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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Germany's rubber industry continues to face significant headwinds, with fresh data from the German Rubber Industry Association (wdk) revealing a persistent downturn. The figures show employment falling for the fifth year in a row, while production levels have declined for the fourth consecutive year, underscoring the sector's struggle to regain its footing.

The association attributes this stagnation to waning enthusiasm for German rubber goods in both domestic and international markets. Michael Berthel, wdk Chief Economist, described a fundamental shift in procurement behaviour, even within Germany. He noted that purchasing decisions are now driven almost exclusively by price, a stark departure from the historical emphasis on quality and reliability. This change has opened the door to intense international cost competition, placing immense pressure on Germany's medium-sized suppliers. Berthel highlighted that prohibitive domestic costs related to energy, bureaucracy, taxation and labour make it nearly impossible for these firms to compete effectively. Consequently, many are compelled to relocate their investments abroad as a necessary escape from these local burdens, even though their preference would be to maintain and revitalise their operations within Germany after years of strategic transformation.

Against this backdrop, wdk President Michael Klein issued an urgent appeal to the federal government. He acknowledged that the broader struggles of German industry are well documented but stressed the immediate need for decisive political intervention. Klein called for concrete measures to stimulate demand and bolster the nation's competitive edge within Europe without further delay. He warned against allowing the rubber sector to decline quietly, emphasising its critical role in essential areas such as healthcare, infrastructure, security and mobility.

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Punia Metox Private Limited has commenced production at a new manufacturing facility in Thottambedu, Tirupati, Andhra Pradesh, with operations starting on 12 February 2026.

The plant has an initial production capacity of 12,000 tonnes a year. Its structural design allows capacity to be doubled within four to six months, providing scope for rapid scale-up as demand grows, the company said.

Punia Metox said the facility has been equipped with modern technology to support operational and energy efficiency, safety, sustainability and consistent product quality. The company added that the plant has been designed to enable smooth and seamless operations from the outset.

The expansion forms part of Punia Metox’s strategy to align capacity growth with customer requirements and strengthen its position as a long-term supply partner. The company said the new unit reflects its focus on customer satisfaction, ethical business practices and value-based growth.

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Cabot Corporation said it can now produce circular reinforcing carbons in the Asia-Pacific region after validating manufacturing capability at its plants in Cilegon, Indonesia, and Tianjin, China.

The materials are produced using tyre pyrolysis oil derived from end-of-life tyres and an International Sustainability & Carbon Certification (ISCC) PLUS mass-balance approach. With the addition of the two Asian sites, Cabot said it now has circular reinforcing carbon production capacity across Asia, Europe and the Americas.

Tyre manufacturers are pursuing targets to increase sustainable material use in tyre production, with many aiming for 40 per cent by 2030 and 100 per cent by 2050, the company said. Cabot’s circular reinforcing carbons are designed as a drop-in replacement for conventional carbon black, allowing manufacturers to increase sustainable content without affecting tyre performance.

Aatif Misbah, Vice-President and General Manager for sustainable solutions in Cabot’s reinforcement materials segment, said: “This achievement reflects our deep commitment to delivering sustainable solutions across Asia Pacific and globally. Scaling our circular reinforcing carbon capabilities helps strengthen our role as a trusted partner to the tire industry, while helping to drive meaningful sustainability progress. Looking ahead, we remain focused on supporting our customers’ evolving needs and helping enable a more sustainable future.”

Cabot’s facilities in Ville Platte, Louisiana; Mauá, Brazil; and Valasske Mezirici in the Czech Republic had previously demonstrated circular reinforcing carbon production capability. The products are ISCC PLUS-certified and marketed under the recovered category of Cabot’s EVOLVE Sustainable Solutions platform.

The company said it has 13 ISCC PLUS-certified sites supporting circular reinforcing carbon production across Asia, Europe and the Americas, along with two certified masterbatch and compounding sites in Europe.

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The Rathi Group has formalised a partnership with the Indian Tyre Technical Advisory Committee (ITTAC) through a Memorandum of Understanding aimed at advancing technical collaboration on recovered carbon black (rCB). The agreement focuses on the responsible integration of rCB into tyre manufacturing, with an emphasis on detailed evaluation and enhancement of its material properties. This initiative will be driven through structured engagement between industry and academia, supported by ITTAC’s technical expertise.

The collaboration is facilitated by the Automotive Tyre Manufacturers’ Association (ATMA) and ITTAC, which have brought together leading technical experts, tyre manufacturers and research institutions on a unified platform. Their coordinated efforts are fostering a science-based approach to accelerate the assessment and adoption of circular materials within the tyre sector. This partnership is seen as a significant step in strengthening industry–academia linkages to advance sustainable practices.

Through this alliance, the Rathi Group aims to contribute to the evolving landscape of tyre-to-tyre circularity. The joint initiative underscores a shared commitment to developing innovative solutions that support environmental responsibility while maintaining technical performance standards in tyre applications.

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