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Rubber Chemical Markets

Industry News


We track rubber chemical industry market trends using a wide range of industry sources. Optimum market insight is achieved by combining public information with RCCL's extensive range of confidential information which is pooled together using RCCL's proprietary database and reporting systems.

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February (2024)

Stomil Sanok: Acquires Teknikum Group  Link...

Sanok Rubber Company has agreed to acquire the Teknikum Group which operates four production plants in Finland and one production plant in Hungary. Teknikum's product portfolio includes specialized industrial hoses, including those for cleaning systems used in the mining industry, rubber compounds, molded products for technical applications, made of rubber, silicone and plastics and solutions to protect industrial equipment against wear and corrosion.


Thai Carbon: 2023 Q3 Results  Link...

Thai Carbon report in one segment: Carbon Black. Currency values reported in: Millions of THB

SegmentParameterPeriod20232022YoY, %Notes
Carbon BlackSales RevenueQ33295.02918.712.9
Carbon BlackDirect TotalQ32572.42690.4-4.4
Carbon BlackEBITQ3191.4-831.0123.0


Phillips Carbon Black Ltd: 2023 Q3 Results  Link...

Phillips Carbon Black Ltd (PCBL) produce furnace carbon black and also cogenerate electricity using the waste gas from the carbon black process. PCBL report in two segments: Carbon Black and Power, the Power segment sells back to the Carbon Black segment as well as supplying surplus electricity for external sale. All quarterly results are unaudited. Results are reported based for the period in question with no currency adjustments between reporting periods. Currency values reported in: Millions of INR

SegmentParameterPeriod20232022YoY, %Notes
Carbon BlackSales RevenueQ316149.613314.321.3
Carbon BlackEBITQ32524.01671.951.0
Carbon BlackSales Vol MTQ3136108.092000.047.9


Tokai Group: 2023 Q4 Results  Link...

Tokai Group: Volumes decreased slightly due to prolonged periods of production adjustments for TBR tires and weak demand for non-tire products.

Tokai Carbon Co Ltd operates in five reporting segments one of which is carbon black. Tokai carbon produce carbon black in Japan, Thailand and China. Tokai acquired Cancarb (which produces thermal carbon black) in 2014 and also acquired Sid Richardson (a furnace carbon black manufacturer with three US production facilities) mid 2018. RCCL tracks Tokai's carbon black segment. Currency values reported in: Millions of JPY

SegmentParameterPeriod20232022YoY, %Notes
Carbon BlackSales RevenueQ437292.035134.06.11
Carbon BlackEBITQ45378.03296.063.2


Cabot Corporation: 2024 Q1 Results  Link...

Cabot Corporation: Reinforcing: volumes up in Europe and Asia (+2% global), modest sequential volume improvements expected. EBIT improvements through favourable pricing and product mix from 2023 customer agreements. Performance: Volumes up 10% with sequential volume increase expected driven by seasonality.

Cabot Corporation operate in four segments: Reinforcement Materials, Performance Chemicals, Purification Solutions and Speciality Fluids. RCCL tracks performance in the Reinforcement Materials (rubber carbon blacks) and Performance Chemicals (specialist carbon blacks, plastic compounds, metal oxides). EBIT/EBITDA figures for carbon black in the performance chemical segment use RCCL estimates. RCCL also estimates performance for total carbon black based on annual results. Currency values reported in: Millions of USD

SegmentParameterPeriod20242023YoY, %Notes
Carbon BlackSales RevenueQ1851.0854.0-.41
Carbon BlackEBITQ1154.1115.433.5
Rubber BlackSales RevenueQ1641.0643.0-.32
Rubber BlackEBITQ1129.094.037.2
Rubber BlackSales Vol YoY %Q1102.095.07.43
Specialist BlackSales RevenueQ1210.0211.0-.54
Specialist BlackEBITQ125.121.417.2


Orion Engineered Carbons USD: 2023 Q4 & FY Results  Link...

Orion Engineered Carbons: Q4: Increased demand YoY in speciality and rubber (China). Revenue was flat due to lower pass through of oil prices, partially offset by improved pricing. Gross profit per MT down due to lower cogen pricing (European electricty pricing) and unfavourable product and geographic mix. FY: subdued demand in most markets excepting China. Lower revenue due to oil price pass through and volume, offset my contractual price increases. Gross profit increased due to negotiated contract pricing, offset by lower volumes and cogen revenue. Rubber Segment gross profit per MT increased due to contractual pricing. Speciality Segment gross profit per MT down due to geographic, product mix and cogen.

Orion Engineered Carbons manufactures furnace carbon black as well as thermal, gas, lampblack and acetylene blacks and is the third largest carbon black producer on a global basis. Orion reports results in two segments: Specialist and Rubber. Rubber Chemical Consultants tracks the two segments as well as the overall company results. Currency values reported in: Millions of USD

SegmentParameterPeriod20232022YoY, %Notes
Carbon BlackSales RevenueQ4468.2462.11.3
Carbon BlackadjEBITDAQ466.665.22.1
Carbon BlackEBITDAQ459.461.8-3.9
Carbon BlackEBITQ427.236.0-24.4
Rubber BlackSales RevenueQ4319.5315.81.2
Rubber BlackadjEBITDAQ449.240.322.1
Rubber BlackSales Vol MTQ4171300.0168400.01.7
Specialist BlackSales RevenueQ4148.7146.31.6
Specialist BlackadjEBITDAQ417.424.9-30.1
Specialist BlackSales Vol MTQ454900.046700.017.6


RCCL News:

Advanced Tire Chemical Market Demand Analysis - From Rubber Chemical Consultants Ltd  Link...

Rubber Chemical Consultants unique proprietary tire chemical market analysis system has been providing clients with in-depth market insights for the past 15 years. If you are interested in finding out more then please contact us.



Contact Us For Further Information »
Nokian Tires: Signs Purchase Agreement for Recovered Carbon Black (rCB)  Link...

Nokian Tyres has made a long-term purchase agreement with the tire recycling joint venture (JV), Antin Infrastructure Partners and Scandinavian Enviro Systems. The JV's first plant based in Sweden is expected to be fully operational by 2025 with deliveries to Nokian Tyres beginning in 2026.

Nokian Tyres started to use recovered carbon black in a commercial product line in 2022. The long-term purchase agreement with a tire recycling joint venture enables its increased utilization in tires accelerating circularity and sustainability in the tire industry.


Pyrum Innovations ESC GmbH: Construction of New Factory in Perl-Besch Scheduled for 2H 2024  Link...

The Perl-Besch municipal councel has approved the site development plan for Pyrum's new plant. This allows the start of detailed planning and the orderling of plant components with long lead times.

The plant in Perl-Besch (Saarland) is expected to be completed by the end of 2025 with a capacity of 20k MT ELT pa.


Birla Carbon: ISCC Plus Certification for US and Korean Plants  Link...

Birla Carbon's plants in Hickok, USA and Yeosu (South Korea) have secured ISCC Plus certification, this follows certification of Birla's Trecate, Italy plant last year.

Birla Carbon is actively pursuing ISCC PLUS certification for several other global plants. The certification process for two units in Brazil and three units in India, Spain, Egypt, and Hungary is underway, with the remaining sites slated for completion through the remainder of CY 2024.


Wabtec Rubber Products: Planning to Close Plant in Brenham  Link...

Wabtec is planning to close its rubber products plant in Brenham according to a WARN notice filed in January.


Pyrum Innovations ESC GmbH: Commissioning New Reactor at Dillingen Site  Link...

Pyrum Innovations AG has reported initial successes during commissioning of the new reactor 2 (TAD 2) at their main plant in Dillingen/Saar. Since the start of the second test drive on 30th Jan 2024, the throughput of the new reactor has been gradually increased to 75% of the output expected for future series production within a week. This means that industrial quantities of ELTs can already be processed in TAD 2 proving Pyrum's technology for large-scale rollout. More than 30k liters of oil have already been produced and are now being sampled in the laboratory before being delivered to BASF.

The plan is now to keep the throughput in TAD 2 at 75% to 80% over the next few weeks and to optimize the processes between the individual parts of the system. In the further course, TAD 3 is also scheduled to be ramped up to 80% by the end of March 2024, which means a tripling of current production capacities.


Trelleborg A.B.: Acquiring Baron Group A Global Leader in Liquid Silicone Rubber  Link...

Trelleborg Group, through its business area, Trelleborg Sealing Solutions signed an agreement to acquire Baron Group, a prominent Australian-Chinese company in the manufacturing of advanced precision silicone components for healthcare and medical applications.

The privately held company has its head office and two manufacturing facilities in Australia, as well as two additional facilities in China. The Australian manufacturing facilities are also active in several attractive industrial segments in addition to medical technology.


Trelleborg A.B.: Investing in New Healthcare & Medical Facility in Costa Rica  Link...

Trelleborg is investing in a new production facility in Costa Rica for medical technology solutions. The new facility will be established close to a number of international customers with operations in the region. On completion, the facility will offer a full product suite of engineered polymer solutions within healthcare & medical.

The state-of-the-art facility is being built in the city of Grecia, close to the port and an international airport, and a half-hour drive from the main cities in western Costa Rica. It will feature cleanroom production and be designed to meet stringent industry-specific standards for medical device manufacturing, as well as ensuring efficient and sustainable production processes. Sustainability will permeate the building, which will be Leadership in Energy & Environmental Design (LEED) certified.


Zeon Corporation: Obtains ISCC Plus Certification for Four Plants in Japan  Link...

Zeon Corporation has acquired ISCC PLUS certification for BR, HNBR, IR, NBR, E-SBR and S-SBR at four of its domestic production bases (Takaoka, Kawasaki, Tokuyama and Mizushima plants) with plans to extend the certificaiton to other products in the future.


Evonik Industries: Expanding Precipitated Silica Production at its Charleston, US Plant  Link...

Evonik is investing in a new precipitated silica production line at its Charleston, US plant to satisfy high demand, particularly in the tire industry. The group is investing a mid-double-digit million Euro amount. The construction of the new production line is scheduled to begin in mid-2024. Operations will start in early 2026. With the new line in Charleston, the company will increase its production capacity for precipitated silica at the site by 50 percent.


Gabriel-Chemie Group: Expanding Capacity in Hungary  Link...

Gabriel-Chemie has announced the commencement of a substantial expansion project at its Nyíregyháza, Hungary production facility. This includes warehousing, office space and additional production lines (unspecified). The project is expected to be complete by end of 2024.


RCCL Analysis: Reference Pricing for EU Produced Furnace Carbon Black January 2024  Link...


Rubber Chemical Consultants Ltd (RCCL) has been analysing the furnace carbon black market since 2009. During this time a detailed contract market pricing model has been developed based on knowledge of production process economics, raw material input and changing market dynamics. This has allowed RCCL to track historic and current pricing for a range of furnace carbon black products. Future pricing is predicted based on the average of the last 3 months variable costs incorporating annual increments and projected increases in the fixed cost, SGA and shipping components. This system has proven particularly useful for future pricing where clients have provided their own confidential variable cost assumptions (treated in strictest confidence by RCCL).

Model predictions have been verified by independent confidential pricing sources.


furnace carbon black reference pricing january 2024

About Rubber Chemical Consultants Ltd

Rubber Chemical Consultants has been providing client specific analysis since 2009. We specialise in carbon black and its markets as well as rubber chemicals and the Tire and MRG markets.


Please Contact Us For Further Information »
Henniges Automotive Inc: Closing Burlington, Ontario Plant  Link...

Henniges Automotive Holdings Inc. is closing its automotive sealings plant in Burlington, Ont., by the end of the year. Henniges Automotive says it will consolidate its operations to existing facilities and expects no disruption in supplying existing or future programs.


Arkema: Increased Capacity of Pebax® Elastomers at its Sequigny, France Plant  Link...

Arkema has started its new Pebax® elastomer unit at the Serquigny plant in France. Designed with the latest advancements in industrial processes, the unit can produce both the bio-circular Pebax® Rnew® and classical Pebax® elastomer ranges.

The materials are used extensively in sports equipment such as running shoes, soccer shoes and ski boots, but also in electronic devices, and other specialty markets such as antistatic additives and medical devices.


Continental Rubber Group: Enhancing Speciality Tire Production in Sri Lanka  Link...

Continental is enhancing local pre-production capacities at its Kalatura, Sri Lanka plant enabling it to produce material handling tires self-sufficiently, thereby reducing cross-country supply chain dependencies. The investment of 13 million Euro will enable further growth for the material handing business.


January (2024)

Orion Engineered Carbons: Completes EPA-Mandated Air Emissions Control Upgrades  Link...

Orion has completed upgrading its air emissions control technology at all four of its U.S. carbon black plants – the biggest sustainability-related initiative in the company’s history. The company recently finished its final air emissions project at its plant in Belpre, Ohio. Previously, the company upgraded its Borger, Texas; Ivanhoe, Louisiana; and Orange, Texas, facilities.


Yokohama Rubber: Expanding Production Capacity at its Philippines Plant  Link...

The Yokohama Rubber Co., Ltd., is expanding the production capacity of Yokohama Tire Philippines, Inc. boosting the production of PC tires by 1800 tires/day .In addition to expanding capacity of tire sizes currently being produced, the planned expansion will include a new line that will expand YTPI’s size lineup to 21- and 22-inch tires. Expansion work is set to commence in the second quarter of 2024, and the new lines are expected to be fully operational from the second quarter of 2026 when YTPI marks its 30th founding anniversary.

Yokohama Rubber’s consumer tire business is endeavoring to increase sales of high-value-added YOKOHAMA tires, including the global flagship ADVAN brand, the GEOLANDAR brand of tires for SUVs and pickup trucks, winter tires, and 18-inch and larger tires. Toward that end, Yokohama Rubber is strengthening its tire development, production, supply, and sales operations in each region to support its effort to expand sales of tires tailored to meet the specific needs of each market.


RCCL Analysis: Carbon Black Manufacturers Performance Update January 2024  Link...


Rubber Chemical Consultants Ltd (RCCL) tracks financial data for the main publically listed carbon black manufacturers. This information is used to crosscheck market demand data generated from our Global Tire & Rubber Chemicals Database (GTRCD©) which uses independent market demand drivers for the main market sectors (Tire, MRG, Plastics and Others).

Manufacturer’s financial data, combined with knowledge of each manufacturer’s operations and products also allows for additional analysis and understanding of manufacturing and market trends. Examples of this include product differentiation and evolving trends in volumes and pricing.

The high level data presented in this article allows for general trend analysis.


Sales Volumes

Figure 1 presents annual sales volumes for selected carbon black manufacturers representing approximately 40% of the global carbon black market. These manufacturers cover all the major global regions thereby providing a reasonable approximation for global demand. The data indicates that 2021 volumes returned to levels similar to 2019, however, there has been a downturn in 2022 and a flattening of volumes in 2023. There is significantly more complexity to the underlying regional and country based data which can be discussed on a client basis.

Figure 1 – Annual Sales Volume for Selected Carbon Black Manufacturers 2011 to 2023
carbon black sales volume by manufacturer

Average Selling Prices

Figure 2 presents the average selling price in USD/MT for same selected carbon black manufacturers. This information shows some important differences between manufacturer’s capabilities and modes of operation as well as general market trends. Orion Engineered Carbons is seen to have the highest average selling price, which is not surprising given Orion’s business focus on differentiated products and its extensive carbon black portfolio (furnace, thermal, gas, lamp and acetylene blacks). Jiangxi Black Cat Carbon Black represents the other end of the market with a focus on high volume, primarily rubber grade carbon blacks. The significant impact of feedstock pricing is seen in 2022 leading to significant price increases for all manufacturers.

Figure 2 – Average Selling Prices for Selected Carbon Black Manufacturers 2011 to 2023
carbon black average selling price by manufacturer

Margin Generation

Figure 3 presents EBIT divided by sales revenue for the same selected carbon black manufacturers. This data indicates that Cabot maintains the most consistent performance for operating margin as a percentage of sales. PCBL is seen to have made significant improvement in margin development which is a result of increasing its market share of specialist grades. Orion Engineered Carbons has been more significantly impacted by energy and feedstock prices with a large proportion of its specialist production based in Europe, this is combined by reduced demand for specialist products from end of 2021 through to 2023. Jiangxi Black Cat Carbon Black and China Synthetic Rubber Corporation (CSRC) are seen to have the lowest margin development, this is a result of volatile feedstock pricing and reduced demand.

Figure 3 – EBIT/SR for Selected Carbon Black Manufacturers 2011 to 2023
carbon black margin vs sales revenue by manufacturer

More Detailed Analysis

Significantly more insight can be provided on a client basis covering regional (country) market demand, pricing and industry developments. Please contact us for more details.


About Rubber Chemical Consultants Ltd

Rubber Chemical Consultants has been providing client specific analysis since 2009. We specialise in carbon black and its markets as well as rubber chemicals and the Tire and MRG markets.


Please Contact Us For Further Information »
Birla Carbon: Announces New Greenfield Expansions in India and Thailand  Link...

Birla Carbon has announced that it will build two new manufacturing plants to support the fast growing markets of India and Southeast Asia. The plants will be built in Niadupet, Andhra Pradesh, India and Rayong, Thailand and will both have an intitial capacity of 120 kMT to be operational in 2025 with potential future expansions to 240 kMT.

Previously announced brownfield expansion plans in Hungary, as well as, the post treatment facility expanding Specialty capacity at Patalganga, India, are progressing on plan.


Epsilon Carbon: Planning Integrated Carbon Complex in Odisha  Link...

Epsilon Carbon has signed a MoU with the Government of Odisha committing an investment of Rs 10k crores over 10 years to establish an integrated carbon complex in Jharsuguda, Odisha. The ICC project includes carbon black capacity of 300 kMTpa as well as 500 kMT of speciality carbon and 75 kMT of advanced materials.


Wacker Chemie AG: Planning New Production Site for Silicone Specialities in Czech Republic  Link...

Wacker Chemie AG is planning to expand its silicone specialities busines and operations in Europe. A new production silte for customised silicone compounds is to be built in Karlovy Vary in the Czech Republic. The expansion is required to support megatrends such as electromobility and renewable energies. The initial production of 20 kMTpa will focus on room-temperature curing speciality silicones with production scheduled for the end of 2025.

The raw materials required for production at Karlovy Vary - polymers, fillers and additives - are to be delivered from Wacker's Burghausen site. This initiative enables better usilisation of Wacker's plants with acceleration of process automation.


Metso: Discontinuing Rubber and Poly-Met Wear Parts Manufacturing in Trelleborg, Sweden  Link...

Metso has decided to discontinue the factory operations at it Trelleborg plant in Sweden. The factory operations in Trelleborg will be ramped down in stages from the beginning of the second quarter of 2024, with full closure expected in the third quarter.

European rubber and Poly-Met customers will be mainly served by Metso’s factory in Lithuania, where production capabilities will be further strengthened. ​After the closing of the factory in Trelleborg, Metso will have rubber and Poly-Met factories in Mexico, Chile, Brazil, Peru, India, Lithuania, and Australia.


Goodyear: Introduces Electricdrive™ 2 PC Tire with > 50% Sustainable Materials  Link...

Goodyear has unveiled the latest tire in its ElectricDrive™ family: The Goodyear® ElectricDrive™ 2, an all-season electric vehicle tire enhanced with sustainable materials, improved rolling resistance and long-lasting tread life to maximize drivers’ EV performance. The new ElectricDrive™ 2 is the latest step in Goodyear’s sustainability initiative and contains at least 50% sustainable materials per tire by weight.


PPG Industries: Reviewing Strategic Alternatives for Silica Products Business  Link...

PPG has engaged Morgan Stanley & Co. LLC as financial advisor to assist in a review of strategic alternatives for its silica products business. The business operates within the company’s specialty coatings and materials strategic business unit, and manufactures and supplies precipitated silica products to major manufacturers around the world as performance-enhancing additives. In 2023, the silica products business represented between 1-2% of PPG’s total net sales.

PPG expects to complete the review of strategic alternatives by mid-2024.

The silica products business is led by about 350 employees and manufactures products through dedicated facilities in Lake Charles, Louisiana and Delfzijl, The Netherlands. In addition, there is small batch processing at a portion of a PPG facility in Barberton, Ohio and part of a PPG facility in Monroeville, Pennsylvania that includes a laboratory, pilot plant, and the leadership and administrative team offices for the business. Key end-uses include tire, industrial and silicone rubber applications; microporous fillers for battery separators; free-flow and carrier agents for food, animal feed, and agricultural and industrial chemicals; and flatting, thickening and anti-corrosion additives for paints and coatings.


December (2023)

China Synthetic Rubber Corporation: 2023 Q3 Results  Link...

China Synthetic Rubber Corporation (CSRC) manufacture furnace carbon black, biotech and electronic products. Rubber Chemical Consultants Ltd tracks the Carbon Black segment which accounts for approximately two thirds of CSRC's total sales revenue (2016). Currency values reported in: Millions of TWD

SegmentParameterPeriod20232022YoY, %Notes
Carbon BlackSales RevenueQ34509.86110.9-26.2
Carbon BlackEBITQ3-102.6315.5-132.5


Bridgestone: Completes Sale of Russian Assets to S8 Capital  Link...

Bridgestone has completed the sale of its tire manufacturing plant in Ulyanovks, together with its sales and marketing office in Moscow, to S8 Capital, a Russian diversified holding company. The sale follows suspension of all manufacturing activities in March 2022.


Sailun Co: Joint Venture Tire Plant for León, Mexico  Link...

Sailun has signed a JV agreement with TD International Holding for the construction of a 6 million pa capacity PC tire plant in León, Mexico. The project is expected to take 12 months to complete with a potential future expansion of 1.65 million TBR tires in the future.


Delta Energy: Shuts Down Natchez Operations  Link...

Delta-Energy Natchez LLC has shut down its operations and laid off most of its employees and is auctioning off equipment from the facility. Bridgestone Americas and majority owner Castleton Commodities are also partners in the business, with Castleton deciding to get out of the business. There is interest via other entities in acquiring the business for continued operation, this is contingent on the current equipment not being sold to multiple parties.


RCCL Analysis: Part V - Furnace Carbon Black European Supply & Demand  Link...


Introduction

This article provides an update to changing furnace carbon black supply and demand patterns in Europe. Rubber Chemical Consultants’ (RCC) last update for this was back in mid-2022 and dealt with historic and near-term changes. This article focuses on historic and future scenarios to 2030 providing a high-level view. Significant underlying complexities are not covered but can be discussed on request.

The recent European supply and demand situation has been complicated by the impact of COVID and the Russian invasion of Ukraine. The former created a significant ‘dip’ in activities during 2020, while the latter is still having a major impact on both the level of activity and supply mix. The final impact on supply mix and activity will not be resolved until after the EU ban on Russian carbon black is fully implemented mid-2024.


Current and Historic Perspective

The European furnace carbon black market is supplied by domestic production from three major producers (Cabot, Birla and Orion) and imports, which until recently were primarily from Russia (Omsk and Yaroslavl). The import volume has typically served over half of the domestic market requirement.

Figure 1 presents EU total imports split by main importing countries for the past five years. The impact of COVID is clear in the 2020 data with a sharp dip in volumes. This is followed by significant changes in import patterns and volumes starting mid 2022 as a result of the Russian invasion of Ukraine. The large increase between May and August 2022 is due to build-up of safety stocks of alternative suppliers, this is then followed by a settling period with a significantly lower level of monthly volumes. When referencing this reduced volume with historic patterns presented in Figure 2, it is apparent that import demand has reduced significantly in 2023. This volume is reduced even when making allowances for the approximately 80 kMT of additional volume between May and August 2022.

Figure 1 – HS2803 Import to Europe by Country Jan 2019 to September 2023
eu_hs2803_imp_2019_2023_country

Source Eurostat and UK trade data. Europe is EU27 + UK.

Figure 2 – HS2803 Import to Europe from Extra 2011 to 2023
eu_hs2803_imp_2011_2023_total

Source Eurostat and UK trade data. Europe is EU27 + UK.

It is worth considering the historic impact of Russian furnace carbon black on the European domestic supply base. Historic import volumes are presented in Figure 3. There is a very clear inverse correlation between European domestic supply capacity and the increase in Russian imports which was explored in RCC’s first article back in March 2022. It is clear that capacity is easily lost and much harder to bring back, a consideration also for the European market demand for furnace carbon black which is closely tied to the requirements of the tire industry. This aspect is explored in the potential scenario post 2023.

Figure 3 – HS2803 Import to Europe from Russia 2000 to 2023
eu_hs2803_russian_imp_2000_2023

Source Eurostat.


Market Demand Patterns

The majority of furnace carbon black domestic demand is for the tire industry with an historic bias towards imports due to cost reasons. In order to make forward predictions it is therefore necessary to understand movements in the tire industry. A useful indicator is import minus export (IE) volumes for passenger car (PC) and truck and bus radial (TBR) tires.

Figure 4 presents PC tire import and export volumes as well as the IE balance. This shows that this balance is slightly in favour of domestic producers. Figure 5 presents TBR IE balances which are in favour of importers. This shows a weakness for European TBR producers, which has impacted some recent tire plant closure decisions.

Due consideration must also be given to the prevailing tire market conditions in Europe which have been impacted significantly by current economic and political issues. The current replacement tire market is extremely subdued which is having an impact on furnace carbon black demand. This is also looked at more closely in the potential scenario below.

Figure 4 – PC Tire Import & Export for Europe from Extra
eu_pc_import_export_2011_2023

Source Eurostat and UK trade data. Europe is EU27 + UK.

Figure 5 – TBR Tire Import & Export for Europe from Extra
eu_tbr_import_export_2011_2023

Source Eurostat and UK trade data. Europe is EU27 + UK.


RCC Potential Scenario Post 2023

Historic and forecast market demand and supply balances are provided in Table 1. Market demand is based on furnace carbon black market requirements providing the total for the underlying segments (Tire, MRG, Plastics, Other) and is modelled using the GTRCDB© which incorporates the key market drivers for each of the segments. Total import data (HS2803) and export data is provided along with Russian import volumes. It should be recognised that EU export volumes have a higher proportion of specialist carbon black content. Domestic European capacity is for furnace carbon black and represents nameplate capacity which must be adjusted depending upon the grade mix. Domestic European market supply is estimated from total demand minus the difference in import minus export. Utilisation is the sum of supply and export divided by capacity.

Drawing on the experiences of the furnace carbon black industry from 2005 to 2015 and the impact of Russian imports: a similar scenario1 is envisaged for the European tire industry with imports from other low cost regions making up the supply difference. It is likely that the impact will extend beyond the Tire segment into the MRG, Plastic and other more specialist segments. For this particular scenario we will look only at impacts on the Tire segment.

The potential scenario looks at the transition requirements to zero Russian imports from mid-2024 representing an annual loss of approximately 250 kMT of import volume. This shortfall is offset versus additional threatened tire volumes (in addition to currently stated closures) and the assumption that new tire volumes do not come online. This provides a revised market demand and a new domestic supply total required to cover this demand. It can be seen that this revised market demand leads to very high European utilisation rates which are not considered realistic. Setting a target domestic furnace carbon black utilisation at 80%, then provides the required alternative imports needed to satisfy the market.

It can be seen that under this scenario the alternative import volumes are not too daunting, starting at 17 kMTpa in 2024 and rising to around 110 kMTpa for the following years. This additional volume should be easily accommodated by recent and future furnace carbon black capacity increases in the Middle East (Turkey, Saudi, UAE). RCC estimates that the potential changes in trade with Turkey due to the CSRC/OYAK joint venture plant will easily account for this volume.

NB: It should be noted that this is just one scenario according to RCC’s assumptions. RCC can accommodate analysis to alternative scenarios on request.

1DKG press release, 29th November 2023, also airs this concern.

Table 1 – Market Demand vs Supply Scenario 2019 to 2030, kMT
eu_furnace_carbon_black_supply_demand_analysis_2019_2030

Market and capacity data from RCC Global Tire & Rubber Chemical Database© (GTRCDB©.)
2023 trade data is pro-rated from September 2023 and is adjusted for UK trade.
Threatened tire volumes are for tire plants with historic issues and/or low priority products, this volume is in addition to already proposed tire plant closures. Tire expansions are proposed new builds or capacity increases which are assumed to not happen in the potential scenario.
Alternative import volume is the additional import volume required to cover the loss of Russian carbon black and maintain a domestic utilisation of 80% under the potential scenario.


About Rubber Chemical Consultants Ltd

Rubber Chemical Consultants offers fully independent market analysis and technical support for rubber chemical producers and end users. RCC has been active since 2009 having supported numerous Tire, MRG and Chemical companies with bespoke technical and marketing services. Please contact us if you have any requirements.


TOSAF Compounds: Opens Production Plant in Sweden  Link...

Tosaf has opened a production and service centre in Löddeköpinge, Sweden. The new plant can supply small and medium sized quantities of masterbatch and includes a laboratory.


WDK: Political Support Required for German Rubber Industry  Link...

The WDK is raising the alarm for the German rubber industry in view of the recently announced tire manufacturing site closures by two major tire manufacturers. The WDK's president stated "We now need massive political support in order not to see our national rubber industry move abroad".

Germany's energy policy framework is cited as a particular problem which combined with high-wages leads to lack of competitiveness, even within Europe. The movement of R&D departments is also a major concern due to loss of know-how. The exodus is also expected to spread to medium sized companies on a slightly longer time scale as they also have similar economic considerations but a higher location loyalty.


November (2023)

Michelin: Announces Decision to Restructure Operations in Germany  Link...

Michelin has announced its decision to gradually cease production at its Karlsuhe and Trier sites as well as the new tire and semi-finished production manufacturing at Homburg. The actions are set for completion by end of 2025. The decision is linked to growing competition of budget truck tires and lack of competitiveness of its German operation.


Hankook: Adding Truck and Bus Tire Production in Hungary  Link...

Hankook is planning to add TBR capacity to its Rácalmás, Hungary plant, investing approximately EUR 540 million in the project with target completion by 2027. The Rácalmás plant is estimated to produce 2,380 units of TBR products daily, with a total annual estimate of 800,000 units upon completion.


Thai Carbon: 2023 Q2 Results  Link...

Thai Carbon report in one segment: Carbon Black. Currency values reported in: Millions of THB

SegmentParameterPeriod20232022YoY, %Notes
Carbon BlackSales RevenueQ23288.53255.01.01
Carbon BlackEBITQ21058.21665.8-36.5


Orion Engineered Carbons: Celebrates Opening of 2nd Plant in China  Link...

Orion has celebrated the opening of its new plant located in the city of Huaibei, Anhui province, China. The plant has 2 production lines with a total capacity of 70 kMTpa with production targetted at various segments including rubber, coatings, inks and plastics.


Goodyear: Rationalisation Plan for Closure of Fulda and Fürstenwalde Plants in Germay  Link...

Goodyear is proposing to close its Fulda and Fürstenwalde plants in Germany as part of the company's Goodyear Forward strategic plan. The proposal replaces the previously announced plan to reduce production at Fulda by 50%. The new plan remains subject to consultation.

Goodyear expects to complete the closure of Fulda by the end of 2025 and of Fürstenwalde by the end of 2027. The Company expects these actions to improve EMEA’s segment operating income by achieving annual run rate savings of approximately $60 million by the end of 2025, $100 million by the end of 2026 and $120 million by the end of 2027.


Hexpol AB: Acquires Star Thermoplastic Alloys and Rubbers, Inc.  Link...

Hexpol has acquired TPE Compounder Star Thermoplastic Alloys and Rubbers, Inc. The acquisition is in line with Hexpol's growth strategy enabling it to enter the American TPE market through a well established company with a strong offering.


Tokai Group: 2023 Q3 Results  Link...

Tokai Group: Carbon black revenue up YoY based on increased sales prices through the year. Q3 values indicate softening market.

Tokai Carbon Co Ltd operates in five reporting segments one of which is carbon black. Tokai carbon produce carbon black in Japan, Thailand and China. Tokai acquired Cancarb (which produces thermal carbon black) in 2014 and also acquired Sid Richardson (a furnace carbon black manufacturer with three US production facilities) mid 2018. RCCL tracks Tokai's carbon black segment. Currency values reported in: Millions of JPY

SegmentParameterPeriod20232022YoY, %Notes
Carbon BlackSales RevenueQ337300.039621.0-5.91
Carbon BlackEBITQ35152.04201.022.6


Goodyear: Announces Transformation Plan  Link...

Goodyear has announced a transformation plan: Goodyear Forward, to optimise its porfolio and drive sustainable shareholder value. Key points of the plan from an operational viewpoint are:

  • Strategic Alternatives for its Chemical Business, the Dunlop Brand and OTR Tire business.
  • Cost Reductions looking at footprints, plant optimisation, purchasing, SGA, supply chain and R&D.
  • Optimisation of brand and tier positioning and rationalising SKUs in USMCA


Kolon Industries: 2023 Q3 Results  Link...

Kolon Industries reports operations in five segments. The Chemical Segment contains the company's hydrocarbon resin activities, where tire resins are a minor component. Rubber Chemical Consultants tracks the company results and the Chemical Segment results. Currency values reported in: Millions of KRW

SegmentParameterPeriod20232022YoY, %Notes
All SegmentsSales RevenueQ31183000.01259000.0-6.0
All SegmentsEBITQ322000.051000.0-56.9
All SegmentsNet MarginQ3-7000.031000.0-122.6
ChemicalsSales RevenueQ3220000.0260000.0-15.41
ChemicalsEBITQ317000.010000.070.0


Cabot Corporation: 2023 Q4 Results & FY2023  Link...

Cabot Corporation: FY 2023 results included: record EBIT in reinforcing materials driven by favourable CY2023 customer agreements in the face of a 5% volume decline due to prolonged destocking; Lower volumes in performance chemicals (except battery materials) due to an extended period of destocking and market weakness. Forward priorites include: Strategic investment in Battery Materials in US and EU; Expansion of reinforcement materials in Indonesia for Southeast Asia market growth; Debottlenecking of inkject capacity for packaging growth.

Cabot Corporation operate in four segments: Reinforcement Materials, Performance Chemicals, Purification Solutions and Speciality Fluids. RCCL tracks performance in the Reinforcement Materials (rubber carbon blacks) and Performance Chemicals (specialist carbon blacks, plastic compounds, metal oxides). EBIT/EBITDA figures for carbon black in the performance chemical segment use RCCL estimates. RCCL also estimates performance for total carbon black based on annual results. Currency values reported in: Millions of USD

SegmentParameterPeriod20232022YoY, %Notes
Carbon BlackSales RevenueQ4850.0950.0-10.51
Carbon BlackEBITQ4160.6145.210.6
Rubber BlackSales RevenueQ4624.0700.0-10.92
Rubber BlackEBITQ4134.0109.022.93
Rubber BlackSales Vol YoY %Q498.0104.0-5.84
Specialist BlackSales RevenueQ4226.0250.0-9.65
Specialist BlackEBITQ426.336.2-27.4


Lanxess: Selling Urethane Business Unit  Link...

Lanxess has initiated the sale of its Urethane Systems business unit. The unit is the last remaining polymer business within Lanxess and no longer fits with its strategic orientation. The unit has a global presence with 6 production plants.


Evonik Industries: 2023 Q3 Results  Link...

Evonik currently reports in four segments. The silica and silane activities reside in the Smart Materials segment which is tracked by Rubber Chemical Consultants. Currency values reported in: Millions of EUR

SegmentParameterPeriod20232022YoY, %Notes
Smart MaterialsSales RevenueQ31100.01259.0-12.61
Smart MaterialsadjEBITDAQ3135.0177.0-23.7


Arakawa Chemical Industries: 2023 Q2 Results  Link...

Arakawa Chemical Industries reports in four segments. Rubber Chemical Consultants tracks results for all segments as well as those for the Adhesive segment which contains products for the tire and rubber industry. Note: Arakawa's FY is April to March. Currency values reported in: Millions of JPY

SegmentParameterPeriod20232022YoY, %Notes
All SegmentsSales RevenueQ217373.020550.0-15.5
All SegmentsGross MarginQ22432.03465.0-29.8
All SegmentsEBITDAQ2416.0748.0-44.4
All SegmentsEBITQ2-993.0-135.0-635.6
AdhesivesSales RevenueQ26169.07525.0-18.0
AdhesivesEBITQ2-857.0-371.0-131.0


Quechen Silicon: 2023 Q3 Results  Link...

Quechen Silicon is the largest domestic precipitated silica producer in China. It has a strong focus on highly dispersible silica for tire applications. Quechen was floated on the Shenzhen stock market in December 2020. Currency values reported in: Millions of CNY

SegmentParameterPeriod20232022YoY, %Notes
Precipitated SilicaSales RevenueQ3472.7443.96.5
Precipitated SilicaEBITQ3130.9127.72.5


Jiangxi Black Cat Carbon Black: 2023 Q3 Results  Link...

Jiangxi Black Cat Carbon Black is China's biggest producer of furnace carbon black with capacity at just over 1 million metric tonnes. Rubber Chemical Consultants tracks Jiangxi Black Cat for total financial performance as well as performance in furnace black and precipitated silica production. Currency values reported in: Millions of CNY

SegmentParameterPeriod20232022YoY, %Notes
All SegmentsSales RevenueQ32370.02648.9-10.5
All SegmentsGross MarginQ389.748.784.4
All SegmentsEBITQ3-26.4-21.2-24.6


Longxing Chemical Stock: 2023 Q3 Results  Link...

Longxing Chemical Stock (second largest furnace carbon black producer in China) also produces chemicals and precipitated silica. Rubber Chemical Consultants tracks Longxing's furnace black and precipitated silica segments as well as quarterly company results. Currency values reported in: Millions of CNY

SegmentParameterPeriod20232022YoY, %Notes
All SegmentsSales RevenueQ31041.51198.5-13.1
All SegmentsGross MarginQ3121.192.730.7
All SegmentsEBITQ349.544.012.5


Jinneng Science & Technology: 2023 Q3 Results  Link...

Jinneng Science & Technology have an integrated chemical operation including coking, chemical production, coal tar deep processing, carbon black and silica production. RCCL follows Jinneng's full operational results (all segments) and studies individual carbon black and silica segment performance. Currency values reported in: Millions of CNY

SegmentParameterPeriod20232022YoY, %Notes
All SegmentsSales RevenueQ33699.05276.0-29.9
All SegmentsGross MarginQ3193.6180.37.3
All SegmentsEBITQ367.2100.8-33.3


Yongdong Chemical Industry: 2023 Q3 Results  Link...

Yongdong Chemical Industry is active in coal tar processing and carbon black production. Carbon black production includes reinforcing, conductive and pigment grades of carbon black. Currency values reported in: Millions of CNY

SegmentParameterPeriod20232022YoY, %Notes
All SegmentsSales RevenueQ31159.31231.6-5.9
All SegmentsGross MarginQ3108.339.6173.2
All SegmentsEBITQ374.03.32125.2


Orion Engineered Carbons: 2023 Q3 Results  Link...

Orion Engineered Carbons: Volumes flat with increases in China offset by lower volumes in EMEA and Americas. Gross profit down due to lower cogeneration and start-up of new facility in China.

Orion Engineered Carbons manufactures furnace carbon black as well as thermal, gas, lampblack and acetylene blacks and is the third largest carbon black producer on a global basis. Orion reports results in two segments: Specialist and Rubber. Rubber Chemical Consultants tracks the two segments as well as the overall company results. Currency values reported in: Millions of USD

SegmentParameterPeriod20232022YoY, %Notes
Carbon BlackSales RevenueQ3466.2543.1-14.2
Carbon BlackGross MarginQ3110.2114.4-3.7
Carbon BlackadjEBITDAQ377.380.5-4.0
Carbon BlackEBITDAQ373.678.8-6.6
Carbon BlackEBITQ345.743.45.3
Carbon BlackSales Vol MTQ3245200.0243300.0.8
Rubber BlackSales RevenueQ3315.8373.5-15.4
Rubber BlackGross MarginQ371.669.62.91
Rubber BlackadjEBITDAQ351.249.43.62
Rubber BlackSales Vol MTQ3185300.0191000.0-3.03
Specialist BlackSales RevenueQ3150.4169.6-11.3
Specialist BlackGross MarginQ338.644.8-13.8
Specialist BlackadjEBITDAQ326.131.1-16.14
Specialist BlackSales Vol MTQ359900.052300.014.55


Phillips Carbon Black Ltd: 2023 Q2 Results  Link...

Phillips Carbon Black Ltd: Commissioned 84 kMTpa capacity at the new Chennai plant - completing phase I.

Phillips Carbon Black Ltd (PCBL) produce furnace carbon black and also cogenerate electricity using the waste gas from the carbon black process. PCBL report in two segments: Carbon Black and Power, the Power segment sells back to the Carbon Black segment as well as supplying surplus electricity for external sale. All quarterly results are unaudited. Results are reported based for the period in question with no currency adjustments between reporting periods. Currency values reported in: Millions of INR

SegmentParameterPeriod20232022YoY, %Notes
Carbon BlackSales RevenueQ213541.615913.0-14.9
Carbon BlackEBITQ22045.11789.114.3
Specialist BlackSales Vol MTQ215574.010016.055.5


Solvay: 2023 Q3 Results  Link...

Solvay changed their reporting segments at the end of 2019. The new Chemicals segment now includes precipitated silica (along with soda ash and derivatives, peroxides and coatis), silica was previously in the Advanced Materials segment. Rubber Chemical Consultants track the Chemicals segment which includes Solvay's precipitated silica operations. Currency values reported in: Millions of EUR

SegmentParameterPeriod20232022YoY, %Notes
ChemicalsSales RevenueQ3908.01236.0-26.5
ChemicalsadjEBITDAQ3274.0311.0-11.9
Precipitated SilicaSales RevenueQ3133.0164.0-18.91


Cabot Corporation: Launches New REPLASBLAK™ Circular Black Masterbatch  Link...

Cabot has launched its new REPLASBLAK™ product family of circular black masterbatches with certified material. Part of Cabot's EVOLVE® Sustainable Solutions, the launch includes three products which will be sold as the company’s first-ever ISCC PLUS certified black masterbatch products:

  • REPLASBLAK rePE5475 100% circular black masterbatch leverages 100% ISCC PLUS mass balance certified material made from reclaimed carbons from end-of-life tire pyrolysis and mechanically recycled polyethylene. It delivers more than 60% GHG reduction in comparison to a standard black masterbatch and adheres to the ISCC PLUS voluntary add-on GHG emissions requirements. This medium tint product is targetted at the automotive, agricultural, packaging and construction markets.
  • REPLASBLAK rePE5265 70% circular black masterbatch leverages 70% ISCC PLUS mass balance certified material made from mechanically recycled polyethylene. It reduces GHG emissions by nearly 50% in comparison to a standard black masterbatch and adheres to the ISCC PLUS voluntary add-on GHG emissions requirements. This high gloss and high jet product is targetted at sheet extrusion applications in the automotive market.
  • REPLASBLAK rePE5250 60% circular black masterbatch leverages 60% ISCC PLUS mass balance certified material made from mechanically recycled polyethylene. It reduces GHG emissions by nearly 50% in comparison to a standard black masterbatch and adheres to the ISCC PLUS voluntary add-on GHG emissions requirements. This high tint product is targetted at the automotive market.


RCCL Analysis: Global Production Capacity of High Quality rCB 2011 to 2040  Link...


1. Introduction

The tire pyrolysis industry, while generally noble in cause, has had a difficult history. The first efforts in the 1960’s and subsequent decades through the 2000’s were generally driven by fluctuations in oil prices and paid little attention to final product performance for the resulting char. Between 2000 and 2018 various projects demonstrated the capability to deliver consistent recovered carbon black (rCB) and tire derived oil (TDO) products, however, the history of over-promising and under-delivering still plagued the industry making it difficult to gain a stable foothold in the market.

Since 2018, the shift in sustainable sourcing policies by tire companies, coupled with requirements for supply security, has been a game changer for the tire pyrolysis industry. This has driven cooperative development between tire producers, carbon black manufacturers and tire pyrolysis companies. While the investment climate remains difficult, this change has significantly increased the number of active and potential projects.

This article aims to analyse tire pyrolysis companies producing High Quality rCB (HQ rCB) as follows:

  • Actively Producing
  • Constructing New Production (New Lines or Plants)
  • Planning New Production with Designated Sites and Agreements

There are a substantial number of new projects where a specific location has not yet been designated, these are not covered in the analysis.

The objective of this exercise is to establish the potential manufacturing capacities for HQ rCB and also sustainable carbon black (sCB) produced from tire derived oil (TDO). The information is provided on a global basis, more detailed analysis on a regional level is necessary to understand potential issues with supply, demand and feedstock.


2. High Quality rCB Production Capacities

For this analysis, HQ rCB products are defined as those with reliable composition and consistency with the resulting char being milled and/or beaded by the producer or blended by carbon black manufacturers.

Figure 1 provides production capacities for HQ rCB from 2011 to 2040. The figure indicates a substantial build up in capacity (construction 125 kMTpa) from 2023 to 2027 from a baseline of 71 kMTpa and a further 183 kMTpa of planned capacity.

Build-up of announced capacities have been implemented in a phased approach which is more realistic than sudden step-wise capacity introductions. It is clear that many projects are taking longer to complete than anticipated, this will almost certainly impact the speed of capacity development (both under construction and planned) which may be overstated in this case.

Figure 1 – Global Production Capacity of High Quality rCB 2011 to 2040

global high quality rCB production

Source: Rubber Chemical Consultants Global Tire & Rubber Chemical Database (GTRCDB©)
Assumptions: New production lines are implemented in a phased approach.


3. TDO Based sCB Production Potential

HQ rCB is characterised as a semi-reinforcing grade for rubber applications, as such it is limited in use primarily as a blending filler with other semi-reinforcing rubber grades. In order to produce sustainable reinforcing carbon blacks, TDO can be refined to produce a suitable carbon black feedstock oil (CBO) which can be used in the furnace carbon black process to produce sCB. This approach can be utilised to produce drop-in sustainable replacement carbon black grades.

Figure 2 presents the global production potential for sCB based on increased levels of HQ rCB production. The volumes in this case are relatively modest when allowance is made for TDO refinement and the carbon black production process yield. Total potential sCB is about 135 kMTpa, this does not account for refinement of TDO via different routes into other products in the chemical industry and therefore represents the absolute maximum.

Figure 2 – Global sCB Production Potential from HQ rCB TDO Production

sCB production for HQ rCB TDO production

Source: Rubber Chemical Consultants Global Tire & Rubber Chemical Database (GTRCDB©)
Assumptions: Tire pyrolysis yields 35% rCB, 50% TDO, 15% gas. 50% of TDO is utilised as CBO with a 50% sCB product yield.


4. End of Life Tire Consumption

Figure 3 presents consumption of end of life tires (ELT) based on the anticipated increase in HQ rCB production. On a global basis the quantity of ELTs required is substantially below ELT arisings.

ELT consumption for HQ rCB Production

5. Market Demand

Efforts to standardise testing and quality related aspects of HQ rCB are leading to increased potential in a wide range of rubber and non-rubber related end markets. While the volumes discussed in Section 2 are modest in relation to the total carbon black market, it should be noted that the regional bias in volumes (both supply and demand) is certainly of significance. Further detailed discussion of these issues can be provided on request.


6. Future Expectations

The rate of announcement of new capacity developments is likely to increase substantially. The actual rate of new capacity implementation, however, is more questionable as there is a delicate balancing act between supply and demand as this technology develops. Given the history of this industry it could well be that the tortoise defeats the hare!


About Rubber Chemical Consultants (RCC)

RCC has been involved with tire pyrolysis since 2011 having focused on HQ rCB product development from process through to customer. ‘Hands-on’ experience was gained in actual production, pelletisation and drying having taken part in a number of trials leading to face-to-face meetings with top 10 tire customers.

RCC has a unique blend of technical and marketing skills and is dedicated to the rubber market (tires and rubber goods) with a detailed knowledge of applications and requirements.

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October (2023)

Bridgestone: Consolidating Tire Production in Thailand  Link...

Bridgestone has completed consolidation of its tire manufacturing footprint in Thailand. As a result, tire production has ceased at the Rangsit plant with PC production being consolidated into the Nong Khae plan (completed June, 2022) and TBR production being consolidated into the Chonburi plant (completed October 2023).


Pirelli Tires: Announces JV to Establish Tire Manufacturing Facility in Saudi Arabia  Link...

Saudi Public Investment Fund (PIF) and Pirelli Tyre have announced the signing of a JV agreement to build a tire manufacturing facility in Saudi Arabia. PIF will hold 75% with Pirelli holding 25% and acting as a strategic technology partner.

The plant is expected to start production in 2026 with a production capacity of 3.5 million tires pa. The JV will manufacture high-quality tires for passenger vehicles, under the Pirelli brand, and will also manufacture and market tires under a new local brand targeting the domestic and regional market. The total investment in the JV is around $550 million.


Michelin: Intends to Wind Down Tire Production at Its Ardmore, Oklahoma Site by 2025  Link...

Michelin is winding down tire production at its Ardmore site, with the intention of completing the process by the end of 2025 or sooner. Rubber mixing operations at the Ardmore site are expected to continue. Tire production will gradually shift to Michelin's other PC tire plants in North America.

Michelin point to the fact that North America's passenger vehicle market is changing rapidly and profoundly, meaning despite substantial investments into Ardmore the site is not equiped to deliver tires at competitive costs that will meet evolving market demands. Fundamental market conditions driving the decision are:

  • Dominance of light trucks and cross-over vehicles in North America requiring ever increasing tire sizes.
  • Transition of market to electric vehicles.
  • customers’ requirements for continual improvements in rolling resistance and other sustainable materials technologies.

Precise timing has not been determined for specific phases of the wind-down. Based on the current outlook for market demand, however, operations at the Ardmore plant are expected to continue trending gradually lower until mid-2024, when the first wave of staffing reductions will occur. Additional reductions are expected to occur in phases through 2025 as transition plans are finalized. Michelin’s rubber-mixing operations at the Ardmore plant supply other factories in North America. After tire-manufacturing activities wind down, these rubber-mixing operations are expected to continue for the foreseeable future.


Goodyear: Collaborating with Visolis for Isoprene Production Via Upcycling Materials  Link...

Goodyear and Visolis have announced a collaboration project between the two companies to produce isoprene through the upcycling of biobased materials. This collaboration is supported by a Small Business Innovation Research (SBIR) grant awarded to Visolis earlier this year.

Isoprene is a hydrocarbon that is typically generated as a by-product from refining crude oil. Isoprene units are polymerized into long chains using a catalyst to produce polyisoprene, which is used as a raw material in manufacturing tires and other items.

The Visolis and Goodyear collaboration will leverage Visolis' technology to produce high-quality isoprene from lignocellulosic feedstocks, which are non-edible biomass and agricultural materials.


Trelleborg A.B.: Divesting Czech Automotive Component Operation  Link...

Trelleborg has signed an agreement to divest a Czech operation in automotive components located in Hradec Kralove in Czech Republic. The operation develops and manufactures primarily antivibration solutions for the chassis and engines of automotive light and heavy vehicles which is no longer a core business for Trelleborg. The divestment is expected to be finalized during the fourth quarter of 2023.


Michelin: Considering the Future of One or More Tire Plants in Germany  Link...

Michelin has opened talks with union representatives at its plants in Germany that may result in the closing of one or more of the four Michelin plants in Germany. Initial indications are that Michelin is looking to withdraw from the production of truck tires in Germany, which would mean the closure of the Karlsuhe and Trier plants and a reduction in activities at the Homburg plant. Talks are ongoing.


Birla Carbon: Acquires Nanocyl  Link...

Birla Caron has completed the acquisition of Nanocyl SA, a worldwide leader in multi-wall carbon nanotubes (MWCNT’s) based in Sambreville, Belgium. The acquisition expands Birla Carbon’s presence in the Energy Systems market, with a focus on material critical to Lithium Ion battery performance along with other conductive applications. Nanocyl’s advanced MWCNTs enhances Birla's range of solutions for conductive applications, joining Birla's Conductex™ family of carbon black additives and active anode materials


Pyrum Innovations ESC GmbH: Construction of Fifth Pyrum Pyrolysis Plant Planned in Czech Republic  Link...

Pyrum Innovations is planning to build a Pyrum pyrolysis plant in the Czech Republic together with a Czech energy company. A consulting contract was signed with a subsidiary of the group of companies in order to prepare the approval for the construction of the tire recycling plant and to submit the building application. The new plant with a capacity of 20 kMTpa of used tires is being built in the Czech border region with Germany and is scheduled to start operations in 2025. The Czech partner, already operates a power plant on the property and therefore has a gas turbine that will be used to convert the pyrolysis gas into electricity in the future. This provides synergies for planning and implementing the new plant.


Denka: Establishing JV Company to Manufacture and Sell Acetylene Black  Link...

Denka has announced the establishment of a joint venture company to operate a business manufacturing and selling acetylene black jointly with SCG Chemicals Public Company Limited, a wholly owned subsidiary of The Siam Cement Public Company Limited, listed company in Thailand and to construct a plant for the production of acetylene black in Map Ta Phut, Rayong Province, Thailand.

Denka’s acetylene black is currently manufactured in three locations in and outside Japan. By establishing a new manufacturing base and constructing a plant with a 11 kMTpa capacity in Thailand, Denka will increase the stability of the supply of DENKA BLACKⓇ/ Li.

The final investment decision is reliant on approval by SCG's governing body, the decision is planned to take place by the end of 2023.


China Synthetic Rubber Corporation: 2023 Q2 Results  Link...

China Synthetic Rubber Corporation (CSRC) manufacture furnace carbon black, biotech and electronic products. Rubber Chemical Consultants Ltd tracks the Carbon Black segment which accounts for approximately two thirds of CSRC's total sales revenue (2016). Currency values reported in: Millions of TWD

SegmentParameterPeriod20232022YoY, %Notes
Carbon BlackSales RevenueQ24067.15509.1-26.2
Carbon BlackEBITQ2-293.47.6-3975.7


September (2023)

WDK: German Rubber Industry Under Pressure   Link...

The WDK press release for the H1 2023 indicates that the German rubber industry is coming under significant pressure due to large drops in demand. These drops applied to many sectors including: construction, manufacturing and to a greater extent in mechanical engineering and consumer products. Replacement tires have seen a drop of 15% YoY with replacement truck tires down 30%.


Cabot Corporation: Increasing Prices Globally for Specialty Carbon Blacks  Link...

Cabot is raising prices globally by up to 9% for specialty carbon blacks. The price increases are necessary to address higher costs associated with manufacturing relating to inflationary pressures, maintenance and environmental compliance costs. Increases are effective from November 1, 2023 or as contracts allow.


Covestro: Breaks Ground on New TPU Plant in China  Link...

Covestro has broken ground on its new Thermoplastic Polyurethanes (TPU) production site in Zhuhai, China. The new site will be built in three phases and is expected to achieve a maximum production capacity of 120 kMTpaf TPU after the final phase of expansion. Completion of the first phase is expected in 2025 with a 30 kMTpa capacity. The final phase is expected to be completed in 2033.

TPU is a versatile plastic material used in a variety of applications such as sports shoes, IT devices such as sweepers, smart speakers, phone cases, automotive applications like paint protection film or for the protection of wind turbine blades.


Wacker Chemie AG: Expanding Speciality Silicone Production in China  Link...

Wacker Chemie AG is expanding its speciality silicone manufacturing capacities at its Zhangjiangang plant in China. Construction of several new production lines has started for the manufacture of functional silicone fluids, silicone emulsions and silicone elastomer gels. Investments of some €150 million have been earmarked for the expansion project. The project has already received all necessary permits from local authorities. The new facilities are scheduled to come on stream in the second half of 2025.

Silicone emulsions and elastomer gels from WACKER are typically used in textile, cosmetic and personal-care applications, including skin creams, shampoos and fabric softeners. Here they keep makeup from staining clothing, reduce the negative impact that contact with water has on sunscreen protection, and allow moisturizers and night creams to remain pleasantly silky soft. Functional silicone fluids, on the other hand, are important starting materials for industrial applications such as impregnating or release agents. Other applications for silicone fluids include their use as additives for construction, paper, paints and coatings.

Zhangjiagang is one of WACKER Group’s largest fully integrated production sites. From here the company supplies rapidly growing Asian markets with a wide array of downstream silicone products such as sealants, elastomers, emulsions and fluids. Silicones from WACKER are used not only in traditional application areas, such as the textile, leather and fiber industries, and for chemical processes and coatings. They also play a key role in particularly innovative industries, such as electromobility, renewable power generation and medical technology.


Toyoda Gosei Co., Ltd: Dissolving UK Subsidiary  Link...

Toyoda Gosei Co., Ltd is dissolving its subsidiary in the United Kingdom, Toyoda Gosei UK Ltd. (TGUK), as a part of its restructure of the company’s earnings in its European business. Toyoda Gosei will now aim to grow its business in Europe centered on Toyoda Gosei Czech, s.r.o. (TGCZ).

The decision to close TGUK was made against the background of the changing business environment as automakers decrease or end production in the UK, leaving little expectation for growth in the business of TGUK. Manufacturing operations had been transferred to TGCZ and other companies, and production at TGUK ended in July 2023. Liquidation of TGUK is scheduled to be completed by around the end of 2024, affecting plants in Rotherham and Swansea which manufactured automotive parts (weatherstrip, interior and exterior).


Cabot Corporation: Enhances Cirularity and Traceability Via ISCC Certification  Link...

Cabot has achieved International Sustainability and Carbon Certification (ISCC) PLUS certification at six of its facilities. Sites currently certified include three reinforcing carbon facilities in Europe and the Americas as well as two masterbatch and compounding facilities* in Europe and the Company’s Europe, Middle East and Africa regional headquarters.

Cabot currently offers two ISCC PLUS certified products powered by EVOLVE® Sustainable Solutions, VULCAN® 7H-C circular reinforcing carbon and STERLING® SO-RC110 circular reinforcing carbon. These products are produced via a mass balance approach designed to trace the flow of materials through a complex value chain.


Pyrum Innovations ESC GmbH: Planning Recycling Plant in Greece with Thermo Lysi SA  Link...

Pyrum has signed a contract for the planning of a new facility in Greece along with Thermo Lysi SA. Pyrum will do all the planning necessary to obtain building permits under Greek law. The new facility will be sited 140 km north of Athens with a capacity of 20 kMTpa ELTs, this capacity is close to half the total tire waste arisings in Greece per year.


Orion Engineered Carbons: Investing In Project for Circular Carbon Black  Link...

Orion is investing 12.8 million Euro (including 6.4 million Euro funding from the German government and European Union) to further develop and demonstrate a climate-neutral process for producing carbon black from alternative sources.

The technology is designed to improve Orion’s yield and throughput in the production of carbon black using circular feedstocks and thus potentially reduce the carbon footprint of the process by a significant amount. This could accelerate the shift to a circular economy and feed the growing demand for sustainable materials in the tire industry. A research facility is being built for the project at Orion’s main innovation center at its plant in Cologne.


Continental Rubber Group: Using rCB in Solid Tires  Link...

Continental is using Pyrum's recovered carbon black (rCB) in its newly produced Super Elastic solid tires at its tire plant in Korbach, Germany. This supports sustainability initiatives which are gaining importance in the speciality tire segment where customers want to make their operating processes environmentally friendly, resource-saving and efficient.


RCCL News:

Filler Pelletisation Process Development and Support  Link...

Poorly specified pellets and pellet quality can have a significant influence on your final product's performance. Rubber Chemical Consultants can help develop your process and standard operating procedures to ensure you achieve and maintain customer approvals.



Contact Us For Further Information »
August (2023)

Quechen Silicon: 2023 Q2 Results  Link...

Quechen Silicon: Taking measures to overcome difficulties brought about by the economic downturn through cost control and implementation of its strategic plan. Through its strategic plan, Quechen is accelerating the creation of new production capacity in Thailand via a second phase expansion and intends to capture more of the international market. In addition, a biomass (rice husk) project is planed in Anhui where rice husk will be used for power generation and the resulting ash will be used as a product raw material.

Quechen Silicon is the largest domestic precipitated silica producer in China. It has a strong focus on highly dispersible silica for tire applications. Quechen was floated on the Shenzhen stock market in December 2020. Currency values reported in: Millions of CNY

SegmentParameterPeriod20232022YoY, %Notes
Precipitated SilicaSales RevenueQ2434.8445.3-2.4
Precipitated SilicaEBITQ2120.2138.7-13.4


Jinneng Science & Technology: 2023 Q2 Results  Link...

Jinneng Science & Technology have an integrated chemical operation including coking, chemical production, coal tar deep processing, carbon black and silica production. RCCL follows Jinneng's full operational results (all segments) and studies individual carbon black and silica segment performance. Currency values reported in: Millions of CNY

SegmentParameterPeriod20232022YoY, %Notes
All SegmentsSales RevenueQ23772.94306.7-12.4
All SegmentsEBITQ286.180.07.6
All SegmentsNet MarginQ277.750.255.0


Yongdong Chemical Industry: 2023 Q2 Results  Link...

Yongdong Chemical Industry: First half of 2023 was subject to large fluctuations in raw material prices.

Yongdong Chemical Industry is active in coal tar processing and carbon black production. Carbon black production includes reinforcing, conductive and pigment grades of carbon black. Currency values reported in: Millions of CNY

SegmentParameterPeriod20232022YoY, %Notes
All SegmentsSales RevenueQ21053.01159.5-9.2
All SegmentsEBITQ21.247.1-97.6
All SegmentsNet MarginQ2.240.0-99.5


Tyre Recycling Solutions: Signs MoU with LD Carbon for TyreXol™ Plant in South Korea  Link...

LD Carbon and TRS have signed a Memorandum of Understanding for the implementation of a first factory to produce TRS’ TyreXol™ rubber powders coming from the TRS Water Pulse™ process. The remainder of ELTs after TyreXol™ production is to be utilized by LDC to produce tire pyrolysis oil (“TPO”) and high-quality recovered Carbon Black (“rCB”).

The plant will process 25 kMTpa of ELTs yielding 5 kMTPa of TyreXol Water Pulse™ powder which has already been approved by global customers such as tire manufacturers.


Thai Carbon: 2023 Q1 Results  Link...

Thai Carbon report in one segment: Carbon Black. Currency values reported in: Millions of THB

SegmentParameterPeriod20232022YoY, %Notes
Carbon BlackSales RevenueQ13089.73243.5-4.71
Carbon BlackEBITQ11190.01332.9-10.7


Jiangxi Black Cat Carbon Black: 2023 Q2 Results  Link...

Jiangxi Black Cat Carbon Black is China's biggest producer of furnace carbon black with capacity at just over 1 million metric tonnes. Rubber Chemical Consultants tracks Jiangxi Black Cat for total financial performance as well as performance in furnace black and precipitated silica production. Currency values reported in: Millions of CNY

SegmentParameterPeriod20232022YoY, %Notes
All SegmentsSales RevenueQ22217.12806.7-21.0
All SegmentsEBITQ2-132.498.7-234.1
All SegmentsNet MarginQ2-135.757.8-334.8


Longxing Chemical Stock: 2023 Q2 Results  Link...

Longxing Chemical Stock (second largest furnace carbon black producer in China) also produces chemicals and precipitated silica. Rubber Chemical Consultants tracks Longxing's furnace black and precipitated silica segments as well as quarterly company results. Currency values reported in: Millions of CNY

SegmentParameterPeriod20232022YoY, %Notes
All SegmentsSales RevenueQ21036.71196.9-13.4
All SegmentsNet MarginQ243.947.7-7.8
All SegmentsEBITQ241.258.1-29.1


Orion Engineered Carbons USD: 2023 Q2 Results  Link...

Orion Engineered Carbons: Speciality carbon black had reduced volumes (>10% reduction for quarter and half year) due to weakness in most end-markets leading to reduction in adjEBITDA. Pricing remained stable. Volumes in rubber carbon black were down 9.4% in the quarter and down 6.6% for the first half of 2023 due to the global economic slowdown.

Orion Engineered Carbons manufactures furnace carbon black as well as thermal, gas, lampblack and acetylene blacks and is the third largest carbon black producer on a global basis. Orion reports results in two segments: Specialist and Rubber. Rubber Chemical Consultants tracks the two segments as well as the overall company results. Currency values reported in: Millions of USD

SegmentParameterPeriod20232022YoY, %Notes
Carbon BlackSales Revenue2023/2458.8541.2-15.2
Carbon BlackadjEBITDA2023/287.383.44.7
Carbon BlackEBITDA2023/286.180.37.2
Carbon BlackEBIT2023/258.952.911.3
Carbon BlackSales Vol MT2023/2227300.0251400.0-9.6
Rubber BlackSales Revenue2023/2309.3359.3-13.91
Rubber BlackadjEBITDA2023/257.438.051.12
Rubber BlackSales Vol MT2023/2173700.0191700.0-9.4
Specialist BlackSales Revenue2023/2149.5181.9-17.83
Specialist BlackadjEBITDA2023/229.945.4-34.14
Specialist BlackSales Vol MT2023/253600.059700.0-10.2


Phillips Carbon Black Ltd: 2023 Q1 Results  Link...

PCBL: Commissioned phase one (20 kMTpa) of speciality carbon black plant in Mundra in July following start-up (63 kMTpa) at the Tamil Nadu greenfield plant in April.

Phillips Carbon Black Ltd (PCBL) produce furnace carbon black and also cogenerate electricity using the waste gas from the carbon black process. PCBL report in two segments: Carbon Black and Power, the Power segment sells back to the Carbon Black segment as well as supplying surplus electricity for external sale. All quarterly results are unaudited. Results are reported based for the period in question with no currency adjustments between reporting periods. Currency values reported in: Millions of INR

SegmentParameterPeriod20232022YoY, %Notes
Carbon BlackSales Revenue2023/112590.313739.0-8.4
Carbon BlackEBIT2023/12042.31834.811.3
Carbon BlackSales Vol MT2023/1118127.2109377.08.0


Tokai Group: 2023 Q2 Results  Link...

Tokai Group: Demand remained constant, increased demand for OE tire and reduced for RP tire. Selling prices and margin improvements due to recovery of environmental investments, tight supply-demand in USMCA and other regions and higher productivity.

Tokai Carbon Co Ltd operates in five reporting segments one of which is carbon black. Tokai carbon produce carbon black in Japan, Thailand and China. Tokai acquired Cancarb (which produces thermal carbon black) in 2014 and also acquired Sid Richardson (a furnace carbon black manufacturer with three US production facilities) mid 2018. RCCL tracks Tokai's carbon black segment. Currency values reported in: Millions of JPY

SegmentParameterPeriod20232022YoY, %Notes
Carbon BlackSales Revenue2023/236425.034299.06.21
Carbon BlackEBIT2023/25016.01736.0188.9


Arakawa Chemical Industries: 2023 Q1 Results  Link...

Arakawa Chemical Industries reports in four segments. Rubber Chemical Consultants tracks results for all segments as well as those for the Adhesive segment which contains products for the tire and rubber industry. Note: Arakawa's FY is April to March. Currency values reported in: Millions of JPY

SegmentParameterPeriod20232022YoY, %Notes
All SegmentsSales Revenue2023/117298.021161.0-18.3
All SegmentsEBITDA2023/1536.01387.0-61.4
All SegmentsEBIT2023/1-834.0571.0-246.1
AdhesivesSales Revenue2023/16223.08560.0-27.3
AdhesivesEBIT2023/1-944.0-42.0-2147.6


Kolon Industries: 2023 Q2 Results  Link...

Kolon Industries reports operations in five segments. The Chemical Segment contains the company's hydrocarbon resin activities, where tire resins are a minor component. Rubber Chemical Consultants tracks the company results and the Chemical Segment results. Currency values reported in: Millions of KRW

SegmentParameterPeriod20232022YoY, %Notes
All SegmentsSales Revenue2023/21347000.01388000.0-3.0
All SegmentsEBIT2023/266000.089000.0-25.8
All SegmentsNet Margin2023/237000.044000.0-15.9
ChemicalsSales Revenue2023/2257000.0289000.0-11.11
ChemicalsEBIT2023/219000.014000.035.72


Solvay: 2023 Q2 Results  Link...

Solvay changed their reporting segments at the end of 2019. The new Chemicals segment now includes precipitated silica (along with soda ash and derivatives, peroxides and coatis), silica was previously in the Advanced Materials segment. Rubber Chemical Consultants track the Chemicals segment which includes Solvay's precipitated silica operations. Currency values reported in: Millions of EUR

SegmentParameterPeriod20232022YoY, %Notes
ChemicalsSales Revenue2023/21014.01118.0-9.3
ChemicalsadjEBITDA2023/2308.0316.0-2.5
Precipitated SilicaSales Revenue2023/2153.0168.0-8.91


Evonik Industries: 2023 Q2 Results  Link...

Evonik Industries: Significantly lower volumes in silica business. Evonik posted at 270 million Euro net loss for Q2 as a result of impairment charges which included a contribution from silica production facitlities in Europe and North America.

Evonik currently reports in four segments. The silica and silane activities reside in the Smart Materials segment which is tracked by Rubber Chemical Consultants. Currency values reported in: Millions of EUR

SegmentParameterPeriod20232022YoY, %Notes
Smart MaterialsSales Revenue2023/21119.01237.0-9.51
Smart MaterialsadjEBITDA2023/2122.0198.0-38.4


Cabot Corporation: Increasing Prices for Rubber Carbon Black Products Manufactured in USMCA  Link...

Cabot is increasing prices for all carbon black products sold by its Reinforcement Materials segment in North America, effective for all shipments on or after October 1, 2023, or as customer contracts allow. The price increase will range from 6% to 9%, depending on product and packaging type.

The price increases are deemed necessary to cover increasing operational and maintenance based manufacturing costs as well as to further Cabot's sustainability objectives for itself and its customers.


Cabot Corporation: 2023 Q3 Results  Link...

Cabot Corporation: Lower replacement tire demand impacted reinforcement volumes across all regions. Specialist black impacted due to market weakness with key end markets remaining challenging.

Cabot Corporation operate in four segments: Reinforcement Materials, Performance Chemicals, Purification Solutions and Speciality Fluids. RCCL tracks performance in the Reinforcement Materials (rubber carbon blacks) and Performance Chemicals (specialist carbon blacks, plastic compounds, metal oxides). EBIT/EBITDA figures for carbon black in the performance chemical segment use RCCL estimates. RCCL also estimates performance for total carbon black based on annual results. Currency values reported in: Millions of USD

SegmentParameterPeriod20232022YoY, %Notes
Carbon BlackSales Revenue2023/3851.0977.0-12.9
Carbon BlackEBIT2023/3155.6158.7-2.0
Rubber BlackSales Revenue2023/3624.0707.0-11.71
Rubber BlackEBIT2023/3132.0113.016.82
Rubber BlackSales Vol YoY %2023/392.0105.0-12.4
Specialist BlackSales Revenue2023/3227.0270.0-15.93
Specialist BlackEBIT2023/323.645.7-48.3
Specialist BlackSales Vol YoY %2023/392.0102.0-9.84


Toyo Tire Corporation: Closing Toyo Automotive Parts (USA), Inc  Link...

Toyo Tire Corporation is ceasing manufacture of automotive parts at its U.S. Subsidiary, Toyo Automotive Parts (TAP) (USA), Inc. effective October 31, 2023.TAP will thereafter be dissolved as a business entity.

TAP has supplied anti-vibration rubber and other products to automotive manufacturers in North American market since 2001. As a result of rising material, energy and labor costs, TAP has been unable to maintain or improve its profit outlook. In order to enhance the competitiveness of its automotive parts business, the Company will consolidate production of TAP made products at its other global locations.


Tigers Polymer Corporation: Establishing Tigerflex Manufacturing Plant in Thailand  Link...

Tigers Polymer Corporation is expanding into Southeast Asia with the establishment of a new subsidiary, Tigerflex (Thailand) Ltd in Rayong Province, Thailand. The new rubber and resin products plant is expected to be reading January 2026 and will supply the home appliance and automotive markets.


Cabot Corporation: Joins US DOE's Better Plants Program  Link...

Cabot has announced its partnership with the U.S. Department of Energy’s (DOE’s) Better Plants program. The voluntary partnership program aims to drive significant energy efficiencies across the US industrial sector. Cabot sees this as an opportunity to advance its energy efficiency performance twoards is net zero emissions goal by 2050.

All of Cabot's current U.S.-based manufacturing sites are part of the program. The Better Plants program currently has more than 280 partners representing every major U.S. industrial sector and includes more than 3,600 facilities across the U.S. Through the initiative, partners share proven energy-efficiency strategies and best practices. Cabot anticipates being able to apply lessons learned from the partnership to help advance its energy efficiency improvement activities in the U.S.

The Better Plants program works with leading U.S. manufacturers to set ambitious environmental goals and commit to reducing energy intensity by 25% over a 10-year period across all U.S. operations. By partnering with industry, the Better Plants program aims to help leading manufacturers boost efficiency, increase resilience, strengthen economic competitiveness and reduce their carbon footprint through improvements in energy efficiency.


Sumitomo Rubber Industries: Joint Venture Focusing on Developing Recycling Solutions  Link...

Sumitomo Rubber and Sumitomo Electric are joining forces with Sumitomo Riko and LanzaTech Global in an initiative to further the development of recycling technologies, paving the way for a circular economy. Sumitomo Riko and LanazTech global announced a development agreement in November 2022.


UPM Biodchemicals GmbH: Acquires SunCoal Industries GmbH  Link...

UPM Biochemicals has acquired SunCoal Industries GmbH, a German-based company that developed a unique technology portfolio to produce performance products from renewable raw materials. UPM will integrate SunCoal's technology into the production of UPM's BioMotion™ Renewable Functional Fillers (RFF).


Holcim: Acquires Cooper Standard Technical Rubber  Link...

Holcim has acquired Cooper Standard Technical Rubber GmbH (CSTR), a leading manufacturer of highly durable and technical rubber products used for roofing systems. CSTR production and R&D is located in Mannheim, Germany. This acquisition expands Holcim's roofing offering in Europe.

CSTR's strategically located production in the Rhine-Neckar area adds to Holcim’s other recent acquisitions in roofing and insulation, notably FDT Flachdach Technologie GmbH, a leading manufacturer of thermoplastic roofs. Holcim will continue CSTR`s existing business activities and serve its existing customer base while expanding its business under the new name of Holcim Technical Solutions & Products GmbH.

This acquisition advances Holcim's "Strategy 2025 - Accelerating Green Growth", aiming to expand its Solutions & Products business to 30% of Group net sales by 2025, entering the most attractive segments of construction, from roofing systems to insulation and renovation.


Mitsui Chemicals: Groundbreaking for New TAFMER™ Plant in Singapore  Link...

Mitsui Chemicals, Inc. held the groundbreaking ceremony for a new plant to produce the high-performance elastomer TAFMER™ at its Singapore-based wholly owned subsidiary Mitsui Elastomers Singapore Pte Ltd.

TAFMER™ is used both as a soft molding material and as a resin modifier that dramatically improves resin properties. Its flexibility and lightness have resulted in TAFMER™ being used across a wide range of fields, including solar cell components, packaging materials, engineering plastic modifiers, sports shoes and automotive parts.


Insight Polymers & Compounding: Expands Compounding Capabilities  Link...

Insight Polymers & Compounding have purchased a Leistritz ZSE-40 Maxx twin screw compounding extruder to expand its capability in production of compounds for additive manufacturing, as well as thermoplastics, elastomers, and reactive extrusion processes such as graft polymerisation and nanoparticle dispersion and exfoliation.


Semperit AG Holdings: Completes Acquisition of RICO Group  Link...

Semperit has completed the acquisition of RICO Group, a global market leader in the field of mould production and the production of precise liquid silicone components.

RICO’s growth strategy, which includes expanding production at the Austrian site in Thalheim near Wels as well as expansions in the USA and Switzerland, will remain unchanged. According to international studies, the market for silicone products in Western Europe and the USA will grow significantly by around 7% annually until 2027. The market volume currently (2023) amounts to around 8 billion US dollars.


July (2023)

Techmer PM: Acquires Advanced Color Technologies  Link...

Techmer PM has signed an agreement to acquire color and additive compounder Advanced Color Technologies (ACT). The combined technology and capabilities of the two organizations will expand Techmer’s position in the field of colorants and additives in the synthetic fibers segment. The deal is expected to close by August 31.

Located in Dalton, Ga., Advanced Color Technologies designs, formulates, and supplies specialty colorant and additive systems.


Michelin: Launching Air X Sky Light Aviation Tires  Link...

Michelin is launching the Michelin Air X Sky Light aviation tire in the North American market. The tires are designed to cut both weight and costs for airlines. Debuted in Europe at the 54th Paris Air Show in June 2023, the Michelin Air X Sky Light tire is a new radial tire technology developed for commercial aviation. As a result of multiple performance breakthroughs, the overall tire weight has been reduced by 10%-20%. While offering a better performance over the long-term Landing Per Tread (LPT), the tire’s lifespan is extended by an additional 10%-20% from previous generations.


Vibracoustic: Expands NVH Production in China  Link...

Vibracoustic has officially opened its new NVH production plant in Chongqing, China. The state-of-the-art facility further strengthens Vibracoustic’s presence in China and expands its manufacturing capabilities to meet the growing demands of the automotive industry. The new plant has an area of 16,400 square meters, providing substantial space for advanced manufacturing processes.

Vibracoustic has also launched air spring production at its manufacturing site in Wuxi, this the being the first locally produced Vibracoustic air springs for the Chinese market.


Cray Valley (Total): Selling Three Product Lines to Pacific Avenue Capital Partners  Link...

TotalEnergies has finalised the deal with Pacific Avenue Capital Partners for the acquisition of three product lines (Wingtack®, Poly bd® and Dymalink®) developed by Cray Valley, its resin production and sales affiliate. The transaction includes four production sites in the United States, the Cray Valley Italy affiliate and the portfolio of customers.

This allows Cray Valley to focus on its global specialty C4 and pure-monomer resin businesses which will continue to be developed by TotalEnergies. Production of the Ricon®, Krasol® and Cleartack® resins will continue at Carling (France), in accordance with the commitments made when the site was restructured in 2013, Grand Junction (US) and Kralupy (Czech Republic).


Wastefront AS: Strategic Partnership with VTTI  Link...

Wastefront AS has announced a strategic partnership with leading global energy storage infrastructure provider VTTI, for investment of up to USD 43 million and an agreement to reach a final investment decision for eight global sites within a five year period.

The partnership between Wastefront and VTTI will be in two stages: firstly, an investment from VTTI of up to USD 43 million in Wastefront, to be used in the construction of the first phase of Wastefront’s plant in Sunderland. Secondly, site selection surveys to be conducted to determine eight jointly owned VTTI-Wastefront plants at which Wastefront’s solution will be implemented, and which will be operated by VTTI. The partnership will enable Wastefront to expedite deployment, utilising VTTI’s industry-leading expertise, existing global footprint, and terminal locations.


Bridgestone: Investing to Meet 2030 Long Term Strategic Aspiration  Link...

Bridgestone will invest a total of 276 billion JPY to complete capacity expansions for its premium tire business as part of its 2030 Long Term Strategic Aspiration. This includes 96 billion JPY investments in 2023. The plan calls for:

  • Strengthening of manufacturing for premium PCR tires at 20 sites globally including increasing capacity for high-rim diameter (HRD) tires and increasing the mix of ENLITEN products, especially for EV era.
  • Invest in tires for mining and construction vehicles using core technology MASTERCORE and reinforcing production at the Shimonoseki and Kitakyushu plants as well as the Saga steel cord plant.
  • Invest to reinforce production of truck and bus tires with investment at the Warren and Chonburi (global supply) plants. Expand retread production in the US and Japan.
  • Invest in production of premium race and sports motorcycle tires, expanding capacity at the Nasu plant

Future investments (2024-26) will focus on Green and Smart factories. Key technologies moving forward are ENLITEN for tire performance and BCMA (Bridgestone Commonality Modularity Architecture) for modular tire production.


Datwyler Holding Inc: Expanding O-Ring Capacity in China and Mexico  Link...

Datwyler is expanding its production capabilities with new molding machines at its sites in China and Mexico. This move aligns with customer demand for localised, innovative and sustainable O-Ring solutions for applications including battery thermal managemen, power electronics, transmission, sensors, electric braking and driveline systems.

The new machines in Silao, Mexico and Ningguo, China will join Schattdorf (Switzerland), Daegu (Korea), Ontario (USA), Vandalia (USA) and Viadanica (Italy), widening Datwyler’s manufacturing and development network around the world. The global network enhances Datwyler's support to its customers in China and North America looking for local suppliers for increased supply chain security and sustainability.


June (2023)

OCSiAL: Hayleys Aventura Uses OCSIAL Know-How to Produce Tuball Latex Graphene Dispersions of ESD Glove Manufacturing in South Asia and Europe  Link...

The collaboration between Hayleys Aventura, and OCSiAl, has resulted in the launch of local manufacturing of the TUBALL LATEX graphene nanotube dispersion. The production line has been installed at Hayleys Aventura’s facility in Kaluthara, Sri Lanka, leveraging OCSiAl’s know-how. This new production capacity is intended to meet the demand in the South Asia and European regions.

Demand for ESD gloves is expected to grow as a result of advances in the automotive, electronics and ATEX markets and graphene based ESD gloves meet the latest ESD standards. Extremely low loadings of graphene nanotubes are required which allows the use of standard processing as well as having a positive impact on other properties.


Michelin: Equiping French Postal Service Delivery Vehicles ith UPTIS Tires  Link...

The MICHELIN Uptis puncture-proof tire will be fitted to 40 La Poste vans in the Hauts-de-France region (North of France) by the end of 2024. Three initial vehicles will be put into circulation as of June 27, within the framework of a two-year partnership between La Poste and Michelin. By 2024, nearly 40 La Poste vans fitted with the MICHELIN Uptis airless tire will deliver letters and parcels in the Lesquin, Valenciennes and Douai sectors, in the Hauts-de-France region (North of France).

Particularly suited to last mile delivery, the MICHELIN Uptis airless technology removes any risk of punctures and limits the premature changing of tires. Michelin’s main target market for the Uptis prototype is light truck fleets intended for professional use, and particularly deliveries.


Semperit AG Holdings: Ground-Breaking for Hose Production Expansion in Odry, Czech Republic  Link...

Ground-breaking has taken place at Semperit's hose production plant in Odry, Czech Republic for additional hydraulic hose production.

Upon completion of the new hall in 2028, total capacities of almost 200 million meters p.a. will be achieved, 32 million meters of which will come from the plant expansion in the future. Production at the new plant is scheduled to start at the beginning of 2025 and will then comprise half of the additional capacity. This will be followed step by step by further plant expansion until 2028. The total investment volume is around EUR 110 million, with the majority of the costs to be incurred between 2023 and 2027. The new production hall on the site of the existing plant in Odry will cover around 17,000 sqm.


Pyrum Innovations ESC GmbH: Exclusivity Agreement for Pyrum's First UK Pyrolysis Plant  Link...

Pyrum Innovations AG and SUEZ recycling and recovery UK Ltd have entered into a one-year exclusivity agreement to build Pyrum's first pyrolysis plant in the UK. Under the terms of the agreement SUEZ will determine the site for the first plant over the next 12 months and, with support from Pyrum, will begin the permitting process. SUEZ will bear the costs for the approval process. The planned plant is to be equipped with three pyrolysis reactors giving a total recycling capacity of around 20,000 tons of old tires per year. construction will begin after successful approval.


Cray Valley (Total): Important Milestone in Commercialisation of Liquid BR for the Tire Industry  Link...

Cray Valley has announced its first commercialisation of certified renewable resins for the tire industry using ISCC PLUS mass balance approach, which are manufactured at its Carling Saint-Avold platform in France.

Known under commercial brands such as Ricon®, Krasol® and Cleartack®, Cray Valley resins are established as performance-enhancing additives for tire applications. Some of these products are largely used in tire tread applications for their improved traction and rolling-resistance balance and for their excellent performance during winter or wet conditions. To accelerate the circular economy and benefit from its integration with TotalEnergies’ Carling Saint-Avold platform, Cray Valley commercializes an extensive product range using certified renewable feedstocks. The sustainable raw materials originated from the processing of biobased or advanced recycling feedstocks. These entrants permit Cray Valley to manufacture identical properties of resins with a significantly reduced environmental impact.


Michelin: Acquires Flex Composite Group  Link...

Michelin has announced the acquistion of Flex Composite Group (FCG) enabling Michelin to create a leading company in high-tech engineered fabrics and films. The FCG acquisition grows Michelin's High-Tech Materials revenue by approximately 20% and will accelerate growth.

FCG is a European leader in engineered fabrics and films with applications in highly technical markets such as marine, supercars & electric vehicles, sports, or construction. FCG masters a wide range of polymer composite solutions, adjacent to those already developed by Michelin.


Solvay: SOLVAY and SYENSQO Revealed as New Company Names  Link...

Solvay has announced the new names of the future independent publicly traded companies that will result from its planned separation into two industry leaders: SOLVAY and SYENSQO. The new names will be effective upon completion of the planned separation of Solvay, which is on track to be completed in December 2023, following the satisfaction of customary conditions

Precipitated silica will reside within SOLVAY which will include the following businesses: Soda Ash, Peroxides, Silica, Coatis and Special Chem.

SYENSQO will play a key role in the future of clean mobility, by making the next generation of EV batteries possible and by advancing green hydrogen and thermoplastic composites. It will bring about breakthroughs in bio-based solutions, natural ingredients, circular solutions, and more. SYENSQO will include the highly innovative businesses Specialty Polymers, Composites, Novecare, Aroma, Technology Solutions, Oil & Gas, as well as the four growth platforms in batteries, green hydrogen, thermoplastic composites, and renewable materials and biotechnology.


Pyrum Innovations ESC GmbH: Starts Commissioning First Large-Scale Plant  Link...

Pyrum Innovations AG has started commissioning its thermolysis recycling plants 2&3 in Dillingen. In the next few weeks, all parts of the entire system will be gradually commissioned. After successful cold start-up, the first test run of the reactors with product production takes place. The hot commissioning of the pyrolysis plant with a gradual increase in production volumes is scheduled to start in August/September 2023. The company's goal is to be able to deliver the first oil to BASF by the end of the third quarter of 2023.

The final element is then the delivery and commissioning of the new mill and pelleting facility in the first half of 2024. After a successful ramp-up phase, around 18,000 to 20,000 tons of used tires will be processed into thermolysis gas, oil and coke as well as steel at the Dillingen site in the future. This can result in new products such as new tires, plastics and energy.


Continental Rubber Group: Launching Series Tire with a Very High Share of Sustainable Materials  Link...

Continental is launching its UltraContact NXT tire in 19 sizes across Europe in July. The tire has 65 percent renewable, recycled and mass balance certified materials and has the EU tire-label A rating for rolling resistance, wet grip and noise. The renewable content is 32% with 28% ISCC PLUS certified materials from bio, bio-circular/circular feedstock and up to 5% recycled material.

Renewable Materials Accounting for up to 32%, these materials include: resins from the paper and wood industries; silica from rice husk ash; natural rubber.

Mass Balance Certified Materials Accounting for up to 285 these include sustainable synthetic rubber and carbon black made from biobased, bio-circular/circular feedstock.

Recycled Materials Accounting for up to 5%, this includes: recycled rubber from end-of-life tires; recycled steel; polyester fibers using recycled PET bottles.

Continental aims to have over 40% renewable and recycled content in its tires by 2030 with the ultimate aim of 100 percent sustainable materials in all tire products by 2050 at the latest.


Prism Worlwide: Commercialises TPE Derived from End-Of-Life Tires  Link...

Prism Worldwide has announced the commercial availability of Ancora™ C-1000 Thermoplastic Elastomer, which contains 50% post-consumer recycle content derived from end-of-life tires.

Ancora TPEs are a new class of TPE compounds utilizing polymers derived from end-of-life tires manufactured with Prism Worldwide’s patented PrismTM process. This process uses tire rubber as the primary feedstock in the production of polymer intermediates called PTR™. These intermediate polymers are then compounded into injection moldable TPE pellets at Prism Worldwide's recently acquired Sodus, NY plant.


Bridgestone: Commences rCB and TDO Production with Pyrolysis Test Units  Link...

Bridgestone Corporation has commenced the production of tire derived oil and recycled carbon black through pyrolysis of used tires using test units installed at Bridgestone Innovation Park in Kodaira City, Tokyo.

The project is one of two R&D projects that are part of an initiative for developing chemical product manufacturing technologies utilizing used tires promoted by the New Energy and Industrial Technology Development Organization (NEDO) of Japan and has been adopted as part of NEDO's Green Innovation Fund. Bridgestone is currently advancing verification tests on this project as part of a joint project with ENEOS Corporation.

The companies are moving forward with research and development on the technologies for refining tire derived oil obtained through precise pyrolysis to create butadiene and other chemical products of ENEOS. Under this project, large-scale verification tests will be advanced by 2030 with the goal of achieving mass production, and the production of tire derived oil and recycled carbon black through pyrolysis of used tires using test units is the first step toward achieving this goal.


Goodyear: Reducing Tire Production at its Fulda, Germany Plant  Link...

Goodyear has started negotiations with its workforce at its Fulda, Germany plant with the aim of cutting production at the plant by 50% by the end of 2024. The action is deemed necessary to improve the business cost structure by decreasing high-cost capacity and optimising use of other EMEA plants.


May (2023)

LG Chem: Speeding Up Expansion of Carbon Nanotube Production  Link...

LG Chem has started construction of its fourth carbon nanotube (CNT) plant at its Daesan Complex. LG Chem’s CNT 4 Plant is slated for operation in 2025 and will contribute to doubling LG Chem’s annual CNT production capability to 6,100 tons.

LG Chem has been continuously expanding its CNT production capacity to gain a strong competitive advantage in the global CNT market which is rapidly evolving around electric vehicle (EV) battery materials. LG Chem has been operating CNT plants since 2017, starting from 500-ton productions at its CNT Plant 1, and is building new plants every year since 2020 to meet growing demands.

CNT materials produced by LG Chem will be supplied as conductive additives to battery makers including the current global EV battery market leader LG Energy Solution, with plans for usage to be expanded to a broader range of industries. When used as conductive additives for cathodes, CNT can reduce the volume of conductive additives in batteries by nearly 30 percent while achieving 10 percent more conductivity than carbon black. CNT-based batteries can deliver higher capacity and longer lifespan as more power-generating cathode materials can be used in place of the conductive additives. Thus, besides conductive additives for cathodes, CNT is also an attractive conductive additive of next-generation anode, lithium-sulfur and solid-state batteries.


Borflex Rubber: BORFLEX Acquires BOBET  Link...

Borflex Group has announced the acquisition of BOBET, a rubberised fabric manufacturer. The acquisition of BOBET will enable the BORFLEX® group to expand its product range and strengthen its position on the international rubber market.


Michelin: Selling Russian Activities to Power International Tires  Link...

Michelin has signed an agreement with Power International Tires LLC for the purchase of its two Russian companies: Michelin Russia Tyre Manufacturing and Camso CIS. Power International Tires is one of the main tire distributors in Russia and has a presence throughout the country.


Trelleborg A.B.: Investing in New Marine Solutions Facility in Vietnam  Link...

Trelleborg Group is investing in a new manufacturing facility in Vietnam for marine solutions, such as marine construction, infrastructure, and fenders. The investment is part of a larger restructuring project where Trelleborg concentrates manufacturing in these product areas to Vietnam and China. In the Netherlands and Singapore, Sales & Design Engineering Excellence Centers are being established for tunnel seals and marine offshore infrastructure, such as offshore wind power.

The facility will be built in Ba Ria Vung Tau, near Ho Chi Minh City. It will meet future demands for both efficient production processes and sustainability, including solar panels, and effective water and wastewater systems. Production in the new facility will start in 2026. The Group will invest approximately SEK 400 M in total between 2023 and 2026.


Continental Rubber Group: Sells Tire Plant in Russia  Link...

Continental has sold its plant in Kaluga, Russia, to Russian company S8 Capital. Continental has now divested the majority of its activities in Russia. The transaction has been approved by the relevant authorities. Continental produced passenger tires at the plant in Kaluga. Air conditioning and power steering lines as well as parts for air suspension systems for the Russian market were also manufactured there.


Arlanxeo: Planning 140kMTpa Rubber Plant in Saudi Arabia  Link...

Arlanxeo is planning a world-class rubber production facility in Jubail, Saudi Arabia. The 140 kiloton-per-annum (ktpa) plant will produce two high performance elastomers: Ultra High cis Polybutadiene (NdBR) and Lithium Butadiene Rubber (LiBR). The planned construction follows the final investment decision by Aramco and TotalEnergies to build a world scale petrochemical facility in Saudi Arabia (the Amiral complex).

Engineering, procurement, and construction contracts are scheduled to be awarded in the second half of 2023, with construction expected to commence in 2024, followed by commercial operations in 2027.


Kao Corporation: Development of Technology for Film-to-Film Recycling  Link...

Kao Corporation has developed a process technology for the recycling of film-to-film packaging as used in domestic refill packs. This technology is used to recycle complex multi-layer films via a specialist process, filtering and the use of a compatilising agent.


Sumitomo Chemical: Stopping Production of S-SBR in Singapore by 2024  Link...

Sumitomo Chemical has decided to stop production of S-SBR in Singapore by mid-2024. This impacts 40kMTpa of capacity.


Michelin: Investing $100 million USD at Junction City, Kansas Track Plant  Link...

Michelin has announced that it will invest $100 million USD in its Junction City, Kansas plant to increase production capacity of tracks for agricultural equipment.


China Synthetic Rubber Corporation: 2023 Q1 Results  Link...

China Synthetic Rubber Corporation (CSRC) manufacture furnace carbon black, biotech and electronic products. Rubber Chemical Consultants Ltd tracks the Carbon Black segment which accounts for approximately two thirds of CSRC's total sales revenue (2016). Currency values reported in: Millions of TWD

SegmentParameterPeriod20232022YoY, %Notes
Carbon BlackSales Revenue2023/14410.84889.4-9.8
Carbon BlackEBIT2023/1103.888.017.9


Kolon Industries: 2023 Q1 Results  Link...

Kolon Industries: Chemical segment has focus on resins for EV tires which will increase product differentiation.

Kolon Industries reports operations in five segments. The Chemical Segment contains the company's hydrocarbon resin activities, where tire resins are a minor component. Rubber Chemical Consultants tracks the company results and the Chemical Segment results. Currency values reported in: Millions of KRW

SegmentParameterPeriod20232022YoY, %Notes
All SegmentsSales Revenue2023/11229000.01274600.0-3.6
All SegmentsEBIT2023/129000.063900.0-54.6
All SegmentsNet Margin2023/128000.088200.0-68.3
ChemicalsSales Revenue2023/1221000.0272600.0-18.91
ChemicalsEBIT2023/117000.010800.057.4


Tekniplex Inc: Multi-Phase Expansion Project at Costa Rica Plant  Link...

Tekniplex has invested in new medical tubing extrusion lines along with downstream equipment as part of an expansion to its production facility in Cartago, Costa Rica.

For the first phase, new medical tubing extrusion equipment will be installed in a cleanroom environment at the existing facility. Targeted to commence operation by the end of Q2, the continuous closed-loop feedback extrusion system will help drive tighter tolerances at high manufacturing speeds, allowing TekniPlex Healthcare to increase its medical tubing and profile capacity amid a growing medical device components market.


Phillips Carbon Black Ltd: 2022 Full Year Results  Link...

PCBL: Best ever financial performance for FY23 despite strong global economic headwinds and volatility.

Phillips Carbon Black Ltd (PCBL) produce furnace carbon black and also cogenerate electricity using the waste gas from the carbon black process. PCBL report in two segments: Carbon Black and Power, the Power segment sells back to the Carbon Black segment as well as supplying surplus electricity for external sale. All quarterly results are unaudited. Results are reported based for the period in question with no currency adjustments between reporting periods. Currency values reported in: Millions of INR

SegmentParameterPeriod20222021YoY, %Notes
Carbon BlackSales Revenue2022/413351.211921.312.0
Carbon BlackEBIT2022/41691.71386.322.0
Carbon BlackSales Vol MT2022/4119238.0113122.05.4


Tokai Group: 2023 Q1 Results  Link...

Tokai Group: Demand for tires remained solid. Costs of capital investments for production emissions control were offset by strong U.S. demand. Operations were at full capacity at bases in Japan and Thailand.

Tokai Carbon Co Ltd operates in five reporting segments one of which is carbon black. Tokai carbon produce carbon black in Japan, Thailand and China. Tokai acquired Cancarb (which produces thermal carbon black) in 2014 and also acquired Sid Richardson (a furnace carbon black manufacturer with three US production facilities) mid 2018. RCCL tracks Tokai's carbon black segment. Currency values reported in: Millions of JPY

SegmentParameterPeriod20232022YoY, %Notes
Carbon BlackSales Revenue2023/137406.029430.027.11
Carbon BlackEBIT2023/15757.03049.088.8


Nokian Tires: Breaks Ground on New Tire Factory in Romania  Link...

Nokian Tyres has broken ground on the company’s new passenger car tire factory in Oradea, Romania. The greenfield factory is being built in the North-West of Romania in the city of Oradea, an important regional and European hub of many transport routes. The annual capacity of the factory will be 6 million tires with expansion potential in the future. The factory will concentrate on the production of larger rim size passenger and SUV tires that will be primarily sold in the Central European market. The first tires are estimated to be produced in the second half of 2024. Commercial tire production is expected to start in early 2025.


Doublestar Group Co.,Ltd: Construction Started at Doublestar's New Cambodia Tire Factory  Link...

Doublestar has started construction at its 7 million PCR and 1.5 million TBR tire plant in Kratie Province, Cambodia.


Arakawa Chemical Industries: 2022 Q4 Results  Link...

Arakawa Chemical Industries reports in four segments. Rubber Chemical Consultants tracks results for all segments as well as those for the Adhesive segment which contains products for the tire and rubber industry. Note: Arakawa's FY is April to March. Currency values reported in: Millions of JPY

SegmentParameterPeriod20222021YoY, %Notes
All SegmentsSales Revenue2022/418030.020579.0-12.4
All SegmentsEBIT2022/4-1917.040.0-4892.5
All SegmentsNet Margin2022/4-2220.0-613.0-262.21
AdhesivesSales Revenue2022/46539.08480.0-22.9
AdhesivesEBIT2022/4-1911.0-363.0-426.4


Wastefront AS: Signs Agreement with Weber & Schaer for rCB  Link...

Wastefront AS has signed a strategic offtake and on-sale agreement with Weber & Schaer for its Recovered Carbon Black (rCB). The agreement is for a minimum of 35% of the rCB produced at Wastefront’s £100 million Sunderland plant, with the opportunity to further scale up in the future. Specialising in rubber, carbon black, plastic and adhesives distribution, Weber & Schaer has nine warehouses in Europe – in Austria, Belgium, France, Germany, Italy, the Netherlands and Spain.


Evonik Industries: 2023 Q1 Results  Link...

Evonik Industries: Volume declines in silica offset partially by increased pricing.

Evonik currently reports in four segments. The silica and silane activities reside in the Smart Materials segment which is tracked by Rubber Chemical Consultants. Currency values reported in: Millions of EUR

SegmentParameterPeriod20232022YoY, %Notes
Smart MaterialsSales Revenue2023/11188.01181.0.61
Smart MaterialsadjEBITDA2023/1164.0197.0-16.8


Cabot Corporation: 2023 Q2 Results  Link...

Cabot Corporation: Reinforcing margins improved due to favourable pricing and mix for 2023 customer agreements. Volumes down in reinforcing and performance chemicals due to COVID outbreaks in China, with performance chemicals also impacted by market softness. Volume growth continues in Battery Materials.

Cabot Corporation operate in four segments: Reinforcement Materials, Performance Chemicals, Purification Solutions and Speciality Fluids. RCCL tracks performance in the Reinforcement Materials (rubber carbon blacks) and Performance Chemicals (specialist carbon blacks, plastic compounds, metal oxides). EBIT/EBITDA figures for carbon black in the performance chemical segment use RCCL estimates. RCCL also estimates performance for total carbon black based on annual results. Currency values reported in: Millions of USD

SegmentParameterPeriod20232022YoY, %Notes
Carbon BlackSales Revenue2023/2913.0893.02.21
Carbon BlackEBIT2023/2142.7152.7-6.6
Rubber BlackSales Revenue2023/2672.0627.07.2
Rubber BlackEBIT2023/2122.0101.020.8
Rubber BlackSales Vol YoY %2023/293.0103.0-9.72
Specialist BlackSales Revenue2023/2241.0266.0-9.43
Specialist BlackEBIT2023/220.751.7-60.0
Specialist BlackSales Vol YoY %2023/295.0102.7-7.54


Solvay: 2023 Q1 Results  Link...

Solvay changed their reporting segments at the end of 2019. The new Chemicals segment now includes precipitated silica (along with soda ash and derivatives, peroxides and coatis), silica was previously in the Advanced Materials segment. Rubber Chemical Consultants track the Chemicals segment which includes Solvay's precipitated silica operations. Currency values reported in: Millions of EUR

SegmentParameterPeriod20232022YoY, %Notes
ChemicalsSales Revenue2023/11103.01039.06.2
ChemicalsadjEBITDA2023/1298.0279.06.8
Precipitated SilicaSales Revenue2023/1163.0153.06.51


Orion Engineered Carbons USD: 2023 Q1 Results  Link...

Orion Engineered Carbons: Record 2023 Q1 adjEBITDA. Borger, Texas emissions project completed, final emissions project on track for 2H 2023. Huabei, China plant commissioned and producing qualificationi samples, full ramp up in 2024.

Orion Engineered Carbons manufactures furnace carbon black as well as thermal, gas, lampblack and acetylene blacks and is the third largest carbon black producer on a global basis. Orion reports results in two segments: Specialist and Rubber. Rubber Chemical Consultants tracks the two segments as well as the overall company results. Currency values reported in: Millions of USD

SegmentParameterPeriod20232022YoY, %Notes
Carbon BlackSales Revenue2023/1500.7484.53.3
Carbon BlackEBIT2023/173.554.634.6
Carbon BlackSales Vol MT2023/1233500.0253200.0-7.8
Rubber BlackSales Revenue2023/1338.7306.910.4
Rubber BlackadjEBITDA2023/163.840.756.8
Rubber BlackSales Vol MT2023/1180500.0187600.0-3.8
Specialist BlackSales Revenue2023/1162.0177.6-8.8
Specialist BlackadjEBITDA2023/137.342.5-12.2
Specialist BlackSales Vol MT2023/153000.065600.0-19.2


Jiangxi Black Cat Carbon Black: 2023 Q1 Results  Link...

Jiangxi Black Cat Carbon Black is China's biggest producer of furnace carbon black with capacity at just over 1 million metric tonnes. Rubber Chemical Consultants tracks Jiangxi Black Cat for total financial performance as well as performance in furnace black and precipitated silica production. Currency values reported in: Millions of CNY

SegmentParameterPeriod20232022YoY, %Notes
All SegmentsSales Revenue2023/12206.21848.719.3
All SegmentsDirect Total2023/12190.71792.722.2
All SegmentsGross Margin2023/115.556.0-72.2
All SegmentsEBIT2023/1-104.1.7-14916.3


Yongdong Chemical Industry: 2023 Q1 Results  Link...

Yongdong Chemical Industry is active in coal tar processing and carbon black production. Carbon black production includes reinforcing, conductive and pigment grades of carbon black. Currency values reported in: Millions of CNY

SegmentParameterPeriod20232022YoY, %Notes
All SegmentsSales Revenue2023/11138.8848.534.2
All SegmentsDirect Total2023/11097.4803.436.6
All SegmentsGross Margin2023/141.345.2-8.6
All SegmentsNet Margin2023/1-4.510.6-143.0
All SegmentsEBIT2023/1-5.112.3-141.5


Quechen Silicon: 2023 Q1 Results  Link...

Quechen Silicon is the largest domestic precipitated silica producer in China. It has a strong focus on highly dispersible silica for tire applications. Quechen was floated on the Shenzhen stock market in December 2020. Currency values reported in: Millions of CNY

SegmentParameterPeriod20232022YoY, %Notes
Precipitated SilicaSales Revenue2023/1415.1440.9-5.8
Precipitated SilicaDirect Total2023/1301.8316.1-4.5
Precipitated SilicaGross Margin2023/1113.3124.9-9.2
Precipitated SilicaEBIT2023/190.293.0-3.0


Jinneng Science & Technology: 2023 Q1 Results  Link...

Jinneng Science & Technology have an integrated chemical operation including coking, chemical production, coal tar deep processing, carbon black and silica production. RCCL follows Jinneng's full operational results (all segments) and studies individual carbon black and silica segment performance. Currency values reported in: Millions of CNY

SegmentParameterPeriod20232022YoY, %Notes
All SegmentsSales Revenue2023/13441.84518.5-23.8
All SegmentsNet Margin2023/1-138.7124.1-211.8
All SegmentsEBIT2023/1-162.4151.1-207.5


April (2023)

Flexsys: Cooperative R&D For Potential Alternatives to 6PPD  Link...

Flexsys has announced the signing of a Cooperative Research and Development Agreement between FLEXSYS and the U.S. Department of Agriculture Agricultural Research Service (USDA-ARS) to explore potential alternatives for 6-para-phenylene-diamine (6PPD).

With very little basic research having been performed in the past fifty years on 6PPD alternatives, there are no known, commercially viable replacements for 6PPD that exhibit equivalent or better passenger safety, tire performance and anti-degradation properties.


Jinneng Science & Technology: 2022 Q4 Results  Link...

Jinneng Science & Technology

Jinneng Science & Technology have an integrated chemical operation including coking, chemical production, coal tar deep processing, carbon black and silica production. RCCL follows Jinneng's full operational results (all segments) and studies individual carbon black and silica segment performance. Currency values reported in: Millions of CNY

SegmentParameterPeriod20222021YoY, %Notes
All SegmentsSales Revenue2022/42699.44056.6-33.5
All SegmentsNet Margin2022/4-10.8-196.094.5
All SegmentsEBIT2022/4-88.8-193.954.2


Longxing Chemical Stock: 2023 Q1 Results  Link...

Longxing Chemical Stock (second largest furnace carbon black producer in China) also produces chemicals and precipitated silica. Rubber Chemical Consultants tracks Longxing's furnace black and precipitated silica segments as well as quarterly company results. Currency values reported in: Millions of CNY

SegmentParameterPeriod20232022YoY, %Notes
All SegmentsSales Revenue2023/11119.51003.311.6
All SegmentsEBIT2023/117.914.325.3
All SegmentsNet Margin2023/112.711.411.6


Quechen Silicon: 2022 Q4 Results  Link...

Quechen Silicon: Q4 and 2022 performance adversely impacted by domestic and international financial situation.

Quechen Silicon is the largest domestic precipitated silica producer in China. It has a strong focus on highly dispersible silica for tire applications. Quechen was floated on the Shenzhen stock market in December 2020. Currency values reported in: Millions of CNY

SegmentParameterPeriod20222021YoY, %Notes
Precipitated SilicaSales Revenue2022/4416.3467.4-10.9
Precipitated SilicaEBIT2022/483.0100.4-17.3


Trelleborg A.B.: Investing in New Sealing Facility in India  Link...

Trelleborg Group has decided to invest in a completely new production facility for sealing solutions in India. This will replaced existing facilities that will soon reach their full capacity. The Indian market is showing continued strong growth and the investment is part of Trelleborg’s strategy to strengthen positions in attractive and profitable industries and geographic areas.

Trelleborg's high-performing seals are sold to a range of industries including aerospace and healthcare & medical, as well as renewable energy and several industrial niches. The new production facility for seals will increase production capacity by more than 60 percent compared with our current facilities

Trelleborg will acquire land in the Bangalore area to build a modern facility that can meet future demands for both efficient production processes and sustainability, which includes solar panels, energy efficiency, green transportation, and effective water management. In addition, the production equipment will be upgraded. Production in the new facility will start in the first half of 2026.


Kuraray Co: Opens New Isoprene-Related Businesses Plant in Thailand  Link...

Kuraray has opened a new isoprene business production plant in the WHA Eastern Industrial Park in Map Ta Phut province, Thailand. Operated by Kuraray GC Advanced Materials Co and Kuraray Advanced Chemicals (Thailand) Co., Ltd, the plant will produce GENESTAR™ heat-resistant polyamide-9T (PA9T), SEPTON™ hydrogenated styrenic block copolymers (HSBC), and the 3-Methyl-1.5-Pentanediol (MPD), which were developed using proprietary Kuraray technology.


Phillips Carbon Black Ltd: Successfully Commissioned Phase One of Its Chennai Plant  Link...

PCBL have successfully commissioned the first phase of its greenfield plant in Chennai, India. The first phase has a capacity of 63 kMTpa. When fully complete the plant will have a capacity of 147 kMTpa and 24 MW of green power.


Teknor Apex Company: Acquires Nu-Pro Polymers  Link...

Teknor Apex acquired the business of Nu-Pro Polymers, Inc (Wheeling, IL) late last year. Nu-Pro works with clean post-industrial (PIR) streams and converts them into new PVC compounds which perform equivalently to prime compounds. Nu-Pro specializes in clear, natural and black reprocessed compounds in a range of durometers. Under the acquisition, Nu-Pro will continue to produce products for Teknor Apex at this time, under the Cycle-Tek brand as a subsidiary of Teknor Apex.


Bridgestone: Develops Tire Using 75% Recycled and Renewable Materials  Link...

Bridgestone Americas has produced a run of demonstration tires made with 75% recycled and renewable materials (37% recycled, 38% renewable), including synthetic rubber made with recycled plastics and natural rubber harvested from desert shrubs grown domestically, in the Arizona desert. The company has completed production of 200 demonstration tires and is pursuing joint evaluation with automakers for use on the next generation of electrified SUVs and crossovers (CUVs).

Designed and engineered at Bridgestone’s Americas Technology Center in Akron, Ohio, the new tires were produced at the company’s Aiken County Passenger/Light Truck Radial Tire Plant in Graniteville, South Carolina. The Aiken plant is the first tire manufacturing facility in America to earn International Sustainability and Carbon Certification (ISCC) PLUS certification for transparency and traceability of sustainable raw materials including bio, bio-circular and circular-based material.


Asahi (Bridgestone): Acquires ISCC PLUS Certification  Link...

Asahi Carbon Co., Ltd. has acquired ISCC PLUS certification and plans to start producing carbon black using recycled oil as a raw material starting August 2023. This approach enables the selling of carbon black produced using sustainable recycled resources using a mass balance method defined by ISCC PLUS.


March (2023)

RCCL Analysis: Tire Rubber Chemical Market Trends  Link...


tire rubber chemical market trends

Introduction

The tire industry is currently undergoing substantial changes in its material usage, driven primarily by changing vehicle drive systems and environmental considerations. This article focuses on Rubber Chemical Consultants’ (RCC) approach to quantifying past, present and future tire rubber chemical market demand and trends.

RCC has been analysing these market trends for the past 14 years and has developed a robust modelling system to accommodate the necessary complexities. Experience gained from multiple client based projects has allowed fine-tuning of this system and has also provided many opportunities for benchmarking from client data and feedback.

The rate of change is typically lower than client expectations, especially for newly developed materials. This stems from the historically cautious approach of the tire industry, which is primarily driven by the safety of its products. The rate of change is also influenced by underlying tire industry complexities such as the expanding range of product offerings required to meet market demand. Rubber chemical approvals and implementation through new and existing tire product lines takes significant amounts of time, the process is generally iterative versus a ‘step-change’. Rubber chemical introductions are substantially slower for new materials versus supplier grade swaps.

Overview

RCC’s system is based on a consumer-up approach focusing on tire manufacturers production facilities and their rubber chemical requirements. For each manufacturing location, the year-on-year market adjusted tire production, split by tire type, subtype and segment (OE, RP), is used to determine rubber chemical demand. This is done by constructing (programmatically) each tire type, subtype, component and formulation combination to enable production site estimates by rubber chemical group and individual rubber chemicals. These are then combined to provide totals by region, country, tire type, subtype, segment and manufacturer.

  • Regional Variations
    • Formulations
      • Formulations vary on a regional basis due to differences in material availability (e.g. types of polymer, oil etc.), underlying tire type and subtype, and regional performance requirements
    • Product Mix
      • Product mix varies by region due to differing market demand and manufacturing capabilities. For example, Europe has a higher value added product mix compared to China
    • Sizes
      • Average size for a specific tire subtype varies by region
  • Yearly Variations
    • Formulations
      • Formulations also vary year-on-year with adoption of new materials and compounding approaches. A good historic example is the transition from carbon black to precipitated silica in tire treads
    • Capacities
      • Manufacturer’s plant capacities may vary year-on-year due to expansions/contractions/new builds
    • Product Mix
      • Plant product mixes may vary year-on-year due to changing market demand. A good example is the move to higher value added products such as SUV tires replacing PC tires
    • Sizes
      • Sizes for a specific tire subtype are typically increasing with larger diameters and lower profiles
  • Manufacturer's Variations
    • Formulations
      • Formulations vary by manufacturer due to proprietary compounding technologies. Examples include Michelin’s Helio and Bridgestone’s Nano ProTech compound technologies
    • Plants
      • Vary by capacity and product mix
  • Market Variations
    • Original Equipment (OE)
      • OE is determined by automotive production. This segment typically has higher levels of innovation versus replacement.
    • Replacement (RP)
      • RP is determined by miles driven. Distinction should be drawn between compounding technologies of higher tier manufacturers versus lower tier.
    • International Trade
      • When looking at tire manufacturing chemical demand it is important to balance regional internal tire market demand with the balance of international tire trade.

Example Drill-Down

The following example is a simple market drill down to give the reader a flavour of how the consumer-up approach works. The examples are for global compound and rubber chemical demand, this hides significant regional variation and complexity.

Tire Types

The highest level analysis provides a simple breakdown of tire compound demand by tire type. Global 2022 tire compound demand by tire type is presented in Figure 1. Global compound demand for the tire types shown is estimated at 36855 kMT. PC tire types will be used to demonstrate additional market drill-down, this type has a 2022 market compound demand of 7804 kMT.

Figure 1 - Global Tire Compound Volumes by Tire Type 2022

global tire compound volumes by tire type

Passenger Car (PC), Truck (TR), Off-The-Road (OTR), Sport Utility Vehicle (SUV), Light Truck (LT), Motorcycle (MC)

OTR includes agricultural, industrial and other OTR. MC includes motorcycle and scooter. TR includes radial and cross-ply

Tire Subtypes

The 2022 global compound distribution by PC tire subtype is presented in Figure 2. This analysis is important due to changing rubber chemical requirements by tire subtype. It is also important as market trends are driving changes in the mix of these types. The PS All Season, S or T speed rated subtype is highlighted for additional drill-down. This can be considered a budget tire and has a 2022 compound demand of 1404 kMT.

Figure 2 - Global Tire Compound by PC Tire Subtype 2022

global passenger car compound volumes by tire subtype

Summer (SM), All Season (AS), Winter (WT), Environmental Desgin (Eco), High Performance (HP), Ultra-high Performance (UHP), Budget (ST), Low Rolling Resistance (LRR), All Weather (AW)

Tire Components

Figure 3 presents a break-down of global 2022 compound demand for the PC AS (ST) tire subtype by component. This indicates a 2022 tread compound demand of 573 kMT. It is possible to analyse each of these component types for rubber chemical demand.

Figure 3 - Global PC AS (ST) Compound Distribution by Component 2022

global passenger car compound volumes by component type

In this example we are going to look at year-on-year variations in demand for different rubber chemicals contrasting two different PC tire types: PC AS (ST) a budget tire, will be compared to PC AS HP, is a higher value product (speed rating H and V). This represents a small step-up the value chain.

Time Bound Changes by Chemical Group

Figure 4 presents year-on-year changes in global rubber chemical demand for the two PC tire subtypes. The demand has been normalised by tire production quantity to provide demand in Kg/tire.

Even with a modest movement up the tire value chain, some trends are clear. Furnace carbon black demand is dropping for the HP tire and silica demand is increasing. There appears to be very little difference in RPO demand, however, additional insight is provided by drilling-down into the different RPO chemical types.

Figure 4 - Year-on-Year Rubber Chemical Demand Variations for PC AS 2011 to 2022

global passenger car all season st rubber chemical demand 2011 to 2022

Furnace Carbon Black (FCB), Precipitated Silica (Silica), Rubber Process Oil (RPO)

Time Bound Changes by Chemical Group Subtypes

Demand by RPO type is presented in Figures 5 & 6 for the two PC subtypes. This shows different demand patterns for the two tire subtypes. It is clear that it is important to analyse to the appropriate level in order to gain full insight into changing demand patterns.

Figure 5 - Year-on-Year RPO Demand by RPO Type for PC AS ST

global passenger car all season st rpo demand by rpo type 2011 to 2022

Treated DAE (TDAE), Naphthenic (NH), Deep Aromatic Extract (DAE), Residual Aromatic Extract (RAE), Treated RAE (TRAE)

Figure 6 - Year-on-Year RPO Demand by RPO Type for PC AS HP

global passenger car all season hp rpo demand by rpo type 2011 to 2022

Vegetable Oil (VO)

Summary

In order to analyse tire industry chemical demand effectively it is necessary to consider a wide range of variables. When this is done in a controlled manner it is possible to gain significantly more insight into market demand.

RCC has been analysing tire chemical demand for the past 14 years and has developed a robust system specifically for this purpose.


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Pyrum Innovations ESC GmbH: Concludes Contract with Continental for the Supply of Recovered Carbon Black (rCB)  Link...

Pyrum Innovations AG has signed a contract with tyre manufacturer Continental for the supply of recovered carbon black (rCB). With the conclusion of the contract, there are now long-term serial supply contracts for all of Pyrum's core products, in addition to the contract for the supply of pyrolysis oil to BASF SE.

The contract with Continental follows the joint development agreement that has already been in place for a year, the aim of which is, among other things, to further optimise and expand the recycling of used tyres through pyrolysis. Since then, Pyrum has proven in various audits to meet basic automotive industry standards and, for example, recently received ISO 14001 certification for its environmental management system. In addition, Continental has already held a strategic minority stake in Pyrum since its IPO in 2021. In the long term, Pyrum and Continental are aiming for a circular economy concept for the recycling of end-of-life tyres in order to reduce the use of fossil raw materials as well as CO2 emissions in the production and recycling of tyres.


Scandinavian Enviro Systems AB: JV with Michelin and Antin Infrastructure Partners Creating World's First Large-Scale Tire Recycling Group  Link...

Scandinavian Enviro Systems and Antin Infrastructure Partners today announced the formation of a joint venture supported by Michelin to create the world's first large-scale tire recycling group. The JV will combine Enviro's unique and patented technology for the extraction of carbon black and pyrolysis oil from end-of-life tires with Michelin’s leading position in sustainable tires and Antin’s expertise in developing and scaling tomorrow’s infrastructure platforms to enable the industrial development of this innovative recycling technology.

The JV has secured a multi-year supply agreement with Michelin for the first plants established. The agreement with Michelin includes delivery of recovered carbon black and tire pyrolysis oil (TPO). The initial investment in the JV will be funded by Antin’s NextGen platform, which will be the majority owner of the JV. Enviro's ownership in the joint venture will ultimately correspond to approximately 30%. As part of the JV, Enviro's patented technology will be licensed to the JV on an exclusive basis throughout Europe.Michelin is planning to partner in the JV as the plants are built in the future.

The first full-scale commercial plant will be built in Uddevalla, Sweden, with initial capacity to recycle 34,500 tons of disposed tires, equal to 40% of the annual volume of end-of-life-tires in Sweden. Plant construction is scheduled to start in the first half of 2023, subject to a final investment decision by the JV, and the plant is expected to be fully operational by 2025. Following successful commissioning of the Uddevalla plant, acceleration of the European roll-out will commence. Site selection in other European countries has been initiated to ensure a rapid roll-out, with an aim to build recycling capacity for up to approximately one million tons of end-of-life tires by 2030, corresponding to a third of all tires being disposed of in Europe each year.


Kraton Corporation: Expanding SBS Production at Belpre Facility  Link...

Kraton Corporation has announced a significant expansion of its styrene-butadiene-styrene block copolymers (SBS) supply capability at its Belpre, Ohio facility starting in 2024. The production capacity is expected to increase by 24 kilotons annually by 2025.


Arlanxeo:   Link...

Arlanxeo, EVE Rubber Institute, Ecombine join forces to advance mixing technology, The three, March 10, formed a strategic partnership dedicated to exploring the applications of Liquid Mixing Technology. Particularly, the trio will look at potential downstream applications and market development for BIIR, SSBR, EPDM and CR rubber products.


Wacker Chemie AG: Expanding Production of Silicone Sealants at Its Nünchritz Site  Link...

WACKER chemical group is expanding its production and cartridge filling capacities for silicone sealants at its Nünchritz site. The expansion will increase the company’s capability to supply customers, who contract WACKER to produce ready-to-use silicone sealants for their direct sales. Some €20 million has been budgeted for the new manufacturing lines, which are scheduled to begin production in the fall of 2024

The expansion is required due to the high demand for construction silicones where strong recent development has been seen for alkoxy silicones. These one-component neutral-cure silicone sealing compounds release alcohol upon crosslinking which renders them safe to use. They can also be applied on sensitive construction materials such as natural stone or metal. Alkoxy silicones are therefore versatile sealants for interior and exterior applications. Significant growth rates are anticipated in the coming years.

The project plan at the Nünchritz site sees construction of a fully continuous compounding plant for silicone sealing products including expansion of the cartridge filling facility. The new production lines will be built next to the existing plants. The expansion project will significantly increase WACKER’s production capacity for silicone sealing compounds and cartridges in Nünchritz. Depending on the grade, the new filling line will be capable of filling up to an additional 30 million cartridges each year. Start-up for the new plants is planned for the fall of next year, pending timely approval from regulatory authorities.


Orion Engineered Carbons: Increases Capacity for High-Jetness Carbon Blacks at Cologne Plant  Link...

Orion Engineered Carbons has debottlenecked a post-treatment unit at its Cologne, Germany, plant that produces high-jetness specialty carbon blacks. This enables Orion to increase production capacity and also produce pelleted product in addition to powder.

High-jetness carbon blacks deliver a deep black masstone with a bluish undertone and are popular in automotive coatings. Orion has plans to install a second post-treatment unit at its Cologne facility due to the rapidly growing demand for the company’s premium grades.


Cabot Corporation: Launches EVOLVE™ Sustainable Solutions  Link...

Cabot has announced its EVOLVE™ sustainable solutions technology platform which develops reinforcing carbons in three sustainability categories:

  • Recovered
    • Reinforcing carbons leveraging circular value chains and materials recovered from end-of-life tires
  • Renewable
    • Reinforcing carbons from bio-based feedstocks and particles
  • Reduced
    • Reinforcing carbons with a reduced greenhouse gas footprint

The first EVOLVE™ product offerings are: Vulcan 7H-C circular reinforcing carbon black, an N234 carbon black made from ISCC PLUS certified tire pyrolysis oil which is a drop-in replacement for standard Vulcan 7H; and Sterling® SO-RC110 circular reinforcing carbon black produced using 10% ISCC PLUS recovered carbon material co-pelletised with Sterling SO carbon black (N550). Sterling SO-RC110 offers equivalent performance to Sterling SO.


Kolon Industries: Stora Enso and Kolon Industries collaborate on bio-based materials  Link...

Stora Enso and Kolon Industries have signed a Joint Development Agreement to develop and industrialise bio-based polyesters and their applications, as well as renewable binder resin formulations. Application areas can cover, for example, packaging, car tire reinforcements, and films for high value-added products such as electronics, panels and displays.


Nokian Tires: Receives Payment for Sale of Its Operations in Russia  Link...

Nokian Tyres has received the sales price of EUR 285 million from PJSC Tatneft for the sale of its operations in Russia. The total permissible transaction price defined by the Russian Governmental Commission was 23,050 million ruble. The RUB/EUR exchange rate as determined by the Russian Central Bank on the day of payment was applied.

After registration formalities in Russia, the transaction will be completed, and Nokian Tyres’ operations in Russia will end.

The initial release (28 Oct 2022) indicated an approximate sale price of EUR 400 million.


Michelin: New Tweel Tires for Truck-Mounted Forklifts  Link...

Michelin have partnered with Hiab USA Inc. to offer Tweels on their MOFFETT Truck-Mounted Forklifts thus expanding Michelin's airless radial tire technology into a new segment where uptime is critical for efficient material handling and delivery.

The MICHELIN X TWEEL TMF tire is designed to eliminate downtime, with its no-flat construction and improved machine stability when handling heavy loads, while maintaining excellent traction and operator comfort. The development of this specific size was a true collaboration between Michelin North America, Hiab and the field-testing partner, Mans Lumber & Millwork.


Michelin: $300 Million CAD Investment in Nova Scotia Plants  Link...

Michelin has announced a $300 million CAD investment into its Canadian operations to accelerate sustainable mobility and improve its environmental footprint.

The investment, part of Michelin’s global growth strategy, will see the installation of new technologies and equipment in Michelin’s three Nova Scotia production facilities to respond to market evolution. This includes manufacturing tires for the growing electric vehicle (EV) segment; larger rim size tires for passenger and light truck vehicles; as well as improved fuel efficiency for commercial trucks. In addition, the electrification of key parts of the manufacturing process will reduce carbon emissions at the plants.

A key part of the multi-year plan is the $140 million CAD expansion of Michelin’s Bridgewater plant.


Nokian Tires: PJSC Tatneft Recieves Russian Government Approval to Purchase Nokian Tyres' Russian Operations  Link...

Based on the information Nokian Tyres received from PJSC Tatneft, The Russian Governmental Commission on Monitoring Foreign Investments (the Russian Governmental Commission) has approved PJSC Tatneft’s purchase of Nokian Tyres plc’s operations in Russia. The signing of the transaction was announced on October 28, 2022.

Substantial uncertainties still remain related to the transaction and the timing of it as well as the RUB/EUR exchange rate on the day of payment. The final closing of the transaction is subject to successful completion of compliance checks against the recent changes in sanctions and money transfer, among others.


Hankook: Suspension of Activities at Daejon Plant Following Major Fire  Link...

Hankook are currently investigating the cause of a fire at their Daejon facility which will remain closed until the investigation is complete.


LD Carbon: Acquired by SK Incheon Petrochem  Link...

SK Incheon Petrochem has acquired LD Carbon, a Seoul-based start-up with technologies for recycling waste tires. The move is part of the oil refinery's effort to diversify its business portfolio to recycling, away from the traditional petrochemical sectors which are slowing down. With the latest investment, LD Carbon will establish a new facility producing tire pyrolysis oil, which is produced as waste tires decompose. LD Carbon will supply SK Incheon Petrochem its tire pyrolysis oil, which the petrochemical company can then use to make 20,000 tons of eco-friendly products per year starting in the first half of next year.


Evonik Industries: 2022 Q4 Results  Link...

Evonik Industries: Strong sales revenues driven by double digit price increases, compensating for higher raw material and energy costs. Volumes down due to customer destocking.

Evonik currently reports in four segments. The silica and silane activities reside in the Smart Materials segment which is tracked by Rubber Chemical Consultants. Currency values reported in: Millions of EUR

SegmentParameterPeriod20222021YoY, %Notes
Smart MaterialsSales Revenue2022/41155.01032.011.91
Smart MaterialsadjEBITDA2022/4112.0123.0-8.9


Synthos S.A.: Permanently Stopping E-SBR Production at Kralupy, Czech Republic Site  Link...

Synthos S.A. is permanently stopping production of E-SBR at its Kralupy, Czech Republic site due to unpredictable costs in Europe. This will reduce Synthos' E-SBR production from 430 kMTpa to 320 kMTpa. Production will stop in Q2 of this year. This decision does not impact production and development of other elastomers (including E-SBR) at manufacturing sites in Poland and Germany, or butadiene rubber in Kralupy.


February (2023)

Kolon Industries: 2022 Q4 Results  Link...

Kolon Industries: HC resin sales and margin is expected to strengthen in the near future due to demand and reduced export freight rates. Kolon is expanding eco-friendly differentiated products to increase its competitiveness.

Kolon Industries reports operations in five segments. The Chemical Segment contains the company's hydrocarbon resin activities, where tire resins are a minor component. Rubber Chemical Consultants tracks the company results and the Chemical Segment results. Currency values reported in: Millions of KRW

SegmentParameterPeriod20222021YoY, %Notes
All SegmentsSales Revenue2022/41446000.01259000.014.9
All SegmentsEBIT2022/439000.02700.01344.4
All SegmentsNet Margin2022/434000.018000.088.9
ChemicalsSales Revenue2022/4231000.0244000.0-5.3
ChemicalsEBIT2022/413000.016000.0-18.8


EU Commission: 10th Package of Sanctions Against Russia Including Carbon Black   Link...

The EU has implemented (February 25th 2023) an import quota of 752.5 kMT of Russian carbon black which will expire after June 30th, 2024. From this date an import embargo with be in effect.


Solvay: 2022 Q4 Results  Link...

Solvay

Solvay changed their reporting segments at the end of 2019. The new Chemicals segment now includes precipitated silica (along with soda ash and derivatives, peroxides and coatis), silica was previously in the Advanced Materials segment. Rubber Chemical Consultants track the Chemicals segment which includes Solvay's precipitated silica operations. Currency values reported in: Millions of EUR

SegmentParameterPeriod20222021YoY, %Notes
Advanced MaterialsSales Revenue2019/41069.01093.0-2.21
Advanced MaterialsadjEBITDA2019/4252.0275.0-8.4
Advanced MaterialsadjEBIT2019/4161.0191.0-15.7
Precipitated SilicaSales Revenue2022/4147.0124.018.52


Momentive Performance Materials Inc: Expanding Speciality Materials Capability in Rayong, Thailand  Link...

Momentive Performance Materials is building a new manufacturing facility in Rayong, Thailand. The new site will expand Momentive’s manufacturing capacity to serve the growing Southeast Asian market demand for specialty silicones in industries including beauty and personal care, automotive, energy, healthcare and agriculture. This new facility will be Momentive’s second manufacturing site in Rayong, Thailand.


Thai Carbon: 2022 Q3 Results  Link...

Thai Carbon report in one segment: Carbon Black. Currency values reported in: Millions of THB

SegmentParameterPeriod20222021YoY, %Notes
Carbon BlackSales Revenue2022/32918.72709.37.7
Carbon BlackEBIT2022/3-831.0285.2-391.4


China Synthetic Rubber Corporation: 2022 Q4 Results  Link...

China Synthetic Rubber Corporation (CSRC) manufacture furnace carbon black, biotech and electronic products. Rubber Chemical Consultants Ltd tracks the Carbon Black segment which accounts for approximately two thirds of CSRC's total sales revenue (2016). Currency values reported in: Millions of TWD

SegmentParameterPeriod20222021YoY, %Notes
Carbon BlackSales Revenue2022/45215.14646.812.2
Carbon BlackEBIT2022/4-71.883.3-186.2


Orion Engineered Carbons USD: 2022 Q4 Results  Link...

Orion Engineered Carbons: Reduction in speciality volumes offset partially by growth in rubber volumes (Americas and APAC). Improved contribution by cogeneration. Huaibei plant currently being commissioned with full ramp-up by 2025.

Orion Engineered Carbons manufactures furnace carbon black as well as thermal, gas, lampblack and acetylene blacks and is the third largest carbon black producer on a global basis. Orion reports results in two segments: Specialist and Rubber. Rubber Chemical Consultants tracks the two segments as well as the overall company results. Currency values reported in: Millions of USD

SegmentParameterPeriod20222021YoY, %Notes
Carbon BlackSales Revenue2022/4462.1392.717.7
Carbon BlackadjEBITDA2022/465.252.324.7
Carbon BlackEBIT2022/436.012.9179.1
Carbon BlackSales Vol MT2022/4215100.0223100.0-3.6
Rubber BlackSales Revenue2022/4315.8245.128.8
Rubber BlackadjEBITDA2022/440.322.083.2
Rubber BlackSales Vol MT2022/4168400.0163300.03.1
Specialist BlackSales Revenue2022/4146.3147.6-.9
Specialist BlackadjEBITDA2022/424.930.3-17.8
Specialist BlackSales Vol MT2022/446700.059800.0-21.9


Holcim: Acquiring FDT Flachdach Technologie GmbH  Link...

Holcim has signed an agreement to acquire FDT Flachdach Technologie GmbH, a leading manufacturer of thermoplastic roofs, light systems and acid protection.


Arakawa Chemical Industries: 2022 Q3 Results  Link...

Arakawa Chemical Industries reports in four segments. Rubber Chemical Consultants tracks results for all segments as well as those for the Adhesive segment which contains products for the tire and rubber industry. Note: Arakawa's FY is April to March. Currency values reported in: Millions of JPY

SegmentParameterPeriod20222021YoY, %Notes
All SegmentsSales Revenue2022/319688.020270.0-2.9
All SegmentsEBITDA2022/3-167.01586.0-110.5
All SegmentsEBIT2022/3-1426.0789.0-280.7
All SegmentsNet Margin2022/3-1495.0383.0-490.31
AdhesivesSales Revenue2022/37352.08223.0-10.6
AdhesivesEBIT2022/3-1545.0-120.0-1187.5


Tokai Group: 2022 Q4 Results  Link...

Tokai Group: Softening of volumes also impacted by sale of Tokai Carbon and installation of environmental equipment in US. Volumes expected to recover in the next quarter and year. Sales revenue increase due to pass-on of feedstock and energy costs.

Tokai Carbon Co Ltd operates in five reporting segments one of which is carbon black. Tokai carbon produce carbon black in Japan, Thailand and China. Tokai acquired Cancarb (which produces thermal carbon black) in 2014 and also acquired Sid Richardson (a furnace carbon black manufacturer with three US production facilities) mid 2018. RCCL tracks Tokai's carbon black segment. Currency values reported in: Millions of JPY

SegmentParameterPeriod20222021YoY, %Notes
Carbon BlackSales Revenue2022/435134.027229.029.01
Carbon BlackEBIT2022/43296.02099.057.0


Kuraray Co: Start of Operations at New Plant for Isoprene-Related Businesses  Link...

Kuraray Co., Ltd. has completed construction of a new plant (Map Ta Phut, Rayong Province, Thailand) for isoprene-related businesses operations will start in phases.

The new Thai plant will contribute to the continued growth of isoprene-related businesses by strengthening the global supply system and meeting rising global demand for the 3-Methyl-1.5-Pentanediol (MPD), SEPTON™ hydrogenated styrenic block copolymers (HSBC), and GENESTAR™ heat-resistant polyamide-9T (PA9T), which were developed using proprietary Kuraray technology.


Cabot Corporation: 2023 Q1 Results  Link...

Cabot Corporation: Reinforcing volumes down 5% YoY due to customer destocking and COVID-19 outbreaks in China. Margins improved due to favourable pricing and product mix for 2022 customer agreements. Performance chemicals volumes down 8% driven by destocking, market softness and COVID outbreaks in China. Volumes for both segments are expected to improve moving into Q2 FY 2023. Growth in battery materials remains strong.

Cabot Corporation operate in four segments: Reinforcement Materials, Performance Chemicals, Purification Solutions and Speciality Fluids. RCCL tracks performance in the Reinforcement Materials (rubber carbon blacks) and Performance Chemicals (specialist carbon blacks, plastic compounds, metal oxides). EBIT/EBITDA figures for carbon black in the performance chemical segment use RCCL estimates. RCCL also estimates performance for total carbon black based on annual results. Currency values reported in: Millions of USD

SegmentParameterPeriod20232022YoY, %Notes
Carbon BlackSales Revenue2023/1854.0768.011.21
Carbon BlackEBIT2023/1115.4124.1-7.0
Rubber BlackSales Revenue2023/1643.0541.018.9
Rubber BlackEBIT2023/194.085.010.6
Rubber BlackSales Vol YoY %2023/195.0104.0-8.7
Specialist BlackSales Revenue2023/1211.0227.0-7.02
Specialist BlackEBIT2023/121.439.1-45.2
Specialist BlackSales Vol YoY %2023/192.097.0-5.2


Arntz Optibelt: Building New Production Site in Mexico  Link...

Arntz Optibelt Group is consolidating its growth on the American continent by launching a production company in Mexico. Production will be geared particularly to the general mechanical engineering and agricultural machinery segments. The site will be up and running, and producing the initial planned range of products by no later than the beginning of 2024. The first phase of the project will have a modern production facility of over 10,000 square meters (100,000 square feet), along with office space for administration and support teams. The site also offers considerable room for expansion and future growth to expand from the initial range of products in the initial phase and also increase the overall production capacity.


Apollo Tires: Develops Tyres with 75% Sustainable Materials  Link...

Apollo Tyres has developed tyres with 75% sustainable materials. This is aligned with Apollo Tyres’ sustainability roadmap of increasing the usage of sustainable raw material to 40% by 2030.

The concept Agriculture tyres containing 75% sustainable materials, have 9 featured compounding ingredients in different components of the tyres. This includes recycled rubber, sustainable carbon black from end-of-life tyres, bio-based oil, recycled nylon and the bead wire processed with higher recycled content. The concept tyres have been made using sustainable natural rubber, sourced from suppliers who have public commitments to sourcing and/or traceable to plantation, in accordance with the company’s sustainable natural rubber policy.


Kumho Petrochemical Company: Acquires ISCC PLUS Certification  Link...

Kumho Petrochemical has announced that four of its synthetic rubber products mainly used in tires have obtained ISCC (International Sustainability & Carbon Certification) PLUS certification. The four products are: SSBR, HBR, LBR, NdBR.

Through this certification, Kumho Petrochemical has laid the foundation for converting butadiene and styrene, the main raw materials of the four synthetic rubbers, to bio and renewable products. Based on this, the company plans to start producing ISCC PLUS-certified synthetic rubber in stages using eco-friendly raw materials such as Recycled Styrene Monomer (RSM)

Recycled styrene (RSM) is an eco-friendly raw material obtained by pyrolyzing waste polystyrene (waste PS) and is reused as a raw material for synthetic rubber and synthetic resin. Previously, Kumho Petrochemical announced plans for commercialization in 2026 by announcing a full-fledged promotion of the RSM project last year. If Kumho Petrochemical procures butadiene and styrene as bio, renewable, and recycled raw materials rather than fossil fuels, it can not only reduce greenhouse gas emissions from manufactured products, but also contribute to reducing greenhouse gas emissions from customers in the tire and automobile sectors.

In the future, Kumho Petrochemical plans to continue its efforts to secure sustainable product lines and reduce carbon emissions in the supply chain by acquiring ISCC PLUS certification for other synthetic rubber products such as NB latex and synthetic resin products.


Arlanxeo: Launches New BR Production Line in Brazil  Link...

Arlanxeo had started production at a new 65kMTpa polybutadiene rubber (BR) production line in Brazil. The new production line supplements Arlanxeo’s existing production capacity in Brazil.

The new production line is located in the south of Brazil in the Triunfo petrochemical complex in Rio Grande do Sul. ARLANXEO's commitment to Brazil includes recent investments in a new nitrile rubber production line in Duque de Caxias, Rio de Janeiro, and a new warehouse operation for polychloroprene in São Paulo, together with the existing world scale production facilities in Caxias, Triunfo, Cabo and a business center in São Paulo.


Holcim: Acquiring Duro-Last Roofing Systems  Link...

Holcim has signed an agreement to acquire Duro-Last, a US leader in commercial roofing systems.

Duro-Last is a leading manufacturer of custom-fabricated thermoplastic single-ply roofing systems based in Saginaw, Michigan, with eight manufacturing locations across the US. Duro-Last is the world's largest manufacturer of custom-fabricated, thermoplastic single-ply roofing systems.


Phillips Carbon Black Ltd: 2022 Q3 Results  Link...

PCBL: Volumes down due to customers using up inventory in anticipation of formula pricing drops in the next quarter. Q4 volumes are expected to balance this out. High profit margin for power generation.

Phillips Carbon Black Ltd (PCBL) produce furnace carbon black and also cogenerate electricity using the waste gas from the carbon black process. PCBL report in two segments: Carbon Black and Power, the Power segment sells back to the Carbon Black segment as well as supplying surplus electricity for external sale. All quarterly results are unaudited. Results are reported based for the period in question with no currency adjustments between reporting periods. Currency values reported in: Millions of INR

SegmentParameterPeriod20222021YoY, %Notes
Carbon BlackSales Revenue2022/313314.311283.118.0
Carbon BlackEBIT2022/31671.91455.114.9
Carbon BlackSales Vol MT2022/392000.0115924.0-20.6


RCCL Analysis: Recovered Carbon Black (rCB) Consulting  Link...

Rubber Chemical Consultants provides fully independent consulting for recovered carbon black product development, approvals, markets and pricing. Our unbiased insight allows clients to make fully informed choices regarding business plans, development approach and route to market. Our consulting is based on 35+ years of rubber and chemical industry experience, including significant interaction with tire and rubber companies for approvals and developments.


Continental Rubber Group: Strategic Realignment of ContiTech Sector  Link...

Continental is strategically realigning its ContiTech group sector with the aim of increasing effectiveness and efficiency as well as customer and market proximity. The group sector specialising in material-driven solutions, will focus even more strongly on the expansion of its industrial business via integrated solutions.

The industrial business will be divided into three business areas with a regional focus: Industrial Solutions Americas, Industrial Solutions APAC (Asia & Pacific) and Industrial Solutions EMEA (Europe & Middle East).

The majority of ContiTech’s automotive activities will be consolidated in the Original Equipment Solutions business area, which will operate globally in accordance with its customer structure.


ASTM: New Testing Standard for rCB  Link...

ASTM are publishing a new standard (D8474) covering thermogravimentric (TGA) testing of rCB for the determination of organic residue, fixed carbon and ash content. This standard has been put forward for use as a quality control test in the production of rCB.


Trelleborg A.B.: Finalises Divestment of Printing Blanket Operations  Link...

Trelleborg Group has finalized the divestment of its printing blanket operation to Continental, which intends to integrate the operation into its ContiTech business area.


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