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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Pyrum Innovations AG has welcomed the official recognition by French authorities on 17 January 2026, which classifies tyre pyrolysis oil (TPO) as a legitimate raw material for the chemical sector. This pivotal regulatory milestone for pyrolysis oil derived from end-of-life tyres substantially enhances the product’s integration into established chemical value chains. It also provides greater predictability for future purchase and partnership frameworks, thereby accelerating the development of industrial material cycles.

For Pyrum, which processes scrap tyres through pyrolysis to recover pyrolysis oil, industrial carbon black and steel, this decision underscores the critical need for standardised and reliable regulatory conditions. Such clarity is fundamental for scaling investments, production volumes and supply chains, particularly as the chemical industry and circular economy converge. The establishment of clear product categories is essential to ramp up the market for high-quality recycled raw materials.

The company remains committed to tracking further developments in France and the wider European dialogue regarding the classification and application of recycled feedstocks. Pyrum’s overarching objective is to expand industrial-scale recycling solutions for scrap tyres. This regulatory progress directly supports the company’s mission to secure long-term, quality-assured supply agreements with partners across the chemical industry, thereby advancing a more sustainable and circular economic model.

Pascal Klein, CEO, Pyrum Innovations AG, said, “The decision in France is an important step for the industrial use of pyrolysis oil from waste tyres. It supports a trend that we are seeing in many markets, where the chemical industry is seeking reliable, technologically robust and clearly classified alternative raw materials.”

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In pursuit of its strategic vision, ‘Michelin in Motion 2030’, Michelin is expanding into high-value adjacent markets, including the development of its Polymer Composite Solutions. A key step in this growth is the acquisition of Flexitallic, a global leader in sealing solutions based in Houston, Texas. This move is set to substantially enhance Michelin’s sealing portfolio and extend its market access, particularly within the aftermarket sector.

Flexitallic serves critical industries such as energy and chemicals, providing high-performance gaskets, sheet products and specialty filler materials known for exceptional reliability and resistance in extreme, safety-critical environments. The company, which operates 17 facilities worldwide and employs about 1,200 people, reported sales of approximately USD 220 million in 2025.

The acquisition is a strong strategic fit, uniting two global organisations with a shared commitment to innovation and quality, thereby creating significant synergies for future growth. The transaction, for an undisclosed amount, will be fully financed from Michelin’s available cash. Subject to standard regulatory approvals and closing adjustments, it is anticipated to be finalised in the first half of 2026.

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Birla Carbon has inaugurated a dedicated production line at its Trecate, Italy facility, specifically engineered for the finishing and packaging of its Continua Sustainable Carbonaceous Material (SCM). This industry-leading circular material is produced from end-of-life tyres, and the new line enables its manufacture in large, consistent volumes. This expansion directly strengthens long-term supply security for the company’s worldwide customer base.

The Continua SCM range, including the 8000 series for tyres, rubber goods and plastics, provides a scalable sustainable solution. It allows customers to increase recycled content while gaining functional benefits such as blending flexibility and lower homologation costs. Importantly, it delivers assured regulatory compliance and consistent quality, supporting industries in their transition toward enhanced product circularity and reduced environmental impact.

John Loudermilk, President and CEO, Birla Carbon, said, “This is a pivotal moment for Birla Carbon. Continua SCM represents the most consistent, high-quality, circular material in the carbon black industry today and replaces a portion of carbon black in most rubber and non-rubber applications. It also reflects cross-industry collaboration for sustainability, with raw material sourced from our partner Circtec’s newly launched tire pyrolysis facility in the Netherlands and finished and packed at our state of-the-art processing line in Trecate. The launch of this line is a key milestone in our ambition to put back into industry 300,000 tonnes of end-of-life tyres annually by 2030, contributing to our aspiration to achieve net zero carbon emissions by 2050.”

John Davidson, Chief Sales, Marketing and Sustainability Officer, Birla Carbon, said, “The launch of the Continua SCM processing line in Trecate ramps up the availability of our circular product portfolio for customers globally. Continua SCM enables our customers to increase the use of sustainable materials in their products while maintaining the performance standards they expect. This expansion reinforces our commitment to supporting customer sustainability goals at scale.”

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German chemical group WACKER has announced significant price increases for a wide range of silicone products, effective from 1 February 2026. These adjustments, which will see prices rise by up to 25 percent or even higher in specific instances, will be applied across existing customer contracts as necessary. The decision is a direct response to unprecedented surges in raw material costs, most notably for the precious metal platinum, a critical catalyst used in the production of addition-curing silicone products and crosslinking silicone release agents.

According to Tom Koini, Head of Silicones, the extreme market dynamics have made this step unavoidable, as internal efficiency measures can no longer absorb the cost pressure. Platinum prices on international commodity exchanges have more than doubled since the beginning of the previous year. WACKER states that the price adjustments are essential to maintain its high standards of product quality, customer service and technical support moving forward. The increases will specifically affect addition-curing silicone rubber grades, silicone resins, silanes and silicone-based release coatings.

The company’s Silicones division, a global leader with a portfolio of over 2,800 specialised products, serves key industries including automotive, pharmaceuticals, medical technology, electrical engineering and energy transmission. The portfolio encompasses silicone fluids, elastomers, resins, sealants, silanes and release coatings, all designed to enhance the performance and value of end products. In 2024, this division accounted for approximately 49 percent of the Group’s total sales.

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