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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Birla Carbon Announces Asia-Wide Speciality Materials Price Hike Of Up To 15%
- By TT News
- September 22, 2026
Birla Carbon has confirmed a price increase of up to 15 percent for its Speciality Materials products across Asia, scheduled to take effect on 1 October 2026. The company pointed to significant and sustained rises in feedstock costs, driven partly by ongoing geopolitical instability and disruptions in global feedstock markets, as the reason behind the adjustment.
Although Birla Carbon pursued operational efficiencies, supply chain optimisation and disciplined cost management to soften the impact, the scale and persistence of the cost escalation left a price adjustment unavoidable. The company's sales teams will engage customers directly to explain the details and help them navigate the transition.
ACE Laboratories, Abdallah Consulting Launch VericarbSM To Standardise Recovered Carbon Black
- By TT News
- September 20, 2026
ACE Laboratories, an independent ISO/IEC 17025-accredited polymer testing laboratory, has partnered with Abdallah Consulting, LLC, a prominent tyre pyrolysis advisory firm, to introduce VericarbSM. This independent certification programme verifies that materials marketed as recovered carbon black (rCB) meet established criteria for rCB.
Recovered carbon black, derived from end-of-life tyres via pyrolysis, serves as a sustainable substitute for virgin carbon black in rubber and polymer applications. However, the emerging market has lacked the standardisation and independent verification that established supply chains provide. VericarbSM addresses this gap through independent material characterisation and rubber performance data, offering stakeholders a consistent basis for evaluating rCB products.
For producers, certification accelerates market entry and improves buyer approval rates. Consumers gain more capable suppliers and reduced evaluation time, while investors benefit from clearer volume sizing and fewer costly test failures. The programme is jointly administered by both organisations.
Erick Sharp, CEO, ACE Laboratories, said, “The rCB market has enormous potential, but growth has been held back by uncertainty about material quality and consistency. VericarbSM gives producers a way to prove their product and gives buyers the independent data they need to say yes.”
Dave Abdallah, Founder, Abdallah Consulting, said, “One key reason for the delayed growth of recovered carbon black is lack of product performance information in the customer’s language. ASTM standards are critical; in fact, most testing done in the process follows ASTM methods. But customers relate to a product better when its performance is shown in applications relevant to them. VericarbSM solves the language issue by showing verified rCB in terms of rubber performance while simultaneously adding credibility via third-party analysis and reporting.”
Zeon Establishes Kurashiki Subsidiary To Absorb Tohpe's Acrylic Rubber Business
- By TT News
- September 18, 2026
Zeon Corporation established Zeon Chemicals Kurashiki Co., Ltd. on 23 July 2026 to take over the acrylic rubber operations of fellow group firm Tohpe Corporation. The new entity, headquartered in Kurashiki City, Okayama Prefecture, is wholly owned by Zeon with paid-in capital of JPY 10 million and is led by representative Koji Minami.
On 21 August, Tohpe and the new subsidiary signed an absorption-type company split agreement, prompting Zeon to begin the procedures required under the Companies Act. Operations at the new company, focused on manufacturing and selling acrylic rubber and related activities, are scheduled to commence on 30 October 2026.
Acrylic rubber, known for its heat resistance, is used in automotive components including oil seals and hoses. The Zeon Group already maintains four production sites across Japan, United States and Thailand, forming a global supply network for the material.
The restructuring follows Zeon’s 11 May 2026 announcement that it would transfer Tohpe shares to NATOCO Co., Ltd. of Miyoshi City, Aichi Prefecture, as part of Tohpe’s paints business divestiture. Tohpe’s acrylic rubber operations, which complement Zeon’s Elastomers Business, will now be positioned as a key specialty rubber manufacturing site, with closer operational coordination intended to strengthen Group competitiveness and corporate value.
Revyre Targets SBS Market With Tyre-Derived Polymer After Auckland Road Trial
- By Gaurav Nandi
- September 14, 2026
The company is betting that a polymer manufactured from end-of-life truck tyres can disrupt the market for petroleum-based styrene-butadiene-styrene (SBS), a widely used road-binding additive whose pricing and availability are tied to global oil markets. After completing a live road trial with Road Science and Auckland Transport in New Zealand, the company is preparing to use the results as a springboard for expansion into Australia and Sub-Saharan Africa, positioning the recycled material as a lower-cost, lower-carbon alternative to virgin polymers.
New Zealand-based Revyre Global Limited is positioning a polymer manufactured from end-of-life truck tyres as a lower-cost alternative to petroleum-based styrene-butadiene-styrene (SBS) after completing a live road trial with Road Science and Auckland Transport in New Zealand.
The company has spent several years developing the product as a direct replacement for SBS. Unlike conventional tyre-derived asphalt, which relies on crumb rubber, the company’s Chief Executive Officer Shaun Zukor told Tyre Trends that its proprietary thermomechanical process produces a remanufactured polymer with blending characteristics similar to SBS, allowing it to be used in existing asphalt infrastructure.
“Our primary objective was to develop a drop-in replacement for SBS, which is a petroleum-derived synthetic polymer,” Zukor said. “SBS is expensive, made from virgin materials and is widely used to improve road durability, fatigue resistance and overall pavement performance.”
The company began engaging Road Science, a division of Downer, and Auckland Transport after completing laboratory validation with engineering consultancy WSP in New Zealand.
Before approaching customers, it invested around 18 months in laboratory testing to validate the material’s performance.
Following successful laboratory trials, Road Science carried out its own evaluations before, together with Auckland Transport, deciding to trial the material on Blockhouse Bay Road, one of Auckland’s busiest roads.
The project then underwent another lengthy approval process involving Auckland Council and scientific advisers.
“It took another year to a year and a half to obtain all the necessary approvals from the council and its scientific advisors,” Zukor said. “They wanted to verify that all the claims in our technical literature were accurate.”
Construction of the trial road took place over three days in March and the company expects to receive the first performance data around September. Those results are expected to support commercialisation in overseas markets.
“Our business is focused only on New Zealand at the moment because we’re using it as a proof of concept,” Zukor said. “Once those results are available, we’ll publish them. That will place us in a much stronger position to take the product into Australia and Sub-Saharan Africa.”
The company estimates that entering Australia would take another 12 to 18 months after trial results are available and a planned New Zealand manufacturing facility becomes operational.
Although the current road project used only a small quantity of material because it is a demonstration, Zukor said the commercial opportunity could expand significantly.
“We used a relatively small amount of material for this particular project, but if the opportunity grows as expected, supplying the Auckland Transport network alone could eventually consume between 40–50 percent of our production capacity,” he noted.
MATERIAL ECONOMICS
The company currently manufactures the material primarily from truck and bus radial (TBR) tyres and earthmover tyres because of the higher natural rubber content.
While the SBS substitute represents the company’s immediate focus, it has divided its broader product portfolio into three categories. Revpol A, manufactured mainly from passenger and light truck tyres is intended for lower-performance rubber products such as rubber tiles, shoe soles and conveyor belts.
Revpol B targets asphalt applications and new tyre manufacturing, while Revpol C, produced largely from earthmover tyres, is designed for higher-performance applications.
The company is not currently manufacturing at its own facility but plans a new production unit in New Zealand. Until that facility is operational, product for trials is being supplied by its Canadian partner.
The technology relies primarily on a thermomechanical recycling process rather than chemical recycling. Whole tyres are broken down with steel separated from the rubber before the rubber is processed to a 30-mesh particle size and passed through Revyre’s proprietary thermomechanical process.
Zukor said only a very small amount of non-toxic, FDA-approved chemicals are used and that the process is driven primarily by operating parameters rather than chemical reactions.
He added that one of the key advantages of the technology is that it can be incorporated into existing SBS blending infrastructure with minimal changes as most development work focused on determining the optimum blending ratio rather than overcoming technical limitations.
“The primary technical challenges relate to the blending ratio,” he said, adding, “The higher the percentage of Revpol you add, the higher the temperatures and shear forces required in the bitumen blending terminals.”
Although the company has successfully blended as much as 20 percent Revpol into bitumen during development, Zukor said performance gains diminish beyond a certain point.
It has identified an optimum blend of between 5 percent and 10 percent depending on the application, ranging from conventional roads to heavy-duty pavements and airport runways.
“Any facility that currently blends SBS using its existing infrastructure can also blend our product using that same infrastructure,” he said.
CATALYST FOR SAVINGS
Zukor believes the material can reduce both costs and environmental impacts while improving pavement performance.
“We want to create a product that is environmentally sustainable, has an abundant raw material supply and is 20–40 percent cheaper than virgin materials while also having a significantly lower carbon footprint,” he stated.
Laboratory testing has produced encouraging results. According to Zukor, New Zealand’s wheel-tracking standard requires materials to withstand 800,000 load cycles, while Revyre’s product continued to perform until testing was halted at two million cycles.
“Our product achieved nearly two to three times the required wheel-tracking performance compared with standard bitumen,” he noted.
He also added that the objective is to produce road surfaces that are less expensive, more durable and environmentally sustainable while simultaneously addressing the challenge of managing end-of-life tyres.
“We believe this product ticks all of those boxes and have obtained a patent for it,” he said.
MANUFACTURING SCALABILITY
Although the company is currently relying on manufacturing capacity in Canada, Zukor said its modular production model could support significant expansion once commercial demand develops.
“We can currently produce up to 10,000 tonnes of this product, but because our production facilities are modular, capacity can easily be scaled anywhere from 1,000 tonnes to 50,000 tonnes, depending on market demand and the requirements of a particular region,” said Zukor.
Once the planned New Zealand facility becomes operational, Zukor expects its tyre feedstock to be supplied through Tirewise, the country’s extended producer responsibility (EPR) scheme for end-of-life tyres.
Under the programme, every imported tyre attracts a levy that funds incentives for registered collectors, processors and end users to move tyres through the approved recycling chain. Zukor said Revyre intends to register again as a processor after commissioning its new plant.
GOING PAST HURDLES
Zukor acknowledged that customer adoption remains the biggest hurdle. Road contractors also need to validate new formulations through laboratory testing before incorporating them into their pavement designs. Hence, Revyre is focusing on multinational contractors already operating in New Zealand to accelerate adoption, believing successful validation locally could support deployment elsewhere within those organisations.
He also believes global dependence on petroleum-derived SBS strengthens the case for tyre-derived alternatives.
“If you look at SBS, it’s already a product that’s in very high demand globally. Because it’s petroleum-based, its availability and pricing are heavily influenced by global macro-economic and geopolitical events,” Zukor said.
He said the company’s commercial proposition rests on three principles viz-a-viz consistent quality, supply and pricing.
According to Zukor, replacing virgin SBS with tyre-derived polymers could help localise supply chains, reduce exposure to petroleum price volatility and improve environmental outcomes while lowering costs for road owners.
Beyond New Zealand, Revyre is also evaluating opportunities in North America through its Canadian partner and is exploring future markets for tyre-derived materials.
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