(Yicai) July 24 -- Longxing Technology Group, a leading Chinese carbon black supplier, said that it has begun deliveries on an initial order of nearly 10,000 tons of its sustainable products to a well-known European tire producer after receiving approval from the client.

Longxing Tech is also working with other well-known European tire makers on developing sustainable green carbon black products, promoting relevant sample delivery and certification work, the Hebei province-based company announced late yesterday, without disclosing the names of any clients.

Carbon black serves as a core reinforcing filler in tires, which can improve various properties, including tear, wear, and fatigue resistance, as well as extend the tires' driving range. Native carbon black is formed through synthetic reactions from coal tar and has better performance than recycled carbon black.

The sustainable carbon black for the latest project is synthesized from cracking oil made from waste tires through cracking reactions, with its performance comparable to that of native carbon black, Longxing Tech said, noting that recycled carbon black is extracted from waste tires and has generally low product purity and reinforcement performance.

Sustainable carbon black is viewed by the industry as the most promising and certain direction for the development of green carbon black, with its economic benefits superior to traditional carbon black production, Longxing Tech noted, adding that it is more in line with the themes of green, low-carbon, and sustainable development.

Leading global tire makers have launched renewable material substitution programs in recent years, creating vast market growth space for sustainable carbon black products, Longxing Tech said. The company will gradually raise its relevant annual production capacity based on downstream customers' demand, it pointed out.

Longxing Tech ranks among the top three carbon black producers in China and the top 10 worldwide. Its output reached 668,700 tons last year, while sales topped 652,800 tons, according to its annual financial report.

Shares of Longxing Tech [SHE: 002442] closed 1.1 percent lower at CNY4.52 (67 US cents) apiece today. The broader Shenzhen market dropped 2.5 percent.

Editor: Martin Kadiev