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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KRAIBURG TPE has earned gold medal from EcoVadis for the second consecutive year. This recognition reflects the performance of the company’s entire global operations, which collectively achieved this distinguished honour. The company posted new peak scores across all four evaluation categories, which include environmental impact, labour and human rights, ethical conduct and sustainable sourcing. Ranking in the 98th percentile, KRAIBURG TPE now stands among the top two percent of all companies rated by EcoVadis globally, reinforcing its status as a frontrunner in responsible corporate practices.

Within the plastics sector, sustainability has evolved into a fundamental driver of success. Growing public attention now extends beyond isolated topics, calling instead for businesses to offer clear and reliable sustainability reporting. Measurable indicators that track advancements and allow for objective comparisons across industry peers have thus become indispensable.

Having evaluated over 150,000 businesses, EcoVadis has cemented its role as one of the most trusted frameworks for assessing corporate sustainability. The benchmarks applied by the Paris-based organization across its categories are both rigorous and comprehensive. Given this demanding standard, KRAIBURG TPE’s 2022 achievement of a silver award in its debut year was particularly meaningful.

In 2025, the company reached a new milestone by receiving its first gold medal covering all global facilities, a testament to inter-site collaboration and the dedication of its entire workforce. This distinction was reaffirmed during the scheduled reassessment in January 2026, accompanied by even higher marks in every category. Such ongoing improvement demonstrates the company’s steadfast commitment to advancing its sustainability objectives consistently across international operations.

Oliver Zintner, CEO, KRAIBURG TPE, said, “For us, this second Gold Award is confirmation in many respects of the extraordinary achievements we have made in the field of sustainability in the past years. On the one hand, it demonstrates how strong our position is in international comparison. But above all, the award emphasises how continuously and persistently we pursue our sustainability goals in all categories. Results like that are not at all a matter of course in our competitive environment. They only become possible because our colleagues at all sites worldwide are closely working together in a partnership-based manner.”

Michael Pollmann, Sales & Marketing Director EMEA, said, “In addition to product quality, price and delivery reliability, sustainability criteria are a more and more important factor for our customers’ purchase decisions. The EcoVadis award represents the consistency and transparency with which we implement our sustainability promises. It is a relevant strategic competitive factor and is gaining in importance, particularly in view of increasing legal requirements in fields such as supply chain assessment.”

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Pyrum Innovations AG has achieved ISCC EU certification for its thermolysis oil from end-of-life tyres. This confirms alignment with EU Renewable Energy Directives RED II and RED III, allowing the oil's use across the European Union as sustainable feedstock for biofuels and other renewable energy sources.

This endorsement represents a pivotal advancement in Pyrum's industrial scaling. By bridging circular economy principles with a defined energy sector, the oil is now eligible within a regulatory environment essential for sustainable fuel growth in Europe. Consequently, market expansion is enhanced, especially in biofuel, bioliquid, biomass fuel and co-processed sectors.

The ISCC EU certification is a global standard for verifying sustainability and transparency. It assures that ecologically sensitive areas are safeguarded, emissions minimized across the value chain and all material flows traceable. It guarantees adherence to all sustainability criteria mandated by RED III. As part of verification, greenhouse gas emissions are validated according to the GHG Protocol.

Politically, this certification unlocks significant application for secondary raw materials, converting problematic waste into a resource supporting decarbonisation goals. Pyrum demonstrates a scalable European model integrating waste management, resource recovery and energy generation.

Economically, the timing is critical as Pyrum expands capacity. Access to regulated biofuel markets strengthens commercial resilience by lessening reliance on traditional recyclate markets. This diversification enhances financial predictability during a phase where securing capacity and scaling operations are paramount.

Pascal Klein, CEO, Pyrum Innovations AG, said, “ISCC EU certification is more than a formal achievement for us. It provides access to a regulated market environment that is central to Europe’s decarbonisation strategy. At the same time, it strengthens the resilience of our commercialisation strategy as we expand capacity and reduces our dependency on individual recyclate markets.”

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The 6th AZuR Partner Meeting convened over 70 participants from industry, small and medium-sized enterprises, trade, politics and academia on 26 and 27 February 2026 in Upper Austria. The event was hosted by KIAS Recycling GmbH, the operator of Austria’s sole used tyre recycling plant, at the Alte Fabrik event centre. The gathering brought together stakeholders from across the European tyre and recycling sector for a programme of presentations, workshops and discussions. The central aim was to devise forward-thinking solutions and projects to enhance retreading alongside mechanical and chemical recycling processes.

Christina Guth, the AZuR network coordinator, expressed her satisfaction with the high level of personal engagement demonstrated by partners from across Europe. She noted that expert presentations injected fresh energy and the ensuing dialogues generated promising concepts for expanding the tyre circular economy. She extended particular gratitude to the KIAS Recycling team for their thorough preparation and organisation, which made such a substantial event possible.

The technical proceedings commenced after a welcome from representatives of KIAS Recycling, the wdk and AZuR. Professor Holger Hoppe from TH Ingolstadt delivered an engaging presentation centred on the future of the circular economy, illustrating how the combination of novel business models, regulatory measures and cross-disciplinary teamwork can propel the necessary transformation. A subsequent networking session, guided by coordinator Anna-Maria Guth, reviewed the previous year's milestones, including political engagement at various governmental levels, scientific partnerships, trade fair participation and international exchanges.

A significant portion of the meeting was devoted to updates from AZuR’s three project groups. The retreading group is intensifying its political advocacy regionally and boosting its profile at major trade fairs. The mechanical recycling group is prioritising collaborations and involvement in municipal tenders and specialist conferences. Meanwhile, the chemical recycling group is concentrating on completing masterbatch initiatives, developing practical product applications and clarifying the distinction between pyrolysis and simple incineration.

The visit to KIAS Recycling’s facility stood out as a key highlight. Partners were led through the plant in small groups, observing firsthand the modern processes of tyre recycling, from intake and treatment to the high-value application of recovered materials. This tour effectively demonstrated that certified waste management and recycling infrastructure are fundamental to a successful tyre circular economy.

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The U.S. Tire Manufacturers Association (USTMA) forecasts total US tyre shipments of 338.9 million units in 2026, up from 336.3 million units in 2025 and 332.7 million units in 2019. This figure beats the previous record of 337.3 million units in 2024.

Compared with 2025, Original Equipment (OE) the 2026 shipments for passenger, light truck and truck tyres are expected to change by 0.8 percent, 1.2 percent and 8.3 percent, respectively, with a total increase of 0.8 million units. Replacement passenger, light truck and truck tyre shipments are also projected to change by 0.6 percent, 0.8 percent and 0.2 percent, respectively, with a total increase of 1.7 million units.

 (Note: All shipments in millions. Figures are rounded up.)

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