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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Evonik, a global speciality chemicals company, has completed a EUR 52 million expansion of its silicone platform at the Essen Goldschmidtstrasse site in Germany, constructing a new production plant and a large tank farm. The facility raises output capacity for organomodified silicones, a core product group in the company’s global silicone network.

The Essen site operates as a central node in that network, closely tied to Evonik facilities in Geesthacht, Obernburg and Wittenburg in Germany, Pandino in Italy, Shanghai in China and Hopewell, Virginia, in the United States. The expansion strengthens the resilience of this international production system by lessening the need to ship intermediates and finished goods between locations.

Logistics infrastructure has been optimised to support more efficient operations. A new 150-metre pipe bridge links four production units and 15 manufacturing assets to the tank farm, which comprises five stainless-steel tanks, the tallest standing 24 metere and holding substantial quantities of key raw materials. The result is steadier production, more robust supply chains and reduced reliance on short-term deliveries. The tank farm has enlarged the Essen site from 32 to 35 hectares.

The project was executed with the site fully operational and despite constrained space, drawing on roughly 80 Evonik employees and over 230 contractors from 25 partner companies. Essen Goldschmidtstrasse also features in Evonik’s newly developed long-term plans, which assign a clear profile to each of six major production sites – Essen Goldschmidtstrasse, Marl, Wesseling, Darmstadt/Weiterstadt, Rheinfelden and Hanau – as guidelines for future development. Under this framework, Essen Goldschmidtstrasse is positioned as a centre of excellence for customer-specific formulations.

Lauren Kjeldsen, the Evonik Management Board member responsible for the Custom Solutions segment, to which the business belongs, said, “This expansion strengthens our silicone production platform, enhancing supply chain resilience and creating a strong foundation for profitable growth. This latest investment highlights the important role that our innovative German sites play in the success of our global operations.”

Roberto VilaKeller, head of the responsible Business Line Interface & Polyurethane Additives, said, “The investment in Essen strengthens our global production network and further enhances our ability to serve customers reliably around the world. It significantly expands our production capabilities, reduces potential bottlenecks and creates opportunities for future growth in attractive markets.”

Thomas Kufen, Mayor of Essen, said, “At a time when industrial investment is more important than ever, projects of this scale send a strong signal for Essen’s economy and the wider region. They secure high-quality jobs, strengthen competitiveness and demonstrate the international attractiveness of our city as an industrial hub.”

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The Association of Natural Rubber Producing Countries (ANRPC) has published its Monthly Natural Rubber Statistical Report for September 2026, a month marked by broad-based price gains. Firm fundamentals, constrained supply and steady downstream demand combined with geopolitical and macroeconomic uncertainty to lift prices. Renewed Middle East conflict and disruptions to major shipping routes weighed on sentiment, while energy markets were especially affected by the closure of the Strait of Hormuz and attacks on transiting vessels, which raised risks to global energy supplies and strengthened the crude oil risk premium.

According to the report, physical prices for most major grades advanced. SMR-20 in Kuala Lumpur averaged USD 2.50/kg, up 7.96 percent month-on-month, and STR-20 in Bangkok rose 5.80 percent to USD 2.53/kg. RSS-3 in Bangkok slipped 0.30 percent to USD 2.79/kg, while RSS-4 in Kottayam eased 1.39 percent to USD 2.88/kg. Latex-in-bulk in Malaysia gained 3.60 percent to average USD 1.79/kg. Cautious tyre-manufacturer purchasing, limited to immediate needs after earlier increases, weighed on the RSS market. Latex drew support from tight supply, as persistent rainfall disrupted tapping and limited fresh and concentrated latex availability, while glove, healthcare and industrial demand held stable.

Trade flows diverged. China's imports grew 2.56 percent month-on-month, India's 11.36 percent and Malaysia's 17.85 percent, whereas Viet Nam's fell 3.40 percent. Exports rose 3.07 percent in Thailand, 7.30 percent in Malaysia and 1.91 percent in Cambodia, while Indonesia edged down 1.40 percent and Viet Nam recorded the steepest decline at 9.72 percent.

Global production is projected at 15.039 million tonnes in 2026, up 0.6 percent from 14.953 million tonnes in 2025, with September output estimated at 1.4 million tonnes. Uneven rainfall and elevated temperatures slowed supply recovery across Southeast Asia. Global demand is forecast to rise 0.4 percent to 15.356 million tonnes from 15.301 million tonnes, with the largest volume increases among ANRPC member countries. Prospects depend on vehicle sales, tyre production, shipping conditions and weather-related disruptions, while expanding electric-vehicle markets in China, India and Europe support modest growth.

The ringgit traded between RM4.04 and RM4.10 per US dollar, and the baht between THB 32.89 and 33.55. The SHFE January 2027 contract averaged CNY 19,070/tonne, up 5.3 percent month-on-month, and the SGX December 2026 contract averaged USD 2.41/kg, up 7.6 percent. Brent crude averaged USD 114.16 per barrel, a 25.3 percent monthly increase driven by geopolitical risks and shipping disruptions through the Strait of Hormuz.

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Birla Carbon, a leading global supplier of carbon materials, will exhibit at the International Rubber Conference (IRC) 2026, scheduled for 2–6 November in Nagoya, Japan, at Booth B. The company aims to address application-specific demands arising from the shift towards electric mobility, which places greater emphasis on tyre wear and energy efficiency while requiring automotive rubber components to balance durability with ride comfort.

A Very High Structure (VHS) lineup awaits manufacturers of passenger car, light truck, truck and bus tyres. These grades were engineered to meet electrification requirements and tightening standards such as Euro 7, delivering gains in tread wear, energy efficiency and tyre longevity.

Sustainability also features prominently. The company's Continua Sustainable Carbonaceous Materials (SCM) and Sustainable Carbon Blacks (SCB) lines, which contain higher levels of recycled or bio-based material, are intended to help tyre makers pursue circularity targets. Their dependable quality and ability to be supplied at scale in large volumes make them viable for production use, and the Continua range carries ISCC PLUS certification.

Mechanical rubber goods round out the display. Grades aimed at bushings enhance mixing and dispersion, contributing to fatigue life and component durability, while formulations for mounts pair low hysteresis and low stiffness with reinforcement so that durable parts can be produced without sacrificing ride comfort. Drop-in grades for extrusion reduce defects, scrap and screen-pack changes while raising throughput and extending service life. Simulation and technical expertise help customers assess materials, and global production plus Asian capacity growth support long-term supply.

Amit Kumar, President – Asia, Birla Carbon, said, “Asia’s tyre and rubber manufacturers are shaping the next phase of mobility, and their material requirements are becoming increasingly stringent. As the clear leader in our industry, Birla Carbon aims to grow alongside our customers, combining application-focused innovation with dependable local supply. We see performance and circularity as priorities that must progress together. By expanding our capabilities in Asia and strengthening customer partnerships, we aim to help manufacturers meet evolving market needs and build greater long-term competitiveness.”

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Zeon Corporation broke ground on a multi-product research and prototyping complex at the Kawasaki Innovation Frontier Port in Kawasaki City, Kanagawa Prefecture, on 16 October with a ceremony held beforehand to seek safety during construction. The company expects the complex to shorten the path from laboratory work to mass production for established and emerging businesses alike, making it central to its long-term growth strategy.

Set inside an existing building within the port's Research & Development Center area, the complex is slated to begin operating in January 2028. Its design aims to move products past the laboratory stage and into medium-scale sample output more quickly, clearing a bottleneck on the route to full-scale manufacturing.

Zeon's core production methods – polymerisation, hydrogenation, coagulation and drying – will be built into the complex, which is engineered to handle diverse manufacturing conditions and operating approaches. Beyond serving established and new businesses, the polymer design company envisions the site as a centre for technology development and a platform for rolling out new processes and operational, analytical, and measurement technologies within and beyond the company. It will eventually host development and prototyping work across a wide range of technologies, including contract prototypes commissioned by outside parties.

The Kawasaki Innovation Frontier Port is the umbrella name for the site combining the neighbouring Kawasaki Plant and Research & Development Center. The label underscores the location's role in breaking new ground by merging innovation, research and development and production and casts the Kawasaki waterfront as a port that propels innovation. Once a co-creative innovation facility begins operating in December 2026, the two sites will function as one continuous operation, turning out ever more sophisticated products and production methods and reinforcing their standing as a launchpad for technology.

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