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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Solvay has announced that it will optimise the soda ash production capacity at its Torrelavega site in Spain from 600 kilotonnes to 420 kilotonnes, effective from the third quarter of 2026 and pending the required consultation process. This decision is a direct response to ongoing global oversupply and persistently high energy and carbon costs in Europe.

By optimising its operational level, the company aims to strengthen the long-term competitiveness and sustainability of its remaining production at the facility. The Torrelavega site will continue to serve regional customers by focusing on soda ash and premium sodium bicarbonate, with supply guaranteed through both local operations and Solvay’s global network. Importantly, sodium bicarbonate production will remain unaffected.

This adjustment also supports the company’s commitment to the energy transition, including a major biomass initiative designed to significantly reduce coal usage at the site. As a result of the capacity reduction, a net decrease of up to 77 positions is expected. Solvay is committed to managing this transition responsibly and will engage closely with employee representatives to develop socially supportive solutions and measures for those impacted.

Etienne Galan, President of Solvay Soda Ash & Derivatives, said, “Solvay is taking decisive steps to enhance the competitiveness and sustainability of its soda ash operations. Soda ash is critical for essential applications, and Solvay remains firmly committed to the business. We are strategically investing now to cement our competitiveness for decades to come, including the deployment of carbon neutral soda ash processes as part of our energy transition roadmap. At the same time, we urgently need the regulatory framework to align with our industrial reality and the investments that are needed for this transformation.”

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Germany's rubber industry continues to face significant headwinds, with fresh data from the German Rubber Industry Association (wdk) revealing a persistent downturn. The figures show employment falling for the fifth year in a row, while production levels have declined for the fourth consecutive year, underscoring the sector's struggle to regain its footing.

The association attributes this stagnation to waning enthusiasm for German rubber goods in both domestic and international markets. Michael Berthel, wdk Chief Economist, described a fundamental shift in procurement behaviour, even within Germany. He noted that purchasing decisions are now driven almost exclusively by price, a stark departure from the historical emphasis on quality and reliability. This change has opened the door to intense international cost competition, placing immense pressure on Germany's medium-sized suppliers. Berthel highlighted that prohibitive domestic costs related to energy, bureaucracy, taxation and labour make it nearly impossible for these firms to compete effectively. Consequently, many are compelled to relocate their investments abroad as a necessary escape from these local burdens, even though their preference would be to maintain and revitalise their operations within Germany after years of strategic transformation.

Against this backdrop, wdk President Michael Klein issued an urgent appeal to the federal government. He acknowledged that the broader struggles of German industry are well documented but stressed the immediate need for decisive political intervention. Klein called for concrete measures to stimulate demand and bolster the nation's competitive edge within Europe without further delay. He warned against allowing the rubber sector to decline quietly, emphasising its critical role in essential areas such as healthcare, infrastructure, security and mobility.

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Punia Metox Private Limited has commenced production at a new manufacturing facility in Thottambedu, Tirupati, Andhra Pradesh, with operations starting on 12 February 2026.

The plant has an initial production capacity of 12,000 tonnes a year. Its structural design allows capacity to be doubled within four to six months, providing scope for rapid scale-up as demand grows, the company said.

Punia Metox said the facility has been equipped with modern technology to support operational and energy efficiency, safety, sustainability and consistent product quality. The company added that the plant has been designed to enable smooth and seamless operations from the outset.

The expansion forms part of Punia Metox’s strategy to align capacity growth with customer requirements and strengthen its position as a long-term supply partner. The company said the new unit reflects its focus on customer satisfaction, ethical business practices and value-based growth.

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Cabot Corporation said it can now produce circular reinforcing carbons in the Asia-Pacific region after validating manufacturing capability at its plants in Cilegon, Indonesia, and Tianjin, China.

The materials are produced using tyre pyrolysis oil derived from end-of-life tyres and an International Sustainability & Carbon Certification (ISCC) PLUS mass-balance approach. With the addition of the two Asian sites, Cabot said it now has circular reinforcing carbon production capacity across Asia, Europe and the Americas.

Tyre manufacturers are pursuing targets to increase sustainable material use in tyre production, with many aiming for 40 per cent by 2030 and 100 per cent by 2050, the company said. Cabot’s circular reinforcing carbons are designed as a drop-in replacement for conventional carbon black, allowing manufacturers to increase sustainable content without affecting tyre performance.

Aatif Misbah, Vice-President and General Manager for sustainable solutions in Cabot’s reinforcement materials segment, said: “This achievement reflects our deep commitment to delivering sustainable solutions across Asia Pacific and globally. Scaling our circular reinforcing carbon capabilities helps strengthen our role as a trusted partner to the tire industry, while helping to drive meaningful sustainability progress. Looking ahead, we remain focused on supporting our customers’ evolving needs and helping enable a more sustainable future.”

Cabot’s facilities in Ville Platte, Louisiana; Mauá, Brazil; and Valasske Mezirici in the Czech Republic had previously demonstrated circular reinforcing carbon production capability. The products are ISCC PLUS-certified and marketed under the recovered category of Cabot’s EVOLVE Sustainable Solutions platform.

The company said it has 13 ISCC PLUS-certified sites supporting circular reinforcing carbon production across Asia, Europe and the Americas, along with two certified masterbatch and compounding sites in Europe.

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