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.

Zeon Corporation has begun building a pilot facility at its Tokuyama Plant in Shunan City, Yamaguchi Prefecture, to test a new method for efficiently producing butadiene from plant-derived ethanol. The demonstration plant, expected to start operations in 2026, will supply butadiene for manufacturing trial batches of polybutadiene rubber, bringing the company closer to commercialising this sustainable production process.

This project is a key part of a joint initiative between Zeon and The Yokohama Rubber Co., Ltd. to develop eco-friendly methods for producing butadiene and isoprene from renewable sources, with full-scale adoption targeted for the 2030s. Under the collaboration, Zeon will produce butadiene rubber at the new facility, while Yokohama Rubber will use the material to create experimental tyres and conduct performance testing. The data collected will help refine the technology ahead of larger-scale trials. The companies aim to finalise the production process by 2030 using an expanded pilot plant, with plans for industrial-scale commercialisation by 2034.

A ceremonial groundbreaking event took place on 10 July 2025, with 33 attendees, including local government officials from Yamaguchi Prefecture and Shunan City, construction partners and Zeon executives such as Chairman Kimiaki Tanaka and Tokuyama Plant Manager Akira Honma. The gathering included traditional safety prayers for the construction phase, marking the official start of this sustainability-focused industrial project.

Continental is increasing its use of renewable and recycled materials in tyre production, aiming to exceed 40 percent by 2030 while maintaining high safety and performance standards. In 2024, these materials accounted for 26 percent of tyre composition, with a projected 2-3 percent increase in 2025. Key to this shift are carbon black and silica – essential fillers that enhance durability, grip and braking performance.

Silica, a critical component for optimising grip and minimising rolling resistance, is traditionally derived from quartz sand. However, Continental now obtains silica from rice husks, an agricultural by-product of risotto rice production. This innovative approach not only repurposes waste but also requires less energy than conventional methods. Partnering with manufacturers like Solvay in Italy, Continental integrates rice husk-derived silica across its entire tyre portfolio. Silica has been a game-changer in tyre technology for decades, significantly improving safety and energy efficiency. Its use in tread compounds has contributed to a nearly 50 percent reduction in braking distances while also lowering rolling resistance, thereby reducing fuel consumption and CO₂ emissions.

Carbon black, another vital material making up to 20 percent of a passenger car tyre's weight, is being sourced through sustainable alternatives. Continental employs three innovative methods: bio-based carbon black from tall oil (a paper industry by-product), recycled carbon black from pyrolysis oil derived from end-of-life tyres and a direct recovery process that extracts carbon black from used tyres via pyrolysis. The company collaborates with suppliers like Orion Engineered Carbons and Tokai Carbon, utilising different carbon black variants tailored to specific tyre components, such as sidewalls and treads. Through the mass balance approach, Continental substitutes fossil-based raw materials with bio-based or recycled alternatives without altering existing production processes.

Additionally, Continental has partnered with Pyrum Innovations to advance tyre recycling through pyrolysis, a process that recovers carbon black from end-of-life tyres for reuse. While currently applied in forklift tyres, efforts are underway to adapt this recycled carbon black for broader tyre applications, ensuring compliance with performance and safety standards. These initiatives underscore Continental’s dedication to sustainable innovation, demonstrating how eco-friendly materials can enhance both tyre performance and environmental responsibility across the value chain.

Jorge Almeida, head of Sustainability at Continental Tire, said, “Innovation and sustainability go hand in hand at Continental. Using silica from the ashes of rice husks in our tyres shows that we are breaking completely new ground – without compromising on safety, quality or performance.”

Tata Motors-owned British-luxury brand Jaguar Land Rover is said to become the first global automaker to commit to use tyres made from renewable materials as part of its sustainability commitment.

The automaker will soon become the first to soon adopt tyres made from more than 70 percent renewable and recycled materials, such as silica from rice husks and plant‑based resins at scale in its upcoming range of vehicles.  In fact, the upcoming select models from Range Rover are already planned to come with Pirelli’s new P Zero tyres, which contain silica used to enhance wet performance. The material is sourced from rise husks, a natural by-product of rice milling.

These tyres do away with fossil‑based polymers and resins, which are typically used to help optimise the balance between dry and wet performance. Instead, they use plant‑based alternatives such as agricultural by‑products or used cooking oils. By using recycled materials, they reduce reliance on primary source materials to help alleviate resource consumption. Furthermore, carbon black, a crucial filler in rubber compounds used to improve stability, strength and durability, is recovered from end‑of‑life tyres and recycled steel is used to enhance handling and stability.

The automaker believes that bio‑based and recycled materials are generally more sustainable to obtain, more energy efficient to process and easier to manage at end‑of‑life than virgin and fossil‑based materials such as synthetic polymers and silica obtained from conventional materials such as quartz sand, yet perform similarly.

Reuben Chorley, Sustainable Industrial Operations Director, Jaguar Land Rover, said, “This is another example of how JLR is leading on sustainable design innovation in collaboration with its supply chain partners to deliver at scale, while reducing the environmental impact of our products. Achieving a more sustainable composition without compromising quality and performance is a challenge because of the complexity of tyre design. But working closely with Pirelli and leveraging both company’s expertise in procurement and engineering, we have been able to deliver this industry first.”
JLR and Pirelli are strengthening their commitment to sustainability with the introduction of the new P Zero tyre, featuring FSC (Forest Stewardship Council)-certified natural rubber. This initiative builds on JLR's pioneering move last year to incorporate FSC-certified natural rubber across its entire vehicle portfolio, ensuring responsible sourcing within its supply chain.

Both companies are dedicated to increasing the use of recycled and bio-based materials in their products. All such materials will undergo third-party certification to verify their quality and quantity. The long-term ambition for JLR and Pirelli is to achieve 100 percent sustainable materials in their tyres.

Prism Worldwide, a pioneer in converting discarded tyres and plastic waste into high-value circular polymers, has introduced three revolutionary advancements that promise to reshape the sustainable materials landscape. The company's breakthroughs in eliminating rubber odours, creating tyre-derived thermoplastic vulcanizates (TPV) and enabling high-content EPDM recycling address longstanding obstacles that have hindered widespread adoption of recycled materials across industries.

The company's cost-efficient, American-made production methods offer significant savings compared to virgin materials – a critical advantage amid fluctuating tariffs and increasing demand for domestic supply chains. This economic benefit allows manufacturers to embrace sustainable solutions without compromising profitability, removing a major barrier to eco-friendly material adoption.

Prism's innovations enable manufacturers to seamlessly integrate up to 50 percent recycled tyre content into existing production processes like injection moulding and extrusion – a dramatic improvement over previous limitations. This technological leap expands applications beyond traditional compression moulding, allowing for odour-free recycled materials in premium products like automotive interiors and fitness equipment.

The company's odour-elimination technology, rigorously tested to meet automotive industry standards, solves one of recycling's most persistent challenges. Equally groundbreaking is Prism's development of sustainable TPV derived entirely from end-of-life tyres – an industry first that creates new possibilities for high-value applications. Equally significant is their breakthrough in EPDM recycling, overcoming the material's inherent resistance to reuse through an innovative devulcanisation process that maintains critical performance characteristics.

These collective advancements represent more than incremental improvements – they fundamentally redefine what's possible with recycled materials. By tackling odour, performance and cost challenges simultaneously, Prism is transforming sustainability from a compliance obligation into a competitive advantage.

Bob Abramowitz, CEO, Prism Worldwide, said, “This is a turning point for end-of-life tyre recycling and sustainable polymer development. These are not incremental improvements. We’ve tackled odour, cost and performance, three of the biggest barriers to more widespread adoption of recycled materials, and overcome them all with commercially viable solutions. Our team’s diligence in developing solutions that solve these challenges allows us to deliver cost-effective, high-performance materials without requiring customers to pay a green premium. Companies pay lip service to sustainability values, but they change their tune when it costs more. We are creating additional profit opportunities while helping them to meet corporate sustainability objectives.”