Exclusive: BKT Carbon targets global tire markets with major expansion plans

Hanover, Germany - BKT Carbon is strengthening its presence in global tire markets, with plans to nearly double carbon black output to 660 kilotonne per annum (ktpa) over the coming years.

Speaking to ERJ at the Tire Technology Expo in Hanover 4 March, T.C. Goel, general manager, sales at BKT Carbon, said, the next phase of growth will focus strongly on export markets.

These include Europe, North America and South America, particularly as the Indian carbon black maker seeks to establish supply relationships with major tire manufacturers.

"We will be banking heavily on export markets," Goel said, adding that Europe remains the company's largest overseas destination.

“Europe is number one for us today, and the US and South America are also important markets.”

Expansion Plans

BKT Carbon has expanded rapidly since launching operations in 2019, initially producing hard grades of carbon black before adding soft black production during the Covid period.

The company is completing a 92ktpa expansion by April, reaching an overall capacity of 360ktpa, which Goel said will make BKT Carbon the third-largest carbon black producer in India. (ERJ report)

This capacity includes 35ktpa of speciality grades, all produced at a single site in Bhuj, Gujarat.

Looking ahead, the company plans a further major expansion that would add around 300ktpa of additional capacity, having already begun environmental approvals and local community clearances for the project.

“We have already obtained the environmental approvals, which usually take the longest time,” he said.

The next phase is expected to be implemented within about four years once the current capacity is fully utilised, said Goel without providing details of costs.

BKT Carbon currently exports around 30ktpa, mainly rubber grades, but Goel said shipments have been limited by available capacity.

The company supplies customers across Europe, North America, and South America, with key European markets including Poland, Spain, Portugal, Italy, and The Netherlands.

Most of current export sales are in technical rubber goods and mechanical rubber goods applications, according to Goel.

However, BKT Carbon is working to enter the global tire supply chain, with products undergoing testing and evaluation by major tire manufacturers.

"We are trying to get our products tested and evaluated by tire companies," Goel said, "this process usually takes about two years, and hopefully from next year we should start supplying."

Despite subdued demand in regions like Europe and North America, BKT Carbon sees solid export opportunities, supported by India's position as a net producer of carbon black.

"India produces much more carbon black than it consumes domestically, so the surplus naturally goes to countries where production is limited," Goel said.

Trade policies, tariffs and compliances in certain countries remain an important factor, but BKT Carbon is confident about its ability to compete internationally.

"There may be temporary hiccups due to tariffs or geopolitical developments," Goel said, "but overall, we believe we should be able to compete in all parts of the world."