The Australian Government’s push for end-of-life tyre recycling, particularly through the use of crumb rubber in road construction, has been gaining momentum. With Western Australia and Queensland continuing to grow rapidly but key markets like Victoria falling away, challenges remain in expanding the use of crumb rubber, especially in New South Wales and South Australia. However, partnerships like that between Tyrecycle and Alcoa Australia are helping pave the way for the recycling of OTR tyres, creating new opportunities.

The Australian Government’s endeavour for recycling end-of-life (ELT) tyres has been lauded by industry experts in many mature markets. Since December 2021, Australia has prohibited the export of whole baled tyres, except for specific casings and retreads. The Australian Government emphasises a circular economy approach, which includes incentives for local manufacturing by procuring tyre-derived materials such as crumb rubber for asphalt and other civil applications. The Western Australian Government has used over 3,000 tonnes of crumb rubber for road projects in a single year.

However, challenges remain with the recycling of off-the-road (OTR) tyres, often disposed of at mining sites. Nonetheless, the proactive nature of the government, especially in Western Australia, has paved the way for OTR tyre recycling, with recyclers forming partnerships with mining companies to ensure a steady stream of supply.

One such collaboration is between Tyrecycle, the recycling arm of ResourceCo, and Alcoa Australia. Tyrecycle’s state-of-the-art recycling facility in East Rockingham, 40 kilometres south of Perth, has already welcomed its first load of used OTR tyres from Alcoa, which is a bauxite mining company.

Speaking to Tyre Trends on the current state of waste OTR tyres, Tyrecycle Chief Executive Officer Jim Fairweather stated, “Currently, an estimated 130,000 tonnes of OTR tyres are discarded annually; 50,000 tonnes in The Pilbara alone. Tyrecycle is processing about 15,000 tonnes per year and aims to expand its footprint into key mining regions like the Hunter Valley, Bowen Basin and Pilbara. These areas are pivotal to Australia’s coal and iron ore mining industries, presenting significant opportunities for waste management and resource recovery.”

He added, “Mining operators often choose the cost-effective route of burying waste tyres on-site, which hinders recycling efforts. While some companies recognise the importance of responsible waste management, regulatory enforcement is needed to make recycling a standard practice. Proactive companies in the mining sector are stepping up, recognising the reputational and environmental risks associated with poor waste management. However, broader adoption is hampered by minimal regulatory mandates.”

COLLABORATIVE MEASURES

The collaboration between Tyrecycle and Alcoa was driven by a mutual commitment to sustainable practices and innovation in waste management. For the recycler, it represented a strategic move to expand its capacity to process OTR tyres and, in the future, conveyor belts, which are significant waste streams in the mining sector. This partnership evolved over five years of discussions, trials and project planning.

Equipped with a larger primary shredder capable of processing substantial pieces of OTR tyres, the plant in East Rockingham enabled the recycler to manage Alcoa’s tyre waste effectively. Prior trials at the recycler’s New South Wales facility ensured the material could be processed successfully, laying the groundwork for this full-scale collaboration.

“Alcoa provides full OTR tyres, which are pre-processed using excavators to reduce size. These pieces are then fed into our fully automated plant, where they undergo a comprehensive process to produce crumb rubber as fine as 700 microns. The crumb rubber is repurposed into road construction material within Western Australia, creating a closed-loop system. The project aligns with the Western Australian Government’s push for the integration of rubber crumb in road infrastructure, ensuring sustainable outcomes,” said Fairweather.

He mentioned that the company has initiated partnerships with major mining operators, securing long-term offtake agreements to convert OTR tyres into value-added products for resale. While agreements are being finalised with several top-tier miners, the company aims to secure additional multi-year contracts, further cementing its position in the growing circular economy of Australia’s resource sector.

PRODUCTION

The company operates nine facilities culminating in a current processing volume of 180,000 tonnes annually with 30 percent spare capacity, allowing for up to 250,000 tonnes per year. Crumb rubber production stands at approximately 25,000 tonnes annually.

While mining tyres constitute a smaller portion of the company’s operations, the bulk of recycling comes from collecting approximately 20 million tyres annually from retail outlets across Australia, including regions such as Far North Queensland, Tasmania, Perth and the Pilbara. These include PCR, TBR, four-wheel-drive tyres, forklift tyres and even bicycle tyres. Roughly 80,000 tyres are collected daily.

Alcoa’s waste OTR tyres are entirely processed into crumb rubber for the Western Australian market. Beyond this, crumb rubber from other ELTs is sold into sectors such as the steel industry, adhesives manufacturing, playground surfacing, walking trails and civil applications. While these sectors are important, they don’t match the volumes required for road construction in Australia.

Additionally, tyre derived fuel (TDF) is manufactured in various sizes to cater to different customer needs. For example, 1.5-inch steel-free chips are used in power boilers, while 2-inch, 3-inch, 4-inch and 6-inch chips are utilised in cement kilns, both locally and for export to countries like Japan.

Offshore customers further process these materials into products like micronised rubber powder. The company also supplies feedstock to large tyre recycling businesses in India and Korea.

Commenting on whether Alcoa takes any of the tyre-derived product under the agreement, Fairweather informed, “Alcoa currently does not take any products, but there are opportunities in development, particularly in the smelting sector, where materials could be used as reductants.”

CONSUMPTION

While crumb rubber production serves local markets exclusively, TDF and steel exports continue to play a vital role in the company’s global strategy with a focus on improving quality and expanding domestic utilisation.

“The crumb rubber produced is fully consumed within Australia, reflecting a strong domestic demand for applications such as road construction. While 5,000 tonnes of TDF is consumed domestically in New South Wales, the vast majority – over 100,000 tonnes – is exported. That said, domestic consumption of TDF is poised to increase significantly with plans to redirect approximately 100,000 tonnes for use within Australia as part of ongoing pipeline development projects,” said the executive.

“Additionally, steel extracted from the tyres is traded globally as scrap. With the installation of steel-cleaning systems across all facilities, we now export steel with a much lower rubber contamination rate, reduced from 20 percent to 1-2 percent. This enhancement improves the value of the scrap and allows for more competitive pricing at the collection stage,” he added.

Commenting on the use of crumb rubber for roads, he said, “Road construction remains the largest consumer of crumb rubber in Australia, outpacing other uses. The Western Australian Government’s mandate to use crumb rubber in roads has been evolving over the past three years. Three years ago, there was virtually no sale of crumb rubber for road construction in Western Australia. However, today, Western Australia has become the second-largest market for crumb rubber used in roads across the country, despite having only 10–15 percent of Australia’s population.”

“The Main Roads Western Australia agency played a pivotal role by mandating crumb rubber in road specifications, significantly increasing demand. Additionally, the Western Australian Government supported this initiative by funding the creation of tyre processing infrastructure. This dual approach that includes stimulating private sector investment while ensuring procurement for recycled materials has been key to making these investments viable,” he added.

QUALITY CONTROL

Fairweather quipped that being one of the largest recyclers in the land has its perks when it comes to quality controls. With an expansive collection network that draws in tyres that are not only manufactured at home but imported from different regions ensures understanding of different chemical compositions.

As for ensuring the quality of crumb rubber, especially for road construction, he said, “We implement rigorous quality control procedures from testing the crumb rubber three times a day across all facilities to ensure that it is consistent and free of impurities. We take specific measures to ensure even sample collection and use advanced software to track and grade the rubber’s size distribution. Chemical tests are also performed periodically to maintain the integrity of the crumb rubber. Given the varied origins of the tyres, the company’s large scale allows it to homogenise these variations, ensuring a high-quality product.”

He added that quality is paramount because contaminants like metal can damage equipment used in road construction and asphalt applications. The company maintains a metal contamination level of less than 0.01 percent, which is crucial for the reliability and functionality of the crumb rubber in its applications.

Regarding the recycling of mining tyres compared to passenger and TBR tyres, he noted that there is a significant difference in the process. “Mining tyres are much larger and require different handling equipment and primary processing. These tyres need to be pre-processed to remove the bead before being reduced to a manageable size. In contrast, passenger and TBR tyres undergo a more standard shredding process, which then leads to various mechanical resizing depending on the final product,” said the executive.

The TDF also goes through a rigorous quality control process.

MARKET FORCES

The largest market for crumb rubber in Australia has historically been Victoria, where it has been widely used in road construction. However, in recent times, Victoria’s market has faced challenges, largely due to budgetary pressures that have led to delays or cancellations of road projects. Despite this, it has remained the leader in crumb rubber consumption for roads.

Western Australia and Queensland are closely matched, coming in second for crumb rubber usage. On the other hand, New South Wales (NSW) and South Australia are behind in their adoption of crumb rubber in road construction, with NSW, particularly Sydney, significantly lagging. This presents an opportunity for growth in those regions, as they could start to increase their usage to match the other mainland states.

Tasmania, due to its smaller population and limited road construction, uses less crumb rubber, but this is proportional to the region’s size and needs.

“The collaboration with Alcoa and the potential for them to purchase products in the future is still under discussion. Both parties are open to exploring further development of this partnership. Alcoa has proven to be a strong partner, and there are good opportunities for continued collaboration, especially in creating a circular process that benefits both Alcoa and the broader market,” averred Fairweather.

The growth strategy for the company focuses on expanding its production capabilities and increasing the value-added nature of its products. This includes ongoing investment in plant infrastructure and a focus on increasing market share, particularly in tyre collection volumes.

The company sees significant potential in the OTR sector, which is currently untapped, and plans to continue developing new products and processes to offer higher-value products rather than just TDF.

TDF, however, remains an essential part of the business. It plays a crucial role in tyre recycling by reducing landfill waste and offering a more environmentally friendly alternative to fossil fuels.

Trials on imported tyres were also successfully completed with full-scale processing set to begin imminently. Tyrecycle also plans to establish processing facilities in Central Queensland and Western New South Wales, reducing logistical barriers and enhancing service capabilities.

Balkrishna Industries Ltd (BKT) reported record quarterly sales volumes in its core off-highway tyre (OHT) business in the first quarter of FY27, supported by robust demand across India, Europe and the Americas, even as rising raw material costs, freight inflation and geopolitical disruptions squeezed margins.

The company posted 16 percent year-on-year growth in OHT sales volumes to 93,770 metric tonnes, while standalone revenue rose 24 percent to INR 34.09 billion. EBITDA increased to INR 7.03 billion, representing an EBITDA margin of 20.61 percent, while profit after tax reached INR 4.32 billion.

"Q1 started on a positive note for us. We delivered our highest quarterly sales volume in the OHT segment," Rajiv Poddar, Joint Managing Director, said. He noted that the performance came "despite the challenges across many international geographies and end markets, as well as within the supply chain of the world", highlighting the resilience of demand across key markets.

Management said profitability was affected by higher raw material prices stemming from global supply chain disruptions and geopolitical tensions, although the impact was partly offset through price increases introduced during the quarter.

BKT accelerates investment programme

BKT continues to advance one of the largest expansion programmes in its history.

The company has already invested approximately INR 38 billion under its broader INR 68 billion capital expenditure programme, with around INR 30 billion yet to be deployed. Of the remaining investment, INR 15-20 billion is expected to be spent during FY27 after capital expenditure of about INR 10 billion in the first quarter.

Completed projects include:

• Commissioning the second phase of its carbon black facility at Bhuj, increasing annual capacity to 360,000 tonnes, with an investment of INR 8 billion.
• Expanding captive power generation capacity from 40 MW to 64 MW, involving an investment of INR 1.25 billion.

"All the balanced CapEx projects, which are amounting to approximately INR 30 billion, are progressing as per schedule,” added Poddar.

On-highway business begins commercial rollout

Beyond its dominant OHT franchise, BKT has formally entered India's truck and bus radial (TBR) and two-wheeler tyre markets.

The company began commercial supplies after establishing its distribution network during the quarter and reported encouraging initial customer response. Although management declined to disclose revenue or volume figures given the early stage of the business, it expects sales to begin ramping up from the second quarter. "Having seeded the business in Q1, we expect a gradual ramp-up starting in Q2," Poddar said.

The long-term target remains INR 50 billion in on-highway tyre revenue by 2030. Satish Sharma, Senior President and Director of Strategy and Business Development, said FY27 would focus on expanding the portfolio before accelerating growth. "The vision statement states that INR 50 billion revenue from on-highway tyres by 2030. We're standing on that figure... FY 2028 onwards will be serious business."

India becomes larger contributor

India accounted for 40 percent of total volumes during the quarter, driven by demand from agriculture, construction, mining and industrial applications. Management said infrastructure investment and market share gains continue to support domestic growth, although margins in India remain marginally below export markets.

BKT estimates its market share at 18-19 percent in India, 7-8 percent in Europe and 3-4 percent in the United States, with inventory levels across key markets remaining normal.

Management also expects the US business to recover to its historical contribution of 15-16 percent of revenue, supported by improved tariff clarity and stronger brand positioning.

Inflation remains the principal challenge

BKT introduced approximately 5 percent price increases during the first quarter, with the full benefit expected to be realised in Q2. "We have taken on a price hike of about 5%, scattered across the various parts of the quarter. You will see the full passthrough coming in this quarter," Poddar said.

However, management said raw material costs have also increased by around 5 percent, potentially reducing margins by roughly 2 percentage points despite the pricing action.

Freight costs currently represent about 5 percent of revenue, with executives warning that continuing geopolitical tensions could lead to further increases.

The company also identified supply chain disruptions, vessel availability, container shortages, weather conditions in Europe and monsoon variability in India among the principal risks for the coming quarters.

Cabot Corporation has announced a significant leadership transition, with President and Chief Executive Officer Sean Keohane set to retire from his roles and step down from the Board of Directors, effective 30 September 2026. The company has elected Executive Vice President, Chief Financial Officer and Head of Corporate Strategy Erica McLaughlin to succeed him. McLaughlin will assume the positions of President and CEO, in addition to joining the Board as a member of the class whose term concludes at the 2029 Annual Meeting of Stockholders, effective 1 October 2026.

To facilitate a seamless handover, Keohane will remain with Cabot in an advisory capacity through the end of the 2026 calendar year. Concurrent with McLaughlin’s elevation, the company has initiated a formal search process to identify her replacement as Chief Financial Officer.

McLaughlin brings over two decades of experience to her new role, having joined Cabot in 2002 and holding various senior leadership posts across finance, strategy and the Reinforcement Materials division. Since assuming her current position in 2018, she has been instrumental in shaping corporate strategy and driving operational discipline. Her prior roles included Vice President of Business Operations for Reinforcement Materials, General Manager of its tire business and Vice President of Investor Relations. Beyond Cabot, she contributes her expertise as a board member for Azenta Life Sciences and as an advisor to FM Global.

Keohane’s distinguished tenure spans nearly 25 years, with his service as President and CEO beginning in 2016. His leadership was marked by significant portfolio refinement, the strengthening of core businesses, and the successful expansion into battery materials. He also advanced the company’s sustainability agenda and commitment to operational excellence, delivering robust performance and sustained shareholder value throughout his career.

Board Chair Michael Morrow said, “Erica brings deep industry expertise and a strong understanding of Cabot’s businesses, markets and global operations. This experience, coupled with her commitment to the company’s long-term strategic priorities, positions her exceptionally well to lead Cabot. Our decision to appoint Erica as the next President and CEO reflects a thoughtful and deliberate succession planning process. Her deep knowledge of the organisation and commitment to the values and culture that have been integral to Cabot’s success will provide continuity as we execute this leadership transition. We believe she brings the leadership, discipline and strategic clarity needed to lead Cabot forward and deliver on our long-term vision.

“The Board is deeply appreciative of Sean’s exceptional leadership and distinguished career at Cabot. We extend our congratulations on a well-deserved retirement. During his tenure as CEO, Sean provided strong, steady and thoughtful leadership, focusing the company’s portfolio around its core businesses and advancing new strategic long-term growth priorities. His collaborative leadership style has strengthened our organisation and leadership team, leaving a strong foundation for continued success in the years ahead.”

McLaughlin said, “I am deeply honoured to succeed Sean as President and CEO and lead Cabot into our next chapter. Having been at Cabot for close to 25 years, I know firsthand the strength of our people and our businesses. I look forward to working with the Board and our global team to build on our success, grow the company by supporting our customers with innovative chemistry solutions to advance their businesses and create value for our stockholders.”

Keohane said, “It has been a tremendous privilege to lead Cabot and to work alongside such a talented and dedicated global team. I am incredibly proud of what we have accomplished together and the foundation we have created. I am confident Cabot is in excellent hands under Erica’s leadership. We have worked side by side for almost my entire tenure as CEO and I have seen first-hand her strong leadership, operational discipline and sharp strategic mind. Erica is a trusted and highly capable leader with deep knowledge of our business and a commitment to our people, the culture and the unique heritage of this great company. I look forward to supporting a seamless transition in the months ahead.”

Robin Wiener, President of the Recycled Materials Association (ReMA), has been appointed to the Board of Directors of the Tire Recycling Foundation (TRF). Her appointment recognises her leadership within both the recycled materials and tyre manufacturing sectors. In this new capacity, Wiener will support the Foundation's mission to enhance the tyre recycling supply chain and foster the growth of innovative markets for recycled tyre materials.

TRF, a joint initiative led by the U.S. Tire Manufacturers Association and the Tire Industry Association, aims to drive circularity and sustainability in the US tyre recycling industry. Wiener joins a board of global industry leaders dedicated to securing funding and allocating grants for critical research and demonstration projects.

Apollo Tyres Chairman Onkar S. Kanwar has said the company remains focused on disciplined execution, sustainability and long-term value creation as it navigates geopolitical uncertainty, changing trade dynamics and a challenging global business environment.

Addressing shareholders at the company's 53rd Annual General Meeting (AGM), Kanwar said FY26 had been a year that tested businesses worldwide, but Apollo Tyres had continued to strengthen its financial performance while investing for future growth.

"The future is not something we inherit. It is something we create through the choices we make every day," Kanwar told shareholders, quoting Mahatma Gandhi's observation that "The future depends on what we do in the present."

Apollo Tyres reported consolidated revenue of INR 284.71 billion for FY26, crossing the INR 280 billion milestone, while operating profit rose to INR 41.43 billion. Kanwar said the company's focus extended beyond financial performance to improving capital efficiency, operational discipline and profitable growth.

"Every important decision we take is driven by one simple question: Are we building a stronger company for tomorrow?" he said.

Kanwar also highlighted the company's efforts to strengthen the Apollo Tyres brand through its association with the Indian national cricket team, describing the partnership as one that reflected Apollo Tyres' values of resilience, determination and excellence rather than merely serving as a branding exercise.

Sustainability remained central to the company's strategy, he said, noting that Apollo Tyres' greenhouse gas emission reduction targets had been validated by the Science Based Targets initiative (SBTi), reinforcing its commitment to achieving net-zero emissions by 2050.

The company continued to expand the use of renewable energy while improving responsible sourcing and resource efficiency across its operations, Kanwar said. "Sustainability is no longer a separate agenda for Apollo Tyres; it has become an integral part of how we innovate, manufacture and grow."

Kanwar credited employees for the company's performance, describing their commitment and adaptability as the foundation of Apollo Tyres' continued progress. He also acknowledged the support of governments and institutions across the markets where the company operates.

He singled out Hungary as a key manufacturing base in Europe, saying Apollo Tyres' plant at Gyöngyöshalász reflected the benefits of long-term collaboration with the Hungarian government.

Looking ahead, Kanwar expressed confidence in the company's growth prospects, citing India's expanding market opportunities and Apollo Tyres' international manufacturing and distribution footprint.

"Uncertainty will always be a part of business, but organisations that remain true to their values, continue to innovate and invest responsibly will be best placed to succeed," he said.

Thanking shareholders, customers, dealers, suppliers, financial institutions and government partners for their continued support, Kanwar said Apollo Tyres remained committed to building "a company that is stronger, more resilient and more responsible with every passing year."