After more than three decades in tyre recycling, Pliteq CEO Paul Downey argues that despite rising sustainability rhetoric, the industry’s core technologies and material flows have barely evolved. While perceptions of recycled materials have improved, real innovation, he said, has been slower, narrower and far more uneven than expected.

Paul Downey, Chief Executive Officer of Pliteq, has worked in end-of-life tyre recycling since 1990. In that time, he expected major breakthroughs in pyrolysis and tyre-to-tyre recycling. He says they never came.

“When you look at pyrolysis, that hasn’t really changed in 30 years,” Downey said in an exclusive interview with Tyre Trends. “When you look at the use of rubber back into tyres, still a very small percentage of waste tyres goes back into new tyres,” he added.

Despite more money, more participants and more attention on recycling, he describes the sector as remarkably static. These, he said, were the areas where he expected research and to unlock scale. “Frankly the needle hasn’t moved very far in all those years. I’ve only seen very, very small changes in the last 30 years,” Downey noted.

One reason is energy. “Tyres take a tremendous amount of energy to grind up. So, you still need a lot of energy. Energy challenges are going to be an ongoing issue,” he said, pointing to wider stress on energy infrastructure.

That energy intensity affects both mechanical recycling and pyrolysis, where tyres are broken into oil, gas and carbon black. While refining recovered carbon black has long been studied, Downey says progress has been limited.

“You can refine the carbon black to make it more useful by tyre companies in terms of not degrading the quality of the finished tyre,” he said, adding that this has been researched for decades without dramatic improvement.

Pyrolysis remains minor in North America with a significant share of tyres still used as tyre-derived fuel. Downey divides end-of-life tyre use roughly into thirds viz-a-viz moulded goods, tyre-derived fuel and applications such as rubber-modified asphalt, which he says has also seen limited uptake since 1990.

After university, Downey joined a company that was already working with tyre manufacturing waste with materials that could not be used in new tyres due to quality deviations.

“When you produce a tyre, about two to three percent of the materials are off-spec. These materials can’t be used to make a tyre, so that becomes waste. That waste, combined with ELTs, was processed into noise and vibration products, primarily for automotive, heavy truck, and off-the-road vehicle applications,” he explained.

“This was back in the early 1990s. The original use was non-tyre. It was mostly in the noise and vibration space for vehicles,” Downey said.

In 1998, after developing multiple patents in Canada and the United States, Downey founded his own company. Initially, the business model revolved around licensing those patents to manufacturers, largely in the US. Over time, that approach evolved. “When I formed Pliteq, I stopped doing the licensing. All of the patents are now being used by the company,” he said.

FROM PATENTS TO PLITEQ

Today, Pliteq focuses on manufacturing finished products rather than licensing technology. The company produces sound and vibration control materials, insulated floor mats and building products made from recycled ELT rubber. Its applications range from isolating vibration caused by subway and railway lines to managing noise and vibration from HVAC systems, pumps, compressors and mechanical rooms in buildings.

“We’re looking at all the places in or around a building under construction where rubber could be used,” Downey explained.

Asked what has changed in the tyre recycling industry over the last 30 to 35 years, Downey’s answer is candid. “Remarkably, little has changed,” he quipped.

While markets for recycled tyres have expanded, the underlying technologies and material flows remain largely the same. Pyrolysis, often cited as a future solution for ELTs, has not progressed as dramatically as expected. “That hasn’t really changed tremendously in 30 years,” Downey noted.

Similarly, efforts to put recycled rubber back into new tyres have seen limited success. “There have been some efforts by major tyre companies but still a very, very small percentage of waste tyres goes back into new tyres. Those were areas where I thought there was a lot of potential for research, but the needle hasn’t moved very far,” he said.

Where the industry has evolved more meaningfully is in moulded goods. “That’s where we’ve seen the most development,” Downey said, pointing to sound and vibration products, underlayments and recycled rubber flooring used in schools, hospitals, gyms and fitness facilities. In North America, he estimates that moulded goods account for roughly one-third of ELT usage.

Another third of ELTs is used as tyre-derived fuel, while the remainder goes into applications such as rubber-modified asphalt, an area Downey says existed in 1990 and has not seen significant market uptake despite ongoing research.

CHANGING PERCEPTIONS

One of the most significant shifts Downey has witnessed is not technological but cultural. “When I started, recycling was a bad word. People didn’t want to buy recycled products because they thought it was garbage,” he said.

That perception has changed substantially. Today, architects, builders and developers show strong interest in sustainable materials, particularly in construction. While Downey does not attribute this shift directly to regulation, he acknowledges a broader market preference for sustainability.

“Now people don’t view recycling as inferior. That attitude has definitely changed over the last 30 years,” he said.

Moreover, public scrutiny around recycled rubber has intensified in recent years, particularly regarding the use of crumb rubber in athletic fields. Downey addressed these concerns directly, referencing studies he has reviewed.

“I haven’t seen any research that shows a correlation between crumb rubber and health issues. The Synthetic Turf Council conducted a multi-year study that showed exactly the opposite,” he said.

In Downey’s view, the primary concern around crumb rubber is environmental rather than medical. “It’s a powder. Potentially, it can wash away into the water supply,” he said.

Pliteq, however, is not active in the turf infill market. “We don’t sell crumb into athletic fields. We strictly manufacture moulded goods for sound control, vibration isolation, flooring and building products,” Downey clarifies.

SCALE AND FOOTPRINT

Pliteq operates offices in seven countries and sells into approximately 50 markets worldwide. Its main manufacturing facility is located in Canada, supported by two smaller plants in United States. Collectively, these facilities produce about 44,000 metric tonnes of finished products annually.

To achieve this output, Pliteq consumes roughly 60,000 metric tonnes of ELTs. “We don’t use the steel or textile,” Downey explained, referring to the components removed during tyre processing.

The company sources tyres primarily from North America, tapping into a collection network that has been established over the past three decades. ELTs are categorised into three distinct groups viz-a-viz passenger and light truck tyres, heavy truck tyres and mining or off-the-road tyres, each with different rubber compositions and properties.

“We keep those three categories separate. The amount and type of rubber are quite distinct,” Downey said.

Pliteq’s patents focus on application and use rather than core processing technologies. Beyond patents, the company relies heavily on proprietary know-how. “We have a number of trade secret processes that we don’t disclose,” Downey said.

These include particle selection, tyre source selection, screening, cleaning, formulation, mixing and moulding. “We do things in a way that nobody else in the world is doing. That allows us to achieve certain quality levels, surface finishes and performance characteristics that aren’t generally available,” he says.

Quality control is embedded throughout the manufacturing process. Downey estimated that each product passes through around seven distinct quality checks, supported by machine operators, automated systems and visual inspections. Any waste generated during production is reprocessed and reused, reinforcing a closed-loop manufacturing approach.

Pliteq operates a hybrid business model. Technology development, product design and manufacturing are largely centralised, while sales, warehousing and distribution are managed regionally. This structure allows the company to adapt products to local market needs.

“Some markets have very distinct requirements. What’s needed in UK might not be required in Singapore, Australia or US,” Downey said.

THE ROAD AHEAD

Looking forward, Downey sees gradual rather than dramatic change. Energy consumption remains a major challenge as tyre grinding is energy-intensive. Broader issues such as energy infrastructure strain and shifting global trade patterns also weigh on the industry.

Despite these challenges, Pliteq continues to reinvest its earnings back into the business. “We’re on a growth curve. We reinvest all the money back into the company and into the markets,” Downey said.

The company is currently operating at around 80 percent capacity, a level Downey stated is close to optimal. Expansion will focus first on strengthening existing teams across its seven offices before opening new locations.

“We’ve built the manufacturing model so it can scale as demand grows. But we only put new facilities where the market can sustain them,” he said.

After more than three decades in the ELT space, Downey remains pragmatic. The industry may not have transformed as dramatically as once hoped, but in moulded products and building applications, Pliteq continues to carve out a space where recycled tyres deliver measurable performance and growing acceptance in the built environment.

Nokian Tyres has announced the promotion of Tiina Frazer to Senior Vice President of Brand, Marketing and Communications, effective 1 August 2026. In addition to her new executive role, she will join the company’s Management Team, operating from the headquarters in Helsinki, Finland, and reporting directly to President and CEO Paolo Pompei.

Frazer originally joined the Finnish tyre manufacturer in September 2025 as Vice President for the same functional area. Her professional background includes a tenure as Vice President of Brands and Marketing at HKFoods Finland Oy, along with prior senior leadership roles at Lumene, Roche Pharmaceuticals and Fiskars, bringing extensive cross-industry experience to her expanded responsibilities.

Paolo Pompei, President and CEO, Nokian Tyres, said, “I am delighted to welcome Tiina to the Nokian Tyres Management Team. Her experience in building impactful brands make her an excellent addition to our team as we continue to strengthen our premium position in our key markets.”

Fornnax Technology has taken a decisive step to strengthen its European footprint by formalising a service partnership with industry veteran Lukas Baur of NOBA Maschinenservice. The agreement, ratified by company CEO Jignesh Kundaria, transitions the Indian manufacturer’s support model from remote coordination to an on-the-ground operational presence. This strategic alignment is designed to address the growing demand for immediate technical intervention across the continent’s recycling sector.

Based in Worbis, Germany, Baur commands a fully integrated service infrastructure that includes a 1,000-square-metre workshop fitted with a 5-tonne crane system, a dedicated hydraulic bay and specialised tooling for bearing replacements. His mobile response unit comprises 12 Mercedes Sprinter vans and a workforce of 24 certified technicians, enabling rapid deployment across a 1,000-kilometre radius. This setup guarantees that Fornnax customers can expect emergency assistance within 24 hours of a service call.

Baur’s professional history spans over 20 years of hands-on work with prominent shredder brands such as Eldan, Lindner and Vecoplan, giving him intimate knowledge of the operational challenges faced by European plant operators. His decision to join forces with Fornnax was driven by the manufacturer’s distinctive combination of competitive pricing, rugged construction and advanced wear-resistant engineering. He recognised that the current market turbulence – marked by tight margins, postponed capital expenditures and a dwindling labour pool – demanded a partnership capable of delivering both technical depth and logistical speed.

Under the new arrangement, Baur assumes full responsibility for the entire equipment lifecycle, covering system commissioning, scheduled upkeep, urgent breakdown recovery and the supply of mechanical, hydraulic and electrical components. He has also expressed a long-term vision to transform his Worbis facility into a regional spare parts consolidation centre, particularly if Fornnax opts to stock inventory at that location. To match anticipated growth, he plans to augment his fleet and technician count by two to three units annually.

This collaboration signals Fornnax’s broader commitment to building a dedicated European service network rather than relying on generalized support structures. With Baur’s proven capabilities now formally integrated, the company aims to deliver faster resolution times and technically nuanced assistance that aligns with the high-throughput demands of modern recycling operations. The partnership ultimately positions Fornnax as a formidable contender in the European shredding equipment landscape, with service excellence as its cornerstone.

Jignesh Kundaria, Director and CEO, Fornnax, said, "We strongly believe that by continuously improving our service quality and customer satisfaction index, we can build long-term relationships with our customers. Higher customer satisfaction leads to greater trust, which significantly increases repeat orders and ultimately drives sustained growth in our sales revenue."

Apollo Tyres is accelerating investments in manufacturing technology, artificial intelligence and international expansion as the company seeks to strengthen its position in premium tyre markets while expanding its global production footprint.

The tyre maker said its long-term strategy, branded Momentum 2.0, is centred on financial discipline, product premiumisation, manufacturing expansion and sustainability, following a year in which it outperformed the industry across several segments and delivered strong international revenue growth.

The company has reinforced its global manufacturing network, operating six manufacturing facilities across India and Hungary and two global R&D centres in Chennai and the Netherlands. Its products are now sold in more than 100 countries, supported by continued investments in research, development and an expanding global distribution network.

Apollo is also increasing investment in digital manufacturing, describing technology as a key driver of future competitiveness. During FY26, the company rolled out its Advanced Manufacturing Execution System (AMES) across major manufacturing plants, enabling real-time production monitoring, end-to-end traceability and greater integration between factory operations and enterprise systems.

To accelerate digital transformation, Apollo established a dedicated AI Innovation Unit that is developing artificial intelligence and machine-learning applications for manufacturing, engineering and business operations. The company said generative AI and agentic AI assistants are being deployed to improve simulations, operational planning and enterprise-wide decision-making, positioning AI as a core element of future factory operations.

Research and development remains another strategic investment priority. Apollo said it invested INR 460.87 million in R&D during FY26 while establishing advanced DoJo Centres at its Chennai and Andhra Pradesh facilities to strengthen engineering capabilities and accelerate product innovation.

International manufacturing continues to underpin Apollo's export ambitions. The company's Gyöngyöshalász plant in Hungary has become a strategic hub for serving European markets, allowing Apollo to manufacture closer to customers while strengthening supply-chain resilience amid evolving global trade dynamics.

Management said Europe remains a key growth market, particularly in premium passenger car tyres, while North America offers opportunities through higher-value products. During the year, Apollo expanded its dealer network by adding more than 250 dealers across the United States and Canada, strengthening distribution for the Vredestein brand and improving access to replacement markets.

Despite ongoing geopolitical uncertainty, energy price volatility and changing trade policies, Apollo said it would continue investing in innovation, operational efficiency and manufacturing excellence rather than slowing capital deployment.

Looking ahead, the company said it will maintain a disciplined capital allocation strategy while continuing investments in product innovation, brand building, manufacturing efficiency and digital transformation, with a strong focus on improving return on capital employed and supporting sustainable long-term growth in both domestic and export markets.

CEAT will invest about INR 12.05 billion to expand its manufacturing capacity by roughly 53,000 tyres a day over the next five years, as the RPG Group company prepares for sustained demand growth while reporting a weaker first-quarter profit.

The investment, which will be implemented in phases through the end of FY2031, will be financed through a mix of internal accruals and debt. The expansion comes as CEAT's existing manufacturing facilities are operating at around 95 percent capacity utilisation, with the company stating that production at its Nagpur two-wheeler tyre plant is approaching full utilisation. The additional capacity could be created through greenfield and/or brownfield expansion, depending on internal assessments.

The capital expenditure announcement accompanied CEAT's results for the quarter ended June 30, which reflected resilient revenue growth but pressure on profitability.

Standalone revenue from operations rose 18.2 percent year on year to INR 41.63 billion, from INR 35.21 billion a year earlier. However, net profit declined 27.4 percent to INR 980 million, compared with INR1.35 billion in the corresponding quarter last year. Profit before tax fell to INR 1.32 billion from INR 1.81 billion.

Material costs increased sharply to INR 28.80 billion from INR 22.39 billion a year earlier, reflecting continued input cost pressures, while finance costs and depreciation also rose. Total expenses increased to INR 40.46 billion, compared with INR 33.63 billion in the year-earlier period.