The production and availability of natural rubber in India is facing huge disruption, despite a constant price hike, small-scale players are under the threat of extinction on the back of several factors. In fact, the All Kerala Small Scale Tread Rubber Manufacturers’ Association increased the price of tread rubber and allied products by INR 12 per kg on the back of hike raw material prices and overhead expenses. But this too seems to be a not a sustainable measure.

In a conversation with Tyre Trends, P P Subair, President, of All Kerala Small Scale Tread Rubber Manufacturers’ Association states that the prices of rubber are going up by almost INR 3-4 per kg daily. It is becoming so dynamic that the prices keep varying throughout the day.

This, he attributes, is on the back of several factors, which include the availability of natural rubber becoming scarce on the back of adverse weather conditions (heavy rain); then there is the reduction in imports due to the non-availability of containers from Thailand and other countries.

Furthermore, the reduction in the availability of labourers, especially in the key state of Kerala where only 30 percent labourers are available (compared to demand) for rubber taping. According to Subair, almost 80 percent of the natural rubber production in India happens in Kerala, with the rest of India including Karnataka, Maharashtra and other states contributing the remaining 20 percent.

“The young generation is not interested in working in this profession, even if people from other states are called for working on rubber tapping, it will still take a couple of months for them to be efficient,” shares Subair. This has also resulted in a significant number of players shutting shop. In fact, Subair states the number of members in the All Kerala Small Scale Tread Rubber Manufacturers’ Association has come down from 1,000 to 300.

He explains that as on 8 August 2024, the price of tread rubber is around INR 250 per kg, yet there is no availability for the raw material.

“Everybody is searching for rubber sheets, but the same problem exists in other states also.”

He claims that at present 75 percent of tread manufacturers are from Kerala, while the remaining are based in Karnataka, Maharashtra, Gujarat, and a few other places. While there are some other states in Northeast India, the quality is not similar, as well as the available quantity is very limited in comparison to the demand in the country.

Subair expects that there may be some relief in the next 2-3 months, in addition to the relief post-monsoon.

But he also expresses concern about the existential crisis looming across the country for the small-scale industry.

“All over India, the small-scale players are suffering in the tread rubber sector. In addition to the challenges, the removal of exemptions for small-scale players in the taxation bracket, we are now faced with 18 percent GST which has impacted the financial health of many players. This has led to wafer-thin to almost no margins for businesses. It has become very difficult to grow or expand one’s business,” he shares.

Then there is the indirect impact due to the crude oil prices on the back of geo-political reasons.

Comments (0)

ADD COMMENT

Link Copied!

Orion S.A., a global speciality chemicals company, has successfully secured the prestigious ISCC – the International Sustainability and Carbon Certification for its manufacturing facility located in Qingdao, China. This significant achievement is the direct result of a rigorous, independent audit process which validated that the plant’s operations fully comply with the comprehensive sustainability criteria established by ISCC.

The certification serves as a formal verification of both the transparency and the complete traceability of the sustainable raw materials integrated into the facility’s production value chain. This milestone is a key component of Orion’s overarching corporate strategy to implement and enhance sustainable practices throughout its international operations.

By achieving this globally recognised standard, the company reinforces its commitment to supplying clients with high-performance carbon black and other speciality chemical products that adhere to leading international environmental and sustainability benchmarks, thereby supporting customer goals for more responsible manufacturing.

Comments (0)

ADD COMMENT

Link Copied!

Ecolomondo Corporation, a Canadian developer of sustainable technology for recycling scrap tyres, has secured a provisional financing agreement with Export Development Canada (EDC) for USD 2.7 million. The funds are intended to support the final ramp-up phase of its Hawkesbury thermal decomposition plant by covering necessary capital investments and operational working capital.

Following months of negotiation, both parties have agreed in principle to the loan terms, which include augmenting an existing USD 2 million credit facility established by a subsidiary, Ecolomondo Environmental (Hawkesbury) Inc, in January 2025.

Furthermore, EDC has conditionally approved a temporary suspension of principal and interest payments for loans from 2024 and 2025, applicable during the facility's 2026 ramp-up period. This financial arrangement is designed to provide the liquidity required to advance the project to full operational capacity, pending the finalisation of formal documentation.

Jean-François Labbé, Interim CEO, Ecolomondo Corporation, said “We have been working steadily in Hawkesbury, hiring, training, increasing production, increasing sales and, most of all, improving efficiency. This additional financing from EDC is greatly appreciated and should allow the Hawkesbury TDP facility to achieve its full potential.”

Comments (0)

ADD COMMENT

Link Copied!

Cabot Corporation said it has received improved environmental ratings from CDP, reflecting continued progress in water management and steady performance on climate disclosures.

In CDP’s 2025 assessment, the company was awarded an A- rating for Water Security, up from a B in 2024, and a B rating for Climate Change, unchanged from the previous year. Cabot said the water score exceeded both global and industry averages, recognising its approach to managing water-related risks and implementing sustainable water practices.

The Climate Change rating remained stable year on year, with improvements reported in areas including climate risk disclosure, value chain engagement and industry collaboration.

The latest scores extend a five-year pattern of incremental improvement, achieved amid more demanding reporting standards and rising expectations from regulators, investors and customers.

“We are proud that CDP’s independent assessment reflects our ongoing efforts to enhance environmental performance and transparency,” said Jennifer Chittick, senior vice-president for Safety, Health and Environment and chief sustainability officer. “The improvement in our Water Security score demonstrates our leadership in this critical area, and we remain committed to advancing our sustainability strategy across all domains. This progress was made possible by our dedicated, global team, and we remain focused on driving further improvements in the years ahead.”

CDP assesses companies on environmental impact across climate change, water security and deforestation, using a scale from D for Disclosure to A for Leadership. In 2025, more than 24,800 companies were rated, representing about two-thirds of global market capitalisation.

Cabot said the results underline its focus on transparency and responsible environmental management as it continues to execute its sustainability strategy.

Comments (0)

ADD COMMENT

Link Copied!

A USD 1.4 million equipment enhancement at Liberty Tire Recycling’s Cameron, North Carolina, facility is set to significantly boost its processing capabilities. This upgrade, enabled by the state’s sustainable financial backing of its scrap tyre programme, will allow the facility to handle an extra 3,300 tonnes of material annually, representing nearly 300,000 passenger tyres.

A key improvement is the increased capacity to process truck tyres, which are more challenging to recycle due to their size and durable steel components. The resulting crumb rubber, highly sought after by manufacturers, will be directed towards producing floor mat bases and rubber tiles made entirely from recycled material. This material also serves as a component for athletic tracks, synthetic turf, rubberised asphalt and various moulded products.

This capital investment follows North Carolina’s legislative action to redirect tyre disposal fees into the state’s scrap tyre management system, a move that includes compensating counties for collection and recycling expenses. With North Carolina establishing itself as a centre for tyre recycling, Liberty Tire indicates it is evaluating further multi-million-dollar investments and job creation across its other operations in the state.

Comments (0)

ADD COMMENT

Link Copied!