Paul Lloyd: “Farrel Pomini’s core business lies in supplying processing equipment for the plastics and petrochemical industries."

Pyrolysis has long been associated with pollution and inefficiency, particularly in developing markets where outdated methods dominate. However, technological advancements and a stronger push for circularity are transforming this perception. HF Group, through its subsidiary Farrel Pomini and WF Recycle-Tech, is at the forefront of this shift, introducing a continuous pyrolysis system that promises cleaner and more efficient tyre recycling. Unlike traditional batch processing, its technology ensures consistent output, better resource recovery and reduced emissions.

Pyrolysis has always been considered to be a dirty business. However, with the changes in technology and the increasing hunt for circularity across the tyre industry, businesses are attempting to redefine the age-old tyre recycling process and remove the malice associated with it.

Farrel Pomini is one such entity with the HF Group that is attempting to make pyrolysis cleaner. WF Recycle-Tech, established in 2013, started commercial operations in 2022 with selling its first pyrolysis unit in 2024, slated to be operational in 2026.

Speaking to Tyre Trends, President Paul Lloyd said, “Farrel Pomini’s core business lies in supplying processing equipment for the plastics and petrochemical industries. While its continuous mixer can be used for rubber applications, it is primarily designed for plastic masterbatches and compounds. The company operates across multiple divisions with its plastics compounding equipment focusing on niche applications for highly filled and temperature-sensitive materials. Although the plastics market is significantly larger than the rubber sector, Farrel Pomini targets specialised segments within it. Expanding its footprint in sustainability, the company has developed recycling systems for both plastics and rubber. The end-of-life tyre recycling solution was developed in collaboration with its group company, WF Recycle-Tech.”

Tyre pyrolysis has long been regarded as a polluting industry, particularly in developing countries where unregulated plants often operate at night to evade environmental scrutiny. In markets like India, many such facilities shut down due to non-compliance, reinforcing the industry’s reputation as a ‘dirty business’.

Lloyd further explained, “In Europe, the focus is shifting towards sustainability, driving innovation in pyrolysis technology. Traditional methods relied on large kilns, where tyres were burned with external heat over extended periods. The process was inefficient, labour-intensive and environmentally damaging, requiring extensive manual cleanup.

HF Group has taken a different approach, developing a continuous pyrolysis system that eliminates these challenges.”

Instead of batch processing, the system ensures a constant flow of material, allowing for the controlled capture of gases, liquids and solid outputs. The process begins with pre-grinding tyres into metal-free rubber crumb (6–20 mm), which is then fed into the machine via a hopper. Operating at a capacity of 1,500 kilogrammes per hour, the system requires only continuous material input while automatically managing output streams including recovered oil and gas.

Apropos to the pain points that the company wanted to address, he noted, “Over the past decade of developing this solution, several key learnings and priorities emerged. First and foremost, the goal was to create an efficient pyrolysis system that could consistently process tyre waste at an industrial scale. Second, the decision to develop a continuous rather than batch-based system was fundamental as continuous pyrolysis offers greater consistency, scalability and efficiency. Third, integrating a continuous mixer in the pre-processing stage became a major focus as it significantly improved the homogeneity and quality of the output materials. Finally, optimising the recovered output, particularly recovered carbon black, became the primary objective. Initially, the project was focused on tyre-derived oil (TDO), but as the market evolved, the emphasis shifted to producing the highest-quality rCB, aligning with upcoming ASTM standards and stringent industry requirements.”

By integrating advanced processing controls, the solution ensures cleaner, more efficient pyrolysis, positioning itself at the forefront of sustainable and cleaner tyre recycling.

THE OUTPUT

HF Group’s expertise in mixing technology creates a natural synergy between its traditional business and its expansion into tyre recycling. While the company is known for its tyre curing and rubber mixing solutions, it also has a plastics mixing division; this same mixing technology plays a crucial role in its pyrolysis process.

The recycling system starts with tyre crumb, which is fed into a high-shear Farrel Continuous Mixer originally designed for plastics processing. The mechanical shear heating raises the temperature of the material to 330 degrees Celsius. This ensures uniform heating before the material enters the pyrolysis chamber, where temperatures increase to between 520 degrees Celsius and 580 degrees Celsius. The continuous system eliminates inefficiencies seen in traditional batch pyrolysis, where prolonged heating cycles lead to higher energy consumption and inconsistent output.

Material recovery is a key advantage of the system. For every tonne of tyre crumb processed, approximately 50 percent is converted into pyrolysis oil, yielding 550–570 litres. Around 40 percent becomes recovered carbon black (rCB), a critical raw material that can replace virgin carbon black in industrial applications. The remaining 10 percent is gas, which can be used to power the system, further improving energy efficiency.

Beyond throughput, the system’s design significantly reduces overall energy demand. Mechanical shear heating minimises reliance on external thermal energy, while the continuous process prevents heat loss and optimises fuel efficiency.

Additionally, rCB from the pyrolysis process requires 60–70 percent less energy to refine, further enhancing sustainability.

“Pyrolysis fundamentally relies on heat and time in the absence of oxygen. Under these conditions, tyres thermally degrade, breaking down into vapour, which is condensed into oil and a solid residue, which is now widely used as recovered carbon black (rCB). This output can be further refined for industrial applications, creating a circular economy within the rubber industry,” explained Lloyd.

CHALLENGING INTEGRATION

The primary challenge for tyre manufacturers in adopting rCB is achieving performance characteristics comparable to virgin carbon black. Similarly, tyre pyrolysis oil must meet stringent quality standards to serve as a feedstock for high-value applications beyond just fuel. The company’s continuous pyrolysis system addresses these concerns by enhancing the quality and usability of both outputs.

“In the case of tyre pyrolysis oil, if used as a fuel, the calorific value may vary slightly, but it remains a viable option. However, its greater potential lies in serving as a feedstock for sustainable carbon black or even virgin carbon black production. The consistency of the oil’s composition determines its suitability for high-end applications, making process control a critical factor,” noted Lloyd.

He added, “For rCB, higher quality directly translates into increased usability across different applications. While rCB will never completely replicate virgin carbon black, superior grades enable a higher substitution rate. In some cases, a high-quality rCB can replace up to 30 percent of virgin carbon black, whereas lower-quality alternatives may only allow a 15 percent substitution. This increased usability not only enhances sustainability but also raises the material’s commercial value.”

HF Group’s rCB, produced through its WF Recycle-Tech process, has been extensively tested across multiple industries. It has demonstrated strong performance in plastics masterbatch applications, technical rubber goods and even tyre manufacturing. One major tyre producer has already validated its suitability for substitution in new tyres, underscoring its industry acceptance.

A key differentiator of the process lies in its patented two-stage pyrolysis system. While continuous pyrolysis itself is well established, HF Group’s innovation stems from its integration of a high-shear Farrel Continuous Mixer in the first stage.

This approach ensures uniform heating, eliminates direct heat exposure and optimises the pyrolysis reaction in the second stage. The result is a more efficient process that yields higher-quality recovered carbon black and cleaner tyre pyrolysis oil.

PERSEVERING THROUGH LIMITATIONS

The primary limitations of the system, Lloyd noted, revolve around scalability, operational efficiency and material consistency. The current processing capacity of 1,500 kilogrammes per hour is relatively low. Scaling up production rates while maintaining efficiency and reliability is an ongoing challenge. The key challenge is ensuring long-term operational stability and optimising run times.

Another significant factor is feedstock variability, particularly in markets like India, where used tyres from different sources such as passenger cars, trucks and buses are often mixed without segregation. The ideal scenario would involve processing a uniform type of tyre with a consistent rubber composition, but in reality, recycling operations must work with what is available.

“There are two main approaches to addressing this viz-a-viz meticulous sorting, which ensures consistency but is time-consuming and costly, or strategic blending, which creates a stable output by balancing material variations. The current system has been designed to handle diverse feedstocks without sorting, using a consistent blend of tyres to produce a predictable output,” said Lloyd.

In the long term, technological advancements such as artificial intelligence or tracking mechanisms for tyres could enhance sorting processes, making recycling operations more efficient. However, for now, the focus remains on refining the system to handle real-world feedstock conditions while delivering high-quality outputs. The continuous processing system also provides flexibility to adjust parameters and optimise results, making it a robust solution even in environments where feedstock quality is unpredictable.

MARKET TALK

The return on investment for pyrolysis systems is quite favourable, but it carries risks, especially in the early stages. A well-managed system operating efficiently for 6,000–7,000 hours per year, with a stable feedstock supply and consistent product quality, can generate strong financial returns, explained the executive.

However, challenges arise if there are interruptions in material supply, equipment downtime or fluctuations in product quality. These factors introduce uncertainty, which can make securing financing more difficult. That said, the market for TDO and rCB is growing, providing ample opportunities for revenue. Companies that can differentiate its output and meet quality standards can command premium prices, further improving ROI.

The market focus for HF Group’s advanced pyrolysis solutions primarily includes recyclers looking to add more value to their processes, material users such as tyre manufacturers and technical rubber companies seeking sustainable raw materials and new businesses emerging in response to industry needs.

“In the US and Europe, there is a growing entrepreneurial push to bridge the gap between traditional recycling and the sustainability requirements of the tyre industry. However, in markets like India and other parts of Asia, the challenge lies in shifting perceptions. Many existing pyrolysis operations use older-generation systems. The transition to modern, cleaner and more efficient systems requires education, proof of performance and financial support. Despite these challenges, India remains a strong market for HF, as the industry values high-quality technology and is willing to invest in the best solutions once the benefits are clearly demonstrated,” informed Lloyd.

Over the next five years, the company’s primary goal is to establish a proven track record with the first full-scale pyrolysis system, demonstrating its performance, reliability and efficiency. Once this is achieved, the focus will shift to helping potential customers secure financing by reducing perceived risks, making it easier for them to invest in the technology.

Alluding to the next phase of development, Lloyd informed, “The next phase of development focuses on three main areas. The first priority is industrialising the system to ensure it operates efficiently, consistently and reliably over long production cycles. This transition from pilot-scale to full-scale manufacturing is where HF Group’s expertise in engineering advanced processing equipment comes into play. Secondly, efforts are underway to further refine the pyrolysis reaction to enhance output quality and efficiency. Lastly, ongoing research and development is focused on post-processing improvements, particularly the removal of ash from recovered carbon black to increase its usability in high-performance applications.” n

The Association of Natural Rubber Producing Countries (ANRPC) published its Monthly Natural Rubber Statistical Report for August 2026, noting firmer prices in several markets. Supply constraints, stable downstream demand and persistent geopolitical and macroeconomic uncertainty shaped the month. Renewed conflict and disruptions to major shipping routes added further pressure.

Physical prices for major grades moved in different directions. SMR-20 in Kuala Lumpur averaged USD 2.31 per kg, up 4.25 percent from July, while STR-20 in Bangkok rose 1.40 percent to USD 2.39 per kg. RSS-3 dropped 4.18 percent to USD 2.80 per kg, but RSS-4 in Kottayam gained 0.57 percent to USD 2.92 per kg. Latex-in-bulk fell 4.73 percent to USD 1.73 per kg. Brent crude averaged USD 91.08 per barrel, driven by concerns over possible restrictions on oil shipments through the Strait of Hormuz and wider Middle East instability, which raised energy supply risks and strengthened the oil market risk premium.

On trade, China's imports climbed 3.39 percent month-on-month, while India fell 10.18 percent and Malaysia dropped 8.24 percent; Viet Nam rose 5.08 percent. Exports advanced 5.63 percent in Viet Nam but declined in Thailand (-5.24 percent), Indonesia (-5.36 percent), Malaysia (-1.48 percent) and Cambodia (-1.88 percent).

Global production is projected to rise 0.6 percent to 15.039 million tons in 2026 from 14.952 million tonnes in 2025, after revisions to Thailand's 2025 output and updated 2026 estimates for Thailand, Malaysia and Indonesia. Weather, including erratic rainfall and drier Southeast Asian conditions, affected output. August 2026 production was estimated at 1.396 million tonnes, down 4.51 percent from 1.462 million tonnes a year earlier. Demand is forecast to grow 0.4 percent to 15.356 million tonnes in 2026 from 15.301 million tonnes, with the largest consumption gains expected in China, Malaysia and Cambodia. Prospects depend on vehicle sales, tyre production, shipping conditions and weather-related supply disruptions, while steady EV-linked demand supported modest growth led by China and India. The ringgit traded between RM4.02 per USD and RM4.09 per USD, and the baht between 32.68 and 33.34. The SHFE January 2027 contract averaged 18,109 CNY per tonne, up 7.78 percent month-on-month, while the SGX November 2026 contract averaged USD 2.24 per kg, up 4.32 percent.

HS HYOSUNG has formalised a memorandum of understanding (MoU) with the State Government of San Luis Potosí, with the signing taking place at the World Trade Center Mexico City. The event formed part of the Korea-Mexico Business Forum, held alongside the Korean economic delegation's visit to Mexico.

Attending officials included Marcelo Ebrard, Mexico's Secretary of Economy, and Mario García Valdez, Secretary of Economic Development of San Luis Potosí. The two sides confirmed their shared resolve to back the company's local investment and regional growth. Separately, HS HYOSUNG's leadership met bilaterally with Secretary Ebrard to elaborate on its strategic vision and investment plans.

The agreement sets out a phased expansion of HS HYOSUNG's investments in San Luis Potosí beginning in 2027, with the goal of creating a major advanced materials production hub that bolsters supply for North American and wider global markets. The company's advanced materials span tyre cord, a flagship world-leading product, along with mobility, energy, aerospace and defence applications. Its North American operations, spanning Mexico and the United States, turn out tyre cord, airbag materials and mobility interior components for global leaders such as General Motors and Goodyear, underpinned by a highly dependable global supply chain.

Nak-yang Sung, CEO, HS HYOSUNG ADVANCED MATERIALS, said, “This investment goes beyond establishing a simple manufacturing base – it reflects our strategy to turn Mexico into a pivotal hub connecting North America with global supply networks. We are also committed to strengthening local supply chains and creating high-quality jobs to contribute directly to the region's industrial ecosystem.”

Kumho Petrochemical Group is steering its business towards research-driven, higher-value outputs as oversupply and soft demand continue to weigh on the worldwide petrochemical sector. The Seoul-based group outlined plans to boost spending on speciality chemicals, sustainable materials and novel production methods, a push intended to lift profits while building a foundation for future expansion.

Underlying the move is a deliberate evolution in the group's identity, from a bulk materials vendor to a provider of technology-backed solutions that address shifting customer requirements and stricter environmental rules. A central element of that effort involves widening the speciality lineup, exemplified by added capacity for solution styrene butadiene rubber, a synthetic rubber that enhances durability, rolling resistance and tread wear in high-performance electric vehicle tyres.

Environmental initiatives form another pillar. Facilities built by the company can trap approximately 76,000 metric tonnes of carbon dioxide each year, while separately developed technology turns recycled acrylonitrile butadiene styrene sourced from scrapped household appliances into automotive-grade interior components that satisfy performance standards and generate fewer emissions than conventional methods. The group has also joined forces with POSCO Future M and BEI on anode-free lithium-metal battery development.

Parallel technology-focused programmes are underway at affiliated units. Kumho P&B Chemicals is formulating water-based epoxy resins that curb volatile organic compound releases while incorporating more bio-based inputs to reduce carbon intensity. Kumho Mitsui Chemicals is advancing bio-based polyurethane systems and electric vehicle materials, alongside debottlenecking work to add 100,000 tonnes of annual methylene diphenyl diisocyanate capacity. Kumho Polychem, meanwhile, is targeting ethylene propylene diene monomer through low-temperature polymerisation paired with energy-efficiency improvements.

Birla Carbon has confirmed a price increase of up to 15 percent for its Speciality Materials products across Asia, scheduled to take effect on 1 October 2026. The company pointed to significant and sustained rises in feedstock costs, driven partly by ongoing geopolitical instability and disruptions in global feedstock markets, as the reason behind the adjustment.

Although Birla Carbon pursued operational efficiencies, supply chain optimisation and disciplined cost management to soften the impact, the scale and persistence of the cost escalation left a price adjustment unavoidable. The company's sales teams will engage customers directly to explain the details and help them navigate the transition.