The Tamil Nadu-based company’s greenfield expansion will propel its rCB capacity from 5,000-20,000 metric tonnes. Director Ravi Rathi explained that there has been a change in attitude towards rCB within tyre companies, leading to heightened demand.

Tamil Nadu-based Capital Carbon is expanding its recovered carbon black (rCB) capacity by 15,000 metric tonnes with a new greenfield project at Gummidipoondi. The plant is slated to become operational by January 2025 and boost the capacity from 5,000 metric tonnes to 20,000 metric tonnes, annually.

Speaking to Tyre Trends, Director Ravi Rathi explained, “The decision to pursue a greenfield expansion in the rCB sector stemmed from the rapid development of this innovative product over the past four to five years. Given our background in the pyrolysis business, expanding into rCB felt like a natural progression. rCB is still a relatively new product and both manufacturers and users are in the process of learning about its applications. When we first began exploring this market, around four years ago, it was challenging. Many tyre manufacturers would dismiss our proposals even before we could present our case as they were hesitant to incorporate recycled materials into their mainstream formulations.”

“However, in recent years, attitudes have shifted significantly due to increasing emphasis on sustainability and circular economy principles. The industry is now more open to integrating green products. We started with a modest capacity of 5,000 metric tonnes per annum, which allowed us to gain insights into customer needs. Gradually, we scaled our operations from small quantities to commercial sales. The key driver for our recent expansion is customer demand. We have obtained product approval, and customers are eager to purchase rCB,” he added.

He also noted that companies wanted assurance that the demands could be met consistently, which was also a factor behind the expansion. Furthermore, having multiple units also allows the company to manage any potential supply chain issues, effectively. “If a minor problem arises in one unit, we can still supply material from another, minimising disruptions for our customers,” said Rathi.

The entire CAPEX for the greenfield plant is set at INR 20 crore.

Pyrolysis to rCB

Capital Carbon commenced operations in 2012 with a modest pyrolysis capacity of 10 tonnes per day. Over the years, it has consistently expanded its capacity, increasing to 150 metric tonnes per day. The company has also bolstered its backend operations, enhancing sourcing capabilities and adding substantial shredding and crumbing capacity.

Additionally, Capital Carbon has focused on value-added products including pyrolysis oil distillation and rCB. As of now, it operates a shredding capacity of 120,000 metric tonnes per annum for captive consumption. This capacity is supplemented by sourcing contaminated tyre bales, which typically have 20-30 percent rubber contamination. This material is cleaned to yield 98 percent pure steel, with the remaining rubber used for pyrolysis, creating a separate business vertical.

Currently, the company processes approximately 50,000 to 52,000 metric tonnes of tyres per annum through its pyrolysis operations. In terms of value addition, Capital Carbon produces between 20,000 to 24,000 tonnes of pyrolysis oil, annually.

When asked about the motivation behind establishing a pyrolysis plant, Rathi noted, “My father worked at Birla Carbon and retired in 2019. Although we lacked prior business experience, we were inspired by the industrial upbringing and the promising potential of the pyrolysis sector. Following the completion of my chartered accountancy studies, I decided to pursue this opportunity.”

He acknowledged that pyrolysis often has a negative reputation in India, where it is sometimes viewed as a ‘dirty business’. To combat this perception, Capital Carbon prioritises quality management and environmental responsibility in its operations. IT employs fuel-based heating methods in its pyrolysis process as electric heating is generally not feasible due to the high volumes involved in tyre pyrolysis. The initial heating requires some fuel, which can include biomass or pyrolysis oil, but the system becomes self-sufficient once it reaches a certain temperature.

The primary outputs from the pyrolysis process include fuel oil, carbon char (used as raw material for rCB or as an alternative energy source for cement plants), steel wires and pyrolysis gases, which are utilised for heating purposes.

He highlighted that the pyrolysis oil produced is of high quality with low sulfur and carbon content, making it cleaner than many conventional heating fuels used in India.

Quality control

The company’s sourcing strategy primarily focuses on domestic suppliers. It procures rejected tyres and dealer returns from various companies, which constitute a substantial portion of the feedstock. This local sourcing approach ensures that it maintains a steady supply of raw materials

Following sourcing, the production of recovered carbon black involves several critical steps. Initially, tyres are shredded to extract carbon black, steel and other components. The distinction in product application necessitates tailored processing methods.

For instance, producing carbon char for energy requires less stringent technical specifications compared to producing carbon black intended for high-performance applications, such as tyre manufacturing or footwear.

“The quality of the final product begins with meticulous sorting of tyres to determine suitability for pyrolysis. This initial step is vital for ensuring consistent output quality. Following sorting, the tyres are shredded into steel-free rubber chips of 15-20 millimetres. During pyrolysis, we focus on maintaining specific quality parameters for the pyrochar produced. This includes stringent controls to limit ash content, which must remain below 20-22 percent to ensure product consistency. The handling of impurities such as wires and stones in the pyrochar is essential. Post-processing, the pyrochar is milled to fine particle sizes (10-15 microns), enhancing its surface area for better compatibility with rubber compounds,” explained Rathi.

Once the recovered carbon black is processed, palletisation becomes the next step. This method streamlines handling and ensures that the product meets industry standards. While the equipment resembles that used for traditional carbon black, adaptations are necessary to accommodate the unique characteristics of recovered carbon black.

“To facilitate customer adoption, we offer tailored packaging solutions including 25kg paper bags, EVA / LDPE bags and FIBC bags, allowing clients to integrate our products seamlessly into their existing production processes,” he added. 

As the industry evolves, the need for standardised quality benchmarks for recovered carbon black has become increasingly clear. Major corporations have driven this change, leading ASTM to establish a dedicated committee (D36) focused on developing specific standards for recovered carbon black. Unlike conventional carbon black, which adheres to existing standards, recovered carbon black requires new metrics to account for its varied origins and compositions.

The committee is currently validating a series of standards including moisture content, pallet hardness and particle size analysis, specifically for rCB. This ongoing development is slated to enhance product credibility and facilitate broader market acceptance.

Commenting on the same lines, Rathi mentioned, “We maintain a dedicated quality lab to refine our production processes continually. Our focus on evolving our offerings has resulted in the introduction of two new grades of recovered carbon black, aimed at meeting diverse market needs. Our commitment to leveraging advanced machinery and improved grinding techniques reflects our proactive approach to quality enhancement and capacity expansion.”

Optimistic market outlook

The demand for recovered carbon black in India is poised for significant growth, driven by a strong shift toward sustainability. Customers are increasingly seeking high-quality suppliers, indicating a burgeoning market for rCB.

“Globally, rCB production currently accounts for less than one percent of total carbon black production, underscoring a substantial opportunity for expansion. As customer awareness and demand for sustainable products increase, we anticipate a corresponding rise in rCB consumption,” informed Rathi.

He added, “Many major corporations have committed to achieving carbon neutrality by 2050, necessitating immediate action to integrate green and circular products into their supply chains. As these companies strive to meet their net-zero targets, they are turning to recovered materials such as rCB to fulfil sustainability mandates. Our role is crucial in assisting these customers to achieve their goals through the production of eco-friendly and circular products derived from end-of-life tyres.”

Speaking on market opportunities, he said, “India remains our largest market, but we are also making significant inroads into Sri Lanka. The European market is particularly promising, though it presents challenges related to certifications and distribution. We are currently working on obtaining the necessary certifications, including ISCC Plus, to unlock this market potential.”

“Our immediate focus is on completing our current expansion project, after which we will enhance our pyrolysis capacity to align with the growing demand from our customers. As the volumes of recovered carbon black usage increase, we aim to be ready with sufficient supply,” he added.

He expects to penetrate the European market by the first half of FY26, following the completion of the current plant expansion.

Challenges in scaling production

“One of the primary challenges in scaling rCB production is the scarcity of raw materials. The supply of suitable feedstock is diverse and scattered, making it difficult to source consistently. In the past, customers struggled to understand the differences between recovered carbon black and virgin carbon black grades, often asking if we could produce specific grades like L550 or L660. However, as knowledge in the market has matured, customers are increasingly recognising that rCB is a distinct material requiring tailored processing approaches,” informed Rathi.

Japanese chemical manufacturer Tosoh Corporation announced plans on Wednesday to construct a second chloroprene rubber production facility at its Nanyo Complex, representing an investment of approximately ¥75 billion (£460 million) to meet rising global demand for the speciality polymer.

The new facility, scheduled to begin construction in spring 2027, will add 22,000 metric tonnes of annual production capacity for Tosoh’s SKYPRENE chloroprene rubber brand. Commercial operations are expected to commence in spring 2030 at the Shunan City site in Yamaguchi Prefecture.

Chloroprene rubber serves as a critical component across multiple industries, from automotive manufacturing to medical applications. The synthetic rubber’s popularity stems from its exceptional resistance to oil, weather conditions, and flame exposure, making it suitable for demanding applications, including automotive hoses, industrial belts, adhesives, and medical gloves.

The expansion comes as global demand for high-performance polymers continues to grow, driven by increasing automotive production and stricter safety requirements across industrial sectors. Medical applications have also seen increased demand following heightened awareness of the requirements for protective equipment.

Tosoh’s decision to double down on chloroprene rubber production reflects the material’s position within what the company terms its “Chemical Chain Business” - a strategy focused on value-added speciality chemicals rather than commodity products.

The investment represents one of the larger capacity expansion projects announced by Japanese chemical companies this year, signalling confidence in long-term demand fundamentals despite current global economic uncertainties.

The Nanyo Complex already houses Tosoh’s existing chloroprene rubber operations alongside other chemical production facilities. The site’s established infrastructure and logistics capabilities influenced the decision to expand at the existing location rather than develop a greenfield facility.

Industry analysts note that the three-year construction timeline reflects the technical complexity of chloroprene rubber production, which requires specialised equipment and stringent safety protocols due to the chemical processes involved.

The expansion aligns with broader trends in the Japanese chemical industry, where companies are increasingly focusing on high-margin speciality products to offset competitive pressures in traditional commodity chemicals from lower-cost Asian producers.

Epsilon Carbon, a leading global manufacturer of carbon black, has launched N134, which it claims is a specialised ‘Hard Grade’ carbon black known for its superior abrasion resistance and durability.

At present, the high-quality N134 grade is being imported due to the lack of consistent quality and supply chain issues in the Indian market. As a result, the tyre makers have to modify their formulations using other grades of carbon black, which it shared often leads to reduced performance.

But now, Epsilon Carbon has become the first company in India to install a dedicated manufacturing unit designed for N134 grade hard carbon. The company is expanding its existing Vijayanagar Carbon complex facility to produce 215,000 tonnes of carbon black.

This will not only ensure consistent supply of N134 carbon black for tyre makers in the country, reduce import dependency, but also open up export potential to markets such as Europe and USA. Epsilon Carbon will also focus on integrate advanced processing techniques to ensure batch consistency for durability and performance.

Vikram Handa, Managing Director, Epsilon Carbon, said, “This is a proud moment for us and for India’s carbon black manufacturing sector as the high quality N134 black will significantly reduce import dependency and provide tire manufacturers in India and abroad with a reliable, high-quality product. Our goal is to match global standards while building India’s capability to serve premium markets.”

Lummus Technology, a leading provider of process technologies and energy solutions, has signed a memorandum of understanding (MoU) with InnoVent Renewables to collaborate on the global licensing and deployment of InnoVent’s continuous tyre pyrolysis technology.

Under the proposed agreement, Lummus will become the exclusive licensor for InnoVent’s proprietary pyrolysis process, which transforms end-of-life tyres into valuable outputs, including pyrolysis oil, gas, recycled carbon black and steel. Additionally, Lummus will offer integrated technology packages that combine InnoVent’s pyrolysis system with its own downstream processing solutions, enhancing the value of fuel and chemical products derived from waste tyres.

InnoVent’s technology provides a fully scalable, end-to-end solution for converting discarded tyres into renewable fuels and high-value petrochemicals, covering everything from pre-processing to purification. The company currently operates a commercial-scale facility in Monterrey, Mexico, with an annual processing capacity of up to one million passenger tyres, and has the capability to expand further.

Leon de Bruyn, President and Chief Executive Officer, Lummus Technology, said, “This is another significant step in expanding and strengthening our portfolio for the circular economy. By combining InnoVent’s tyre recycling technology with Lummus’ global licensing and engineering expertise, we will be addressing the global challenge of waste tyres and creating new pathways for sustainable product development.”

Vibhu Sharma, Chief Executive Officer, InnoVent Renewables, said, “Partnering with Lummus has the potential to accelerate the global deployment of our technology and help us address the environmental and public health challenges of one billion end-of-life tyres that are disposed of annually. Together, we can transform waste into valuable resources, reduce carbon emissions and support the transition to a more sustainable future.”

Continental is accelerating its efforts to make tyre production more sustainable, with the German tyre manufacturer expecting the share of renewable and recycled materials in its tyres to rise by up to three percentage points in 2025.

The average share stood at 26 percent in 2024, and Continental said it anticipates a further increase this year due to the expanded use of materials such as synthetic rubber derived from renewable sources, recycled PET polyester, recycled steel, and silica made from rice husk ash — a by-product of rice production.

“We are systematically increasing the share of renewable and recycled materials in our raw material portfolio. In five years, we aim to surpass the 40 percent mark,” said Jorge Almeida, Head of Sustainability at Continental Tires. “To achieve sustainable mobility, we are constantly searching for even more environmentally friendly materials. After extensive testing, we integrate them into production as quickly as possible.”

The company has set a goal of using over 40 percent renewable or recycled materials in its tyres by 2030, without compromising on performance or safety.

A key pillar of this transformation is the adoption of mass balance-certified materials. This approach, certified under ISCC Plus, enables Continental to mix certified and non-certified materials during production while maintaining strict accounting procedures to ensure traceability.

The company has already secured ISCC sustainability certification for its tyre plants in Lousado (Portugal), Hefei (China), Púchov (Slovakia) and Korbach (Germany). Continental is also scaling up its use of recycled steel, silica from rice husk ash, and PET yarns made from recycled plastic bottles via its proprietary ContiRe.Tex process.

Other sustainable innovations include COKOON, an adhesive coating system co-developed with Kordsa that replaces formaldehyde and resorcinol in bonding textile components with rubber. Continental also continues to explore alternative additives derived from renewable sources to improve the tyre vulcanisation process.

“We have developed a comprehensive portfolio of diverse, more sustainable materials and are continuously integrating them into all our products after extensive testing,” Almeida said. “In doing so, we ensure that there is no compromise in safety or performance. With this portfolio, we are getting closer and closer to our ambitious, long-term sustainability goals.”