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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At the recent Reuters Events – Sustainability Europe 2025 conference in London, Birla Carbon’s President and CEO, John Loudermilk, outlined ambitious plans for the company’s circular product, Continua Sustainable Carbonaceous Material. He revealed a strategic vision to significantly expand its availability, with a target for it to eventually comprise up to 10 percent of the company’s global product portfolio. Sourced from end-of-life tyres, Continua SCM is an industrially-produced material designed to offer the same quality, consistency and technical performance as traditional carbon black.

This innovative material allows manufacturers to integrate greater sustainability and circularity into diverse applications such as tyres, plastics and coatings without sacrificing product performance. Loudermilk emphasised that accelerating this transition requires a multi-faceted approach, including supportive regulatory frameworks, deeper collaboration with tyre pyrolysis technology partners and strengthened customer engagement.

Beyond its circular offering, Birla Carbon is also progressing other sustainability initiatives. These include developing carbon black derived from bio-based feedstocks and exploring advanced carbon capture and conversion technologies. These combined efforts support the company’s overarching aspiration to achieve net-zero carbon emissions by 2050, alongside ongoing work to enhance process efficiency and resource utilisation.

Loudermilk said, “While global carbon black consumption typically grows in line with GDP, the demand for sustainable and circular products is increasing at a much faster pace. At Birla Carbon, we see an opportunity to displace up to 10 percent of the carbon black consumption in the world with circular materials like Continua™ SCM, our brand that is derived from end-of-life tyres.”

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Continental has initiated a strategic consolidation of its operations in the United States, which includes the planned closure of its Aldora Mills textile plant in Barnesville, Georgia, by the conclusion of 2026. This decision, impacting approximately 230 employees, follows an extensive review of the company's long-term competitiveness in the Americas. The facility, which produces textile reinforcement materials, including tyre cord fabric, hose yarn and knitted fabric, for exclusive use within Continental’s Tires and ContiTech group sectors, had faced persistent cost challenges for years, with shifting global market conditions ultimately making its continued operation unviable. The company's immediate priority is to provide comprehensive support to the affected staff through career counselling and local employment resources.

Despite this specific closure, Continental is reinforcing its substantial commitment to the US market through continued and significant capital investment. In the past decade alone, the company has directed around USD 1.5 billion into its American manufacturing footprint. This is evidenced by recent projects, such as a major expansion of the ContiTech plant in Mount Pleasant, Iowa and the construction of a new, company-owned tyre distribution centre in the Dallas-Fort Worth area scheduled to open in early 2026.

The company's enduring presence in the country remains robust, with a workforce of over 8,800 people spread across its Tires and ContiTech sectors. Its tyre manufacturing plants located in Illinois, Indiana, Mississippi and South Carolina possess a combined annual production capacity of more than 16 million tyres. The closure of the Aldora Mills facility is therefore presented as a necessary step to safeguard the overall health and future performance of Continental's broader operations across the Americas.

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In a significant development for environmental science and the rubber industry, Perpetuus Advanced Materials has announced a viable solution for eliminating 6PPD-quinone, a highly toxic byproduct of 6PPD, a chemical commonly used in tyres and synthetic rubbers. This breakthrough is particularly urgent given the established link between 6PPD-quinone and acute mortality in coho salmon, a crisis identified in 2020 that has since spurred global regulatory concern. The company’s innovation provides both a direct manufacturing replacement and a method for environmental remediation.

The core of the solution is an amine functionalised graphene masterbatch, engineered using the company's proprietary plasma-functionalised graphene nanoplatelets. This advanced material operates through a novel mechanism where the amine groups act as radical scavengers, effectively stabilising the rubber and rendering the use of 6PPD entirely obsolete. By preventing the formation of the toxic 6PPD-quinone at its source, this technology addresses the root cause of the pollution. The masterbatches are supplied as pre-mixed sheets or blocks, allowing for straightforward integration into existing manufacturing processes for tyres and a wide array of other synthetic rubber products, including hoses, seals and industrial belts, without requiring any operational changes.

To tackle the existing environmental contamination, Perpetuus has concurrently developed a suite of modular filtration systems designed for stormwater management. These units, which include drain cartridges and bioreactor modules, utilise graphene nanoplatelets to capture pollutants. They are enhanced by a proprietary artificial intelligence platform that provides real-time monitoring of filter saturation and pollutant levels, offering a critical tool for protecting vulnerable waterways and urban runoff zones during the transition to reformed tyres.

Produced on a continuous plasma platform ensuring consistent quality, the masterbatch not only replaces 6PPD but also consolidates numerous other mix ingredients and additives, thereby simplifying production and improving workplace air quality. With over 10 years of specialisation in graphene-enhanced elastomers, Perpetuus is now actively pursuing regulatory approvals and industrial partnerships to accelerate the widespread adoption of this comprehensive environmental solution.

John Buckland, CEO, Perpetuus, said, “This is no longer about mitigation. We’ve replaced 6PPD. Our amine functionalised GNPs deliver the same anti-degradant function as 6PPD but with zero toxic quinone by-products. This isn’t theory. It works in formulation and scales now. This isn't a patch; it’s a permanent replacement. By removing 6PPD at the source, we remove the risk of 6PPD-Q entirely. The science is proven. The solution is scalable. The environmental need is urgent. The only question left is whether regulators and manufacturers are ready to act. This is the moment to eliminate 6PPD for good and replace it with something better.”

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Bekaert and EMSTEEL have forged a strategic partnership centred on the manufacturing and commercialisation of high-value, sustainable steel products utilising steel produced within the UAE by EMSTEEL. The agreement was formally signed at the Middle East Iron & Steel Conference & Exhibition in Dubai, with senior leadership from both organisations in attendance, including Group CEOs Engineer Saeed Ghumran Al Remeithi of EMSTEEL and Yves Kerstens of Bekaert.

The alliance will see the two companies extend their cooperation into several key areas. A major component involves technical collaboration, where Bekaert will provide its expertise and offtake intention to support EMSTEEL's strategic initiative to upgrade and substantially expand its wire rod product portfolio in the near future. Furthermore, the partners will jointly assess opportunities for downstream investments. These potential investments are designed to allow EMSTEEL to diversify its offerings with more advanced, value-added products. For Bekaert, this creates a pathway to manufacture its renowned Dramix steel fibre reinforced concrete solutions using locally sourced UAE steel.

A shared objective of this partnership is to actively promote the advantages of sustainable construction materials and solutions throughout the Gulf Cooperation Council markets, leveraging EMSTEEL's position as the UAE's largest steel manufacturer and Bekaert's global leadership in steel wire transformation and coating technologies.

Yves Kerstens, Group CEO, Bekaert, said, “Today’s MoU is intended to serve various ambitions we have in common with EMSTEEL. This includes focused strategy execution in a region with vast growth opportunities, a strong innovation drive and explicit sustainability excellence.”

Engineer Saeed Ghumran Al Remeithi, Group CEO, EMSTEEL, said “This agreement reflects EMSTEEL’s commitment to advancing the capabilities and global reach of UAE-made steel. By combining our manufacturing strength and sustainability leadership with Bekaert’s world-class expertise in material science and advanced steel solutions, we are creating new pathways for innovation, value creation and low-carbon growth.”

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