KUALA LUMPUR, March 12, 2015:
Green Rubber Global seeks to tackle the problem of waste rubber by recovering and reprocessing them into Green Rubber, a devulcanised rubber compound made using the patented DeLink process.
Executive chairman and founder Datuk Vinod Sekhar said: “Tyres are thrown away globally. This is essentially free waste which we can turn into green rubber, which is inherently the same as virgin rubber.”
He said green rubber usage is flexible as its quality can be controlled by manufacturers when blending it with virgin rubber.
“Most of our clients are industrial firms like tyre suppliers, tyre retreading companies, conveyor belts produces and such. We also work with shoe companies like Timberland and New Balance.”
He said green rubber represents a new revenue opportunity for Malaysia, valued at more RM100 million annually.
“This wholly-Malaysian technology first debuted in 1995 to create a commercially viable solution for tackling the environment challenge of End-of-Life Tyres (ELT).
“According to a World Business Council for Sustainable Development report, approximately one billion ELTs enter the environment globally each year.
“A further four billion are estimated to be held in stockpiles and landfills.The number of tyres disposed in Malaysia is estimated to be 8.2 million annually.”
Independent research has shown that global demand for industrial rubber products is projected to grow a healthy 6.6% annually to US$158 billion (RM584 billion) in 2018.
Green Rubber Global today announced the acquisition of a new 25,000 sq ft plant which will use the new fourth evolution of the DeLink technology, including the patented DeLink reactant which devulcanises waste rubber and specialised process line used in the manufacture of green rubber at Putra Industrial Park.
The plant will produce 20,000 to 25,000 tonnes of green rubber annually and Vinod said the aim is for Green Rubber Global to be producing 105,000 tonnes in three years, with plans to set up another plant by year-end.
One of the challenges faced by Green Rubber Global faces is meeting the capacity and demand of big buyers, said Vinod.
“These big manufacturers look at 30,000 to 50,000 tonnes of rubber, otherwise they won’t change their formulation. We have to work towards providing such capacity.”
The company now has contract manufacturers locally and around the world but Vinod stated that will stop once its own plant is fully operational in four to six months.
He also hinted that plans will be set in motion in a few years for the listing of Green Rubber Global but declined to say where the company would be listed.
Commenting on the rubber prices and demand, he said: “Just look at the cycle. The rubber market is cyclical and its just this time it’s a little more intense.
“The most important thing to do is not to panic. Rubber prices will go up and the demand of rubber will increase. In the next two or three years you’ll see the price of rubber at rocket heights.
“Which is why its a very good opportunity for us, we’re going into the market cheap. Despite the price of virgin rubber being at the lowest end of its market price, we are still cheaper than that. We have only an upside as time comes.”