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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Orion S.A., a global speciality chemicals company, has successfully secured the prestigious ISCC – the International Sustainability and Carbon Certification for its manufacturing facility located in Qingdao, China. This significant achievement is the direct result of a rigorous, independent audit process which validated that the plant’s operations fully comply with the comprehensive sustainability criteria established by ISCC.

The certification serves as a formal verification of both the transparency and the complete traceability of the sustainable raw materials integrated into the facility’s production value chain. This milestone is a key component of Orion’s overarching corporate strategy to implement and enhance sustainable practices throughout its international operations.

By achieving this globally recognised standard, the company reinforces its commitment to supplying clients with high-performance carbon black and other speciality chemical products that adhere to leading international environmental and sustainability benchmarks, thereby supporting customer goals for more responsible manufacturing.

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Ecolomondo Corporation, a Canadian developer of sustainable technology for recycling scrap tyres, has secured a provisional financing agreement with Export Development Canada (EDC) for USD 2.7 million. The funds are intended to support the final ramp-up phase of its Hawkesbury thermal decomposition plant by covering necessary capital investments and operational working capital.

Following months of negotiation, both parties have agreed in principle to the loan terms, which include augmenting an existing USD 2 million credit facility established by a subsidiary, Ecolomondo Environmental (Hawkesbury) Inc, in January 2025.

Furthermore, EDC has conditionally approved a temporary suspension of principal and interest payments for loans from 2024 and 2025, applicable during the facility's 2026 ramp-up period. This financial arrangement is designed to provide the liquidity required to advance the project to full operational capacity, pending the finalisation of formal documentation.

Jean-François Labbé, Interim CEO, Ecolomondo Corporation, said “We have been working steadily in Hawkesbury, hiring, training, increasing production, increasing sales and, most of all, improving efficiency. This additional financing from EDC is greatly appreciated and should allow the Hawkesbury TDP facility to achieve its full potential.”

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Cabot Corporation said it has received improved environmental ratings from CDP, reflecting continued progress in water management and steady performance on climate disclosures.

In CDP’s 2025 assessment, the company was awarded an A- rating for Water Security, up from a B in 2024, and a B rating for Climate Change, unchanged from the previous year. Cabot said the water score exceeded both global and industry averages, recognising its approach to managing water-related risks and implementing sustainable water practices.

The Climate Change rating remained stable year on year, with improvements reported in areas including climate risk disclosure, value chain engagement and industry collaboration.

The latest scores extend a five-year pattern of incremental improvement, achieved amid more demanding reporting standards and rising expectations from regulators, investors and customers.

“We are proud that CDP’s independent assessment reflects our ongoing efforts to enhance environmental performance and transparency,” said Jennifer Chittick, senior vice-president for Safety, Health and Environment and chief sustainability officer. “The improvement in our Water Security score demonstrates our leadership in this critical area, and we remain committed to advancing our sustainability strategy across all domains. This progress was made possible by our dedicated, global team, and we remain focused on driving further improvements in the years ahead.”

CDP assesses companies on environmental impact across climate change, water security and deforestation, using a scale from D for Disclosure to A for Leadership. In 2025, more than 24,800 companies were rated, representing about two-thirds of global market capitalisation.

Cabot said the results underline its focus on transparency and responsible environmental management as it continues to execute its sustainability strategy.

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A USD 1.4 million equipment enhancement at Liberty Tire Recycling’s Cameron, North Carolina, facility is set to significantly boost its processing capabilities. This upgrade, enabled by the state’s sustainable financial backing of its scrap tyre programme, will allow the facility to handle an extra 3,300 tonnes of material annually, representing nearly 300,000 passenger tyres.

A key improvement is the increased capacity to process truck tyres, which are more challenging to recycle due to their size and durable steel components. The resulting crumb rubber, highly sought after by manufacturers, will be directed towards producing floor mat bases and rubber tiles made entirely from recycled material. This material also serves as a component for athletic tracks, synthetic turf, rubberised asphalt and various moulded products.

This capital investment follows North Carolina’s legislative action to redirect tyre disposal fees into the state’s scrap tyre management system, a move that includes compensating counties for collection and recycling expenses. With North Carolina establishing itself as a centre for tyre recycling, Liberty Tire indicates it is evaluating further multi-million-dollar investments and job creation across its other operations in the state.

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