The solution to carbon black shortages? Recycled powders

OSWIECIM, Poland—Between Russia's invasion of Ukraine and a European regulatory landscape that soon could see mandates for recycled materials in tire production, interest in recovered materials has increased dramatically.

As such, the Polish chemical producer Synthos S.A. is collaborating with Switzerland-based Tyre Recycling Solutions, a company in which Synthos gained a minority share after its late 2021 acquisition of Trinseo S.A.'s synthetic rubber business.

"At Synthos, we stand in solidarity with Ukraine," said Matteo Marchisio, business unit director for Synthos Synthetic Rubber. "Therefore, we view the business opportunities arising from the current crisis with mixed feelings."

Marchisio said high demand for synthetic rubber; and the tire manufacturing trend toward the use of sustainable alternatives to reduce dependence on Russian and Belarussian feedstocks and imports is shaping Synthos' strategic outlook.

The upcoming Ecodesign Regulation under the European Union's Green Deal will establish minimum thresholds for the use of recycled rubber material in tire manufacturing, raising interest in Tyre Recycling Solutions' patented TyreXol recycled rubber powder.

This powder can be used as a replacement additive for carbon black, one of the chief performance ingredients in tire manufacturing.

Europe produces about 1 million metric tons of carbon black annually (Germany, France, Italy and the U.K. are the largest users), however the continent still requires imports to satisfy its 1.6 million tons of carbon black used per year.

In the past, Russia, Ukraine and Belarus accounted for between one-third and half of Europe's overall supply, but imports from those countries are completely cut off from the EU due to the war in Ukraine.

In addition, Europe's own production of carbon black requires heavy oils, feedstocks that came primarily from Russia, according to Synthos.

"The market dynamics we are experiencing today reinforce our belief that high-quality recycled rubber powder is a viable alternative to virgin material in high-performance rubber applications," said Staffan Ahlgren, CEO of Tyre Recycling Solutions. "We are committed to establishing a total recycling capacity of more than 200 tons of TyreXol rubber powder by 2026 to meet industry demand.

"Our plan is to ensure a secure supply of recycled rubber powder in geographic areas close to our tire customers that not only fills the market gap, but also enables the industry to offer products with a smaller environmental footprint."

In a deal that closed Dec. 1, 2021, Synthos added manufacturing sites, intellectual property and research and development facilities with the acquisition of Trinseo's synthetic rubber business.

Synthos paid $402.4 million in cash for the Trinseo business, in exchange for $47 million of working capital to be collected by Trinseo.

The move brought Synthos' combined annual synthetic rubber production capacity for ESBR, PBR and SSBR to more than 800,000 metric tons, while enhancing and streamlining its research and development capabilities.

About 440 former Trinseo employees joined the Synthos team with the acquisition.