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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Australia has released its first national specification for the use of crumb rubber asphalt on local roads, a move intended to give councils clearer guidance on designing and maintaining light-to-medium-duty networks and to strengthen domestic recycling demand for end-of-life tyres.

The Crumb Rubber Modified Dense Graded Asphalt (CRM DGA) Model Specification for light to medium duty roads was published by the Australian Flexible Pavement Association (AsPA) following collaboration with Tyre Stewardship Australia. The document offers standardised technical requirements for councils, which manage about 75 percent of the national road network — roughly 675,000km of streets and community-level infrastructure.

Existing asphalt standards were largely developed for higher-order state roads, leaving local governments to interpret specifications that did not reflect lower traffic loads or the environmental conditions typical of suburban and regional networks. The new model specification aims to close that gap by setting guidance aligned with the factors that most influence degradation on council roads, such as surface ageing and weather exposure.

The specification promotes the use of crumb rubber modified binders, which can extend pavement life under light-to-medium-duty conditions. Incorporating recycled rubber also aligns with broader circular-economy policies across Australia’s states and municipalities, which are seeking to reduce landfill and illegal dumping while supporting domestic tyre-recycling capacity.

AfPA said the CRM DGA Model Specification V1.0, dated October 2025, is publicly available. It includes requirements for mix design and materials, construction processes such as compaction and temperature control, and performance testing suited to council networks. It also offers practical guidance on integrating reclaimed asphalt pavement content.

Local governments seeking case studies and procurement tools on crumb rubber applications can access Tyre Stewardship Australia’s Crumb Rubber Resource Centre for further technical and project information.

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Flexsys has created what it says is the tyre industry’s first practical and scalable alternative to 6PPD, marking a major step toward replacing a chemical used for decades but now under regulatory pressure.

The company said the new antidegradant is the result of several years of research and testing with federal laboratories, independent scientific groups and tyre makers. Early results show the material could match the performance and safety of 6PPD while avoiding the environmental risks linked to 6PPD-quinone, a transformation product identified in 2020.

Flexsys said the new chemistry provides the short- and long-term protection needed to stop tyres cracking or ageing. It is also designed to fit into existing rubber compounds with minimal changes, which could help manufacturers adopt it quickly. The company added that the product meets environmental and regulatory benchmarks, including criteria set by the Washington State Department of Ecology.

Importantly, the new molecule is not part of the “PPD” family, meaning it does not form quinone during use. Flexsys said this would remove the environmental impact associated with 6PPD-quinone. The company is also using many of the same intermediate chemicals already used in 6PPD production. This could allow manufacturers to rely on existing factory assets and speed the shift to the new technology.

“This achievement reflects our unwavering commitment to responsible innovation, built on decades of expertise in tire protection chemistry,” said Carl Brech, Chief Executive Officer of Flexsys. “Our solution is formulated to deliver the performance and reliability that tire makers expect and is designed for future environmental and regulatory standards.”

6PPD has been essential to tyre durability for 50 years. But studies published in 2020 showed that 6PPD-quinone could harm aquatic species, including coho salmon. Regulators and tyre producers have been looking for a safer option since then. Flexsys said its new antidegradant meets this challenge without reducing tyre safety.

“Our team set out to develop a next-generation antidegradant that meets the tire industry’s highest performance standards without compromising tire safety, while also reducing toxicity,” said Neil Smith, Chief Technology and Sustainability Officer. “I could not be more proud of the perseverance and dedication of the Flexsys R&D team. Our group has been highly motivated by both the technical challenges of this project as well as the positive societal impact that this work will ultimately have.”

Flexsys acknowledged support from the Sustainable Polymers Tech Hub in Akron, Ohio, part of the U.S. EDA Tech Hubs programme.

The company is now working on process optimisation to allow large-scale production. It is also in discussions with regulators around the world to secure approvals for commercial use. Testing with tyre makers is continuing.

“Flexsys is helping set the direction of the tire industry for the coming decades with this development,” Brech said. “We will continue to work tirelessly to bring this breakthrough to the market as soon as possible.”

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Wacker Chemie AG has strengthened its position in China’s fast-growing market for silicone specialities by opening a new application development centre with joint-venture partner SICO Performance Material in the eastern city of Jining.

The 2,300-square-metre facility brings together several laboratories focused on organofunctional silanes, which are used as high-performance additives in plastics, coatings and adhesives. By locating the centre next to SICO’s production and scale-up lines, Wacker aims to shorten development cycles and move new products into the market more quickly. The companies said investment in the site is in the mid-six-figure euro range.

Tom Koini, who leads Wacker’s silicones division, said the opening marks an important step in its China strategy. “As a provider of innovative silicone specialties and solutions, we can use this development center to achieve a key milestone for our business in China. Our focus is on high-margin specialty silanes, for which demand in China is rising continuously. This investment together with our partner SICO strengthens our presence and commitment to the region,” he said.

Wacker, which took a majority stake in SICO in 2022, is seeking to build a larger share of China’s specialty chemicals market, where demand for hybrid polymers has increased for years. These materials help improve the mechanical and chemical properties of adhesives, sealants, coatings and engineered plastics, all of which are used in sectors such as electric mobility, electronics and power equipment.

At the opening ceremony, SICO General Manager Kevin Qu called the centre an investment in the long term. “We can now pool all of our silane expertise here at our application development centre. This know-how ranges from chemical product properties and supply chain matters through to questions of process engineering and current marketing trends. We will leverage this in-depth knowledge to develop forward-looking innovations for our customers. This marks a new chapter of success in the history of our joint venture,” he said.

The companies said the centre will act as a link between research, technical service and manufacturing teams. Scientists will focus on developing additives, adhesion promoters and stabilisers based on organofunctional silanes and functional silicone fluids.

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The Association of Natural Rubber Producing Countries (ANRPC) has released its Monthly NR Statistical Report for October 2025, providing an overview of key developments in the global natural rubber sector.

According to the report, the global natural rubber market in October was characterised by a distinct bearish trend in pricing. This decline can primarily due to a significant surge in production and export activities, which were initially stimulated by the higher prices seen earlier in the year. Meanwhile, overall demand has remained relatively subdued.

Looking ahead to the full year, projections indicate a modest 1.3 percent increase in global production for 2025, a figure that follows a recent downward revision for Indonesia. On the demand side, consumption is anticipated to grow by a slight 0.8 percent, influenced by an upward adjustment to Indonesia's consumption data. Despite the current price pressures, market sentiment shows some mixed signs of improvement, particularly within the tyre trade of certain specific markets.

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