The German speciality chemicals company recently inaugurated the first India Application Development Centre (IADC) in the country’s financial capital, reinforcing its commitment and outlook for the country. 

For Lanxess India, tyre industry accounts for almost 25 percent of its business, as against global average of around 10 percent. And the company’s management continues to be upbeat about the growth story for Indian tyre makers.

“India, from our point of view, will play a very important detrimental role (for Lanxess). Because when you want to grow your industry, which Prime Minister Narendra Modi clearly has as an ambition, you need the chemical industry and all their precursors. And if you want to help the Indian industry to further develop (new solutions), you need to have local application for local needs,” remarked Matthias Zachert, Chairman of the Board of Management of Lanxess.

He was speaking on the sidelines of the inauguration of the India Application Development Centre (IADC) in Thane, Mumbai, which also marks a significant commitment by the German chemical major for the country.

Lanxess is said to be the world’s largest supplier of rubber additives focusing on solutions around rubber chemicals, speciality chemicals and processing aids for the rubber industry. The company’s solutions find their way in high-performance rubber products such as tyres, treads, seals and even drive belts.

At present, Lanxess has established two production facilities in India – Jhagadia in Gujarat and Nagda in Madhya Pradesh. The tyre industry is primarily supported by Lanxess Rhein Chemie Additives Divisions, which manufactures Rhenogran and Rhenodiv at the Jhagadia facility. The company has invested over EUR 70 million in the Jhagadia facility, which not only supports the domestic customer base for Lanxess but also its customers in the Asia-Pacific region. The company has a longstanding presence in India, with representation from all 10 of its business units and a workforce of around 800 employees.

It comes as no surprise that Zachert sees India as a critical growth region for Lanxess, offering immense opportunities for collaboration and innovation.

INDIAN TYRE INDUSTRY A KEY GROWTH DRIVER

Globally, the automotive industry in particular is transitioning from being seen as a seller of products to a mobility solutions provider, what’s with new business models or service solutions.

Zachert sees that while the tyre market was consolidated for many years, it has started opening up in the last decade.

“The global tyre market has opened up, strongly driven by Chinese tyre manufacturers but also Indian tyre manufacturers. We have rising stars here in India. Mobility has always led to liberty and flexibility for mankind. This will be a trend that in the next 10-20 years is not going to vanish. Mobility will be important, which means the tyre industry is important. And therefore, I look positively at the tyre industry going forward, notably the one that is located here in India,” said an optimistic Zachert.

It is important to understand that the company has almost 25 percent of its business exposure to the Indian tyre segment, which could be amongst the highest for the company.

“For our group, the mobility exposure that we have worldwide as a company is 10 percent. We are over-proportionally present here in India, which is good and normal because the industry is expanding. The Indian tyre market is expanding not only locally but globally,” he said.

The recent setting up of IADC is part of Lanxess’ strategic focus on India as a key market and innovation hub. The strengthening of R&D will enable the company to enhance its ability to deliver high-value, specialised solutions tailored to local needs.

To begin with, the company has integrated expertise from two key businesses in India: Lubricant Additives (high-performance additives and additive systems, synthetic base fluids and ready-to-use lubricants) and Material Protection Products (antimicrobial, disinfection and preservation solutions). Going forward, the idea is to be present with all business units’ expertise at the IADC.

Namitesh Roy Choudhury, Vice-Chairman and Managing Director, Lanxess India, said, “By establishing the IADC, we are bringing our expertise closer to our Indian customers. This centre will not only support innovation but also strengthen our ability to address evolving market trends with speed and precision.”

For Lanxess India, the IADC aligns with its transformation journey towards a speciality chemicals company. The aim is to focus less on cyclical business areas and solutions for critical applications and move towards a partner for sustainable mobility or consumer protection. And the company sees India’s growing industrial base and expanding consumer markets as an ideal platform for driving such advancements.

SUPPORTING THE TYRE INDUSTRY

The production of the plain looking black tyre is more than just moulding of rubber; it is a complex process, which includes incorporating various raw materials and scientific steps to ensure that the tyres are built up to a particular specification. After all, tyres remain and are supposed to be the sole point of contact between a vehicle and the road when in motion.

Lanxess, for its part, supplies solutions across mixing, batch-off, extrusion & tread marking, tyre inspection & repair, tyre curing, green tyre spraying and tyre building processes.

According to the company, a durable car tyre is the result of a complex manufacturing process in which the tyre is built-up from various rubber compounds and reinforcing materials. It explains that by using rubber chemicals and various fillers, the raw material rubber is turned into a high-performance product. This is because rubber is soft and not very durable until vulcanisation. By selecting the type of rubber, the crosslinking chemicals and additives required for the desired technical properties of the end-product, high-performance products such as tyres and other rubber products are created.

EUROPEAN COMPANIES TO STEP OUT OF PETROCHEMICALS

The chemicals industry has undergone a sea of change, especially given the evolving trend from geography-focused development to globalisation. For the last few years, there has been a growing pressure, especially given the focus on sustainability.

To support the sustainability drive, the company recently introduced Vulkanox HS Scopeblue, a next-generation rubber additive designed to help tyre manufacturers produce more durable and environmentally friendly tyres. The anti–degradant effectively protects tyres from the damaging effects of oxygen and heat while offering reduced environmental impact. Its low volatility and minimal migration tendency further enhance tyre performance and longevity, making it an optimal solution for modern, eco-conscious manufacturing.

The company claims that the Vulkanox HS Scopeblue boasts a carbon footprint more than 30 percent lower than its conventionally produced counterpart thanks to the use of bio-circular acetone and renewable energy in its production process. It is being currently manufactured at an ISCC PLUS-certified plant in Germany; this mass-balanced additive retains the same chemical structure as the original product, allowing tyre manufacturers to adopt it seamlessly without altering their existing production processes.

Zachert further said, “Times lead to change. The industry dynamics of chemicals has been adjusting to change for the last decade and will continue to see changes for the next decades. If I look into the next 10 years of the chemical industry, my personal prognosis is that you will see that the European chemical companies will more and more step out of petrochemicals and go upstream. And this is happening as we speak. My thesis also is that the European industry will focus more on niche polymers and speciality chemicals. The upstream and volume polymers will go elsewhere, where you have the raw materials and cheap energy. Countries that are destined to dominate these kinds of chemicals over the next 10 years, is the Middle East and the United States. Europe used to be the epicentre of chemicals 20-30 years ago from polymers to chemicals to pharmaceuticals.”

Then there is the shift from global supply chain to more of regional supply chain given the geopolitical situation.

“I see that with the current world with geopolitical tensions, the likelihood is high that we will go back to trade zones. And therefore, the global value chain in chemicals is one where many companies will have to rethink the global approach and turn towards a more regional approach,” added Zachert.

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The Association of Natural Rubber Producing Countries (ANRPC) released its April 2026 report, highlighting rising prices despite lower production. Output fell 2.59 percent year-on-year due to the seasonal wintering period, dry weather across South and Southeast Asia and El Niño concerns. Brent crude surged to USD 117.29 per barrel, up 13.72 percent from March, driven by Middle East disruptions, which boosted centrifuged latex valuations.

Physical prices rose across all major grades. SMR-20 in Kuala Lumpur increased 4.61 percent to USD 2.13 per kilogramme, while STR-20 in Bangkok climbed 3.53 percent to USD 2.27. RSS-3 in Bangkok jumped 8.10 percent to USD 2.77, and RSS-4 in Kottayam rose 6.53 percent to USD 2.50. Centrifuged latex in Kuala Lumpur gained 12.47 percent to USD 1.93 per kilogramme. Futures markets remained firm, with the Shanghai Futures Exchange September 2026 contract averaging CNY 17,009 per tonne.

For 2026, global production is projected at 15.322 million tonnes, up 2.2 percent, with upward revisions for China and Malaysia. Consumption is forecast to grow 1.3 percent to 15.550 million tonnes, driven by electric vehicle production and recovery in rubber goods. In April alone, estimated output was 772,000 tonnes, while consumption reached 1,235,000 tonnes, a 2.3 percent annual rise.

Trade patterns diverged sharply. China’s imports fell 13.35 percent to 538,200 tonnes due to high inventories, while India’s imports surged 38.79 percent on strong manufacturing demand. Thailand’s exports contracted 4.28 percent to 378,000 tonnes, but Cambodia’s exports soared 106.49 percent. The Malaysian ringgit strengthened to near 3.96 against the US dollar, while the Thai baht stabilised around 3.07 after volatile trading.

The macroeconomic environment remained tense, with US-China trade friction, the Middle East conflict and the US Federal Reserve holding interest rates at 3.50 to 3.75 percent. The near-term outlook for natural rubber is cautiously positive but subject to heightened volatility.

The ANRPC reaffirmed its commitment to objective analysis for the sustainable development of the natural rubber sector. Member governments and stakeholders were encouraged to use the report’s findings for evidence-based policies.

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Indorama Advanced Oxides, a subsidiary of Indorama Corporation, has successfully restarted production at Huelva facility in Spain, achieving its first tonne of Titanium Dioxide (TiO₂) output. The plant, which has an annual capacity of 80,000 tonnes, represents the company’s strategic entry into the global titanium dioxide market. This milestone follows Indorama’s recent completion of the site acquisition from Venator P&A Spain.

The restart marks a crucial step in returning the facility to full operation after the acquisition, ensuring continued supply of the essential white pigment to customers across Europe and global markets. The Huelva team demonstrated strong collaboration and safe execution in resuming activities. This white pigment remains critical for the European paints, coatings and plastics industries.

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Synthos, recognised as Europe’s foremost synthetic rubber producer and a global leader in solution styrene butadiene rubber, has secured the EcoVadis Gold Medal once again. The company, also a top European manufacturer of expanded polystyrene, continues to rank among the world’s most sustainable businesses.

The 2026 assessment placed Synthos in the 97th percentile, with its highest marks received in labour rights, human rights, ethics and environmental stewardship. This achievement underscores steady advancement across multiple sustainability fronts and highlights a sustained dedication to responsible expansion and continuous innovation.

EcoVadis operates as a premier global evaluator of corporate sustainability, judging firms on environmental impact, social responsibility, ethical conduct and supply chain management using international standards. The Gold Medal’s annual renewal demands that Synthos consistently remain within the top three percent of all rated companies worldwide.

This recognition affirms that Synthos’ sustainability measures are both persistent and methodical. The company supports its long-range climate and circular economy goals through participation in the UN Global Compact and reporting aligned with ESRS and GRI standards. Synthos will keep leveraging EcoVadis feedback to refine future priorities and advance its ongoing sustainability journey.

Agata Gładysz-Stańczyk, CEO, Synthos, said, “Receiving the EcoVadis Gold Medal again confirms the importance of sustainability within our strategy and the commitment of Synthos teams across all locations. While we are proud of this achievement, we also see sustainability as a continuous journey. It is embedded in how we innovate, how we operate, and how we create value for our customers, employees, partners and communities. This recognition encourages us to continue strengthening our ambitions and driving further progress.”

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The Rubber Board Statistics Consultative Panel reviewed the performance of India’s natural rubber sector during its 29th meeting at the Rubber Board Headquarters in Kottayam. The panel, which includes representatives from small and large growers, producers’ societies, dealers, processors and tyre manufacturers, examined key indicators such as production, consumption, imports and exports. India remains the sixth-largest natural rubber producer globally.

Indian natural rubber production grew by 3.4 percent in the 2025-26 period, rising to 905,000 tonnes from 875,000 tonnes the previous year. Favourable weather across major rubber-growing regions increased tapping days and productivity. Board initiatives like rain guarding, self-tapping, scientific practices, skill programmes and disease control supported output, while Kerala’s Rubber Production Incentive Scheme also encouraged continued tapping.

Domestic natural rubber prices strengthened, renewing grower interest in tapping. Prices that rose sharply in 2024–25 showed relative stability in 2025–26, narrowing the gap with international rates. The trend continued into early 2026, with RSS-4 peaking at INR 262 per kg on 14 May. Meanwhile, total natural rubber demand rose 1.2 percent, though the auto tyre sector, accounting for nearly 64 percent of consumption, declined by 4.0 percent. The general rubber goods sector posted robust growth instead.

The panel noted a 16.7 percent decline in natural rubber imports, falling to 459,000 tonnes from 551,000 tonnes. However, imports of compounded rubber under HS Code 4005 increased significantly, reaching 349,000 tonnes from 245,000 tonnes in the previous year. Consumption of natural rubber rose 1.2 percent to 1,427,000 tonnes from 1,410,000 tonnes in 2024-25.

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