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. 

END

Kraton Corporation, a global leader in speciality polymers and biobased solutions derived from pine wood pulping co-products, has published its 2024 Sustainability Report, ‘Innovating with Purpose’. The report showcases the company’s advancements in climate action, circular product innovation and value chain partnerships, reinforcing its commitment to sustainable solutions.

Key achievements include a 41 percent reduction in Scope 1 & 2 greenhouse gas emissions since 2014 and a 35 percent decline in emissions intensity. Kraton also maintained its EcoVadis Platinum rating for the fourth consecutive year and received the 2024 Nitto Supplier Sustainability Award. Strategic initiatives such as a Double Materiality Assessment and a USD 35 million investment in biorefinery upgrades at its Panama City facility further demonstrate Kraton’s sustainability leadership.

The company enhanced transparency by expanding life cycle assessment (LCA) data to cover nearly 90 percent of its product portfolio, helping customers evaluate environmental impacts. Additionally, Kraton launched a data excellence program to streamline ESG reporting and refine decarbonisation goals.

Aligned with GRI, SASB, UN Global Compact and TCFD frameworks, the report reflects Kraton’s sustainability pillars: Being Reliable Partners, Preserving Planet and Empowering People. These efforts underscore Kraton’s dedication to driving meaningful progress across its operations and industries.

Marcello Boldrini, Kraton Chief Executive Officer, said, “2024 marked a pivotal year in Kraton’s sustainability journey. We turned ambition into action, significantly reducing our Scope 1 and 2 emissions by 41 percent from our 2014 baseline and earned an EcoVadis Platinum rating for the fourth consecutive year. We accelerated our decarbonisation strategy, advanced biobased innovation and partnered with customers such as WJ Group and Henkel to help address global sustainability challenges. As demand for sustainable chemicals grows, our focus remains on developing the right solutions, fostering strong partnerships and cultivating the culture necessary to lead this transformation responsibly and competitively.”

Rogier Roelen, Kraton Chief Sustainability Officer, said, “We have established new processes to scale credible, data-driven sustainability across our business. In 2024, we enhanced our ESG reporting through a data harmonisation programme and completed a Double Materiality Assessment to better align with the Corporate Sustainability Reporting Directive (CSRD). We also expanded our Life Cycle Assessment (LCA) data to cover almost 90 percent of our product portfolio, providing customers with greater transparency into the environmental impact of our products. These efforts reinforce our ability to identify where we can make the most impact and support more informed, strategic decision-making.”

Murfitts Industries, the UK’s largest tyre recycling company, has unveiled plans for a state-of-the-art materials recovery facility at Michelin’s Stoke-on-Trent tyre plant. This groundbreaking initiative will transform end-of-life tyres into valuable resources while significantly reducing the site’s environmental footprint. The advanced recycling process will recover energy to power Michelin’s manufacturing operations, cutting annual CO₂ emissions by 1,500 tonnes. Additionally, the facility will produce high-quality recovered carbon black (rCB) and tyre pyrolysis oil (TPO), supporting sustainable material production.

Under the agreement, Michelin will supply Murfitts with 12,500 tonnes of discarded tyres annually – equivalent to 1.35 million car tyres. This capacity far exceeds local demand, with the plant able to process the equivalent of two tyres from every car registered in Stoke-on-Trent and Staffordshire. Slated for completion by late 2026, the facility will apply Murfitts’ proprietary pyrolysis technology at commercial scale, extracting reusable raw materials from tyres. The rCB will serve as a sustainable alternative in tyre manufacturing and other industrial applications, while TPO will be used in material production and alternative fuels, displacing virgin petroleum feedstocks.

Beyond material recovery, the process generates steam that will directly supply Michelin’s tyre-curing operations, replacing natural gas and further reducing fossil fuel reliance. Murfitts, which already recycles 20 million tyres yearly for applications like sports surfaces and road asphalt, continues to pioneer circular economy solutions – ensuring tyre-derived materials re-enter production cycles, closing the loop on waste. This collaboration marks a major step toward greener tyre manufacturing and resource-efficient industrial practices.

Mark Murfitt, Founder, Murfitts Industries, said, “We believe this plant could be a breakthrough in the life cycle of a tyre. It moves tyre recycling on from recovering energy and material for other uses to being able to feed it directly back into factories for new tyre production. Our core ethos at Murfitts has always been that end-of-life tyres are a valuable resource and we need to do all we can to maximise the use of the energy and materials within them. We have been developing our pyrolysis process for a number of years and our results now show we can produce material from end-of-life tyres which can perform better than the virgin equivalent for some applications. This plant will be a win-win for the tyre industry, the local and national economy and the environment.”

Christina Peloquin, Site Director, Michelin UK, said, “This is a really exciting project which reduces our environmental impact at the same time as helping us stay competitive by lowering our energy costs. The team has worked exceptionally hard on this project, and we’re looking forward to welcoming Murfitts to our Stoke-on-Trent site.”

Maria Röttger, CEO and President, Michelin Europe North, said, “At Michelin, we see every challenge as a chance to lead positive change – and end-of-life tyres are no exception. As shapers, innovators and pioneers of sustainable mobility, Michelin is committed to transforming the way tyres are handled at every stage of their life cycle. Through our deep expertise and forward-thinking approach, we are co-building a robust recycling ecosystem that redefines what has previously been possible. This project with Murfitts Industries is a powerful reflection of Michelin’s enduring commitment to sustainability and responsible leadership in the tyre and rubber industry.”

Evonik Industries will localise production of a key tyre additive in Shanghai, marking a strategic shift to enhance supply security across Asia amid growing regional demand.

The Essen-based company announced plans to establish the final production step of its POLYVEST ST-E 60 product at its Shanghai facility, with operations expected to commence by the third quarter of 2025. The expansion will significantly increase the global production capacity of silane-functionalised polybutadienes.

The move represents Evonik’s latest effort to strengthen supply chains and reduce dependency on European manufacturing for Asian markets. POLYVEST serves as a reactive plasticiser in tyre formulations and is also used in rubber compounds, adhesives, tyres, coatings, and sealants.

“This strategic investment will enhance our production capabilities and ensure that our customers in Asia benefit from improved supply security and shorter lead times,” said Dr Anna Maria Ickert, Head of Evonik Coating & Adhesive Resins. “In today’s environment, fostering independent supply chains and bringing our products closer to our customers is essential, enabling us to respond more effectively to their needs.”

The Shanghai expansion comes as global chemical companies reassess manufacturing footprints following supply chain disruptions experienced during the pandemic and ongoing geopolitical tensions. China remains a crucial market for speciality chemicals, particularly in the automotive and construction sectors.

Evonik’s decision reflects broader industry trends towards regionalisation of production, with companies seeking to reduce logistics costs whilst improving responsiveness to local market demands. The tyre industry, a key end-market for POLYVEST, has experienced robust growth in Asia driven by expanding automotive production.

Dr Jürgen Herwig, Head of Evonik’s polybutadienes and speciality acrylics business, emphasised the expansion’s strategic importance. “This expansion aligns with our long-term strategy to strengthen our global footprint while maintaining a strong focus on sustainability and operational excellence,” he said. “The new capacity will enable Evonik’s customers to achieve their business goals while participating in the region’s growth.”

POLYVEST products utilise rubber-based chemistry to ensure compatibility with tyre tread compounds, thereby addressing performance requirements in an increasingly demanding automotive market. The localisation strategy aims to reduce lead times whilst maintaining product quality standards.

The tyre industry has undergone significant changes over the past century, particularly in material composition and performance optimisation. While the external appearance of tyres may remain similar, advancements in rolling resistance and the integration of sustainable materials have reshaped the sector. Michelin, alongside its competitors, has been embracing innovation through collaborations to meet its ambitious 2050 sustainability goals, focusing on using 100 percent renewable and recycled materials. However, the challenge lies in scaling up recycling technologies and ensuring effective sorting. As the industry shifts, RFID technology and extended producer responsibility (EPR) regulations are emerging as critical tools for achieving material circularity and enhancing recycling efficiency.

Tyres have changed in the last 100 years. While the basic shape and colour might look the same, the internal composition has evolved significantly. Over the past century, and especially in the last 30 years, there have been major advances. One of the most significant has been the improvement in rolling resistance. Achieving lower rolling resistance without compromising grip has been a major technical challenge, and it has had a direct impact on fuel efficiency. In parallel, there’s been increasing focus on using more sustainable materials in tyre manufacturing. So, while it might not be obvious from the outside, there’s been substantial innovation under the surface.

However, it is a well-known fact that the tyre industry is secretive. Companies keep their research and development as tight as possible, but endeavours for including recyclable materials seem to break that ceiling, prompting towards collaborations.

Speaking exclusively to Tyre Trends, Sander Vermeulen, Vice President for End-of-life Rubber Products Recycling Business at Michelin, said, “There is a growing need and momentum for tyre companies to work more closely together, particularly around sustainability and materials innovation. Many companies have set ambitious goals for 2050, which include using 100 percent sustainable materials, achieving full recyclability or becoming carbon neutral. While each company may define these goals differently, the overarching direction is very similar.”

“A good example of this shift is our recent collaboration with Bridgestone through the ‘Call for Action’ initiative. We discovered that both companies shared similar long-term ambitions. One major challenge we identified was the scalability of innovations, especially from recycling companies. Many of these innovations work well at small scale, but scaling them up to meet the needs of the global tyre industry is a different story. What’s promising is that instead of working in silos, we began engaging in open dialogue. Both Michelin and Bridgestone were receiving proposals for new materials but often found them unsuitable for tyre applications. Rather than simply rejecting these proposals, we asked that how we can help these suppliers improve the products,” he added.

He noted that together the tyre makers started defining shared specifications that outline the minimum criteria a new material must meet to be viable for tyre manufacturing. “It’s not a guarantee of adoption, but it provides a clear, transparent benchmark. And if a material doesn’t fall within that box, we can save time for ourselves and the suppliers,” added Vermeulen.

He also quipped that he had never imagined working so openly with a competitor like Bridgestone whilst strictly respecting antitrust rules. But the experience has been incredibly constructive.

Michelin’s 2050 target is bold as it seeks to make 100 percent of its tyres from renewable, recycled or sustainable materials. Recycling sits at the core of that ambition. Internally, the company is aligning efforts across departments to meet this goal with a near-term milestone of 40 percent sustainable content by 2030.

That percentage includes both recycled and bio-based materials. However, Michelin isn’t developing recycling technologies in-house. Instead, it’s working with a network of external partners to identify and scale promising innovations.

Among its collaborators are Enviro and Infiniteria as well as broader initiatives like Biobutterfly and the WhiteCycle consortium, which focuses on recovering textile fibres for tyres. The company remains open to any solution that can help close the loop on tyre materials.

As of the most recent annual report, Michelin reported that 31 percent of the materials used in its tyres are either renewable or recycled. This figure reflects the combined share of both categories, not recycled content alone.

Opining on whether recycled materials are easier to use in commercial or passenger tyres, Vermeulen said, “It really depends on the specific application. Some applications allow for a higher percentage of renewable or recycled content than others. But we don’t break down our targets or current performance by tyre category. The current figure we’ve communicated in our annual report is a global average across all types of tyres.”

EVOLVING VALUE CHAIN

As tyre companies remain steadfast towards the respective goals of using recycled and renewable materials, a glaring question that remains is the fate of current suppliers. Explaining how the value chain will be impacted once tyre companies reach the goals, Vermeulen stated, “They will also need to adapt. The entire value chain must evolve. That means synthetic rubber producers and oil suppliers need to develop renewable or recycled versions of the materials they currently provide. Everyone, from upstream raw material providers to downstream manufacturers, will need to contribute if we’re going to meet these ambitious goals.”

Commenting on whether such shift will restructure the entire tyre industry, he said, “It’s hard to make specific predictions, but one thing is clear that the entire value chain is already beginning to change. All raw material suppliers now understand the direction tyre manufacturers are heading. We’re already seeing many traditional suppliers exploring new approaches to reduce the reliance on fossil-based materials. Some are developing recycled alternatives, while others are exploring biobased feedstocks.”

“In this effort, a concept we explored in a large-scale European project was called BlackCycle. It brought together various actors from the entire tyre industry value chain including raw material suppliers and other stakeholders to map out how we can extract maximum value from end-of-life tyres. It looked at viable recycling pathways including how pyrolysis oil can be integrated into chemical supply chains. We all need to work together to co-create solutions based on renewable and recycled materials,” he added.

Michelin doesn’t plan to produce recycled materials itself. Instead, its focus is on defining performance and quality specifications, then partnering with companies ranging from start-ups to established suppliers that can deliver materials meeting those standards.

Commenting on the same lines, he added, “The entire tyre industry has a strong interest in gaining access to recycled materials that can be reused in new products. And to achieve that, partnerships are essential. There’s no way we can meet these ambitions if every company stays within its traditional boundaries and works in isolation. We believe in collaborating across the value chain. Often, smaller companies have breakthrough technologies or innovative ideas but lack the resources or infrastructure to scale. In those cases, if we can help them access funding or industrialise the processes, it’s a win-win for the industry as a whole.”

While performance gaps between recycled and virgin materials are a known concern, Michelin sees scalability as the more critical barrier. Many recycling innovations show promise at the lab or prototype level, but few are ready for industrial-scale production.

To bridge that gap, Michelin and others in the sector are working closely with innovators to help mature these technologies to meet industry demands.

REGULATION & TECHNOLOGY

The extended producer responsibility (EPR) has been a staunch advocate for recycling end-of-life tyres across countries. The regulation is not only limited to European markets but has expanding into countries like India too.

Commenting on whether EPR regulations will help drive more effective recycling, Vermeulen said, “Extended producer responsibility plays a key role in tyre recycling by making manufacturers responsible for collecting and recycling tyre after use. In countries with EPR laws, such as most of Europe, producers and importers must ensure proper tyre collection and recycling. This legally mandates tyre producers to manage the end-of-life stage of the products. However, EPR is not the only model that can ensure effective recycling. In regions without EPR, like the United States, tyre recycling is still managed through a free-market system driven by industry and service providers. Even in Germany, which lacks an EPR law, tyres are still collected and managed properly through industry-driven solutions.”

“While EPR can certainly help in places with limited infrastructure, the key to effective tyre recycling lies in how well the system is organised. Whether through EPR or free-market models, both can be effective as long as the collection and recycling infrastructure is well established,” he added.

Vermeulen also views RFID technology as a crucial enabler for achieving material circularity in the tyre industry. By embedding RFID tags, tyres can be tracked and identified with precise information about its composition, helping to streamline the recycling process. This technology allows for better sorting of tyres based on specific material make-up, which is critical for maximising the quality of recycled materials.

Just as with household recycling, the challenge is to ensure that materials are sorted effectively. With too many sorting categories, costs rise without guaranteeing better quality. RFID makes it easier to identify the correct ‘bin’ for each tyre, whether it’s a winter, truck or passenger car tyre.

Additionally, RFID can help differentiate between new, retreaded and partially worn tyres, which often have varying materials and recycling needs. This enables more efficient sorting, improving the overall quality of the recycling output while keeping costs manageable. Michelin sees RFID as an essential tool in making the recycling process more effective and economically viable.