tyres to recycling facilities in central Russia is prohibitively expensive, inflating both the recycling costs and the prices of products made from recycled materials. The lack of local recycling infrastructure exacerbates the problem, underscoring the need for regional solutions to manage tyre waste more efficiently and sustainably.”

“With 15 years of experience in tyre recycling, our company is well-positioned to meet the growing demand for tyre recycling in the Russian Far East. The new facility will allow us to recycle over 10,000 tonnes of ELT annually and meet market needs accurately. We also plan to double this capacity within the next five years, which is especially crucial in regions like the Russian Far East, where transportation costs are high and local recycling infrastructure is lacking. This expansion will help address regional tyre waste challenges more effectively,” he added.

A total of USD 500,000 was invested in the new tyre recycling unit, financed through a mix of 30 percent capital and 70 percent bank loans. The seven percent interest rate, subsidised by the Primorye Government Guarantee Fund and the Federal Government Fund for SMEs, highlights the strategic backing you’ve received. Specialising in recycling ELT tyres into rubber crumb, this setup not only aligns with growing sustainability efforts but also demonstrates the effectiveness of public-private cooperation in fostering business expansion and environmental impact in Russia’s Far East.

The Far East and Arctic Development Corporation (FEDC) played a crucial role in the tyre recycling project’s success by providing a 17.3-acre land lot and essential infrastructure. This included telecommunications, access roads, power supply, water supply, water disposal and natural gas supply. Additionally, FEDC offered tax benefits, making it a key partner in the project’s development, facilitating smoother operations and reducing overhead costs. This comprehensive support has been instrumental in advancing the project in the Russian Far East.

Promoting recycling

The company's operations, which focus on recycling ELT tyres without thermal methods like pyrolysis due to environmental concerns, were nearly derailed when the ruble-dollar exchange rate doubled in 2022, making equipment and construction prohibitively expensive.

Despite purchasing Chinese machinery, adjustments were needed due to differences in tyre composition, particularly the amount of cord fibre. The company plans to recycle 20 years’ worth of accumulated tyre waste and supply crumb rubber to playgrounds, stadiums and road projects, boasting the only facility in the region certified to meet government sanitary standards.

With no direct competitors in the Primorye region, the company remains committed to expanding operations despite these challenges.

Answering how the new plant supports broader recycling goals, Lazarev said, “The new plant supports the broader goals of the company by serving as a central hub for tyre recycling in the Russian Far East. We operate facilities in five regions including Magadan, Kamchatka, Sakhalin, Khabarovsk and Primorye and plan to upgrade them within the next three years to produce rubber chips, which will be transported to the main facility in Primorye for further processing. Additionally, we aim to invest in research and development to develop additives for bitumen, enhancing its use in road construction projects. This strategy is key to expanding recycling capabilities beyond 10,000 tonnes annually and promoting sustainable infrastructure development.”

The company will source tyre waste primarily from transportation and tyre service companies. To ensure quality, it has implemented a comprehensive management system designed to produce clean, precisely sized crumb rubber. The triple cleaning process removes metal and cord fibre, while its proprietary qualification system ensures four specific size fractions of crumb rubber are achieved.

Alluding to European Union (EU) directive on crumb rubber infill ban, he noted, “Regarding the EU ban on rubber crumb in artificial turf, Russia has no such restrictions. In fact, a recent Russian government act (08/28/2024) mandates the use of rubber crumb in sports infrastructure and road construction. We have also obtained a special health certificate allowing the use of its crumb rubber in outdoor playground construction.”

Addressing challenges

Russia imports tyres primarily from China, which is the largest supplier, offering a wide range of products including passenger, truck and industrial tyres. South Korea follows, known for its high-quality passenger and performance tyres, while Japan contributes advanced technology and speciality tyres. Belarus, as a neighbouring country, exports various tyre products, particularly for commercial vehicles. Turkey has also been increasing its market presence with competitive prices and quality. Additionally, some European Union countries export tyres to Russia, although trade dynamics are influenced by tariffs and geopolitical factors.

Such a wide array of tyres poses challenge for recyclers. Commenting on the same, the executive said, “The plant was initially scheduled to open in August 2023. The company faced significant challenges due to currency fluctuations, infrastructure delays and regulatory hurdles. Despite purchasing Chinese machinery, adjustments were needed due to differences in tyre composition between China and Japan, particularly the amount of cord fibre. The lack of suitable land with the necessary infrastructure and meeting strict ecological standards are further obstacles.”

“We are currently facing a staff shortage across all skill levels, from low-skilled to highly qualified personnel. To address this, we plan to recruit workers from other regions of Russia and internationally. Recently, we hired five individuals from India on one-year contracts, providing them with comprehensive benefits that include accommodation, food, transportation and work uniforms. We aim to attract even more skilled workers this year to strengthen our team,” he added.

Ecostar's plant aligns seamlessly with Russia's broader waste management and environmental objectives, particularly in the Far East. It supports the government's strategy for a circular economy, which is reinforced by new legislation regulating the use of recycled materials in the production of goods and services. Additionally, the government has introduced the concept of ‘green purchases’, mandating that government agencies and state-owned companies procure a minimum quantity of products made from recycled materials. This initiative emphasises the importance of integrating recycled materials into the economy, enhancing sustainability efforts across the region.

India’s tyre retreading market is estimated to be an INR 60 billion industry with retreading mostly happening on commercial vehicle tyres. The organised sector is slated to grow between 7-9 percent (CAGR) over the next three years. The retreading industry in India dates back decades, primarily focusing on commercial vehicle tyres. Over the decades, it has evolved with advancements in technology and regulatory frameworks. Government initiatives promoting sustainability and waste tyre management have further spurred growth, establishing retreading as a key component of the tyre market.

A recent media report stated that the organised tyre retreading market in India observed muted growth in the last five years. Speaking to Tyre Trends¸ ICRA Assistant Vice President and Sector Head – Corporate Ratings Nithya Debbadi said, “The domestic tyre retreading market is estimated at over INR 60 billion. Tyre retreading is largely done in commercial vehicles, which account for 80 percent of the market. Trucks account for 60-65 percent, while buses account for the rest of 15-20 percent. Off-highway tyres (OHT) including tractors account for 12-15 percent, while passenger vehicles account for a negligible share.”

More than 70 percent of the truck tyres are retreaded at least once. While retreading is prominent even in the LCV segment, proportion of tyres retreaded is lower than in M&HCV. Increasing radialisation, improving road infrastructure and retreading technology and focus on sustainability is expected to increase the share of retreading in the truck and bus radial (TBR) segment, going forward. New tyre designs for electric vehicles also presents opportunities for the retreading industry.

Demand growth

Alluding to how the Indian government’s focus on waste tyre disposal and increasing radialisation in commercial vehicles has benefitted the TBR retreading market in India, she noted, “Indian government introduced Extended Producer Responsibility (EPR) guidelines for waste tyres management, which came into effect in July 2022. The guidelines lay down rules relating to utilisation and management of waste tyres by producers (manufacturers and importers), recyclers and retreaders. Producers or importers need to fulfil EPR obligations by purchasing EPR certificate from registered recyclers. However, EPR obligation of tyre which has been retreaded shall be deferred by one year.” 

 “While the guidelines came into effect in FY2023, targets have been increasing progressively with the obligation increasing to 100 percent of tyre production in FY2025. Increasing focus on waste tyre management incentivises producers to focus on sustainability, which supports growth of retreading market. Compliance is achieved by purchasing EPR certificates from authorised recyclers or retreaders, thus developing tyre recycling infrastructure,” she added.

In trucks and bus segment, share of radialisation is estimated to have increased from 48 percent in FY2019 to over 55 percent in FY2024. Radial tyres have stronger structure, which supports multiple rounds of retreading. Moreover, radial tyres are more suited for roads in better conditions, leading to higher range for a given duration. This leads to frequent need for retreading.

She also noted that owing to Covid-19 and its post-effects, the retreading industry saw a flattish growth (estimated CAGR of 1-3 percent) in the three years ending FY2023. However, with the government’s thrust towards disposal of waste tyres, anti-overloading measures and increasing radialisation in commercial vehicle tyre segment, the retreading market has been a key beneficiary witnessing better demand traction in FY2024.

ICRA expects the organised tyre retreaders to grow by 7-9 percent (CAGR) over the next three years. Key factors supporting the growth include focus on sustainable tyres, improving tyre and retreading technology, better road infrastructure, rising radialisation in CV segment etc.

Alluding to what impact is the growing demand for sustainability and cost efficiency having on the quality standards and innovation within the retreading industry, she noted, “Retreading results in significant cost saving as the cost of retreading is around 20-50 percent the cost of a new tyre because of reuse of casing. Treads account for close to one-third of a tyre’s total cost. Performance of a retreaded tyre also depends on the health of the original casing.”

She added, “Developments in tyre technology has resulted in stronger casings and overall tyre structure that supports multiple rounds of retreading. Enhanced re-manufacturing techniques and higher quality rubber compounds are improving the quality of retreaded tyres and supporting demand. With quality casing and superior retreading technology, a tyre can be retreaded two to three times before being replaced while maintaining 80 percent quality of the new one.

Impending challenges

The tyre retreading market in India is at a pivotal juncture driven by a confluence of regulatory support, technological advancements and a growing awareness of sustainability. While challenges remain in the form of market fragmentation, the potential for growth is significant.

Despite these positive trends, the TBR retreading market faces significant challenges. The Indian market remains highly fragmented with over 50 percent of players operating in the unorganised sector.

As the industry adapts to changing dynamics, the focus on quality and sustainability will play a crucial role in shaping its future trajectory. The next decade may see retreading not just as a viable alternative to new tyres but as an essential component of a more sustainable automotive ecosystem in India.