In the mountainous heart of Central Europe, a quiet industrial revolution is unfolding – where discarded tyres are reborn as high-performance materials for modern infrastructure, sport, construction and more. Leading this transformation is RPG Recycling, a Czech company and a flagship member of the REC Group, which has positioned itself at the forefront of tyre recycling and sustainable rubber innovation.

When you step into the industrial heart of RPG Recycling in the Czech Republic, it is immediately clear that this is not just another waste management facility. Here, unwanted tyres are transformed from a mounting environmental burden into valuable resources serving industries across Europe and beyond.

RPG Recycling is part of the Czech-based conglomerate REC Group, which houses companies such as Kovsteel, Steelmet, A-Glass, RPG Recycling, Gelpo, ASSCO, Egoe Noba, DZO, A-Orto and Kovozoo.

Interestingly, for the tyre industry RPG Recycling, Gelpo, Assco and Egoe Noba together provide complete treatment of waste from SBR (Styrene Butadiene Rubber) rubber & EPDM (Ethylene propylene diene monomer) rubber from the collection through crushing to production of final products. In an exclusive interaction with Tyre Trends, Pavel Hartman, Executive Director of RPG Recycling, Gelpo, Assco and Egoe Noba, shares the details.

“Tyre recycling is more than just a process – it’s a commitment to sustainability and resource maximisation,” explained Hartman.

THE ART AND SCIENCE OF TYRE RECYCLING

Hartman shared that RPG’s operations span the entire lifecycle of tyre waste. “Our facility is equipped with an advanced fleet of vehicles, ELDAN recycling lines, granulation equipment, shredders, tyre cutters and even oversized tyre cutters. This technology allows us to handle everything from initial collection to final processing with unmatched versatility,” he said.

Every step is tightly controlled. “We manually sort and select tyres from the Czech and Slovak markets, ensuring consistent quality enters the granulate processing phase,” Hartman said. Sophisticated sorting ensures only the best input for further recycling. Tyres are then resized, shredded, granulated and separated into constituent materials.

The mainstay of RPG Recycling is the production of rubber granulate – a key raw material for industries ranging from construction to sport. “The primary output is rubber granulate, which becomes everything from industrial and construction panels to base layers for sports facilities. We are proud to supply the raw material behind products that deliver safety, noise reduction and durability,” said Hartman.

A closer look at RPG’s data underlines this impact: in 2024 alone, the company handled nearly 56,000 tonnes of tyres and processed enough rubber to give a new lease of life to materials from over half a million households.

But rubber is only part of the story. “A secondary output is steel fibre, primarily directed to the metallurgical industry, while textile fibre is used for energy recovery,” noted Hartman. For tyres unsuited to granulate production, RPG ensures nothing is wasted, “They are resized and used in the energy sector, contributing as alternative fuel.”

Gelpo, a sister company, pushes these materials even further, manufacturing anti-vibration panels for construction, noise barriers for transport and robust sports surfaces. “At Wenceslas Square in Prague, our anti-vibration mats made from 6,667 recycled tyres span an area equivalent to eight swimming pools,” Hartman shared, illustrating the real-world scale of their output.

He further mentioned that maintaining consistently high standards is a non-negotiable aspect for the company.

“We operate a sophisticated quality management system, overseeing everything from tyre reception to the final stage of rubber granulate production. Daily quality control checks focus on cleanliness, density and structure,” explained Hartman. He underscores that the process extends to the preparation of specific product batches according to the type and cleanliness of input tyres.

Looking ahead, he shared, “We’re developing a second recycling line to increase capacity and output quality. On the technology side, we plan to adopt new components that simplify operations and further refine our granulate.”

RPG Recycling is also actively advancing the principles of the circular economy. “By transforming waste tyres into secondary raw materials, we are reducing dependence on primary resources – like new rubber – and ensuring that fewer tyres end up in landfills or incinerators,” Hartman stresses. A unique feature is the ability to regranulate old rubber products, reincorporating them into new manufacturing cycles and eliminating landfill waste.

This holistic approach is reflected throughout the REC Group, where companies like Assco and Gelpo work together to collect EPDM and SBR rubber waste, process it and return it to market as high-performance materials.

Sustainability is quantifiable at RPG; it is not just the end-product but also the process itself.

“Our photovoltaic power plants alone have reduced emissions by 555 tonnes of CO2 annually, equivalent to planting over 37,000 trees,” Hartman highlights. In total, through the use of secondary raw materials, RPG, Assco and Gelpo together have delivered emission savings of over 24,000 tonnes of CO2 per year.

The group’s modernisation efforts extend to cleaner production and close cooperation with environmental authorities and research institutions. “We participate in expert groups like European Tyre & Rubber Manufacturers Association (ETRMA), EURIC (European Recycling Industries’ Confederation) and ESTC and support new applications for recycled materials,” said Hartman. He noted initiatives such as eco-friendly noise barriers, which integrate recycled rubber for both environmental and social benefit.

Of course, recycling tyres is not without hurdles. “Energy costs remain significant, so we responded by launching solar generation, cutting usage by 10 percent,” revealed Hartman. He points to market and regulatory headwinds, “There’s a lack of clear standards for recycled rubber products and, in some cases, insufficient market support for end products made from secondary materials. These factors impact competitiveness, especially in price-sensitive sectors.”

Still, he maintains an optimism for the tyre recycling. Hartman is keen to point out ongoing dialogue with tyre manufacturers and the tyre industry’s gradual adoption of reclaimed rubber and pyrolytic products as a route to closing the circular economy loop.

VISION FOR THE FUTURE

Expansion and innovation are central to RPG’s future plans. “We are building a new line to increase rubber granulate capacity and working with Gelpo to diversify applications and enter new markets,” Hartman shared.

While RPG does not currently collaborate with Indian partners, global dialogue and technological advancement are clearly on the horizon.

For Hartman and the RPG team, the mission is clear, “We give tyres a new life, protect nature and use every resource to its fullest.” And looking from both the data and the impact felt across construction, sport and industry, the Group seems to be on a mission set to steer the sector towards a more sustainable future. n

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Mumbai-headquartered leading carbon black manufacturer Epsilon Carbon has reported a 10 percent reduction in carbon dioxide equivalent emissions across its upstream transportation operations during FY2025–26. The reduction was achieved through the deployment of an electric and liquefied natural gas freight fleet.

An independent third party certified the emissions data. The reductions achieved in transport logistics equate to carbon absorption figures associated with approximately 29,000 trees. The verified figures allow supply chain partners to include these reductions within Scope 3 emissions reporting frameworks and environmental disclosures.

Gaurav Mathur, Chief Executive Officer, Epsilon Carbon, said, “Decarbonising logistics is central to our climate strategy. What makes this milestone meaningful is that the results are independently verified with a 10 percent reduction in CO2e emissions within the upstream transportation category over a single financial year, driven by the adoption of electric and LNG fleets. These carbon reductions strengthen our own sustainability disclosures and those of our customers, and we intend to scale this model across our supply chain.”

Following Phase 1 operations, Epsilon Carbon intends to expand the number of electric and LNG vehicles in its transport fleet during FY 2026–27 to scale low-carbon freight transport across its supply chain network.

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Czech billionaire Michal Strnad has acquired a 14 percent stake in Pirelli from Chinese state-owned group Sinochem, in a transaction valued at about EURO 1 billion, according to a report by Italian daily Corriere della Sera.

The report said the acquisition was made through Lumina Crown, Strnad's investment vehicle, making the 33-year-old businessman the tyre maker's third-largest shareholder.

Following the transaction, Sinochem's holding in Pirelli has been reduced from 34.1 percent to 20.1 percent, while MTP, the holding company controlled by Marco Tronchetti Provera, has become the company's largest shareholder with a 26.5 percent stake, the newspaper reported.

According to Corriere della Sera, BNP Paribas advised Sinochem on the transaction, while Jefferies acted as adviser to Lumina Crown.

Strnad is the controlling shareholder of Czechoslovak Group (CSG), a defence manufacturer that owns the Italian brands Fiocchi Munizioni and Perazzi. He controls about 85 percent of CSG, which is listed in Amsterdam with a market capitalisation of around EURO 16.6 billion.

The investment in Pirelli was made in a personal capacity through his holding company, Lumina, the newspaper said.

Commenting on the investment, Strnad said, "We are pleased to make this long-term investment in Pirelli, a company that has long been a global leader in its sector, distinguished by its unique history, strong premium positioning and proven capacity for innovation. We have great confidence in Pirelli's strategy, its management team and the company's ability to continue generating sustainable long-term value for all stakeholders. Our investment reflects our strategy of supporting outstanding companies that combine leadership positions in their respective markets, durable competitive advantages, world-class brands and strong growth prospects. It also demonstrates our ability to identify and execute highly attractive investment opportunities globally, acting with conviction and discipline."

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Pirelli reported a 13.3 percent increase in first-half net profit as the premium tyre maker benefited from continued growth in its High Value business, despite persistent geopolitical uncertainty and a volatile economic environment.

Net profit for the six months ended 30^TH June rose to EURO 299 million from EURO 264 million a year earlier, supported in part by lower financial charges. Revenue was broadly unchanged at EURO 3.49 billion, although organic revenue increased 2.5 percent after excluding the effects of foreign exchange movements, hyperinflation accounting and changes in the scope of consolidation.

Adjusted earnings before interest and tax (EBIT) were EURO 557.8 million, broadly unchanged from €558.3m a year earlier, while the adjusted EBIT margin remained stable at 16 per cent.

High Value products accounted for 82 percent of total sales, up from 80 per cent in the first half of 2025, reflecting the company's continued focus on premium and prestige segments.

The company generated a net cash outflow before dividends and the consolidation of Xushen Tyre of EURO 556.9 million, compared with EURO 547.1 million in the corresponding period of 2025, excluding the positive impact from the disposal of Däckia AB. Net financial debt stood at EURO 1.92 billion at the end of June.

Pirelli confirmed the financial targets announced in May.

Second-quarter revenue increased 1 percent year on year to EURO 1.76 billion. Organic growth was 1.4 percent after excluding the effects of foreign exchange, hyperinflation and changes in the scope of consolidation.

Second-quarter adjusted EBIT rose 0.7 percent to EURO 280.4 million, while the adjusted EBIT margin remained unchanged at 16 percent. Net profit increased 3.9 percent to EURO 142.2 million.

The board approved the half-year results, although directors Zhang Haitao, Xi Xiaohong and Wang Kun voted against the financial statements because of the declaration of control by MTP Spa contained in the financial report.

Pirelli said its first-half performance demonstrated the resilience of its business model and the effective execution of its strategic programmes despite continuing geopolitical tensions and economic volatility.

The company's commercial strategy continued to focus on High Value products. Car and motorcycle volumes in the segment increased 3.5 percent during the first half, supported by growth in both the original equipment and replacement channels. The company cited partnerships with leading vehicle manufacturers in North America and Asia-Pacific, alongside continued consumer demand for its premium products.

By contrast, Standard segment volumes fell 8 per cent as Pirelli continued to reduce exposure to lower-margin markets, particularly in South America. Overall tyre volumes remained broadly stable during the period.

Pirelli also strengthened its innovation programme by securing about 200 new homologations with premium and prestige vehicle manufacturers during the first six months of the year. Around 90 percent were for tyres of 19 inches and above, while 70 percent related to speciality products. Electric vehicles accounted for 60 percent of the new homologations.

Among the latest vehicle programmes were approvals for the Ferrari Luce, Rivian R2S and the new Audi Q7 and Q9 sport utility vehicles.

The company also expanded its product portfolio with the launch of the Scorpion AS 4 for the North American replacement market, the Metzeler Sportec 01 RS motorcycle tyre and the Cinturato Gravel RH and RM cycling tyres.

Development of the Cyber Tyre platform also continued through partnerships with connectivity and autonomous driving specialists including Univrses, RideSense and Niulinx.

Pirelli said its efficiency programme generated gross benefits of EURO 81 million during the first half, representing about 54 percent of its annual target. The gains were driven by product design improvements and higher industrial productivity.

The company added that it had introduced mitigation measures, including price increases and additional cost controls, to offset higher raw material, energy and transport costs resulting from the Middle East crisis.

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Mumbai-headquartered rubber chemicals manufacturer NOCIL has announced capacity enhancement at its Dahej plant with an additional capital infusion of INR 1.3 billion, largely funded through internal accruals. The new investment is expected to be completed by H1 FY2028.

The announcement was made on the sidelines of the company’s release of its financial results for Q1 FY2027, with revenue growing 20 percent YoY to INR 4.03 billion. It attributed the revenue growth to increased selling prices of input costs.

On the other hand, improved operating efficiency and inventory gains saw EBITDA margin rise by 210 basis points to reach 11.2 percent, while net profit grew by 61 percent to INR 280 million.

The volumes grew by 9 percent on the back of robust demand in the domestic market, following the GST 2.0 bonanza, while exports continue to see smart uptick. 

The capacity enhancement at Dahej is primarily focused on expanding volumes for peak-utilisation rubber chemical products, through an integrated, backwards-integrated facility. The new investment builds on the earlier announced CAPEX outline of INR 2.5 billion already underway, wherein trial production has already commenced.

V S Anand, Managing Director, NOCIL, said, “Our performance this quarter reflects consistent execution across both our domestic and export businesses in a challenging environment. Beyond the numbers, we are equally focused on building for the future, Our expanded investment at Dahej reinforces our commitment to structured capacity augmentation, backward integration and long-term competitiveness in a market that is increasingly looking to India as a reliable manufacturing partner.”

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