CSRC's Carbon Black Business Group actively embraces the operation mode of circular economy to overcome resource depletion issues in traditional linear economies. This includes the continuous reuse of energy resources, extending resource lifespan, and reintegrating end-of-life materials back into production, maximizing resource reuse.

Its raw material sources include by-products such as bottom oil from upstream petrochemical and steelmaking industries during the oil refining process. These low-value by-products, after undergoing chemical treatment for reuse, can instead produce high-value products like carbon black, as well as additional products such as steam and electricity. The temperature of an incinerator can generally only reach 600-800° C. After incineration of industrial waste, air pollution will still be discharged. In comparison, the reactor furnace temperature of the carbon black process reaches up to 1,800°C. When CSRC incinerates by-products from the petrochemical and steel industries (bottom oil) at high temperatures, it can completely remove many toxic substances such as dioxins that harm the environment. The above carbon black recycling process not only fully utilizes by-products from traditional processes, reducing environmental pollution risks, but also drives new industries and technologies, creating a paradigm of resource recycling.

Multinational automotive and related parts manufacturers have made the use of sustainability and recycled materials a core strategy for their development. Carbon black, as an indispensable raw material in tire production, is inevitably part of the entire circular value chain and a key strategy to achieve net-zero emissions in the supply chain.

CSRC aspires to be a pioneer in circular economy and net-zero emissions. The company integrates circular economy principles into its operations and has introduced a "New Circular Economy Model." This model begins with raw materials and involves collaboration with waste tire recycling and pyrolysis companies. These partners produce recovered carbon black and reclaimed oil, which are then reintroduced into the production process. Utilizing CSRC's unique technology, the carbon black formula is adjusted to create new environmentally friendly, carbon-reducing carbon black. This approach achieves a closed-loop system for raw materials and meets the sustainability requirements of tire manufacturers.

CSRC continuously refines its approach to the circular economy, optimizing and upgrading the existing circular economy path. This involves enhancing the sustainability and renewable raw materials of industrial and biological cycles, as well as advancing technology research and development and process optimization to promote carbon reduction in the regeneration cycle. By employing a multi-faceted approach to upgrade the practical pathways of the circular economy, CSRC aims to achieve the goal of reducing carbon emissions.

Based on our professional carbon black technology, CSRC is constantly pursuing product innovation. Based on our core concepts and principles, our most important green products are “New LH Series Carbon Black” and “Non-Toxic Carbon Black Series” as well as “Environmentally Friendly Recycled Carbon Black.

CSRC is actively developing "New LH Series Carbon Black" with high rigidity, low rolling resistance, good thermal aging resistance, and buckling resistance characteristics. These features enhance tire durability and performance for manufacturers and facilitate excellent tire label performance. Through practical testing, tires manufactured using the "New LH Series Carbon Black (Continex-LH ™)" show optimized rolling resistance and improved tread wear resistance, in turn reducing vehicle fuel consumption and carbon emissions. According to EU statistics, comprehensive adoption of energy-efficient tires for vehicles across the EU could annually reduce carbon dioxide emissions by 4 million tons, equivalent to removing 1.3 million passenger cars from EU roads each year. CSRC's R&D Center in the United States has obtained relevant patents, including applications for passenger car tire treads and truck tire treads, and will initiate laboratory-scale trials.

Rubber and plastic (such as ABS and PP) and transparent paints and coatings on natural materials may contain highly hazardous materials such as polycyclic aromatic hydrocarbons (PAHs). In addition, studies have shown that PAHs are most harmful to the human skin and respiratory tract. As persistent organic pollutants, they have been listed as carcinogens by the International Cancer Research Center. In view of this, we are committed to reducing the content of PAHs in carbon black, complying with the second-category requirements of German Safety (GS) standards as issued by Germany's Product Safety Commission (AfPS), and conducting annual tests for PAH limits and content in carbon black, thereby allowing customers to purchase and use our products with peace of mind. In 2023, the Linyuan Advanced Plant in Greater China passed hazardous substance testing for 233 items, achieving a 100% inspection product qualification rate.

In response to the global net zero emissions trend, we are further introducing the "New Circular Economy Model." Starting from raw materials, we collaborate with waste tire recycling and pyrolysis plant operators to utilize recycled carbon black and pyrolysis oil. Through R&D technology adjustments in carbon black formulation and processes, we produce new “Eco-circular Carbon Black." This not only meets the tire and rubber industry's demand for sustainable raw materials, but also achieves a closed-loop system for carbon black, thereby achieving the goal of reducing carbon emissions.

The Company continues to invest in R&D to explore various sustainable/renewable materials and energy sources, optimize production processes, improve energy utilization efficiency, and produce stable high-quality "Eco-circular Carbon Black" suitable for different requirements. Through rigorous quality control, in addition to ensuring tire quality remains unaffected when using low-carbon products, advanced production and blending technologies ensure the physical properties of Eco-circular Carbon Black match those of virgin carbon black, reducing variability in tire rubber formulations. To meet customer carbon reduction goals, we collaborate with the development needs of downstream tire customers to develop products that meet circular economy requirements and achieve carbon reduction.

In response to international customers' emphasis on product environmental protection and carbon reduction, CSRC actively develops new grades of low-carbon and environmentally friendly carbon black products. The Linyuan Advanced Plant in Greater China obtained carbon black carbon footprint certification in 2022, assisting end customers in meeting green requirements.

CSRC is committed to meeting customer needs, adopting an organized quality management process, and implementing a "Five-Stage Quality Control Model" that details operational items at each stage. This approach effectively ensures product quality consistency. Through this "Quality Management System," we ensure strict implementation of quality management across departments and conduct checks on compliance with packaging regulations. For products requiring special specifications, we adopt a manual review process, requiring approval from the Quality Assurance Supervisor, Plant Manager, Technical Department Manager, and Business Department Manager, ensuring delivery to customers only after meeting standards. This series of measures ensures the stability and reliability of product quality, supporting continuous improvement and implementation of the quality management system. To enhance product control and customer trust, some suppliers visit the plant site annually for secondparty audits. Each plant obtains relevant external third-party testing for product quality management, such as IATF 16949:2016 automotive quality management system certification and ISO 9001:2015 quality management system certification.

CSRC Group's carbon black segment (Continental Carbon) has been contributing to the world's increasing attention for circular economy and green products by exploring green, innovative, and energy-saving uses of carbon black, and adopting sustainable and environment-friendly practices and enforcing corporate social responsibilities in all aspects of business operation.

Owing to CSRC Group's long-term commitment to product innovation and circular economy. CSRC Group was recognized in several prestigious sustainability awards.

Linyuan Advanced Materials Technology Co., Ltd. won the 2020 Asia Responsible Enterprise Awards (AREA) – Green Leadership.