Like its peers, the Sri Lankan rubber industry has been hard hit by the COVID 19. However, the pandemics will bring some opportunities to the sector, believes Ravi Dadlani, Chairman of the Sri Lanka Association of Manufacturers and Exporters of Rubber Products (SLAMERP), and MD of CEAT Kelani Holdings. “The demand for PPE is high and will be sustained in time to come until COVID 19 is no longer a pandemic. Especially gloves and other wearables made of rubber will be a good area for the Sri Lankan rubber industry to focus on,” says Dadlani an interview with Tyre Trends.

How do you see the impact of COVID 19 on Sri Lanka’s rubber industry?

Sri Lanka, like all exporting countries, have been largely impacted. The shutdown has caused a tremendous loss both in terms of production and the subsequent shut down of countries resulting in the cancellation of orders widely across the tyre industry. We are concerned that the impact fully on the industry is still to be realised. We will, once the supply chain and the related industries come back online, be able to quantify the extent of the impact. We are however positive that the Sri Lanka rubber industry is poised to benefit from the need arising from the COVID 19 impact. Especially the demand for PPE is high and will be sustained in time to come until COVID 19 is no longer a pandemic. Especially gloves and other wearables made of rubber will be a good area for the Sri Lankan rubber industry to focus on. Also, the government suspension of importing of tyres is poised to increase demand for domestic manufacturers of tyres at least in the short term, which will be a boost to the local rubber industry. Impact on the loss of exports and the timings of the opening of overseas markets would be critical at this point. 

The rubber industry has always been the country’s one of the main sectors and exporters. Do you think that the industry currently is being explored to its fullest potential?

There is a lot of potential for rubber in Sri Lanka. The need to increase the production of rubber through productivity improvements and the need to extend the rubber growing acreage is critical at this time. We have leading manufacturers of international repute and strong local manufacturers catering to export markets both in the tyre and gloves segments. 

The country also has the potential to enter new markets and customer segments with new products. There is more that needs to be done in terms of R&D and technological collaborations to enter high-value rubber-based product segments. With major global brands producing in Sri Lanka, we have a greater ability to increase trading activity and improve international sales as a regional hub for the industry.

What kind of support do you expect from the government and industry-related bodies for the long term?

Firstly, the rubber sector was the first to benefit from the priority given by the government initiative to commence operations. The sector benefited by the fast track approval to be classified as an essential sector. We expect the government to continue to have consistency when it comes to policy matters. We are also seeing a strong support base coming in terms of the Board of Investment and the Export Development Board for the rubber cluster. We need to fast track the planned policy-based approach of increasing rubber production in the country through the rubber master plan, with incentives if need be for plantations to spearhead this initiative. Also, research and development on rubber yield increase, all-weather rubber tapping techniques need to be introduced with governments thrust towards increasing rubber production.

There should also be incentives for exporters to invest in high-value rubber product manufacturing. We expect the government to educate the smallholders with international best practices to manage the rubber crop for better yield and output through RDD & RRI as key government institutions. The industry prefers to buy more local rubber, but there is a shortfall every year vs the demand. We also need to drive the public-private partnership research & development and must invest more in laboratory and testing facilities to provide certifications that are required for the export markets within Sri Lanka. The Government will also need to look at domestic supply chain inefficiencies which may hold back on the growth potential of the industry.

When we talk about tyres, how does the Sri Lankan tyre industry make its mark globally, especially in the solid tyre segment?

Absolutely it does. Sri Lanka is considered market leaders in certain categories of the solid tyre export segment. There are the numbers of global and local companies operating out of Sri Lanka holding a good foothold in the global solid tyre market. The global rubber industry is worth around USD 400 billion, out of which 65% is the tyre industry, given this, we have a market that we can increase our supply of both off road and on-road tyres, Sri Lanka has aggressively ventured into the global pneumatic agriculture, Off-road and industrial tyre segment which is estimated at USD 44b. We are confident that this position of strength will be maintained in the future, too in these segments. 

What are the challenges for tyre and rubber goods, especially for small and medium enterprises?

Key is the availability of rubber at consistent prices at the right quantities throughout the year. Currently, the industry is hampered with weather-related shortfalls in production coupled with plantations moving away from rubber and more profitable ventures depleting the total output. We consume 140,000 MT, and the local production is at 75,000 MT. Addressing these two areas will result in a stable supply of rubber for industries. It is very important that SMEs adopt technology and increase productivity and production to cater to the demand for rubber. 

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In pursuit of its strategic vision, ‘Michelin in Motion 2030’, Michelin is expanding into high-value adjacent markets, including the development of its Polymer Composite Solutions. A key step in this growth is the acquisition of Flexitallic, a global leader in sealing solutions based in Houston, Texas. This move is set to substantially enhance Michelin’s sealing portfolio and extend its market access, particularly within the aftermarket sector.

Flexitallic serves critical industries such as energy and chemicals, providing high-performance gaskets, sheet products and specialty filler materials known for exceptional reliability and resistance in extreme, safety-critical environments. The company, which operates 17 facilities worldwide and employs about 1,200 people, reported sales of approximately USD 220 million in 2025.

The acquisition is a strong strategic fit, uniting two global organisations with a shared commitment to innovation and quality, thereby creating significant synergies for future growth. The transaction, for an undisclosed amount, will be fully financed from Michelin’s available cash. Subject to standard regulatory approvals and closing adjustments, it is anticipated to be finalised in the first half of 2026.

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Birla Carbon has inaugurated a dedicated production line at its Trecate, Italy facility, specifically engineered for the finishing and packaging of its Continua Sustainable Carbonaceous Material (SCM). This industry-leading circular material is produced from end-of-life tyres, and the new line enables its manufacture in large, consistent volumes. This expansion directly strengthens long-term supply security for the company’s worldwide customer base.

The Continua SCM range, including the 8000 series for tyres, rubber goods and plastics, provides a scalable sustainable solution. It allows customers to increase recycled content while gaining functional benefits such as blending flexibility and lower homologation costs. Importantly, it delivers assured regulatory compliance and consistent quality, supporting industries in their transition toward enhanced product circularity and reduced environmental impact.

John Loudermilk, President and CEO, Birla Carbon, said, “This is a pivotal moment for Birla Carbon. Continua SCM represents the most consistent, high-quality, circular material in the carbon black industry today and replaces a portion of carbon black in most rubber and non-rubber applications. It also reflects cross-industry collaboration for sustainability, with raw material sourced from our partner Circtec’s newly launched tire pyrolysis facility in the Netherlands and finished and packed at our state of-the-art processing line in Trecate. The launch of this line is a key milestone in our ambition to put back into industry 300,000 tonnes of end-of-life tyres annually by 2030, contributing to our aspiration to achieve net zero carbon emissions by 2050.”

John Davidson, Chief Sales, Marketing and Sustainability Officer, Birla Carbon, said, “The launch of the Continua SCM processing line in Trecate ramps up the availability of our circular product portfolio for customers globally. Continua SCM enables our customers to increase the use of sustainable materials in their products while maintaining the performance standards they expect. This expansion reinforces our commitment to supporting customer sustainability goals at scale.”

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German chemical group WACKER has announced significant price increases for a wide range of silicone products, effective from 1 February 2026. These adjustments, which will see prices rise by up to 25 percent or even higher in specific instances, will be applied across existing customer contracts as necessary. The decision is a direct response to unprecedented surges in raw material costs, most notably for the precious metal platinum, a critical catalyst used in the production of addition-curing silicone products and crosslinking silicone release agents.

According to Tom Koini, Head of Silicones, the extreme market dynamics have made this step unavoidable, as internal efficiency measures can no longer absorb the cost pressure. Platinum prices on international commodity exchanges have more than doubled since the beginning of the previous year. WACKER states that the price adjustments are essential to maintain its high standards of product quality, customer service and technical support moving forward. The increases will specifically affect addition-curing silicone rubber grades, silicone resins, silanes and silicone-based release coatings.

The company’s Silicones division, a global leader with a portfolio of over 2,800 specialised products, serves key industries including automotive, pharmaceuticals, medical technology, electrical engineering and energy transmission. The portfolio encompasses silicone fluids, elastomers, resins, sealants, silanes and release coatings, all designed to enhance the performance and value of end products. In 2024, this division accounted for approximately 49 percent of the Group’s total sales.

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ARLANXEO, a leading performance elastomers company, has officially opened its new Therban hydrogenated nitrile butadiene rubber (HNBR) production facility in Changzhou, China. This advanced plant, dedicated to producing the Therban brand, is designed to meet rising demand across vital industries including new energy, automotive, aerospace and next-generation battery technologies, where materials must endure extreme operational conditions.

Strategically positioned within ARLANXEO’s existing Changzhou complex, which also houses an EPDM plant and a Regional Technology Centre, the new installation strengthens the company’s integrated approach from innovation to manufacturing. It forms a crucial part of a global production network that includes sites in United States and Germany, establishing Changzhou as a central hub for the Asia-Pacific region.

The facility boasts an annual design capacity of 5,000 tonnes, with the first phase of 2,500 tonnes having successfully commenced operations in October 2025. It was completed with an exemplary safety record, achieving over 1.1 million incident-free work hours throughout its construction and commissioning, which was concluded within 13 months.

Engineered for high efficiency and environmental responsibility, the plant incorporates state-of-the-art finishing technology for consistent product quality. A key feature is an advanced thermal oxidation system that recovers energy and cuts carbon emissions in core processes by approximately 80 percent compared to traditional methods. Furthermore, the facility employs a closed-loop design that eliminates routine process wastewater discharge, supporting ARLANXEO’s commitment to reducing greenhouse gas emissions.

The inauguration was marked by a ceremony attended by senior leadership from ARLANXEO and its shareholder committee, alongside representatives from key customers, local authorities and community partners. This expansion significantly enhances ARLANXEO’s ability to supply reliable, high-performance elastomer solutions to its regional customer base.

Dr Faisal Al Faqeer, ARLANXEO Shareholders’ Committee Chairman and Aramco Senior Vice President of In-Kingdom Liquids to Chemicals Development, said, “China is important in supporting Aramco’s downstream growth. ARLANXEO’s new Therban® HNBR plant is the most recent demonstration of Aramco’s downstream expansion strategy of portfolio diversification and integration, underscoring our confidence in China’s innovation and manufacturing strength. We look forward to deepening our cooperation and further contributing to China’s high-quality and sustainable growth.”

Stephan van Santbrink, CEO, ARLANXEO, said, “Today’s inauguration marks an important milestone for ARLANXEO and a strong demonstration of our long-term commitment to China. We sincerely thank the Changzhou government, Aramco and all stakeholders for their trust and continued support. With the new HNBR plant now fully operational, we are further integrating our local production and R&D capabilities to strengthen the resilience of our global supply network. By delivering locally produced, high-quality rubber products, we will continue to collaborate with our customers and accelerate application innovation, creating greater economic and social value across our value chain.”

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