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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Sailun Group, a prominent player in the global tyre industry, has taken a leading role in advancing sustainable natural rubber practices. As a core raw material for tyre manufacturing, natural rubber requires ecological protection and a stable supply, both essential for the sector’s high-quality development. In 2025, the company, as a member of the Global Platform for Sustainable Natural Rubber (GPSNR), initiated a project focused on sustainable livelihoods and ecological education for smallholders in eastern Thailand under the GPSNR Shared Investment Mechanism.

This initiative unites strategic partners across the natural rubber value chain, including the Rubber Authority of Thailand’s Rayong office and Save the Children Thailand. Through multi-stakeholder collaboration, the project aims to foster a more sustainable natural rubber ecosystem. Recently, Sailun Group invited GPSNR Chief Executive Officer Stefano Savi and his delegation to Thailand for a field visit to review the project’s interim achievements, reflecting the company’s ‘eco+’ sustainability strategy and its active role in global governance for sustainable natural rubber.

Eastern Thailand’s natural rubber industry supports millions of smallholder households, and the project directly addresses the needs of 500 such farmers. Targeted training programmes have been delivered on environmentally responsible tapping techniques and regulatory compliance, including guidance on the European Union Deforestation Regulation. An innovative consultation network comprising one central hub, eight fixed stations and five mobile units now provides ongoing support on policy interpretation and practical problem-solving.

A structured and replicable knowledge system has been developed, including training materials on low-impact tapping and compliance. Special emphasis is placed on encouraging women and young people to participate, promoting intergenerational knowledge transfer. During the visit, the delegation held technical discussions with Rayong officials on sustainable tapping and rubber tree management, inspected standardised production lines and logistics facilities and reviewed the consultation stations, praising the integrated technology, services and compliance support model.

To address challenges such as improper tapping and soil degradation, five GPSNR demonstration plots have been established. Smallholders receive free organic soil improvement packages and professional tapping tools, alongside systematic training on sustainable soil management. The delegation observed pH monitoring systems and noted improvements including reduced soil acidity and better growing conditions. Direct engagement with farmers provided insights into practical challenges, and the delegation commended the project’s pragmatic approach to strengthening ecological cultivation and long-term productivity.

Beyond livelihood improvements, the project prioritises education through infrastructure upgrades at three schools attended by rubber farmers’ children. In partnership with Save the Children Thailand, ecological education corners with tailored curricula and drawing competitions have been set up. A scholarship programme supports disadvantaged students. The delegation visited Rayong Guanghua School and Banraijandee School, reviewing improvements and awarding scholarships, while discussions explored future collaboration on integrating sustainable natural rubber development with children’s ecological education.

Since implementation began, notable interim results have been achieved across multiple rubber‑producing communities. Smallholders’ sustainable production capabilities have significantly improved, while more children engage with nature and understand the natural rubber industry. This dual‑impact model of economic empowerment and environmental stewardship guides future efforts. Sailun Group will continue leveraging its industry leadership and the GPSNR platform to deepen collaboration with partners, research institutions and non‑profits, contributing to biodiversity conservation, supply chain resilience and high‑quality sustainable development across the global tyre and natural rubber industries.

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Shin-Etsu Chemical has announced a sweeping price revision for its entire range of silicone products, effective for all shipments from 1 May 2026. The adjustment applies to every product handled by the company’s Silicone Division, with increases set at a minimum of 10 percent. Actual revision rates will vary depending on the specific product category.

The decision follows recent developments in the Middle East, which have triggered sharp surges in crude oil and naphtha prices. This has led to a steep rise in the cost of oil-derived raw materials. Additionally, Shin-Etsu Chemical is confronting higher expenses related to manufacturing energy, product containers, packaging materials and logistics, all of which have contributed to the need for a price correction.

Despite exhausting all possible internal measures to reduce manufacturing costs, the company concluded that these efforts alone cannot absorb the mounting cost pressures. Shin-Etsu Chemical is now committed to fully communicating the situation to its product users and securing their understanding of the necessary selling price revisions.

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The Association of Natural Rubber Producing Countries (ANRPC) recently participated in a Hari Raya Open House event. The gathering was organised by Malaysia’s Rubber Development Division, which falls under the Ministry of Plantation and Commodities. This occasion allowed the ANRPC to connect with important figures within the natural rubber sector. By bringing together various industry partners, the open house successfully created an atmosphere of goodwill and strengthened existing relationships.

The ANRPC has conveyed its genuine gratitude to the event’s hosts for their warm reception and thoughtful organisation. The association acknowledged the importance of uniting stakeholders in such a meaningful celebration, which helps reinforce shared goals and collaborative spirit across the sector.

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ARLANXEO has officially opened its Innovation Center Asia (ICA) in Changzhou, China, transforming the former Regional Technical Center into a full-fledged Asian innovation hub. This upgrade significantly strengthens the company’s global research and development network, with a clear focus on serving the local Chinese market as well as broader regional needs. The expansion reflects ARLANXEO’s commitment to advancing performance elastomers through targeted regional investment.

Now boasting larger facilities, an expanded team and new laboratory equipment, the Innovation Center Asia is equipped to handle rubber compounding, processing, physical testing, chemical analysis, battery prototyping and more. A dedicated chemistry lab has been added to support the nearby HNBR plant and global HNBR research activities. Located alongside ARLANXEO’s EPDM and HNBR plants in Changzhou, the centre fosters close customer collaboration to address evolving market needs. It also works in tandem with the company’s Dormagen, Germany, innovation centre, jointly developing new testing methods, exploring advanced technologies and delivering innovative product solutions worldwide.

The inauguration event featured speeches from Herman Dikland, ARLANXEO’s Chief Technology and Sustainability Officer, and Hong Sun, Managing Director of ARLANXEO China. Joining them at the ceremony were company representatives, key customers, local government officials and academic partners from various universities. Their presence underscored the collaborative spirit and shared interest in driving innovation forward.

Herman Dikland, Chief Technology and Sustainability Officer, ARLANXEO, said, “Innovation is a core driver of ARLANXEO’s sustainable growth, and China plays an important role in our global innovation ecosystem. This state-of-the-art laboratory facility puts us in an excellent position to advance our R&D capabilities and reinforce our market position. We look forward to driving frontier innovation together with our passionate and creative China team while bringing China-based innovation into solutions for global markets.”

Hong Sun, Managing Director, ARLANXEO China, said, “The inauguration of the Innovation Center Asia reflects our commitment to supporting the rapid transformation of China’s rubber industry during the 15th Five-Year Plan period. With growing demand for advanced materials and customised formulations, the new centre will further strengthen our proximity to customers, enhance our agility in meeting market needs and better support the upgrading of the entire rubber industry.”

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