Raw Materials Management

The main raw materials for carbon black production are by-products from the refining processes of upstream petrochemical and steel industries. Through a specialized production process, these by-products are transformed into high-value carbon black products, truly realizing the principles of a circular economy. In Greater China, India, and the United States, local refining and steel plant by-products are used as fuels and raw materials. To reduce carbon emissions, we have been actively building green supply chains by introducing natural gas as a fuel. This initiative was implemented at our Chongqing plant in March 2023, the Linyuan Advanced Plant in April 2023, and gradually rolled out at the Maanshan plant in China starting June 2024. The CCET plant in India has also adopted this practice, with other plants planning to follow. In 2024, the Linyuan Advanced Plant and Maanshan plant in Greater China began using recycled pyrolysis oil as a raw material, totaling 3,424 tons, which helped reduce carbon emissions by 1,967.36 tCO2e. Other plants plan to adopt this approach gradually.

Greater China India USA GROUP
2022 2023 2024 2022 2023 2024 2022 2023 2024 2022 2023 2024
Non-renewable materialsNote1 Raw oil + fuel oil + natural gas 300,210 286,731 284,922 97,819 106,702 438,586 302,131 273,248 275,164 700,160 666,681 998,672
Packaging materialsNote2 2,296 1,172 1,893 560 880 633 227 261 1,930 3,083 2,313 4,456
Renewable materialsNote3 Recycled oilNote4 5,790 3,879 3,424 - - - - - - 5,790 3,879 3,424
Recycled packaging materials 1,262 660 1,259 - 221 331 2 - - 1,264 881 1,590
Note:
  1. Non-renewable materials are defined as resources that cannot be replenished in the short term. E.g.: minerals, metals, oil, natural gas, coal, etc.
  2. Non-renewable packaging materials include plastic pallets and bulk bags.
  3. Renewable materials are defined as those that can be quickly restored through ecological recycling or agricultural procedures and can be used continuously for future generations. E.g.: wood, water.
  4. Recycled oil refers to tire pyrolysis oil (oil derived from recycled tires after pyrolysis, converted into reusable oil), which minimizes waste disposal issues and reduces the burden on fossil fuels.