Synthos: Ukraine war & EU regulations driving interest in recovered materials

With its acquisition of Trinseo’s rubber production plants in Schkopau, Germany late last year, Polish firm Synthos has also taken on the minority stake in Swiss start-up Tyre Recycling Solutions (TRS) that Trinseo held. It reports that its collaboration with TRS is now “progressing according to plan.”

In addition to the headway the two parties have made in the marketplace, resulting in approvals with global tyre manufacturers and initial commercial sales for tyre applications, Synthos and TRS have witnessed sharply rising interest in TyreXol recycled rubber. The reasons for this increase are twofold and can be linked to reduced availability of synthetic rubber and carbon black since the Russian invasion of Ukraine on 24 February as well as upcoming regulatory changes that are likely to mandate the use of recycled content in tyre production.

Although Europe produces about a million tonnes of carbon black annually, primarily in Germany, Hungary and Italy, the region remains dependent on imports of the main feedstocks required for carbon black production, such as heavy oils, as well as carbon black imports. Europe’s total carbon black consumption is estimated at 1.6 million tonnes a year, with Russia and Ukraine previously supplying around 38 per cent of the market. Tyre and rubber manufacturers thus urgently need an alternative supply.

Diversifying raw material supply strategy

“At Synthos, we stand in solidarity with Ukraine. Therefore, we view the business opportunities arising from the current crisis with mixed feelings,” says Matteo Marchisio, business unit director, Synthos Synthetic Rubber. “We are faced not only with significantly higher demand for synthetic rubber from our strategic customers, but also with the fact that the tyre market is increasingly looking to diversify its raw material supply strategy, especially in the area of sustainable alternatives, in order to structurally reduce its dependence on supplies from Russia and Belarus.”

In addition to availability issues in the synthetic and carbon black markets, both partners consider the European Commission’s recently announced Ecodesign Regulation a game changer that will play a role in accelerating market acceptance of high-quality rubber powder from end-of-life tyres. With many leading tyre manufacturers anticipating the upcoming legislative changes in the EU regarding a potential minimum content of recycled material in tyres, it has become clear that rubber powder is seen as a good alternative, especially when it will be available on a large scale.

“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,” comments Staffan Ahlgren, chief executive officer of TRS. “We are committed to establishing a total recycling capacity of more than 200,000 tonnes 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 tyre customers that not only fills the market gap, but also enables the industry to offer products with a smaller environmental footprint.”

In line with sustainability commitments

Synthos states that its commercial and technical collaboration with TRS is fully in line with the company’s commitment to provide its synthetic rubber customers with high-performance material solutions with a lower environmental footprint, as well as its 2030 Sustainability Commitments on Climate Change, Green Raw Materials, Sustainable Product Portfolio, Green Energy and Responsible Partnerships.