How will the collaboration with Michelin influence the future of the company? What vision do the companies share?

Michelin evaluated our recovered carbon black material in 2016. Since then, they have made significant testing of quite large volumes of our material over time to evaluate its consistency and quality. This is probably the most important parameter for any tyre manufacturer to use recovered carbon black. The interest in the technology itself started to grow as they saw that the performance of the recovered carbon black material was quite impressive. Over time, they started doing due diligence on the technology during those years. We intensified the negotiations in the early stages of 2020 and finally entered into a partnership agreement in April where Michelin invested 20 percent in Enviro. But, that was only one part of the partnership we envisioned. We also had, from the beginning, discussions about how we can provide the technology as a part of their solution to build a business model around mining tyres. This way, they could also offer their mining customers a solution for the recovery of the mining tyres. In that aspect, we negotiated regarding a joint plant project we are currently building in the Antofagasta region of Chile. We are also preparing the permitting for a plant in Uddevalla, Sweden, of 60,000-tonne ELT capacity for car and truck tyres.

In addition to that, we evaluate different technology experiences from both sides where we contribute with our experience in pyrolysis and treating end-of-life tyres in a professional way. Michelin is contributing with their extensive knowledge about developing and innovation into industrial capacity plants. What we have is a very intense collaboration on a more or less daily basis.

Going forward, we see that Michelin has a strategic ambition to replace up to 100 percent of the materials in the tyres with sustainable alternatives. Carbon black is one of the materials where we think that quite large volumes can be replaced over time. They're also involved in replacement and development of different types of oils in the tyres. From Michelin’s side, I think they have a wider interest in the recovery of all the materials in the tyres. This also aligns with our interest since we are recovering tyre pyrolysis oil and doing that quite successfully. We expect more plans in collaboration with Michelin in one way or another. Their investment in our company and the clear engagement in showing the market that they're using our material in motorcycle racing tyres in Moto E and in performance tyres for racing cars is helping us to get the acknowledgement in the market. This is important for our growth and our expansion plan.

How are you matching the quality and consistency of the recovered carbon black to virgin carbon black? Can you also please elaborate on the collaboration with AnvaPolytech, where Enviro completely replaced virgin carbon black used in Volvo's rubber components back in 2015?

We are using our patented batch process, which is a fixed batch process. The technology that we are using was developed for over 20 years to maintain control of the pyrolysis process. We can make sure that the result of the pyrolysis in the material is consistent, which means that we are not creating new carbon, as you easily do when you have a continuous process, and we are making sure that the pyrolysis process has evaporated all the volatiles out of the carbon fraction. This is very important and we control this with the system in multiple parameters that we measure during the process. We also have a significant quality control system downstream. So, in the post process of the pyrolysis, we do multiple quality checks. Before each shipment, we have ASTM standard controls for about 10 different parameters where we compare to the industry ASTM standard normally used for carbon black. There are a few ASTM measurements used for virgin carbon black that are not applicable for all recovered carbon black products, but the majority of the tests can be similar and we keep a very high consistency there. This is also one of the main achievements of the company since January 2016. We made the first commercial delivery to AnvaPolytech and they are a rubber component supplier to Volvo Cars. They have been involved with us before the commercial deliveries in the research and development of the material for rubber components. They were also involved in lots of different types of testing, where meeting the automotive standard for EPDM rubber components was a very significant part, and also got the final approval from Volvo Cars to replace the material. Since 2016, we have replaced 100 percent carbon black in those components with our material. I think it's now more than 100 million components delivered from Anva to Volvo Cars.

The gas produced during the pyrolysis process is used to fuel the machinery itself. Is there a commercial value for the gas in this market and are you exploring those business verticals?

It is a very valid question; we are producing new pyrolysis gas, and in the process, we condense out the oil, but there will be a fraction of gas that is not condensable. That gas is the excess gas that we use for the next pyrolysis phase. In our current plant at Åsensbruk, we use the excess gas and part of the oil to power the main process and the post process for heating purposes. In the new plants we will be building, for instance, one in Sweden, we plan to start production in the fourth quarter of 2023, where we will use green energy from wind, solar, water and waste to provide energy. In this case, the excess gas will be used only to heat the dryer system in the post process. Does it have a commercial value? I think some markets do; it might be used also in-turn to produce energy or electricity, but at the moment, this is not something that we are exploring further in detail.

The company recently received two ISCC certifications, one for the pyrolysis oil and the other for the carbon black. What were the challenges in earning the certifications and are there any other benchmarks that you're targeting for any other product in the future?

We are very proud to be the first to achieve the certification for the recovered carbon black. It is an important step for both the certification and for us as a company. We are already seeing some of the players in the tyre industry looking to certify according to ISCC now. This means that there will be a higher value in connection to using that type of material. There are always challenges with being certified and the most challenging maybe is to follow the certification requirements in terms of how, when and where to measure. We need to make sure that this is something that we can live up to when we are audited annually. We must also commit resources and capabilities to do this. We also needed to involve our supplier of tyre material, which, in Sweden, are Ragn-Sells. They are also audited by the certifier.

Enviro was evaluating business prospects in India. What is the current status of opening a full-size plant? Pyrolysis is banned in India across almost all states by the pollution board, and we're seeing various companies being ordered to shut down plants. Where does Enviro fit in and what are the developments?

Yes, we have been conducting meetings together with the Swedish Energy Agency, Swedish Export Organization, Business Sweden and a few other organisations including India-Sweden Innovations Accelerator and Confederation of Indian Industry in India. We have been exploring the Indian market for many multiple axles, and during the last two years, we are meeting with all the major tyre producers, both local and international. We are meeting with oil companies downstream who are potential customers for oil. We are meeting with waste treatment and tyre treatment companies locally and also making presentations to most local governments. However, we feel it is a bit too early for us to enter India on a more massive basis.

We have decided strategically that we will start with Europe followed by probably the US in the next phase. I think that will help India to monitor what is happening with the technology and how it can be a part of the system in those markets. We can then use that as a showcase for creating a sustainable and long-term system for the Indian market. We hope that this display of the system will be appreciated by the players in India to implement and also be some kind of inspiration to make that happen. In regards to pyrolysis being banned, I think it's probably a very correct decision because the pyrolysis technologies that we have seen being used in India are mainly Chinese versions where the environmental 360-degree impact has not really been considered. I think it was a very necessary decision.

The system for import and collecting for the pyrolysis industry was not really in place at that moment. But I think we can showcase together with a few of our peers in the European market that batch pyrolysis process and pyrolysis in general can be made with a very sustainable and safe technology with the highest possible emission control systems. We are hoping that by setting an example in Europe and showing both the technology and the system, maybe we will enter India in the next five years.

What are some of the constraints that you see in entering the Indian market?

I think one constraint that we are struggling with – mainly in Europe, but also in other markets – is that end-of-life tyres are viewed purely as waste materials. To really get our authorities and government regulators to understand that we are making a transition of waste materials into something that can sustainably replace fossil resources is a challenge. We are in the right direction. ISCC certification is one step.

Reach of the materials is another step. I think that transition to get aligned with the current legislation in many countries is still a hurdle. Even if it's improving, making this kind of large transition of an industry that is not really present at the moment requires financial support. Financial investors need to be willing to take a little bit of a risk to make the industry change as rapidly as it needs to. It's not enough for the tyre industry if there is one company able to provide the small volume to the market; they need multiple suppliers and large volumes to replace larger volumes of virgin material. The volume is a constraint itself. We hope, together with Michelin and other parties that we're working with, to provide larger volumes in the coming 10 years. Our ambition is to establish at least 30 plants globally in the coming decade. We also hope that our competitors are also successful in India.

What potential do you see in the Indian market, being one of the biggest automotive markets in the world, in terms of government support or the infrastructure for the products Enviro produces?

One of the opportunities is the growing automotive market. There is also a foundation of industry there in India for a long time. There is a tradition to produce tyres with a lot of knowledge, research and development around tyres and rubber materials, which I think is a very interesting potential itself. The competence around the materials in India is significant. I think the size of the market itself is an opportunity. If you choose to see the immaturity of the collection system as an opportunity, which I do, I think there is a lot of potential to establish from ground-up, a workable system with different stakeholders where I think local and national government needs to play a role, but it needs to be still on market conditions. I think the model that we will be showcasing in Europe will be attractive for both the government and local private stakeholders like the tyre industry and rubber industry.

In a broader sense, what is the future for the company and what are your goals? What are you excited about?

There are very clear targets from the tyre industry since they are consuming more than 70 to 80 percent of the carbon black material in the world. We have very clear targets for replacing fossil-originated materials with recovered or sustainable materials. We are very excited about the volume potential we see there. We have started to take steps in that direction with multiple tyre producers. The regulation in Europe and other countries to reduce the fossil content in oil products and chemical products is very positive for us. ISCC is a very important tool for the market to implement recovered and bio-based materials which have tax incentives. These enable us to launch our expansion plan, which, as I mentioned, is for the next 10 years to open 30 plants globally. We are excited that we are now in the position to work in establishing one plant with Michelin in Chile and in parallel a plant in Sweden with more or less the same time scheduled to start production. In the pipeline, we have several very interesting projects building up.

Are there other manufacturers or automotive players that are satisfied with the level of quality in your recovered carbon black? Are there any projects in the pipeline?

We have seen the interest significantly increasing in suppliers to the automotive industries and to other core manufacturers since we got the ISCC certificate for our products. But I think that we could better market what we have achieved together with Volvo in order to really get the other car brands into using more of our material. I think we have some homework to do there, because what we do is too little known to them at the moment. So there is work to be done there. We know we can achieve it. We should focus on letting them know what we can do. We are working with some other automotive manufacturers not only for the recovered carbon black but also to help them achieve their zero-emission objectives. So that could be related to oil, carbon black, steel and potentially other materials such as carbon fibre, for instance. (MT)

Eurogrip Tyres, the leading tyre manufacturer in India, showcased its premium two-wheeler tyres at the 17th edition of Feria 2 Ruedas (F2R) International Motorcycle exhibition held at Plaza Mayor, Medellin, Colombia. The dates of this high-profile business event in South America's two-wheeler sector are 15–18 May 2025.

For more than 17 years, the Feria de las 2 Ruedas (F2R) has been the leading motorcycle industry event in Latin America. The expo, which takes place every year in Medellín, Colombia, is a vibrant venue for commerce, innovation and growth in the motorcycling sector. Additionally, it gives aficionados the chance to investigate the most recent developments and trends in the industry. The company showcased its premium lineup at exhibit N24 in the Tented Pavillion, which included a range of sport touring, off-road and trail tyres. High-performance versions including the Roadhound, Protorq Extreme, Trailhound STR, Climber, Bee Connect, Terrabite DB+ and Badhshah LX were on display.

P Madhavan, Executive Vice-President – Marketing & Sales, TVS Srichakra Ltd, said, “Eurogrip is focused to deliver innovative products for the global markets. Latin America is a priority market for us, and F2R Expo is a promising platform to engage with our target audience. We are looking forward to interesting business opportunities arising from this expo. Such specialised industry tradeshows add exceptional value to our quest in becoming a leading global tyre brand delivering world class tyre technology.”

Denka Company Limited announced it would record an extraordinary loss of approximately 16.1 billion yen (£85.8 million) as an impairment on manufacturing facilities at its US subsidiary. It will indefinitely suspend chloroprene rubber production at the Louisiana plant.

The Japanese chemical manufacturer, which holds a 70 percent stake in Denka Performance Elastomer LLC (DPE), cited mounting operational challenges, including unexpectedly high costs for pollution control equipment and declining production volumes at the American facility.

“DPE has faced significant cost, production and other challenges at its facility in the United States,” the company said in a statement. “Rising costs are attributable to, among other factors, identification, design, purchase, installation, and operation of pollution control equipment to reduce chloroprene emissions that DPE did not anticipate being required when it acquired the facility from E.I. DuPont de Nemours and Company.”

The subsidiary was established in December 2014 and acquired the chloroprene rubber business from DuPont in November 2015. The Louisiana facility was intended to serve as a second manufacturing site in North America, complementing Denka’s Omi Plant in Itoigawa, Niigata, Japan.

However, according to the company statement, DPE has struggled with multiple operational issues, including “rising energy costs and a shortage of qualified staff necessary to operate new pollution control equipment and implement other emission reduction measures. “

Production volumes have declined partly due to “operational restrictions arising from the pollution reduction measures and unscheduled plant outages associated with supply chain disruptions and severe weather events,” Denka said.

The company noted that these challenges, combined with changes in the global economic environment for chloroprene rubber, have pressured profitability, making near-term improvement difficult.

Denka confirmed that DPE employs 250 people as of December 2024 and will not restart its chloroprene rubber manufacturing facilities following a regular maintenance shutdown. Instead, “all options for the business, including a potential sale of the business or its assets, will be considered,” the statement said.

The company emphasised that “no decision regarding a permanent closure of the facility has been made at this time.”

Customers will continue to be supplied from current inventories and production at the company’s Omi Plant in Japan.

DPE is 70 percent owned by Denka USA LLC, a wholly owned subsidiary of Denka Company Limited, and 30 percent by Diana Elastomers, Inc., a subsidiary of Mitsui & Co., Ltd.

Yokohama Rubber reported a 56.9 percent year-on-year decline in profit attributable to owners for the first quarter of 2025, despite posting a 9.0 percent increase in sales revenue.

The Japanese tyre maker recorded a profit of 8.53 billion yen for the three months ended 31 March, down from 19.8 billion yen in the same period last year. Business profit fell 3.2 percent to 24.07 billion yen, while sales revenue rose to 275.12 billion yen.

The company maintained its full-year forecast, projecting an 11.4 percent increase in sales revenue to 1.22 trillion yen and an 8.8 percent rise in profit to 81.5 billion yen for the fiscal year ending 31 December 2025.

Yokohama Rubber attributed the profit decline to one-time costs related to its February acquisition of Goodyear’s off-the-road (OTR) tyre business, which it purchased for approximately 143 billion yen.

“Profit from existing businesses was strong,” the company said in its earnings statement. “In addition to increased sales volume for the company’s consumer tyres, mainly in overseas markets, and continued expansion of sales of high-value-added ADVAN, GEOLANDAR, and Winter tyres as well as high-inch tyres, profit was boosted by the MB segment’s MIX improvements and structural reforms.”

The tyre segment, which accounts for 91percent of the group’s consolidated sales revenue, saw a 10.4 percent increase in sales to 250.32 billion yen. Original equipment tyre sales were higher year-on-year, driven by “strong sales in Japan of vehicle models equipped with YOKOHAMA tyres and expansion of shipments for Chinese automakers’ new energy vehicles,” the company said.

Replacement tyre sales also increased, supported by higher sales of summer and winter tyres in Japan, increased sales of high-inch tyres in Europe, and stepped-up sales efforts in Asia.

The MB (Multiple Businesses) segment, which represents 8.4 percent of total sales, experienced a 3.2 percent revenue decline to 23.02 billion yen. This was attributed to lower demand from construction machinery makers in Japan and automakers in North America.

The company described an “upbeat” business sentiment in Japan for the quarter, noting that “a steady recovery in inbound demand and increasing orders for construction and logistics projects compensated for weak consumption by domestic households curbing spending in response to rising prices of consumer goods.”

Overseas, the company observed rising inflation concerns weighing on consumer spending in the United States, while in Europe, “manufacturing industries are rebounding and corporate business sentiment is improving.” In China, personal consumption was boosted by the Spring Festival holiday, but high US tariffs “reduced China’s exports and created uncertainty about the future that is weakening industrial activity.”

Swedish speciality chemicals firm Nynas reported solid financial results for 2024, posting an Adjusted EBITDA of 1,333 million Swedish kronor, marginally higher than the 1,316 million kronor recorded in 2023.

The company, which specialises in naphthenic speciality oils and bitumen products, attributed its performance to operational efficiency and commercial success in its niche markets.

“We are delighted with the progress made during 2024, evidencing our right-sized cost base and a more targeted commercial and manufacturing footprint. We have redefined our strategic direction, positioning Nynas as a speciality chemicals company, enabling the energy transition and setting our course for 2035,” Nynas CEO Eric Gosse said in a statement.

The firm highlighted strong cash generation from operations, which it said would support planned investments and longer-term growth initiatives. Nynas also mentioned the ongoing transformation of its Harburg site with plans to monetise the asset eventually.

All three of the company’s production facilities maintained high operational reliability between 95 percent and 99 percent. The Nynäshamn refinery achieved a notable milestone: in May 2024, it set a new monthly production record for naphthenic speciality oils at 42,000 tonnes.

Strategic pivot towards sustainability

Nynas outlined a strategic shift focused on higher-margin speciality materials with sustainable characteristics. The company aims to strengthen its position in European markets through innovation and sustainability initiatives.

“Nynas is uniquely positioned to contribute to the energy transition. Our strategy reflects our purpose to advance a more sustainable society, and our product development pipeline is fully aligned with this goal," Gosse added.

In 2024, the company received an EcoVadis Gold rating, placing it in the top 5 percent of globally rated businesses for sustainability performance.

With consecutive years of strong financial performance, Nynas indicated it continues to monitor debt capital markets to optimise its capital structure “at the appropriate time potentially”.

The Swedish chemicals producer noted that, having ceased operations in the United States in 2022, it remains largely insulated from recent global trade tensions surrounding US import tariffs. The company imports only minimal feedstock from America, shielding it from potential cross-border trade disputes.