Demand For Tyre Recycling Growing In Russian Far East: Ecostar Factory

EcoStar

Russia's tyre recycling industry has grown significantly in recent years due to increasing environmental concerns and government regulations aimed at reducing landfill waste. The country generates millions of tonnes of used tyres annually, with many initiatives focusing on recycling them into rubber granules, fuel and construction materials. Key players in the industry include local companies and a few foreign investments with major recycling plants concentrated around Moscow and other industrial regions.

However, the Russian Far Eastern region, referred to the vast, easternmost part of the country that borders the Pacific Ocean, still struggles to deal with the disposing of end-of-life (EOL) tyres.

According to Ecostar Factory Co-founder Sergei Lazarev, “Vladivostok, the largest city in Russia's Far East, ranks fifth in the country for vehicles per capita, making it the region's leader in vehicle density. This results in a growing volume of waste tyres annually, posing a significant environmental challenge. Due to the vast distances, transporting used tyres to recycling facilities in central Russia is prohibitively expensive, inflating both the recycling costs and the prices of products made from recycled materials. The lack of local recycling infrastructure exacerbates the problem, underscoring the need for regional solutions to manage tyre waste more efficiently and sustainably.”

“With 15 years of experience in tyre recycling, our company is well-positioned to meet the growing demand for tyre recycling in the Russian Far East. The new facility will allow us to recycle over 10,000 tonnes of ELT annually and meet market needs accurately. We also plan to double this capacity within the next five years, which is especially crucial in regions like the Russian Far East, where transportation costs are high and local recycling infrastructure is lacking. This expansion will help address regional tyre waste challenges more effectively,” he added.

A total of USD 500,000 was invested in the new tyre recycling unit, financed through a mix of 30 percent capital and 70 percent bank loans. The seven percent interest rate, subsidised by the Primorye Government Guarantee Fund and the Federal Government Fund for SMEs, highlights the strategic backing you’ve received. Specialising in recycling ELT tyres into rubber crumb, this setup not only aligns with growing sustainability efforts but also demonstrates the effectiveness of public-private cooperation in fostering business expansion and environmental impact in Russia’s Far East.

The Far East and Arctic Development Corporation (FEDC) played a crucial role in the tyre recycling project’s success by providing a 17.3-acre land lot and essential infrastructure. This included telecommunications, access roads, power supply, water supply, water disposal and natural gas supply. Additionally, FEDC offered tax benefits, making it a key partner in the project’s development, facilitating smoother operations and reducing overhead costs. This comprehensive support has been instrumental in advancing the project in the Russian Far East.

Promoting recycling

The company's operations, which focus on recycling ELT tyres without thermal methods like pyrolysis due to environmental concerns, were nearly derailed when the ruble-dollar exchange rate doubled in 2022, making equipment and construction prohibitively expensive.

Despite purchasing Chinese machinery, adjustments were needed due to differences in tyre composition, particularly the amount of cord fibre. The company plans to recycle 20 years’ worth of accumulated tyre waste and supply crumb rubber to playgrounds, stadiums and road projects, boasting the only facility in the region certified to meet government sanitary standards.

With no direct competitors in the Primorye region, the company remains committed to expanding operations despite these challenges.

Answering how the new plant supports broader recycling goals, Lazarev said, “The new plant supports the broader goals of the company by serving as a central hub for tyre recycling in the Russian Far East. We operate facilities in five regions including Magadan, Kamchatka, Sakhalin, Khabarovsk and Primorye and plan to upgrade them within the next three years to produce rubber chips, which will be transported to the main facility in Primorye for further processing. Additionally, we aim to invest in research and development to develop additives for bitumen, enhancing its use in road construction projects. This strategy is key to expanding recycling capabilities beyond 10,000 tonnes annually and promoting sustainable infrastructure development.”

The company will source tyre waste primarily from transportation and tyre service companies. To ensure quality, it has implemented a comprehensive management system designed to produce clean, precisely sized crumb rubber. The triple cleaning process removes metal and cord fibre, while its proprietary qualification system ensures four specific size fractions of crumb rubber are achieved.

Alluding to European Union (EU) directive on crumb rubber infill ban, he noted, “Regarding the EU ban on rubber crumb in artificial turf, Russia has no such restrictions. In fact, a recent Russian government act (08/28/2024) mandates the use of rubber crumb in sports infrastructure and road construction. We have also obtained a special health certificate allowing the use of its crumb rubber in outdoor playground construction.”

Addressing challenges

Russia imports tyres primarily from China, which is the largest supplier, offering a wide range of products including passenger, truck and industrial tyres. South Korea follows, known for its high-quality passenger and performance tyres, while Japan contributes advanced technology and speciality tyres. Belarus, as a neighbouring country, exports various tyre products, particularly for commercial vehicles. Turkey has also been increasing its market presence with competitive prices and quality. Additionally, some European Union countries export tyres to Russia, although trade dynamics are influenced by tariffs and geopolitical factors.

Such a wide array of tyres poses challenge for recyclers. Commenting on the same, the executive said, “The plant was initially scheduled to open in August 2023. The company faced significant challenges due to currency fluctuations, infrastructure delays and regulatory hurdles. Despite purchasing Chinese machinery, adjustments were needed due to differences in tyre composition between China and Japan, particularly the amount of cord fibre. The lack of suitable land with the necessary infrastructure and meeting strict ecological standards are further obstacles.”

“We are currently facing a staff shortage across all skill levels, from low-skilled to highly qualified personnel. To address this, we plan to recruit workers from other regions of Russia and internationally. Recently, we hired five individuals from India on one-year contracts, providing them with comprehensive benefits that include accommodation, food, transportation and work uniforms. We aim to attract even more skilled workers this year to strengthen our team,” he added.

Ecostar's plant aligns seamlessly with Russia's broader waste management and environmental objectives, particularly in the Far East. It supports the government's strategy for a circular economy, which is reinforced by new legislation regulating the use of recycled materials in the production of goods and services. Additionally, the government has introduced the concept of ‘green purchases’, mandating that government agencies and state-owned companies procure a minimum quantity of products made from recycled materials. This initiative emphasises the importance of integrating recycled materials into the economy, enhancing sustainability efforts across the region.

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    Titan International Expands Goodyear Brand Licensing Rights

    Titan International Expands Goodyear Brand Licensing Rights

    Titan International, a major global manufacturer of wheels and tyres for off-highway equipment, has secured expanded production rights for the Goodyear brand across multiple segments while renewing its existing farm tyre licensing agreement.

    The deal extends Titan’s Goodyear brand manufacturing rights to include light construction, industrial, all-terrain vehicle (ATV), lawn and garden and golf tyre categories, significantly broadening the company's market reach.

    The Illinois-based firm will continue to produce agricultural tyres under the Goodyear Farm Tyres brand, maintaining its presence in a sector where it manufactures products ranging from small implement tyres to the massive Goodyear Optitrac LSW1400/30R46, which features the company's proprietary Low Sidewall Technology.

    "We are excited to expand our rights into new segments, as this positions us to serve our customers better and seize emerging market opportunities. Our research and product development teams are already working on new tyre designs incorporating innovative tyre technologies for the lawn and garden segment," said Paul Reitz, President & CEO of Titan International, Inc. "In addition to our newly acquired rights, we are reaffirming our commitment to the farm tyres segment, a vital part of our business."

    Industry analysts note the expansion comes as demand for specialised off-highway tyres remains robust across construction, agriculture and recreational sectors despite broader economic headwinds.

    Strategic growth initiative

    The licensing expansion aligns with Titan's strategy to offer comprehensive wheel and tyre solutions across forestry, powersports, outdoor power equipment, agricultural, earthmoving, and light construction markets throughout the Americas, Europe, Africa and Oceania.

    The company did not disclose the financial terms of the licensing agreement with Goodyear.

    Titan International has manufactured Goodyear-branded farm tyres since 2005, when it acquired Goodyear's North American farm tyre business. It has gradually expanded these rights to other regions, including Latin America, Europe, the Middle East, Africa, Russia, and Australia.

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      CEAT Commits Around INR 10 Bln In FY26 Capex,

      CEAT Commits Around INR 10 Bln In FY26 Capex,

      Targets International Expansion With Robust Fy25 Performance

      CEAT Ltd, the RPG Group’s flagship tyre company, reported a capital outlay of INR 9–10 billion  for FY2025–26, keeping with its capacity expansion strategy and global integration. This follows a strong FY25 performance of record revenues and double-digit growth across segments despite headwinds in overseas markets.

      The business ended FY25 with consolidated revenue of INR 132.18 billion, up 10.6 percent year on year, and Q4 revenue at INR34.21 billion, up 14.3 percent compared to the corresponding quarter previous year. The standalone full-year EBITDA was INR 15 billion, and the Q4 operating margins improved by more than 100 basis points sequentially at 11.5 percent.

      "We incurred capex of INR 9.46 billion in FY25 and expect a similar investment of INR 9–1.0 billion in FY26," said Kumar Subbiah, Chief Financial Officer of CEAT. “Our focus will remain on expanding capacities, particularly at the Ambarnath and Chennai facilities, and funding the integration of the recently acquired Camso compact construction business.”

      In FY25, CEAT depreciated assets amounting to INR11.40 billion. Much of its FY26 capex will also fund equipment modernisation and normal maintenance at its Sri Lankan operations under Camso, putting a cost estimate of INR1-1.25 billion a year over the next two years.

      The Camso acquisition, which is effective from Q2 FY26, is likely to significantly enhance CEAT's global presence. "Integration work has started in full acceleration," said Arnab Banerjee, Managing Director and CEO. “Initial focus will be on customer retention and business continuity, with consolidation expected to double Camso’s current capacity utilisation over the medium term.”

      Despite international uncertainties, CEAT renewed its medium-term global growth forecast. Exports are expected to form 25–26 percent of the revenue post-Camso integration. Turbulence still exists in Latin America and North America due to tariff policies and exchange rate weakness. CEAT, however, has reported consistent performance in Europe, the Middle East, and Southeast Asia.

      CEAT also indicated a likely raw material cost stabilisation in Q1 FY26, potentially softening by Q2, to support its margin growth initiatives. The gross margin was 37.5 percent in Q4 FY25, and the target was above 40 percent in the near term.

      Banerjee signaled ongoing activity in electrification, premiumisation, and digitalisation. "With our technology outlays and new product introductions, we are hopeful of sustaining 20–25 percent market share in electric vehicle segments," he asserted.

      The debt levels of the company are under control. The gross debt as of 31 March 2025 was INR 19.28 billion with a debt-to-EBITDA ratio of 1.3x and debt-to-equity ratio of 0.44x. Subbiah added that CEAT's strong cash generation will allow it to finance both organic and inorganic growth without materially diluting leverage metrics.

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        Black Swan Graphene Appoints Jobin George As Technical Sales Manager (EMEA)

        Black Swan Graphene Appoints Jobin George As Technical Sales Manager (EMEA)

        Black Swan Graphene Inc. (Black Swan) has appointed Jobin George as Technical Sales Manager for the Europe, Middle East and Africa (EMEA) region with immediate effect. This significant move, which supports Black Swan's worldwide commercial team as it promotes adoption of its graphene-enhanced products, follows Dan Roadcap’s appointment as Head of Technical Sales and Business Development.

        George has an MBA from ICFAI University in India, a Post Graduate Diploma from the Central Institute of Petrochemical Engineering and Technology in India and a Bachelor of Science in Chemistry from Mahatma Gandhi University, India. He brings with him more than 20 years of global expertise in project management, business development and technical sales. George has had positions at Sands International Plastics and Sojitz Corporation in the United Arab Emirates, as well as Aquapak Polymers and H-Pack Global Ltd.

        Simon Marcotte, President and Chief Executive Officer, Black Swan Graphene, said, “The addition of Jobin to our commercial team marks another important milestone in our global expansion strategy. His international experience, particularly in the EMEA region, and his proven ability to translate technical capability into commercial success make him an ideal fit as we continue scaling our graphene business.”

        George said, “Black Swan is positioned at the forefront of advanced materials innovation. The opportunity to contribute to the adoption of such a transformative technology across the EMEA region is tremendously exciting. I look forward to engaging with our existing customers and partners, along with exploring opportunities for new clients as well, to showcase the performance and value of Black Swan’s graphene solutions.”

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          Stephanie Mull Appointed As TRF Executive Director

          Stephanie Mull Appointed As TRF Executive Director

          The Tire Recycling Foundation (TRF), a joint initiative led by the U.S. Tire Manufacturers Association (USTMA) and the Tire Industry Association (TIA), has appointed Stephanie Mull as its Executive Director.

          Mull will spearhead the organisation's initiatives to promote innovation and invest in the circular tyre economy, expand the market for end-of-life tyres and support studies to fill in the gaps in the sustainability and tyre recycling supply chain in her new role at TRF. Mull brings a wealth of experience in the sustainability field and a broad understanding of fleet management and decarbonisation, including converting fleets to electric and alternative fuel vehicles. In her role as PepsiCo's Sustainability Senior Manager, she oversaw major electrification projects, obtained grant money and spearheaded efforts to lower Scope 1 and Scope 2 emissions throughout Pepsi and Frito-Lay's North American fleets. Mull oversaw the local government's efforts to upgrade municipal vehicles to greener technology and volunteered to help the Red Cross electrify its fleet.

          Anne Forristall Luke, TRF Board President, said, “Stephanie Mull brings the passion, in-depth expertise and history of excellence that will drive TRF and its partners to achieve critical tyre recycling and reclamation milestones. We are thrilled to have her join the Foundation as we advance tyre sustainability while tackling the challenges and opportunities ahead.”

          Mull said, “I’m honoured to join the Tire Recycling Foundation and support its sustainability mission to achieve 100 percent end-of-life tyre circularity. TRF is a vital nexus of expertise and leadership, and I look forward to working with all stakeholders in developing tyre recycling solutions that pave the way for a more sustainable future.” 

          The Tire Recycling Foundation is dedicated to achieving 100 percent circularity for end-of-life tires by advancing innovation, building partnerships and supporting scalable recycling and reclamation solutions. Consisting of 15 global industry leaders with expertise in the manufacturing, recycling and transportation industries, TRF’s Board primarily focuses on the acceleration and adoption of emerging end-of-life tyre market technologies like rubber-modified asphalt (RMA).

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