PETALING JAYA, May 12 (Bernama) -- Sekhar Research Innovations Sdn Bhd (SRI), a tyre recycling technology developer, will invest RM35 million to establish a plant to produce rubber compound.
In announcing this here Wednesday, its Chief Executive Officer, Gopinath B. Sekhar, said 20,000 metric tonnes of compound masterbatch would be produced annually.
Compound masterbatch is derived from the recycling of scrap tyre rubber which is devulcanised and converted into raw rubber material.
"The plant will cater for both local and Asean markets and generate revenue in excess of RM80 million per annum.
"We are finalising a site in Port Klang and the plant will be completed and operational by year-end," he told a media briefing on the company's business plan.
Sekhar said SRI had, since 2006, invested more than RM3 million to develop the SRI Activation Technology, a proprietary solution, used in the production of compounds that are currently being tested and evaluated by global tyre manufacturers.
Locally, the company is evaluating and conducting road testing trials with the Rubber Research Institute of Malaysia (RRIM).
"We will produce 50 metric tonnes of compound masterbatch per month at our present test facility here in two months," he said, adding that initial production would be targeted at the retread tyre and general rubber goods market which is expected to generate a per annum revenue of more than RM2 million.
As part of the company's global expansion, SRI has a licencee in the United States for the eventual production of SRI compound masterbatch.
Sekhar said similar agreements were underway in Europe and Asia.
"We are offering a solution that provides a savings of between four and eight percent in terms of raw material cost.
"Given that profit margins in the industry are uniformly less than 10 per cent, the potential here is for profits to double," he added.
Sekhar said more than one billion tyres are produced globally anually valued at more than US$130 billion.
(bernama.com)
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