Rubber Asia -Sep-Oct 2016

grand Finale to aSian retread conFerence (arc) `200

THE COMPLETE MAGAZINE ON RUBBER

SEPTEMBER-OCTOBER 2016/VOL. 31/ISSUE NO. 5

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Iran new era of investments

Salvatore Pinizzotto incoming Secretary general, irSg

Jan Paul de vrieS arlanXeo will emerge a maJor Sr Player

ananSinee thaboon we adhere to ruleS in tyre PyrolySiS

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EDITOR‘S NOTE The compleTe magazine on rubber Editor-in-Chief Kurian Abraham Chief Executive Officer John S Powath Associate Editor Prof. T.N.Kalamani Assistant Editors A. Saj Mathews, P. Venugopal Correspondents Dr Louis P Rumao (Detroit, USA) Sharad P Matade Vice Presidents (Marketing) Antony Powath Vijay Kurian Abraham Head-Marketing R C Devakumar Asst. Marketing Managers Anil Panicker, Praveen Manchal Asian Business Media LLP Registered/Marketing Office 501/502, Imperial Plaza, Corner of 27th & 30th Road, Near Nilgiri Garden, Bandra (W),Mumbai - 400 050 Phone: +91-22-2640 0829, 2640 0735 Fax: +91-22-2641 189 Email: asp@abm.net.in Website: rubberasia.com Editorial/ Marketing Office 39/3993- B7,Ground Floor, Vantage Point, V.R.M. Road, Ravipuram, Kochi - 682 016, India Phone: +91 484 4016284, 2356284 Email: mail@abm.net.in Editorial/Marketing Office 22/37, 1ST Floor, Karpaga Vinayagar Koil Street, Alandur, Chennai – 600 016.Phone: +91 44 42641425 Delhi LUG Enterprises 2A Neethi Apartments, 84 I P Extension, Delhi 110092, Email: lugenterprises@gmail.com US Representative Jennifer L. Poda Publishers Representative,Akron, Ohio, USA, Email: jennifer.poda@gmail.com European Representative John Stone Email: john.stone@sapphire-media.co.uk Mob: + 44 7769 675232, Tel: +44 (0) 1206 822320, South America Carina Bini Fernandes Email: carina.bini@gmail.com, Tel: +55 61 3033 8007 +55 6181497800 (Brasil) +91 9895555281 (India) Australia Jacob Cherian, Ausker Pacific Pty. Ltd. Email: ausker@auskergroup.com.au Phone: +61 3 9859 8922 Japan Shinichi Kato, Shinichi Kato Office Co., Ltd., Email: shinichi.kato@rubberstation.com Phone: +81 3-5645-8670 South East Asia A. Divakaran A.D. Nair, Malaysia Email: aaps_avico@yahoo.com Mobile: +60 12 3985357, Tel: +60 3 78454608, Thailand Ms Somruetai Patana-anek (Mott), Managing Director, Busgum Co. Ltd., Email: somruetai.patanaanek@busgum.com, Mobile: +66-1-8429105 Phone: +66-2-3993946, 399-4374, 399-3896 Sri Lanka P P Perera, No.20, 4th Cross Lane, Borupana Road, Ratmalana, Sri Lanka.

Tel: +94 11 4863529, HP: +94 772 972571 Email: ppperera1946@gmail.com Middle East Varghese Philip, Managing Director, Riqa International Co. LLC, Dubai, UAE. Tel: +971 4 2276825, Mob: +971 50 7480984, Email: vp39386@gmail.com & Markose Chenthitta, Email: 101@hotmail.com Subscription rates: 6 issues: ` 1,100, 12 issues : ` 2,100, 24 issues: ` 4,000, S. copy : ` 200 / $ 20 Overseas: 12 issues: $ 200, 24 issues: $ 400 Printed, Published and Owned by Kurian Abraham, and Printed at Five Star Offset Printers, Kochi - 16 for Viani Printings, Kochi. Edited by Kurian Abraham, Asian Business Media LLP, Kochi - 682 016

Rubber Asia

Strategize to sustain rubber T

he decision of the 11-member Association of Natural Rubber Producing Countries (ANRPC), based in Malaysia, to hold its 9th Annual Rubber Conference in India is significant in different ways.

First, the event takes place at a time when there are some encouraging developments in the supply-demand and price situations. While total production of NR in ANRPC member countries (which account for 90% of the global output) remained stagnant during the first nine months of 2016, total consumption of NR in ANRPC members (amounting to 65% of global consumption) increased by 3.5%, year-on-year, during the same period.

There is some soothing news on the price front too. The recent slight recovery in crude oil prices has improved the prices of block rubber and latex. And, the latest decision of the OPEC nations to cut crude oil production and the consequent uptrend in oil prices are likely to positively impact rubber prices also.

The conference theme, Preparing for the Paradigm Shift, underscores the need to explore new strategies for bringing global NR production back to a sustained growth path. Extending rubber cultivation to the non-traditional regions forms a vital part of this strategy. In this context, the selection of the venue for the event – Guwahati in Assam – falls very much in line with the conference theme. Assam is a non-traditional rubber growing State in India’s North East, far away from Kerala, the Rubber State accounting for 90% of the country’s NR production.

In fact, Rubber Board, India, had started extending rubber cultivation to the North East years back with a view to meeting the growing future demand for NR. Besides, rubber has a pride of place in the scheme of things of the Indian Government to bring development to the North East as an antidote to insurgency in the region.

The Rubber Board is actively working on a plan to double NR acreage in the region. The Conference in Guwahati will help delegates from ANRPC members get a direct view of these activities taking place in this non-traditional region. This is important as more and more countries are trying to develop NR in non-traditional regions due to various reasons.

Rubber Asia wishes the event all success!

Kurian Abraham Editor-in-Chief september-october 2016

5

CONTENTS CovER sToRy............34 A saj Mathews

IRAN a new era of investments

With sanctions being lifted, Iran, which has the largest automotive industry among the Middle East countries, is likely to emerge as a hot spot for foreign investments in a variety of sectors including Automobiles, tyres etc. However, the country has to prove its credibility as an investment-friendly nation

We’ll emerge as a global sR brand,CEo, ARLANXEo......................62 6

September-OctOber 2016

Peter Taylor Industries amit inflating the truth.................28

Adam Gosling Check your tyres, don’t throw away money!...................48

John Stone TBR retreading in Europe: End of tunnel not in sight................54

George Jacob Weekly once tapping should benefit grower & tapper.....58

Anil Skariah Risk management in Iso 9001:2005....68

Dr. Samir Majumdar Curing envelops: A must in ‘cold’ retreading:................74 Rubber Asia

SEPTEMBER-OCTOBER 2016 Vol. 31, No. 5

NR plantation sector: Bane of cyclic prices

Dr.K.J. Joseph..............................................62

We adhere to rules in tyre pyrolysis:

Anansinee Thaboon..............97

‘Unholy’ talk

John S. Powath

Grand finale to arC 2016: retread industry leaders hail the Conference.................94 ‘Unholy’ mistress

RsDC kicks off sr. Rubber Technician Certification Program...................................................92 Every wife is a ‘mistress’ of her husband: “Miss” for the first year and “Stress” for rest of the life

B

ehind every successful man there is a woman. I can’t agree to it any more. It’s true that only woman can rein in a wild horse like man. Only she can apply the brake.

of her husband, “Miss” for the first year and “Stress” for rest of the life.”

An excited boy turned to his father to announce that he was selected for a role in a play for the school annual day. A sceptical dad inquired what role he was playing.

The boy said he was assigned the role of a

vembanad Rubbers into spices business.................124 I recall what a great philosopher husband had once said: “Every wife is a ‘mistress’

“Oh GOd, YOu Gave me childhOOd, YOu tOOk it awaY. YOu Gave me YOuth, YOu tOOk it awaY. YOu Gave me a wife. it’s been years now, just reminding You!!”

John S Powath ‘Unholy’ Mistress............................132 134

september-october 2016

Rubber Asia

Sharad P. Matade Tyre stocks gain on surging auto sales.....................134

Photo feature A Saj Mathews HML’s Nagamalay estate:...............144

D E P A R T M E N T s Editor’s notes ............................................5 Contents ...................................................6 Letters .......................................................8 In the News .............................................18 Tyre world & Tyre news ..........................96 Rubber trends .......................................108 News digest ..........................................112 Corporate affairs...................................120 Economic trends ..................................122 Company news .....................................126 Company Profile ...................................128 Seminars & conferences ......................140 Calendar of events ...............................154 Index to advertizers ..............................155 Happenings ...........................................156 Cover image © Borna Mirahmadian/Shutterstock.com

Rubber Asia

September-OctOber 2016

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Letters

RubbeR AsiA 30tH AnniversAry issue

Invaluable to Elastomer industry I

just received the Rubber Asia 30th Anniversary issue today. I want to congratulate all of you for a fantastic job and for the painstaking efforts in coming out with a memorable issue

sign and above all its sheer size.

In fact, the drop in India’s NR production has been largely compensated by the weight ‘gained’ by Rubber Asia... if there is a positive correlation, please enlighten me. (I am taking the volume home for a leisurely reading and wondering whether the strength of my laptop bag will be able to take the weight of the issue).

Lighter side apart, the depth of the issues that have been covered (as seen at a glance by me) is also remarkable.

Heartiest congratulations to you John, Kurian and the entire Team at Rubber Asia for making this issue really special and worth the wait. It is indeed a ‘collectors’ item’!

which will be invaluable to the Elastomer industry in the years to come.

It is not an easy task by any means, particularly in putting together a broad spectrum of articles covering such diversified topics. My congratulations once again for a job well-done and well-executed.

Dr. Sivakumaran Executive Director and R&D Head, Freenyield Berhad, Malaysia

Wishing many more milestones to Rubber Asia. Best wishes, Rajiv Budhraja Director General, Automotive Tyre Manufacturers’ Association (ATMA)

Congratulations on turning 30. The Thirties are the best time in one’s life.

Dr. James Jacob Director, Rubber Research Institute of India (RRII), Kottayam

Bible of rubber industry

I

find Rubber Asia 30th Anniversary as a very comprehensive reference material. The issue covers all aspects of rubber industry. I am keeping it as a Bible of the rubber industry.

Highly creditable

I

had a quick glance at the special issue of Rubber Asia which was delivered at my office yesterday. It looks pretty cute. It covers a wide range of

A ‘collectors’ item indeed!

I

have just received the 30th Anniversary Issue of Rubber Asia and I must say that it does make an impact with its content, quality of production, de-

Jom Jacob Senior Economist, Association of Natural Rubber Producing Countries (ANRPC)

A memorable edition high quality articles, opinions, views, stories etc. Differing views find a place in the magazine which is highly creditable.

Some editorial/printing errors have crept in which is understandable.

Otherwise it has come out in very good shape.

8

september-october 2016

I have got a copy of Rubber Asia 30th Anniversary issue -- it’s wonderful!

The testimonials are great, and the fold-outs for the advertisers are a nice design feature. It’s a memorable edition and the staff at Rubber Asia can be very proud of it.

Jennifer L. Poda Akron, Ohio, USA Rubber Asia

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SEPTEMBER-OCTOBER 2016

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inthe

News

Commodities market expert:

inComing iRSg Chief O

ne with vast experience and expertise in the commodities market, Salvatore Pinizzotto is the incoming Secretary General of Singapore-headquartered International Rubber Study Group (IRSG). An announcement to this effect has been made by the IRSG recently.

Pinizzotto will officially take up charge on January 1, 2017, at the end of the tenure of Dr Stephen Evans, the out-going Secretary General, IRSG says.

Pinizzotto has worked for three decades in the metals and non-ferrous metals industry. His career has a strong international dimension with expertise in market research and analysis of environmental and economic trends on a regional and global basis.

A degree holder in Economics and a Master in Business Administration, Pinizzotto’s strength and expertise in the metals industry will help bring new perspectives to the global rubber industry. Having vast experience functioning across the economic sectors with multinationals, intergovernmental organizations and governments, Pinizzotto is endowed with strong and all-encompassing interpersonal skills and an entrepreneurial attitude that will identify opportunities and strategic approaches in these challenging times.

Salvatore Pinizzotto 18

september-october 2016

With his extensive years in leadership positions, Salvatore Pinizzotto will have the opportunity to relate and transform the natural rubber growing industry as well as the synthetic rubber industry.

Rubber Asia

iACC Award to JK Tyre CmD

A

n astute, visionary business leader with innovative and entrepreneurial zeal, Dr Raghupati Singhania has won Industry Leadership Award 2016, instituted by the Indo-American Chamber of Commerce.

The prestigious Award was presented to Dr Singhania, Chairman & Managing Director, JK Tyre and Industries Ltd., at the 11th Indo-US Economic Summit held on September 14, 2016, at Hotel Hayatt Regency, New Delhi.

The flagship Industry Leadership Award is presented for the 12th consecutive year.

It was a jury of eminent dignitaries who chose Dr. Singhania for the Award.

As one who introduced the radial tyre technology in India for the first time, Dr. Singhania has best demonstrated his pioneering innovative spirit. He is held in high esteem Dr. R P Singhania (extreme right) being presented with the IACC Award by all in the industry for his creative genius, inspirational leadership and distinguished service to the of us at the JK Organization.” auto industry.

JK Tyre, part of JK Organization, today is one of the most Said Dr Singhania, while accepting the award: “I am humpopular tyre brands in India with operations spread across bled at the honour being given by Indo-American Chamber 100 countries, 12 plants, and producing 35 million tyres of Commerce. It is a moment of great joy and pride for all annually,.

Key appointments at Apollo Vredestein

A

pollo Vredestein has made two key appointments – former Goodyear Dunlop Marketing Director Matthias Urban as the Head of Sales, and Karl Naylor as the company’s UK Country Manager.

Matthias Urban succeeds Jaap van Wessum, who will leave the company later this year after spending more than two decades of service.

Prior to joining Apollo Vredestein, Urban spent more than a decade at Goodyear and its subsidiaries, initially as Managing Director of Goodyear entity Trentyre Pty Ltd and then, from April 2011, as Director of Sales within Goodyear Dunlop’s Europe, the Middle East and Africa (EMEA) region Consumer Tyre business. In October 2013 he was appointed Product business unit Director and Marketing Director consumer tyres for the Middle East and Africa (MEA) region.

Matthias Urban Rubber Asia

Karl Naylor

Comments Mathias Heimann, the tyre maker’s Europe and Americas region President: “With his wealth of knowledge and experience within the tyre industry, Urban is sure to become a driving force in the september-october 2016

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News

inthe

Double honour for iRmRA Director

Dr Rajkumar at ICAR Award presentation

Dr K Rajkumar

R

enowned scientist and Director of the Indian Rubber Manufacturers Research Association (IRMRA), Dr K Rajkumar, has been honoured with two awards for his impressive scientific efforts.

He received Award from the Indian Council of Agricultural Research (ICAR), Ministry of Agriculture, Government of India, for his outstanding Interdisciplinary Research in Agricultural and Allied Sciences. The Award was presented to him by the Indian Minister of State for Agriculture, at a function held at Vigyan Bhavan, New Delhi.

Dr K Rajkumar (second from right) receiving Bharat Seva Ratan Gold Medal Award

Dr K. Rajkumar is one of the key scientists involved in the conceptualisation and execution of the sub-project titled “Design and Development of Rubber Dam for Watersheds” which was awarded to IRMRA and other consortium partners by ICAR under National Agricultural Innovation Project (NAIP) funded by the World Bank.

Dr Rajkumar was also presented with the Bharat Seva Ratan

Gold Medal Award for his scientific excellence and expertise by Global Economic Progress & Research Association (GEPRA), an NGO organization, on the occasion of the 35th National Unity Conference on Individual Achievements and National Economic Growth, held recently in Chennai.

The Award was presented to him by Justice K. Swamidhurai of Madras High Court.

development in our business in Europe.”

One with more than 20 years’ experience in Sales and Marketing at Michelin Group and later with Kumho Tyre (UK), Karl Naylor was appointed as Apollo Vredestein’s UK Country Manager effective 11 July.

“My brief is to have a central, influential role in the growth of the brand, its perception and market penetration in the UK. My arrival at Apollo Vredestein, with my career and background focused on developing 20

september-october 2016

sales teams and brands in the sector, spells one simple, core message: We’re not playing around here – Apollo Vredestein means business,” says Karl Naylor.

Naylor will report to Matthias Urban, the new Marketing & Sales Director, who is based at Apollo Vredestein Head Office in the Netherlands. Karl’s appointment is a reflection of Apollo Vredestein’s overall strategy to equip crucial markets like the UK with competent leadership.

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Letter from Europe

Peter Taylor

Industries admit inflating the truth

Despite stout denials by the big brands, a few auto and tyre industry players have recently come forward to honestly admit that some of the claims in their brochures were a little bit inflated and that they had manipulated test results

D

espite stout denials by the big brands, a few auto and tyre industry players have recently come forward to honestly admit that some of the claims in their brochures were a little bit inflated and that they had manipulated test results The outbreak of honesty amongst our car makers is spreading with Mitsubishi and Suzuki now raising their corporate hands and, no doubt, bowing to their suddenly impoverished shareholders.

When buying a new car, it is bad enough to find that its actual fuel consumption is much lower than claimed in the brochure; but worse still is to discover that discrete technology has been incorporated in the engine management system that actually falsifies the test outcomes. Volkswagen was not a lone cheat.

peter taylor obe, Secretary General, tyre recovery Association, is also former Director, Imported tyre manufacturers Association (ItmA), London 28

September-october 2016

It has long been the case that fuel economy claims were overstated by using a whole range of ploys such as increasing tyre inflation pressures, keeping the engine revs unrealistically low and removing excess weight from the test vehicle. It has been going on for so long we just accept it, just as we accept the unreality of claims about how many dishes can be washed with just one bottle of your favourite brand of washing up liquid.

Expressed in another way, it is simply the willing suspension of disbelief. What some car manufacturers have been doing though

goes way beyond inflating the everyday reality; they have actually cheated our regulators, the consumers and their customers.

The tyre industry too is now sharing in what has become a near epidemic of selfquestioning in the wake of the admissions by the Finnish tyre manufacturer Nokian that it had manipulated test results, and other big brands have closed ranks with stout denials that the tyres they use for their tests are any other than those offered for sale to the public. Well possibly, but tyres supplied as first fitment (OE) are often ‘tweaked’ to meet the particular requirements of the OE customer and there is no guarantee that a tyre of the same size/ type etc sold into the replacement market would compare like for like, perhaps this is just a little bit carping; but ask any tyre test driver just how many ways there are to deliver a desired outcome.

Then, there is the well-tried old strategy of putting a budget brand up against a premium product with an A-rating for economy or wet grip. This is the Ford Focus versus the Ferrari test, much favoured by some major tyre makers over the years as I have highlighted previously in this column. The day when a premium brand publicly puts itself against a rival premium product is yet to dawn. But it may be getting closer. l

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Recycling news

T

he failure of our tyre makers to give more thought to the recyclability of their products is again evidenced in the difficulties experienced in dealing with wornout self-sealing tyres. Not only do many tyre makers discourage the retreading of these expensive products (although this would extend the life of what is usually a quite robust carcase) but also they discourage doing anything at all with these products at the end of their lives. This is really quite difficult to understand.

So alluring is the self-seal proposition that such practical difficulties receive no attention at all. Yes, some car makers love them because they save space by eliminating the spare and tyre makers offering these products recognise their greater profitability especially in the after-market The preferred, and almost the only route is to dispose of them all in cement kilns; but even here there are difficulties. For a start they can only be ‘trickle’ fed into the furnace which is awkward and not very cost-effective. Bulk feeding is not an option. Secondly, when these tyres are being close-packed for transportation, the internal sealant can act as a glue and distort the tyre carcase in a manner which can interfere with standard mechanical handling processes thus leading to more downtime.

So alluring is the self-seal proposition that such practical difficulties receive no attention at all. Yes, some car makers love them because they save space by eliminating the spare and tyre makers offering these products recognise their greater profitability especially in the after-market. The motorist is not so sure, the comfort factor of having a spare tyre and wheel in the boot sits deep in our psyche and replacing a run-flat can be costly, nevertheless their usage is growing and this obvious down-side has to be faced.

Should our recyclers begin to charge more to handle such tyres? Unfortunately, consumer resistance to them would then grow. l

l

l

No place to hide

W

ith even smaller countries now having to face up to the challenge of tyre recycling, the options are starting to look

30

September-october 2016

just a bit limited. Yes, there is incineration (with energy recovery) where the facility exists, granulation (where a market exists) and then that old standby, export. Not only is this market model starting to look inadequate but our law makers and regulators from across the globe are pushing the tyre industry for real answers.

One good option is rubberised asphalt, it offers many benefits in terms of both costeffectiveness and road safety as well as being a proven technology. However, on that front we are moving nowhere near fast enough and it is not just political will which is lacking, in their own self-interest tyre manufacturers need to recognise the challenge and engage with it.

Tyre manufactures have the financial resources, the ability to influence and surely, the strongest of all vested interests. But perhaps we need to peer even further into the future and engage more fully with the circular economy. Pyrolysis as a viable process is rapidly rising up the list of options, so too should be materials reuse but here sadly I am sorry to say we still have some way to travel. Things are changing but only slowly and real progress will not be made until the tyre manufacturers themselves fully recognise the vested interest they have in taking more ownership of these issues. l l l

Rent a tyre

W

ell why not? We think nothing about renting or leasing a car or even a bicycle – and plenty of other things. In Britain, larger ticket items like washing machines and fridge freezers can also be rented. There are two obvious advantages, you avoid the up-front cost and if the products break down, the user is usually not responsible.

On the downside, the consumer pays a little more for these privileges.

This is a new and clearer twist on an old idea, so-called ‘mileage tyre contracts’ have been around for a very long time but really only featured on commercial fleets where the need for specialist tyre maintenance is more the issue although they are frequently sold on a cost per mile basis.

Extending the concept to car tyres, and especially to longer, more expensive premium sizes, brings new benefits. It helps sell the brand by facilitating its purchase in the first place and also establishes a larger term relationship with the user, something most tyre Rubber Asia

makers have been at a loss to know how to do. Our better organised retailers will like that too!

These are still early days for what is a novel idea, but in an industry traditionally weak in marketing skills, it is certainly one to watch. l

l

l

The end of Essen

F

or years now Europe’s biggest and best tyre show has been held every other May in the modest little German town of Essen. Modest indeed, Essen’s hotels were notoriously overpriced during show times and equally notoriously ‘modest’ in the facilities they offered visitors. Food too was always a problem as many overseas visitors will attest, the dull German fare was always challenging, especially to Asian visitors.

From 2018 the show organised by BRV

sought to flaunt their wares. There was no barrier to the ostentations with one rising brand exhibiting a diamond encrusted tyre rightly billed the world’s most expensive!

Well, it was one for the record books!

Seriously though, there was a sense this year that tyre technology had reached a bit of a watershed. The Future Tire Conference held alongside the show provided plenty of pointers to an evolving technological future.

Equally clear was the feeling that this would be a big boy’s game where only the strongest would be able to stay the pace as tyres, wheels and running gear become ever more integrated.

Then, of course, there is the ever-expected rise of the electric vehicle and the lifestyle changes that will bring. It is hard to imagine an exciting trip in a self-driving electric vehicle. It used to be said that in Europe, the car was an expression of one’s personality whereas in North America it was just an ex-

Visitors thronging at the exhibition booths

will move this bi-annual pilgrimage of tyre people to Frankfurt where the hope is that far more will be on offer to the visitor including a convenient international airport.

Essen itself lacked a runway of any sort and visitors to the town were obliged to fly into Dusseldorf and then make their way by road.

Despite it all, this year’s show was huge as tyre makers from everywhere and anywhere 32

September-october 2016

tension of the living room. America looks like winning but it goes further than that.

A decade from now urbanites like me are more likely to subscribe to car share clubs than actually purchase a car ourselves, it is happening already in many big cities.

So, the end of Essen feels just a little bit like the end of an era in more ways than one but who knows, the town of Essen is now threatening a rival event!

Rubber Asia

CovEr sTory T A saj Mathews

With sanctions being lifted, Iran, which has the largest automotive industry among the Middle East countries, is likely to emerge as a hot spot for foreign investments in a variety of sectors including Automobiles, Tyres and Auto Components. However, the re-emergence of Iran as an integral part of the world economy is likely to take time as the country has to prove its credibility as an investment-friendly nation

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september-october 2016

Rubber Asia rubber

IrAn new era of investments

T

here is good news that Iran and the West are coming closer. The lifting of sanctions against the country is likely to be a welcome break and is indicative of Iran rejoining the world economy once again. The sanctions which have been imposed are being eased a little but with the promise of more relaxation to come if negotiations proceed Rubber Asia rubber

as hoped. There will be a long and arduous negotiation process, but it could lead to a more comprehensive agreement and a gradual welcoming back of the Iranian companies to the world economy.

Iran has the largest automotive industry among the Middle East countries. In Iran, the automobile industry is also the second largest sector after oil and gas. Being september-october 2016

35

CovEr sTory T

Developing Iran’s skyline

surrounded by about 20 developing countries, Iran provides ample opportunities to various major domestic automotive manufacturers such as Khodro and Sapia to access neighboring markets that offer a potential customer base of over 300 million.

These players, apart from catering to the domestic automobile demand, also export automobiles to neighboring countries such as Kazakhstan, Venezuela, Turkmenistan, Ukraine, etc.

How important is Iran?

These manufacturers, along with their own car models, have secured licenses from global automotive players for the manufacturing of different car models. In 2011, Iran was ranked the 11th in terms of global automobile production. However, due to sanctions imposed on the country by the US and the EU, the country’s position slipped to the 18th in 2012. The sanctions affected the economy of Iran as the automobile production and sales volume registered a double digit negative year-on-year growth in 2012.

However, by the end of 2013, the sanctions on Iran were partialy removed. This is expected to significantly boost the automotive and tyre industry of the country over the next five years.

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september-october 2016

Iran’s tyre market The tyre market in Iran is expected to grow at a CAGR of around 7% during 2013-18 in revenue terms, says Iran Tyre Market Forecast & Opportunities, 2018, released by TechSci Research. The primary reason can be attributed to anticipated increase in demand for automobiles and tyres in the domestic market over the next five years. In 2012, about 50% of the total fleet of automobiles in Iran was more than 25 years old and the vehicle per capita in Iran was also low with about 89 vehicles per thousand people.

The tyre market in Iran is dominated by domestic manufacturers such as Barez, Kavir, Yazd and Goldstone, while global players such as Goodyear, Kumho, Bridgestone and Pirelli also account for a significant market share. Major provinces such as Azerbaijan and Khuzestan, and cities such as Tehran and Semnan are expected to generate considerable demand for tyres over the next five years, says the TechSci report.

The Iranian economy The Iranian economy is worth $1,016 billion, far larger than Iraq ($242 billion) and even bigger than Saudi Arabia ($921 billion.)

It has a much larger population base than Rubber Asia

A car assembling line in Iran

any other country in the Gulf region with 80 million people compared with 32 million in Iraq and 27 million in Saudi Arabia. However, the effects of the sanctions have been showing – growth last year in Iraq was 8.4% and 6.8% in Saudi while in Iran the economy shrank by 2%.

Perhaps the new accord leading to lifting of sanctions is the first sign that Iran is coming out of the cold. And not before time.

Iran has a strong and vibrant automotive industry making vehicles and all automotive components. There are nine companies manufacturing tyres and several of these are looking to export to the region and perhaps further afield. However, the competition within Iran for the domestic tyre market is fierce and the more progressive firms know they must strike up alliances if they are to succeed.

But according to a section of the international market observers, the deal is no panacea as yet for Iran’s ailing economy. The most punitive oil and financial sanctions will stay in place, hampering the country’s recovery from its last two years of economic contraction, they fear.

Opportunities galore Global businesses have been scrutinizing the potential impact of sanctions being lifted as they strategize their entry into Iran.

Automotive companies have been in direct and indirect talks with their Iranian counterparts and key ministries in that country and have already released several statements of intent as the process moves forward. Iran has enormous market potential, what with its aging vehicle population, substandard parts supply and position as a strategic Rubber Asia

september-october 2016

37

CovEr sTory T

Even though Iran was highly successful at devising and implementing self-sustainable industry policies, economic sanctions had impacted the market. High currency exchange rates and the ban on Iran’s international financial transactions hurt free cash flow in the automotive market, which has proven particularly challenging for suppliers and oEMs

regional export hub. Additionally, the country boasts a massive young, educated middle class who are demanding better vehicles.

There seems to be more to Iran’s automotive aspirations than meets the eye.

Known as a forward thinking nation in the region, Iran has a self-sustained automotive industry ready to embrace environmental and transportation challenges. Despite Iran’s conservative brand, its regulations are quite progressive by the Middle East standards. With the elimination of Iran’s gasoline subsidy and its building of a vibrant public transport system, which includes metros in three cities with another three under development, Iran’s Government has become an example of what it takes to create a successful multi-modal mobility solution. The country even enacted a ‘vehicle scrappage’ program to remove aging vehicles from its roads. Iran has also eliminated import duties on alternate powertrain vehicles and has converted all public cars to run on compressed natural gas despite the fact that the country has some of the lowest oil prices in the world.

Challenging times Even though Iran was highly successful at devising and implementing self-sustainable industry policies, economic sanctions had impacted the market. High currency exchange rates and the ban on Iran’s international financial transactions hurt free cash flow in the automotive market, which has proven particularly challenging for suppliers and OEMs. This economic void presents an opportunity for global players to penetrate into the market. Supplier and OEM partnerships will be the best mode of entry into the Iranian automotive market as the country is expected to limit Completely Built Unit (CBU) imports while pushing for high localization. Given local players have limited access to capital, they are keen on foreign partnerships, especially with the non-Chinese players.

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Almost 85% of vehicles sold in Iran are priced below 500 million rials ($16,650) and 99% are priced below 2 billion rials ($66,000). It is therefore important to ensure price-competitiveness to make inroads into the volume game. New vehicle segments primarily aimed at the young, urban, middle class population are expected to evolve in the under $25,000 price range.

Iran is finally catching up with the Middle East’s love for 4×4’s and is transitioning from being a sedan dominated market to having a mix of hatchbacks, crossovers and SUVs,. While the luxury segment controls although only 1% of total unit sales, it accounts for close to 10% of the automotive market’s total value. If global automotive companies are smart enough to make early inroads into Iran, it could be the savior that they are looking for to offset other regional imbalances, such as China’s recent slowdown, say observers.

According to the World Bank, during the period of sanctions the automotive industry, alongside oil, construction and the financial sector, was one of the most deeply affected industries and these industries are likely to see the most pronounced bounce-back in an economy that was in recession in 2011 and 2012. As a market, Iran is not insignificant currently, but its industry and market demand has taken a battering due to sanctions.

Nevertheless, even with sanctions the market is not to be sniffed at. In 2014, according to OICA data, total market sales — including commercial vehicles — placed the country as the thirteenth largest auto market. At its peak in 2011, with nearly 1.7 million sales recorded, the country ranked as the 11th biggest market in the world. Its size makes it the largest automotive industry in the Middle East and the lifting of sanctions could make it an attractive regional hub.

Rubber Asia

INTERVIEW

wider middle east: economic infrastructure a must to build industrial base Neil Mullineux there are signs of an industrial resurgence in Iran with the country slowly opening up for investments. In this context, the industry scenario of the wider middle east is also worth examining. In an exclusive interview to Rubber Asia, Neil mullineux, a market strategist working with the global tyre industry and a close observer of the economic and industrial developments in the wider middle east,explains the relative economic strengths of these countries, the tyre industry scenario, the challenges and prospects of the region in respect Middle East by Population Large

Mill population

egypt

90

sudan

40

syria

17

Iran

78

Algeria

40

tunisia

11

turkey

78

Rubber Asia rubber

Medium

Mill population

small

Mill population

Iraq

37

Israel

8

morocco

34

Jordan

8

saudi Arabia

31

Libya

6

Yemen

25

Lebanon

6

UAe

6

palestine

5

oman

4

mauritania

4

Kuwait

4

Qatar

2

bahrain

1

of industrial investments etc. many of his reports have been published by the economist Intelligence Unit, the Financial times and Autobusiness and they are available at www. worldtirereports.com According to him, with an economy which is far more balanced than the richer countries, the middle east countries have the potential for industrial investment; but they do not show the wider economic infrastructure that is necessary to build an industrial base. of the 22 countries in this region, only ten have experience in tyre manufacturing, and in the majority of countries, it has closed or is being phased out, he says. Excerpts from the interview: Media is agog with reports of Iran opening up and the ensuing prospects for investments. Being a leading market strategist and close observer of the developments in the Middle East, please elaborate on this.

Iran is one of the largest and most advanced countries in the Middle East; but it has been isolated from mainstream developments in the rest of the world for several decades because of political disagreements. Although these differences are far from being over, a gradual rapprochement is taking place, particularly between Iran and the US, and the country is moving towards more normal commercial relationseptember-october 2016

39

ships with the rest of the world.

However, we also need to take into account the context of the wider Middle East which include the Arabic speaking nations of North Africa too. The region comprises 22 countries spread across parts of three continents. Although apparently disparate in many respects, there are some common strands linking many of these countries both culturally and economically.

In political terms, three countries stand out as having large populations - Egypt, Iran and Turkey.

This group is followed by six countries with populations between 25 m and 40 m people, and then by the rest which typically have about 6 - 7 m people.

large production of a single commodity (hydrocarbons) and a very small population.

Indeed six of the top seven countries in this listing are all major oil producers and all have similar features – large production of a single commodity and relatively small populations. Possession of a valuable commodity such as oil can distort the economy of countries enjoying this, making them heavily dependent upon that one commodity and with little interest in developing other aspects of a modern economy such as manufacturing or services. Of the seven “richest” countries in the Middle East, only Israel has anything like a “normal” structure.

How balanced is the economy of the Middle East countries?

Could you explain the relative economic strengths of these countries?

The countries in the middle category are in many ways far more balanced than the richer countries.

Egypt is the cultural pacemaker for the Arab world Political strength also requires economic power and it has a substantial manufacturing sector. and here the relative strengths of the individual Turkey also plays a prominent role in the region countries are rather different. Turkey and Saudi and has grown rapidly in the last decade.

Middle East by size of economy Neither country has a substantial oil sector and they have diversified across many Large GDP $bn Medium GDP $bn small GDP $bn fields. Both Iran and Iraq do have substanturkey 751 Qatar 422 sudan 84 tial oil reserves; but they have large populasaudi Arabia 649 Iran 420 oman 82 tions and have developed a more balanced economy though both have been debilitated UAe 339 syria 60 by war and economic sanctions. Lebanon, egypt 324 Lebanon 50 Jordan and Tunisia are smaller, poorer and Israel 296 tunisia 45 less developed; but they have compensated Iraq 240 Yemen 42 for their lack of oil. In this group only Libya and Algeria are heavily dependent upon oil Algeria 182 Jordan 38 and have done very little to diversify their Kuwait 172 Libya 30 economies. morocco

103

bahrain

palestine mauritania

29

11,950 4,547

Arabia are the two largest powers in terms of GDP (gross domestic product) though it is arguable that Iran would also be a comparable power if it had not been held back by the economic sanctions which have been applied to a greater or lesser extent since the Iranian revolution in 1979. Following Turkey and Saudi Arabia, there are nine countries with a GDP of over $100 million and eleven countries below $100 million.

One of the most useful measurements of a country is to calculate its GDP per person and then to express this in terms of purchasing power parity (PPP). This is a technique used to determine the relative value in different currencies, making it easier to compare countries with markedly different wage rates and cost of living. Despite this, the measurements must still be analyzed with care.

Expressed in these terms, the richest country, by far, is Qatar; an income per person more than twice as high as the next country. This is because it has 40

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What about the tyre industry scenario in these countries?

These broad economic measurements can demonstrate the potential for industrial investment; but they do not show the wider economic infrastructure that is necessary to build an industrial base. Of the 22 countries in this region, only ten have experience in tyre manufacturing, and in the majority of countries, it has closed or is being phased out. Currently, only four countries -- Egypt, Turkey, Tunisia and Iran – have any tyre manufacturing facility.

In Algeria Michelin had established a plant at Hussein Dey, a suburb of Algiers, in colonial times. It had great difficulty in operating under some of the new independent governments and it mothballed the plant for two decades. It was reopened in 2003; but it never achieved an efficient output and was closed again in 2012.

There are currently two tyre plants in Egypt, both in Alexandria. Pirelli has a medium-sized plant making truck and bus tyres. Although not large, this is an economic size for large tyres, with Rubber Asia rubber

an annual capacity of about 850,000 tyres. The company had considered expanding this capacity twice, but put any plans on hold because of the political situation.

The other plant is operated by Trenco -- Transport and Engineering Co -- a holding company for the Chemical Industries Corporation which is owned by the Egyptian Government. This is a much bigger plant than Pirelli’s and it makes a wide range of tyres from bicycles through to heavy trucks.

What about the tyre industry in Iran and Israel?

Iran has by far the most widespread tyre industry in the Middle East and the Government is encouraging new startups. These will be covered in more detail in the next section, but for comparison with other countries, Iran has nine existing factories and the Government wants to see four new greenfield factories.

Many of these plants were originally established

In Israel, a company based in Hadera, Alliance Tyre, built up a worldwide market in agricultural tyres although it was never very profitable. In 2007, an Indian business family formed a consortium backed by Warburg Pincus to purchase the company and transfer most production to existing plants owned by the family in India. It was enlarged in 2009 by the purchase of GPX, an American company marketing similar product lines.

In 2013, 90% of the equity was sold to the private equity company, KKR, with the Mahansaria family retaining 10%.

Almost all production was transferred from Israel to India. In early 2016, the company was sold again, this time to Yokohama Rubber Co. The deal was part of Yokohama Rubber’s plans to expand its commercial tyres business. Currently, Yokohama Rubber does not manufacture or sell tyres for agricultural or forestry machinery; so the acquisition will strengthen Yokohama Rubber’s product lineup in commercial tyres. The acquisition is expected to be concluded on July 1, 2016.

Is Turkey a major tyre industry hub?

Middle East by Purchasing Power Parity (PPP) Large

$/ person

Qatar

145,894

Kuwait UAe

Medium

$/ person

small

$/ person

turkey

21,198

morocco

8,194

71,020

Lebanon

17,986

syria

5,040

66,996

Libya

14,854

sudan

4,834

saudi Arabia

53,149

Algeria

14,610

mauritania

4,287

oman

44,903

Iraq

13,817

Yemen

2,927

Israel

33,656

Iran

12,833

palestine

2,900

bahrain

29,146

Jordan

12,162

tunisia

11,623

egypt

11,194

by the American manufacturers in the 1950’s and 1960’s to supply the embryonic automotive industry; but they were nationalized when the Shah was overthrown in 1979. More were established in the 1990’s, and in 2015 the Government, advised

by Iran Rubber Industries Research Centre, announced that it wanted to attract partners for four new enterprises. In each, the Government would hold a 19% share, leaving the partner to take 81%.

There were two technically separate tyre companies in Central Iraq, both owned by the State and producing similar rubber products. The Diwaniyah Rubber Company and Najaf Tyre Factory are in separate Governates, Al-Qadisiyyah and Najaf respectively, but they are only 80 kms apart.

They both produced tyres and tubes for cars and bicycles, belts and hoses. Diwaniyah focused on heavy equipment tyres whilst Najaf specialised in lighter products. The current situation is not known but it is believed that both plants are operating on a subsistence level with no regular production.

Rubber Asia rubber

Like Iran, Turkey has a variety of tyre manufacturing facilities of both international and indigenous companies. It has been an attractive location because of its relatively low labour costs and its proximity to the European market; so many of the factories are based around the southern shore of the Sea of Marmara, particularly in the region near Izmit.

The largest company is Brisa Bridgestone, a joint venture between Bridgestone Corporation and the Sabanci Group, a diversified Turkish conglomerate. It is the largest in-

dustrial and financial company in Turkey and it has considerable overseas interests. Goodyear has two factories in the Marmara region, both employing about 700 people and producing both passenger car and truck tyres.

Pirelli and Sumitomo also have joint ventures with Turkish firms. Pirelli’s is the long established and produces passenger car and truck tyres; it also makes all the racing tyres for F1. This would require considerable technical skill and knowledge.

Sumitomo’s joint venture was only established in 2015 and it is slowly building up to full capacity by 2018.

There are two completely indigenous firms manufacturing tyres in Turkey. OZKA Lastik manufactures fairly unsophisticated products; but Petlas Tyre is a much larger concern. It makes a full range of tyres including aircraft tyres for the Turkish Air Force and it has just completed an expansion of capacity. september-october 2016

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SEPTEMBER-OCTOBER 2016

Rubber Asia

Goto Extra Miles An ISO 9001: 2015 certified organization Leading manufacturer and exporters of Devulcanized Rubber

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EcobberTechnologies private limited has been incorporated with a vision to develop eco friendly process to produce rubber products. We, a team of highly experienced Research & Development professionals invested significant efforts over a decade and developed environmentally green process to convert cured rubber into devulcanized rubber (DVR) at room temperature through Mechno-Chemical reaction. With this patented technology, we aim at producing devulcanized rubber (DVR) products which shall be used in various applications like manufacturing of Tyres, Tread rubber, Moulded Goods, Conveyor Belts, Flaps,Mats etc.

Advantages of DVR

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A solution to the problem of disposing waste Tyres, Moulded Rubber goods, Conveyor belts and all other rubber wastes in an Environmental friendly method.

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A very good input material for Rubber Technologists to reduce cost without reducing quality

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Tyre safeTy Talk adam Gosling

As many of us don’t actually care to check the proper inflation pressure of the tyres, the foundation of the vehicle we ride upon, they become unfit for retreading and are rejected, thus wasting away the hard earned money.

CheCk your tyres, don’t throw away money!

The patchwork elephant shown in the photo is made up of pieces of wrecked vehicles. (Transafe WA & Australian Trucking Association (ATA) & RAC WA.

Adam Gosling heads up TyreSafe Australia, providing management and tyre safety guidance to private operators as well as fleet owners across Australasia. http://www.tyresafe.com.au/ He also works with Royal Automobile Club of Western Australia (RAC WA) for the elephant: elephantinthewheatbelt.rac.And TransafeWA http://transafewa. com.au/ 48

september-october 2016

E

veryone values their hard earned cash, it really doesn’t matter whether it’s an individual or a corporate. Cash flow is king.

throw a lot of money away, albeit unknowingly, regardless the cost of tyres is hidden in everything we consume.

In speaking with many in mining, transport, even everyday life I ask directly, “Do you throw money away?” Most look at me incredulously and say, “Of course not!”

Considerable cost centre

Well, as most or nearly everything that we possess or consume today is brought to us on a vehicle using tyres, I suggest that we

For most transport operators, tyres are a considerable cost centre, usually ranking just below fuel. Most tyres are not wornout or are worn in an irregular manner which diminishes the value achieved from the tyre.

Rubber Asia

built upon solid and reliable foundations, its more than likely that we’ll experience a failure, a house of straw falling about us.

If the foundations are not capable of performing the function that we ask of them, then we all understand our well-being is at risk and our hard earned cash simply thrown away.

So, today, how many of us gave a second thought to the foundation of our motor vehicle, the tyres?

A tyre that has come part as a result of being overloaded or under-inflated

For those tyres which are worn to their limits and are sent for retreading, many are rejected as a result of a heat cycle where the belt end area of the tyre is compromised leading to the tyre being rejected for retreading, more of our hard earned cash being thrown away. Why? The tyre was run under-inflated and overheated leading to reversion and separation.

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the load and speed experienced.

Why do so many put their own safety at risk by ignoring the very foundations we ride upon?

Why do so many people simply throw money away because they cannot be bothered checking their tyres?

There is a further aspect to this story which has an even higher cost, our personal safety. It is the elephant in the room as some say, the one that everyone sees and says nothing about.

“But the tyre pressures never vary” is a common response, which upon reflection from the side of the road with a tyre that’s come apart as a result of being overloaded or under-inflated is a tired excuse, for being lazy.

The patchwork elephant shown in the photo is made up of pieces of wrecked vehicles, vehicles that have not made it home as we all expect to do. TransafeWA & Australian Trucking Association (ATA) & RACWA.

In our world of diminishing resources, insufficient time to achieve the things we want to do of working towards our goals, why do we continue to throw our hard earned money away so readily?

When it comes to safety, everyone is concerned; but how many actually stop to check the foundation that their vehicle is built upon; or do we ignore the elephant and hope it will just go away?

A successful transport operator understands the TyreSafe Australia mantra of “if they’re not turning they’re not earning” as being the basis for a safe and successful operation.

Right inflation pressure, a must

A safe operation is usually highly successful in economic terms!

As children, many of us laughed at the story of the three little pigs who all built their own houses with varying materials. The point being that, unless our structures are 50

Any vehicle designer will testify that the vehicle will not perform as designed if the tyres are not appropriately inflated. Every tyre engineer who is asked to testify will confirm that a tyre will not perform as expected if the inflation pressure is not appropriate to

For everyone else look after your tyres and they will look after you! It’s not rocket science!

Rubber Asia

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Rubber Asia

SEPTEMBER-OCTOBER 2016

53

John Stone

TBR retreading in Europe:

End of tunnel not in sight?

The European truck tyre retreading is passing through a dull phase in the wake of inaction by the European Commission to prevent import and dumping of cheap truck tyres into Europe, mainly from China. The immediate future of the industry in Europe does not look bright

Tire-Retread-Efficiency

D The writer, Rubber Asia’s European Representative, is an international tyre and rubber journalist based in the UK 54

september-october 2016

oes the truck tyre retreading sector continue to keep pace with the new tyre market in Europe and prosper? Having recently looked into this specialized industry, I get the distinct feeling that all is far from being okay at the moment.

It seems that BIPAVER – the European retread industry’s recognized trade association – has recently published a controversial press release which accuses the European Commission of doing absolutely nothing to defend and protect the SMEs (Small and Rubber Asia

European truck retreading is in serious danger of collapsing

Medium-sized Enterprises) against cheap imports from China. At the same time they have approached individual, high-ranking members of the Commission urging them to reconsider the recent decision not to take action on the Chinese for tyre dumping which BIPAVER believes seriously threatens around 10,000 SME jobs.

Worrying situation On digging deeper on this potentially serious development, it seems that although normal retreading market share is around 50%, the current situation of cheap imports and tyre dumping has significantly reduced the current market share to under 25%, and it is also interesting to note that there has been an extensive reduction in active TBR retreading facilities throughout Europe which means most SMEs are producing far less number of tyres than what they are actually capable of, resulting in a constant stream of redundancies and trading losses.

So how has this worrying situation developed and why is the European Commission unable to safeguard the interests of TBR retreading? Well, it seems the main problem is that legislation does not have a comparison between new and retreaded tyres, meaning that the fact that importing truck tyres with stupid price levels into Europe (mainly from China) has fallen well below the production costs of a retreaded tyre does not appear to be a concern for the European Commission.

Which is bizarre!!

It also has to be remembered that this is a two-fold issue as the complaint of tyre dumping is equally serious. It is not just a 56

september-october 2016

case of the Chinese prices being offered at such low (unworkable) prices but also the fact that Europe continues to be literally swamped with these cheap imports that are inflicting serious harm on the local market.

When will ETRMA act?

It seems that BIPAVER has been in contact with everyone in the European tyre industry to gain support for their campaign including new tyre manufacturers who, of course, are also affected by the current situation. To date, the new tyre industry’s representative, ETRMA, has not lodged a complaint of it own to the European Commission alongside BIPAVER which is perhaps surprising. However, if the situation continues then probably, eventually cheap imported tyres will have enough of a significant impact on the new tyre market to jolt ETRMA into action.

Finally there is one other issue that makes the situation even harder. Anti-dumping procedures involve a great deal of time and effort because of the legislation involved and necessary investigation that has to take place. So lodging a complaint is just the very start of a very long and frustrating campaign which is certainly not helped by complications from the European Commission that appears to function in a very prudent manner revolving around strict procedures before any decision can be reached.

Taking everything into consideration the immediate future for the TBR retreading industry in Europe does not look good, and we can only hope that BIPAVER is eventually successful before the situation completely destroys truck retreading.

Rubber Asia

George Jacob

A system under which the grower gets the benefit of reduced cost and the tapper gets engagement throughout the week without losing any income has to be evolved for the successful implementation of the Rubber Board’s weekly once tapping system

WEEKLY ONCE TAPPING

SHOULD BENEFIT GROWER & TAPPER

T The writer is former Secretary, Rubber Board, India 58

september-october 2016

he Rubber Board has come out with a new weekly once tapping system for rubber trees. The Press Note of the Rubber Board does not specify clearly the aim of the new system. However, it is quite obvious

that this is aimed at reducing the cost of production. It is claimed that by switching over to this system, the total annual yield is not reduced and, in some cases, may even increase vis-Ă -vis the traditional system of Rubber Asia

alternate daily or once in three-day tapping.

Practical difficulties

Needs clarity

Coming to the merits of this system, it can be safely stated that this will provide a good opening for large plantations to cut down tapping cost thereby reducing cost of production. In the case of family labour-oriented smallholdings, though there may not be any direct reduction in cost, they still could cut down the total mandays worked in a year. Therefore they could save time as well as human effort. In brief, both the above two categories stand to gain from this system.

It is also specified that the desired results can be achieved only by adhering strictly to certain prerequisites such as rain guarding of trees with required protective measures, correct system and techniques of tapping, stimulation of the trees, sticking strictly to the time schedule and so on. It is not known whether this inference is based on extensive field trials done in this regard as it is the usual accepted practice. But since the suggestion has come out from the Rubber Research Institute of India with vast experience and expertise in rubber research, let us not open up a Pandora’s Box on its scientific feasibility. On the other hand, an attempt is made here to look into the practical side of its adoption on a wider scale in the plantation industry, especially in the smallholding sector.

Good proposition Unlike other crops, extraction of rubber is a highly skilled and sophisticated work in which human labour is very vital and predominant. In order to obtain the maximum achievable yield, the tapper should be

It therefore calls for a system of arranging tappers in a systematic manner among the small growers. This appears to be a stupendous and difficult task though not impractical. A Rubber Producers Society in a smallholding cluster could ideally make such an arrangement with the guidance and support of the Field Officer of the Rubber Board of the locality concerned. This may be tried out on a trial basis and, if found feasible, can be extended to other areas well-versed and experienced in this field. Or else it may result in over exploitation or under exploitation of the trees paving the way for reduction in production. This is precisely the reason why mechanical tapping devices developed from time to time in major natural rubber producing countries could not make much headway as expected. It is also to be remembered in this context that tapping cost constitutes the main element in cost of production. Viewed against this backdrop, the present proposition attracts lot of public attention in the rubber areas as the growers are now frantically looking for avenues for reducing cost due to the present very low and unremunerative prices.

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Now let us closely look at the smallholding sector. Earlier studies have shown that roughly less than 10% of the growers engage family labour for tapping operation.

This percentage found out earlier might have come down by now considering the increased tempo of urbanization. Therefore, the remaining 90% depend on the traditional and customary system of engaging hired labour for tapping operation. It therefore appears that for majority of smallholders this system will not make any impact.

The real practical difficulty arises when this issue is considered from the point of view of tappers. BY reducing the number of tapping days, the tapper stands to lose income unless this is compensated with additional incentives or increased payments. If this is done, the very purpose of cost reduction is rather defeated.

Organised system It therefore calls for a system of arranging tappers in a systematic manner among the small growers. This appears to be a stupendous and difficult task though not impractical. A Rubber Producers Society in a smallholding cluster could ideally make such an arrangement with the guidance and support of the Field Officer of the Rubber Board of the locality concerned. This may be tried out on a trial basis and, if found feasible, can be extended to other areas. Under such an organized system, both the grower and the tapper will remain contented, with the grower getting reduction in cost and the tapper getting gainful engagement throughout the week without losing any income. Unless such a system is evolved, the practical applicability of this new tapping system may not prove to be a boon either for majority of the small growers or the tappers.

On a general overview, it is to be admitted that the new system proposed has potential merits and the Rubber Board should be congratulated for boldly coming forward to popularize it.

Rubber Asia

INTERVIEW Sharad P Matade

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september-october 2016

Rubber Asia

We’ll emerge as a global

SR brand Jan Paul de Vries, CEO, ARLANXEO

The formation of ARLANXEO, a joint venture of two industry giants -LANXESS and Saudi Aramco -- is a landmark development in the global synthetic rubber business. In an interview to Rubber Asia, Jan Paul de Vries, Chief Executive Officer of ARLANXEO, explains the factors that led to the formation of the new JV, how it will leverage the combined strengths of the two partners to enhance their competitive edge in the global market and how it will benefit the customers.

He points out that the current market environment with over-capacities and price pressure is a major challenge for the SR industry and asserts that ARLANXEO is well-prepared to face this challenge and position itself as a fully integrated major player in the synthetic rubber industry. Excerpts: How do LANXESS and Saudi Aramco gain from the formation of ARLANXEO? ARLANXEO combines the strengths of its two partners, LANXESS and Saudi Aramco, bringing together the synthetic rubber businesses of LANXESS with leading market positions and the world’s largest integrated energy enterprise, Saudi Aramco. Therefore, ARLANXEO will be able to produce synthetic rubber in a fully integrated value chain in the mid-term -- from the oil field to the end-product.

Before the establishment of ARLANXEO, LANXESS was the only company among the leading international rubber producers that was not backwards-integrated – as one of the key market players in synthetic rubber there was still a clear gap in our value chain.

Under the umbrella of ARLANXEO our rubber business will strengthen its competitive position in the future due to having direct access to key raw materials. On top of this, this alliance of two strong partners gives us a competitive edge in the ongoing challenging market environment of the global rubber business.

Is the growing trend of consolidation in the SR industry one of the main reasons for forming ARLANXEO? Going forward, do you see more consolidations in the industry?

ARLANXEO’s EPDm rubber is used in industrial hoses such as these Rubber Asia

With the establishment of ARLANXEO, we september-october 2016 SEPTEmbER-OCTObER

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The Nd-bR plant in Singapore has a capacity of 140,000 tonnes of high-performance rubber per year

Under the umbrella of ARLANXEO our rubber business will strengthen its competitive position in the future due to having direct access to key raw materials.

On top of this, this alliance of two strong partners gives us a competitive edge in the ongoing challenging market environment of the global rubber business

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have resolved the backward integration issue. ARLANXEO will be a company with a fully integrated value chain. As stated before, ARLANXEO is a partnership formed by two companies who saw the benefit of leveraging each other’s strengths to gain mutually from having a stronger footing in the market.

In the chemical industry, we do indeed see a process of consolidation at the moment.

Companies are re-orienting themselves due to the changing environment in the global chemical industry. Driving factors here include the new role of the Chinese companies looking for further growth and know-how opportunities, both within and outside China.

In the United States too, we see lively activities as the changing raw material situation has led to competitive advantages especially in comparison to the European companies. And the M&A activities in the chemical industry will certainly continue.

How do the customers stand to benefit from the new JV? In the future, we will be able to produce synthetic rubber in an integrated value chain and therefore establish ARLANXEO as a partner for our customers with greater

reliability than before. This JV also sends a clear message about our absolute commitment to the synthetic rubber business. And our customers now have the backing of two key players in the synthetic rubber and energy markets.

After being chosen as the CEO of the new JV, what are your immediate priorities?

One key priority is to establish ARLANXEO as a global brand for synthetic rubber with its own corporate identity – internally and externally. This for sure cannot happen overnight as, for example, internally we need to establish new company structures, new systems and processes. On the external front, we will keep a strong focus on our customers, to ensure that we serve them in the best way possible, and to continually improve on our customer base.

We have already taken some initiatives in this direction, but there is still some way to go.

Another key priority is to tackle the ongoing challenges in our businesses. We are still facing over-capacities in the synthetic rubber market globally, which leads to continuous price pressure for our products such as butyl and EPDM rubber. And the Rubber Asia

The EPDm plant in Changzhou is the largest of its kind in the world

overall market environment will remain difficult in the coming years. But, with ARLANXEO, we now have a strong set-up to meet these challenges.

pressure. It is in the interest of every company here to try to bundle its strengths and to reposition its business. This should also influence demand and supply in the future.

How do you cope with the different work cultures of the two organizations?

We are entering the market as ARLANXEO at a time when the reorientation of the markets is still at an early stage. This gives us the opportunity to continually enhance our strength. In the end only the strong players will be able to stay in the market.

While we do come from different backgrounds, there are quite some similarities, which support establishing a common culture and team spirit. For instance, both companies have a truly international set-up; both organizations are gainfully staffed with employees of many different nationalities and cultures.

And even if the business backgrounds are different, both partners share the approach of further developing their value stream.

These commonalities in work, experience and business are a good base for building an organization and implementing a growth strategy.

Many big companies are entering into JVs, particularly in emerging markets.

How would such consolidations influence the demand-supply position and the prices of SR in future?

The ongoing consolidation including mergers and JVs is the logical consequence in a market with over-capacities and price Rubber Asia

Tyre makers are compelled to go for eco-friendly and fuel-efficient tyres in the wake of tightening norms and regulations. How is the trend influencing ARLANXEO’s R&D and product development?

Our R&D approach for the synthetic rubber grades going into tyres was always focused on improvement of the quality and performance of tyres. Since the introduction of tyre labelling in the European Union and Asian countries like Japan in 2010, South Korea in 2012 and China just this year, the tyre manufacturers are vying to improve performance in order to receive a good labelling classification. Even in countries with no tyre regulation in place so far, we are seeing a leaning toward more fuelefficient tyres.

The labelling requirements, meaning fuel september-october 2016 SEPTEmbER-OCTObER

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The excellent properties of ARLANXEO’s rubber products make them ideal for use in V belts

We are entering the market as ARLANXEO at a time when the reorientation of the markets is still at an early stage.

This gives us the opportunity to continually enhance our strength. In the end only the strong players will be able to stay in the market

efficiency, wet grip and noise reduction, can only be met by using materials such as high-performance rubber, which are designed to improve the dynamic properties of the tyre.

Our goal therefore is to continue to apply our R&D capabilities to develop and improve functionalized rubber products across our portfolio range. Our focus is on meeting our customers’ needs and to contribute to essential properties in highperformance tyres.

How’s the SR business affected by falling prices of NR and crude oil? Going forward, what’s your prediction on crude oil prices?

Our backward integration capability in the future will stand us in good stead against price fluctuations. We presume that the crude oil prices will continue to be very volatile in the future.

What would be the future of the JV after the lock-in period of five years?

This is to be decided by our shareholders.

The agreed lock-up period is five years – a strong commitment from both partners.

From our side we are fully focused on working to ensure ARLANXEO realizes its potential.

NR content is still high in the manufacture of commercial tyres, which command a huge market? How do you plan to promote usage of SR in commercial tyre production?

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Synthetic polybutadiene rubber and, particularly, high-cis neodymium-butadiene rubber (Nd-BR), is widely used in truck tread compounds as it imparts excellent treadwear resistance. Mileage is of extreme importance in this application and Nd-BR, which has a low glass transition temperature, improves this property.

In this context, we have also performed truck tyre testing to partially replace natural rubber with a low-glass-transition solution styrene butadiene rubber (S-SBR) in truck tyre treads and obtained some very significant tyre test results: The addition of S-SBR helped to improve the tread wear resistance by up to 12%, without compromising on the other performance indicators like heat build-up and rolling resistance.

We will be performing more tests to confirm our findings, which will aid in the promotion of the new grades among our customers.

What are the major challenges and opportunities in the SR industry and what’s your strategy to cope with the emerging scenario?

As mentioned above, the current market environment with over-capacities and price pressure is the major challenge for our business and we assume that we have at least two more difficult years ahead of us.

But due to the strong set-up of ARLANXEO, we are well-prepared to face this challenge, and position ourselves in a consolidating market as a fully integrated major player in the synthetic rubber industry.

Rubber Asia

QUALITY FIRST - pART 10 Anil Skariah

CONTINUED FROM PREVIOUS ISSUE

Risk Management in

ISO 9001 : 2005 All about the implementation of Risk-Management in the new version of ISO 9001

T

he 2015 revision of ISO 2001 has added a new term to the standard – Risk-based thinking. Many people involved in this area are asking: “What does it mean? How do we fulfill this requirement?“

The goal

The writer is American Society for Quality (ASQ)-certified Manager of Quality / Organizational Excellence. He has more than 25 years experience working in the latex-based industries. Currently, he is General Manager, Thaimed Group of Companies, Thailand.

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When ISO 9001: 2015 speaks of risk-based thinking, it speaks in terms of risksand opportunities. In other words, the purpose is to encourage proactive approaches to applying the standard within your organization.

While corrective action may be a source for identifying risks and opportunities, the goal of risk-based thinking is to be more preventive. By applying this approach and auditing in a way that focuses on the effectiveness of the organization, it will help management understand why this is important. At its core, risk-based thinking is about understanding the consequence of action and/or inaction. This includes taking steps to avoid the inevitability of those consequences if they’re considered significant.

Risk-based thinking process In the below diagram, risk-based thinking is illustrated like a process.

1. Start with understanding the purpose of the organization which, for most organizations, will be trying to generate positive income. For organizations not concerned with income, they will determine their value position and start there. These are the starting points to understand the big picture. As you work through risk-based thinking, this step makes you remember there is a basis for the process, and it reduces the possibility of an idealistic approach to risk.

2. Defining the process or activity steps helps the organization define what it must do to achieve its purpose. After it’s aware of these steps, the organization determines the related factors that could be bad or big events.

3. The inevitable problems arising from these steps are assessed and a determination of Rubber Asia

combination of these. A process definition could include procedures, illustrations or checklists. Competence may involve training plans or hiring qualified employees, and control features could be inspection or test points, or computerized system checks or alarms. Implementing the actions and assessing their effectiveness are part of closing the loop.

5. As part of evaluating whether the risk was reduced enough or is no longer realistic in business terms, it is important to reach a conclusion and move on as part of completion or determine the need for further actions. When additional action is needed to ensure effectiveness, the organization will revisit the step of determining actions and work on a new solution.

There are also instances where the attempt to eliminate or greatly reduce a risk is not feasible. When this happens, noting this reality for future consideration is a good idea. Consider maintaining a list of risks and opportunities. It provides a point of reference for the organization’s future efforts toward continual improvement.

whether they are significant enough. Events that are considered bad or big enough are used to determine actions needed to eliminate or greatly reduce their significance.

4. While the organization may aspire to eliminate risks, it’s important to realize that greatly reducing their significance may be enough. Deciding which route to take is relative to an organization’s purpose / value position. These actions typically are focused on improvements to process definition, competence, control features or a 70

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6. The process for determining factors related to opportunities (better) is similar to the process of identifying risks. The difference is that the organization must consider whether the value or benefit from the improvement is worth the cost of pursuing a better improvement or opportunity. If the opportunity is believed to have value, you must determine what’s needed to realize the benefit. As you are implementing the actions and assessing their effectiveness, maintain perspective of the expected return on investment.

Procedure: SUMMARY 1. The purpose The purpose of this procedure is to define how the company’s Strategic Direction is developed by senior management through the identification of interested parties, issues of concerns, risks and opportunities.

Rubber Asia

1.1. Who is responsible for implementation and management of this procedure.

concerns, it may be useful to consider technological concerns, employee concerns, etc.

2. Interested parties

3.4. When attempting to identify external concerns, it may be useful to consider concerns arising from competition, society and culture, labor relations, statutory and regulatory issues, supply chain, economic issues, etc.

2.1. “Interested parties” are those stakeholders who receive Products or Services, who may be impacted by them, or those parties who may otherwise have a significant interest in the company. The interested parties applicable are listed in the log sheet, along with the reason for their inclusion. This includes both internal and external parties.

2.2. The identification of an interested party does not necessarily bring that party into the scope of the QMS; for example, labor union leadership may be identified as an interested party, but that does not mean QMS documents and policies must be developed related to them.

3. Issues of concern 3.1. For each interest party, the related issues of concern shall be identified in the log sheet. These issues may reflect direct concerns of the party (for example, customers are concerned about quality of products or services they purchase) or they may be indirect concerns. Such concerns may impact on the interested party, or may be concerns derived from the party that impact on the company.

3.2. Issues may be either internal or external, depending on whether the interested party is internal or external. In addition, a certain type of party may have both internal and external concerns.

3.3. When attempting to identify internal 72

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4. Risks and opportunities 4.1. Management will then identify risks and opportunities related to the issues of concern within the log sheet 4.2. Within the log sheet, each risk and opportunity will be noted, along with the primary process involved, priority, and a bias. The “bias” identifies if the issue is a risk, an opportunity, or some blending of the two.

4.3. Management will then determine a treatment method for each risk or opportunity. Risks are managed to reduce their likelihood and consequence, while opportunities are managed to increase their likelihood and consequence. Blended issues may require more complex treatment.

4.4. Where a risk is determined to be treated via a Failure Mode Effects Analysis (FMEA) style treatment, these must then be entered into the Risk Register tag within the log sheet 4.5. Opportunities are managed via the Opportunity Register tab within the log sheet I hope the readers get a good understanding about the implementation of Risk-Management in the new version of ISO 9001 Rubber Asia

Dr. Samir Majumdar

Curing envelops: Part I

A MuSt IN

‘COLD’ RETREADING Curing envelops generally made from halobutyls (CIIR / BIIR) are essential during the Pre cure (cold) process in tyre retreading as they are especially suitable due to the low modulus, low tension set, good ageing resistance and the consequent higher durability at elevated temperature requirements

C

uring envelops are used during curing of retreaded tyre and this rubberized product is a must for all types retreaded tyre made in “cold process.” Retreading of tyre is also known as “recaping,” or “recaping of tread” or “remolding” or “remolding of tread”. This process is a re-manufacturing process for tyres that replace a new tread on worn-out tread of tyre. Retreading is applied to casings of spent tyres that have been inspected and repaired thoroughly. It preserves about 90% of the material in spent tyres and the material cost is close to 20% or

*The writer can be contacted at: e-mail: smajumdar501234@ yahoo.co.in 74

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less, as compared to manufacturing a new one. Retreading is practically, a process of reclaiming of worn-out tyre.

Every year, more than 400 million tyres are discarded (Fig.1) worldwide and only in the United States the above figure is over 290 million. There are, therefore, huge stockpiles of discarded tyre in every part of the world. Reclaim process indirectly or directly cleans the above stockpile to a great extent. Tyre retreading is, therefore, essentially a recycling process of worn out tyres.

Fig 1: Discarded or worn-out tyres Rubber Asia

Fig 2: Different envelops

There are two main processes used for retreading tyres: Pre cure (cold) and Mold cure (hot). Both processes begin with the first inspection of the tyres to be retreaded.

Cold retreading process needs curing envelops (Fig.2) Before curing cold retreaded tyre, the envelop (Fig.2) covers the entire tyre for creating a pressure difference between the tread and the casing buffed surface. Curing envelop is generally made from halobutyls (CIIR / BIIR). They are especially suitable due to the low modulus, low tension set, good ageing resistance and the consequent higher durability at elevated temperature requirements.

Evelops are one of the types of curing members (Fig.3). Air bags were originally designed to cure tyres which used normal pressurized air or gas, and are widely used now for curing bicycle and rikshaw (BC) tyres in Asia Pacific countries. Bag-o-matic bladders (Fig.3) are widely used for tyre curing these days all over the world.

CIIR or chlorobutyl is used extensively for curing envelops for its good heat resistance property. In addition, the use of lower unsaturation butyl products proved to show improved flex fatigue properties and can extend the curing envelop life. Cold retreaded tyres are generally cured in autoclave and the tyres are wrapped (Fig.4) with envelop before they are put into autoclave.

Cold retreading technology

Fig 3: Different types of curing members

Retreading is practically, a process of reclaiming of worn-out tyre. Retreading begins with a safety inspection with respect to the casing of the tyre to be retreaded. Casing must be in good condition (no damage) for retreading process. Casing also should be free from any imbedded foreign material (nails, stones etc). Shearography testing machine (Fig.5) can detect bubble flaw or any other foreign embedded material inside the tyre before and after retreading for

Fig 4: Tyre is wrapped with envelop 76

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Rubber Asia

removed and then the casings are repaired.

Those not repairable are discarded. In some cases there is also bead-to-bead molding.

In such case, besides tread, retreading is also applied to the side walls. These tyres are given entirely new branding and stamps.

Many smaller retreaders use hand buffers and builders to process tyres. This creates distortions in the tyres and misalignment on the vehicle, causing substantial damage to the vehicle.

Retreading processing is best done with tyres that are buffed, built and cured, all in inflated conditions and processed with proper machines. Often different manufacturers of tyres have different tyre dimensions.

Retreader needs to have appropriate equip-

Fig 5: Shearography testing machine table 1: Compound formulation for tread and gum Gum compound

Phr

tread (NR based) Comd.

Phr

tread (NR/SBR-based)

tread (NR/BR-based) Comd.

Phr

Natural rubber

100

Natural rubber

100

Natural rubber

60

Natural rubber

80

Peptizer

0.3

Peptizer

0.3

SBR 1502

40

BR

20

N550

42

N330

52

Peptizer

1.5

Peptizer

0.2

Naphtanic oil

6

Naphthanic moil

8

N330

65

N330

60

Zinc Oxide

5

Zinc Oxide

5

Zinc Oxide

Stearic Acid

1

Stearic Acid

2 Stearic Acid

5

Zinc Oxide

5

2

Stearic Acid

2

6PPD

1.5

6PPD

2.5

6PPD

2.5

6PPD

2.5

TMQ

1.5

TMQ

1.5

TMQ

1.5

TMQ

1.5

MC Wax

1.5

MC Wax

1.5

MCWax

1.5 MC Wax

1.5

Sulphur

1.5

Sulphur

2.2

Sulphur

1.8

1.8

CBS

0.5

TBBS

0.5

TBBS

Retarder

0.2

Retarder

TBBS

0.9

Retarder

0.2

ment to process all these tyres. It is very important to note that retreading of radial tyres uses different machinery for processing as compared to bias tyre.

The retreading process begins with buffing away the old worn-out tread, and a new rubber tread is applied to the bare “casing” using typical adhesive system and specialized machinery with specialized application process.

In “Pre cure” technology, previously prepared tread strip (Fig.6) is applied to tyre casing with adhesives, followed by vulcanization in autoclave. This method allows more flexibility in tyre sizes and it is the most commonly used method. “Pre cure” retreading process is commonly known as “Cold Process Retreading”. In this process, the Precured Tread Rubber already has a tread pattern (Fig.6) on it, eliminating the need for a tread matrix at the vulcanizing stage. Tread pattern is decided by the choice of customer or user.

Fig 6: Precured tread rubber already has a tread pattern september-october 2016

1 0.2

Sulphur

tyre safety. It provides holographic images of tread and shoulder region of tyre and can calculate the dimension of the flaw by correct positioning for onward repair.

For some tyres, embedded debris or nails are

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Phr

Only flawless tyre is to be retreated and before retreading operation, tyre should first be washed, cleaned and then dried. Cleaned tyre is then mounted on buffing machine, where, unwanted tread material is removed Rubber Asia

prepared tread strip with different dimensions with respect to tread gauge and widths(Fig.6).

Tread joining needs special attention and this is done by adding rubber gum in the joints followed by high pressure stitching on the joint under inflated condition and then the entire tyre consolidation is done on machine so that the tread does not come out before the process of vulcanization.

Fig 7: Buffing machine

Fig 8: Precured tread rubber application

Fig 9: Tread consolidation machine

Fig 10: Retreaded tyres are cured in autoclave

Fig 11: Flow sheet diagram of cold retreading process

by mechanically removing them with high speed buffers. The most important part is, buffing should be done uniformly.

process, the pre-cured tread attached with the tyre, encased with curing envelop is placed under a vacuum and cured in a large heating chamber or in autoclave (Fig 10). The autoclave is usually heated to 1500C and curing is continued till the specified time depending on the tyre size and tread gauges until the desired hardness of the cured tread is achieved. After vulcanization the tyre is taken out from envelop and then the retreaded tyre is subjected to a final inspection. The entire cold retreading process is given in Fig 11.

(Will continue in the next issue)

To the buffed tyre, rubber adhesive is first applied followed by the application of a thin layer of cushion gum to be wrapped around its crown area. The pre-cured tread rubber is then applied (Fig.8) with the tread consolidation Machine (Fig.9). Precured tread rubbers are selected as per the required width and length to be applied on the buffed tyre.

This is the reason that in cold retreading process there can be number of previously 80

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After green tread application, tyres are then mounted with curing envelops to prepare them for curing. In the process of vulcanization, pre-cured tread becomes adhered to the tyre tread surface. In the vulcanization

Rubber Asia

I

D

r Joseph, who says the views expressed in this interview are strictly personal and not that of CDS, points out that commodities like natural rubber are known for the ups and downs in their prices. In case of NR, for example, the price has hit the bottom. In April 2011, it fetched Rs 243 per kg, the highest-ever, but then fell to Rs 94/kg in January 2016. This is a fall of 61.32% just within five years.

The total revenue from rubber has now become a quarter of what it was five years ago. With the decline in production and marginal restrictions on imports, the prices began to move upwards and reached Rs 134 per kg on June 9 June this year.

“History teaches us that given the cyclical nature of prices and other associated features of primary commodities like plantation crops, hardly any country in the world has achieved remarkable levels of prosperity by focusing on primary commodities,” he said.

While appropriate price stabilisation measures could help mitigate the misery of those engaged in the sector, a sharp decline in prices like what the NR sector is facing now is bound to have long-term impact on the economy of Kerala and the NR sector in particular.

It is likely to affect the State’s economy because NR accounts for a major share of its agricultural GDP. At the on going market price, the net income that the growers with

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average holdings size (0.5 hectare) receive is lower than the income of those below the poverty line. Such a situation will have serious short-run implications on the livelihood of those engaged in the sector.

The surplus from the NR sector, needless to say, has been contributing towards investments in Kerala, especially in human capital. The State’s high Human Development Index has contributed to all round socio-economic development.

“However, the current slump in NR prices would have an inevitable impact on such investments, with its long run ramifications,” Dr Joseph said.

With respect to the NR sector, the adverse impact has already been manifested in production and productivity, he noted. Given the low prices, rubber tapping has become unremunerative. A large number of holdings remain untapped resulting in a steep decline in production from 940,000 tonnes in 2004 to a little over 500,000 tonnes at present.

Further, the decline in prices has undermined the ability of the growers to make long-term investments in their holdings, the economist said.

More importantly, since the price of NR and rubber wood move in sync with each other, replanting also got adversely affected leading to ageing of plantations that could lead to the emergence of associated problems.

Rubber Asia

InteRvIew KS nayar

NR planation sector

Bane of cyclical prices

Natural rubber contributed almost 45% to the agricultural GDp of Kerala, which accounts for 90% of India’s Nr output. the state’s rubber plantation sector has over one million growers and half a million workers. It is the only source of livelihood for nearly 1.5 million families. Now this sector is facing peril, says Dr KJ Joseph, professor at the trivandrum (Kerala)-based centre for Development studies (cDs)

Small growers The plantation economy in general and the NR sector in particular is no more the exclusive terrain of large estates.

Going by the official estimates, small holders account for 90% of the area and 93% of output indicating their higher level of productivity, Dr Joseph pointed out.

“We must hasten to add that these small holders have a dual role in the sector, as growers and as tappers. Hence, when one reflects on the safety-net for the small holders, welfare components for the workers cannot be ignored.”

The recent price crash has been catastrophic in the sense that many small growers have been forced to join the rank of those below the poverty line. In such market-driven adverse situations, it is the responsibility of the Government to intervene to help the farmers with short-term solutions to bail them out from the crisis, he suggested.

In fact, setting up of the Price Stabilisation Fund (PSF) with a corpus of Rs 5 billion has been an attempt in this direction. The scheme that was envisaged was unattractive, and predictably the response from the growers was very poor, Dr Joseph noted.

The National Research Programme on Plantation Development (NRPPD) has already made the case for enhancing this corpus as the return from the same is very meagre.

“To the best of my knowledge, no effort has been made so Rubber Asia

far either to enhance the PSF or offer any financial support to the NR growers from the existing corpus despite they are in crisis,” he added.

It is always advisable to think in terms of prevention rather than cure. The small growers have been systematically supported with “ideas and objectives” by the existing institutional architecture and policy framework.

The R&D establishment of the Rubber Board — Rubber Research Institute of India (RRII) — has been supporting the growers with knowledge inputs while the developmental architecture has been supporting them with subsidies.

Recognising the significant role played by the Rubber Board in general and RRII in particular, Jairam Ramesh once said: “We need a Rubber Board for all the plantation crops.”

But the rubber research is limping at present when more research effort is needed to make the sector competitive.

Increasingly, the term subsidy has become one of the most unwelcoming terms of Indian policy-makers. In a sense it could be argued that the Rubber Board hardly gave any subsidy because during the life span of a hectare of NR holding, the grower contributes as much as Rs 54,000 to the Government by way of cess.

Hence a case could be made for increasing the financial support of Rs 25,000 being given to the growers in the september-october 2016

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when it comes to the production of nR in the country, it is considered as an agricultural product without having any consideration that the industrial products get. while wtO could be blamed for the industrial raw material status of nR, wtO doesn’t come in the way

name of subsidy, which at present compares poorly with other plantation crops and what is paid out to their counterparts in other NR growing countries like Thailand.

In fact, many growers do not benefit from the meagre amount being paid in the name of subsidy. Instead, they look forward to remunerative prices along with adequate investible resources and support services.

Perhaps, it is high time to think in terms of linking growers with the financial institutions to ensure adequate and timely credit for investments in NR cultivation with a built-in provision for a subsidy that is equal to the interest component until the pre-bearing period of the credit is availed.

It is equally important to provide them insurance against risks like natural calamities and price volatility. It is encouraging to note that the Ministry is in the process of evolving such an insurance scheme by pooling resources from the Central Government, State Government and the growers.

Assured prices With an assured price, the farmers will not find it difficult to repay the capital once the plantation starts yielding.

“In fact, since NR is being considered as an industrial raw material for fixing the import duty, we don’t need a highly shrewd person to advise the Government to include NR in Make in India programme of the Central Government or else consider it as an agricultural product,” Dr Joseph said.

Since a large proportion of rubber holdings do not come under the Plantation Labour Act, 1951, the workers engaged therein are not entitled to any of the benefits under the provisions envisaged in the PLA. Hence the safety-net for workers and tappers should include adequate provisions that are at least on a par with PLA such that their welfare is ensured. Such measures will also be helpful to ensure the steady supply of needed labour force for the sector.

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On the rationale of blaming globalisation as the main reason for the bad times that the Indian NR sector is going through, Dr Joseph recalled what Nobel laureate Joseph Stiglitz had said: “Globalisation itself is neither good nor bad.”

Stiglitz said: “Globalisation has the power to do enormous well, and for the countries of East Asia which have embraced globalization under their own terms and at their own pace, it has been an enormous benefit. But in much of the world, it has not brought comparable benefits. For many it seems closer to an unmitigated disaster.”

Dr Joseph explained that in this context “the key issue is the need for us to globalise on our own terms and at our own pace. As already indicated, the NR sector has been a victim of globalisation, which, was implemented through WTO and regional trade agreements like IndiaSri Lanka FTA and the India-ASEAN FTA which came up later.”

In sync with Stiglitz, it could be argued that NR issue is problematic not necessarily due to globalisation and FTAs per se but the way India went ahead with it.

“NR has been considered under WTO as an industrial raw material and therefore the import duty was slashed from 75% to 25%,” he pointed out.

But when it comes to the production of NR in the country, it is considered as an agricultural product without having any consideration that the industrial products get.

“While WTO could be blamed for the industrial raw material status of NR, WTO doesn’t come in the way of considering it as an industrial raw material in the domestic policy parlance, for example, while considering its cost of production. This double standard for NR should go.”

Prior to ASEAN-India FTA, an ASEAN-India Vision 2020 was prepared in 2004 at the instance of the Vajpayee Government wherein Dr Joseph was involved in the drafting of this document and its finalization at the instance of the Ministry of External Affairs and 10 ASEAN member countries.

Since India and ASEAN together account for bulk of the global production of plantation crops like NR, the Vision called for the establishment of ASEAN-India Commodity Boards for sharing of best practices and technology to enable the sector to move up the value chain and have effective control over the distribution of gains across the value chain along with avoiding glut in the market.

The implementation of these provisions are beneficial to the planting community both in India and ASEAN. Without the implementation of this provision, the Ministry of Commerce went ahead with a FTA leading to wasteful competition between the NR growers of ASEAN countries and India. It is high time to evolve appropriate institutional architecture for ensuring cooperation among the NR growing countries instead of perilous competition.

Rubber Asia

A Saj Mathews

Majestic conclusion to ARC 2016

Great convergence of global retreading industry A

sian Retread Conference (ARC) 2016, a joint initiative by Asian Business Media (ABM) and the Malaysia-based Epic Fresh proved to be a grand success with the cream of the global retreading industry hailing it as a path-breaking event in the development of this highly potential industry.

The event held at Sime Darby Convention Center, Kula Lumpur, witnessed one of the biggest ever convergence of world retreading industry players, experts and market analysts from countries across the 86

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John S Powath

Datuk Dr Mohd Akbar Md

globe discussing the latest industry trends, innovative and cost-effective retreading technologies, the potential of the retread market in different countries in the nearmedium and long-term future and the challenges posed by cheaper imports.

Speaking at the inaugural session, Datuk Dr Mohd Akbar Md Said said that the initiative

would go a long way in the development of this vital industry in the Southeast Asian region. The same sentiments were expressed by the other speakers like Edoardo Salaorni of MARANGONI Mechanica, Italy, and Dr Ong Eng Long, Malaysian Rubber Products Manufacturers’ Association (MRPMA) whose speech was delivered by Lim Sum

A view of audience 88

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Rubber Asia

Edoardo Salaorni

David Stevens

Dr Zairossani Mohd Nor

Bireswar Banerjee, IIT Kharagpur

Tuck, Vice President , (MRPMA).

Over 250 delegates from 16 countries across the world attended the conference while leading retreading players and industry organisations like like GIIB, Marangoni, TRIB, Eversafe Rubber, Eastern Treads, MRPMA and MRB showcased their products and services in the Mini Expo that ran simultaneously with the event.

Responsible initiative

John S Powath presenting a carricature to Edoardo Salaorni Rubber Asia

Earlier, welcoming the distinguished guests and august gathering assembled in Sime Darby Convention Center, Malaysia, John Powath, the CEO of ABM, said that Tyre Asia, from the ABM stable took the initiative to organize the event in association SEPTEMBER-OCTOBER 2016

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Speakers on the dias for a panel discussion

Dirk Reurslag

Mario Goldman

with TRIB of USA based on the feedback that a specialized international conference highlighting the importance and advantages of the retreading industry was the need of

Dr Rani Joseph

the time. “It is our responsibility to save our planet. Mother Earth has to be saved from environmental disaster,” he said.

Powath said Malaysia was chosen for the event as it has a very matured retread market. Its people are helpful and supportive.

He said that Tyre Asia would organize the future ARCs in Malaysia on a regular basis where people most cordially welcome the event. Besides, there are great facilities for the attendees. He announced that the next ARC will be held from October 2 – 3, 2018, at the same venue.

Enlightening sessions Among the distinguished speakers at the event also includes David Stevens (Manag-

Tai Qisheng speaking at panel discussion 90

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Lim Sum Tuck Rubber Asia

Rajiv Budhraja

Sudarsan Varadaraj

David Wilson

Visitors at MRB stall

ing Director, TRIB, USA), Sudarsan Varadaraj (Elgi), Sascha Kriz (Schill + Seilacher “Struktol” GmbH), David Wilson (Retreading Business, UK), Dirk Reurslag (VMI, Holland), Tai Qisheng (GIIB, Goodway Rubber, Malaysia), Mario Goldman Zeiss, Germany, Gopinath Sekhar (SRI, Malaysia), Dr Zairossani Mohd Nor (Deputy Director General, Research & Innovation, MRB), Rajiv Budhraja, Director General of ATMA, India, and Dr. Rani Jospeh of CUSAT (India)

In the first session on Industry Overview David Stevens of TRIB presented a detailed scenario of the global retread industry and current challenges, a paper that provided a big scenario of the industry and its current status. Tai Qisheng of GIIB Retreads spoke on Future in a Price War – Environment or Profit or Both?

The second day sessions began with the presentation of Dr Zairossani Mohd Nor on ‘Applications of Ekoprena for Green Tyre Manufacturing’. The second day also had a panel discussion on Retreads and Cheap Imports. The other sessions were on Machines and Equipment, Materials, Methods & Technology; Green and Customers & Enforcement.

The two-day event concluded with an excellent winding up and a vote of thanks by conference Chairman Dato’ Mohamed Ishakbin Abdul Hamid.

Delegates from Kerala with Vinod Rai Rubber Asia

“Tyre retreading is all about sustainability – environmental and economic. There is a global awakening on the need for retreading and recycling to save this planet and also run it as a good business,” he said.

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event

RSDC kicks off Sr. Rubber technician Certification Program

Goal: Make students readily deployable vinod Simon

The first batch of Senior Rubber Technician (SRT) Certification Program for Engineering students was inaugurated recently at Kamraj College of Engineering and Technology, Madurai.

K

amaraj College of Engineering and Technology, Madurai, RSDC’s affiliated training partner, launched the first batch of the Senior Rubber Technician (SRT) course as a value-added program for the Engineering students of the Department of Polymer Technology. An inaugural function was organized by the college on July 29, 2016.

The event was also attended by R. Lakshmi Narayanan, MD, Hi-Tech Arai, Madurai, K Srikanth, Managing Committee Member, Immediate Past Chairman, AIRIA Southern Region, and Sivakumar, GM , HR, JK Fenner Ltd., Madurai.

To overcome the issues of non-availability of skilled manpower in the rubber sector, RSDC has developed a strong eco system for the sector at various levels such as: Developing National Occupational Standards (NOS), affiliating training providers, revamp of curriculum aligned to NOS, certification of trainees and trainers, and setting up labor market information systems (LMIS) to assist in the planning and delivery of training, besides identifying skill development needs of the sector.

Innovative training models RSDC Chairman Vinod Simon inaugurating Senior Rubber Technician Certification Program

Emphasis on hands-on practical skills On the occasion, Chief Guest Vinod Simon, Chairman, RSDC, congratulated the management of Kamraj College on the launch of the RSDC program for the B.Tech students. He appreciated the infrastructure and facilities available at the college for trainings. “The initiative taken by the college in introducing such add-on programs of RSDC in the regular stream of Engineering degree is ensuring that the students and industry are ready and easily deployable. The industry will readily accept these students and they have undergone a valu addition very much to the requirement of the industry. The kind of facilities available in the college will give more emphasis on hands-on practical skills that will make students readily deployable,” he said.

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In an endeavor to bring quality in training and bridge the prevailing skill gap in the sector, RSDC has launched different training models to motivate industry for actively participating in skilling programs across the country. RSDC has devised innovative training models for enhancing vocational education system in the sector. These models give various benefits to industry such as: Access to trained workforce that is equipped with technical skills, lower or negligible budget for training, re-training and re-skilling, greater productivity with improved alignment of workforce with job requirements.

So far, RSDC has developed Qualification packs and declared as National Standards for 63 job roles in the manufacturing subsector and 32 in the Natural Rubber Plantation sub-sector. RSDC has 26 affiliated training partners conducting various training programs as per the requirement of the rubber industry with various employers across country.

Rubber Asia

BE PART OF A REVOLUTION RSDC Invites Subject Matter Experts To accomplish RSDC’s objectives successfully we seek active participation of rubber technology professionals from the rubber industry as RSDC’s Subject Matter Experts (SME) 



RSDC carries out evaluation of competence and desired infrastructure of the training providers as per the industry specification for affiliating them to deliver NOS based training.

RSDC empanels Subject Matter Experts (SME) for conducting audit of trainings and assessments across various locations.

Role of SME  Conducts due diligence of the centre w.r.t. training delivery/availability of study material, infrastructure and availability of machinery/equipments required to train the students for the mentioned job role.  Conducts audit on the day of assessments through the pre-defined assessment framework.

Rubber Skill Development Council (RSDC), a Sector Skill Council for the rubber sector set up by All India Rubber Industries Association (AIRIA) & Automotive Tyres Manufacturers Association (ATMA) in collaboration with NSDC is focusing on skill development & training needs of the sector by offering vocational education to the youth in the rubber courses.

Nature of Job  Part time/ Contractual Eligibility:  10+ years of experience in Rubber Industry  No current association with any Training Institute  Graduate/ Post- Graduate preferred  Ability to speak basic English/ Hindi along with the regional/ local language

Promoted by:

Benefits:  Participation in this nation building activity through this unique initiative  Paid an honorarium for conducting audits, travel, lodging etc.  Association with RSDC Ramakrishna Dalamia Wing, PHD House (4th Floor), 4/2, Siri Fort Institutional Area, August Kranti Marg, New Delhi – 110016 Tel: +91 11 41009347- 48 | Fax: 91 11 41004899 Email: career@rsdcindia.in | Website: www.rsdcindia.in

TyreWorld This section is exclusively set apart for news and views on the tyre industry.

This regular feature also draws on a vast pool of news sources, made possible by our arrangement with leading tyre and rubber industry magazines across the globe.

Apollo to commission Hungary facility

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Conti to promote dandelion research

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Bridgestone India enters 2-wheeler tyre market

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IntervIew Shard P Matade

We adhere to rules in tyre pyrolysis Anansinee Thaboon, CEO, Green Rubber Energy The tyre industry in Thailand is on an expansion mode. The setting up of tyre plants in the country by international and domestic companies have given a big boost to the pyrolysis business that feeds on waste tyres, says Anansinee Thaboon, CEO, Green Rubber Energy, a leading tyre recycling company in Thailand.

According to her, tyre pyrolysis business has come under attack these days for causing environmental pollution. However, Green Rubber Energy is an exception and stands apart from its peers in pyrolysis business in several respects.

In an interview to Rubber Asia, Anansinee Thaboon claims that her company strictly adheres to rules specified by the authorities. Its pyrolysis plant is one of the best in Thailand. The technology is fully supported by NIA (National Innovation Agency) under the Ministry of Science and Technology, and the Board of Investment (BOI), Ministry of Commerce. The company has taken all measures to ensure the health and safety of the employees. Excerpts from the interview:

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hailand, already the world’s top producer of natural rubber, is now gaining importance in tyre manufacturing. Many international tyre companies have already set up their manufacturing units in the country.

Several Chinese companies opened plants in Thailand, Vietnam and Malaysia after the US imposed restrictions on imports of the Chinese tyres.

The Indian tyre majors too are keen on having a base in these countries owing to avail-

Rubber Asia

ability of natural rubber. Thailand’s growing interest in establishing Rubber City projects will further help develop the tyre industry.

This is a good augury for the pyrolysis business in Thailand, says Anansinee Thaboon, CEO, Green Rubber Energy.

“Expansion of the tyre industry means that more waste tyres will be put into the system. Because of this current situation we are highly concerned about the right way to get rid of the waste tyres,” she says. september-october 2016

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TyreWorld As environment authorities in the western world are tightening norms and regulations on waste tyres citing its hazardous impact on environment, they are aggressively exporting waste tyres to China and the Southeast Asian countries.

However, setting up a pyrolysis plant is a capital as well as a labour-intensive project.

Looming energy crisis

Anansinee Thaboon

Commenting on the reasons for her company to enter into tyres pyrolysis business, Anansinee Thaboon says that Thailand is seriously affected by energy crisis. The creation and development of renewable energy is essential to reduce foreign fuel imports. The company’s Green Formula Concept aims to create energy alternatives that are truly sustainable.

“Tyre recycling is fast catching up in Thailand and around the world. We would like to set new standards in getting rid of the waste tyre in Thailand. We also would like to create job opportunities for people who live in urban areas. Our company’s major goal is to set up a plant that is environment-friendly and also reduces administration cost for the buyer.”

Green Rubber Energy currently consumes

around 900 tonnes of waste tyres per month to produce 315 tonnes of carbon black, 405,000 litres of oil and around 100 tonnes of steel monthly. “We use continuous process with proper control of temperature and pressure to extract our carbon black. We operate 24 hours a day, and we are aiming to increase our consumption to around 4,000 tonnes of waste tyre per months in the future,” she says.

Environmental concerns Tyre pyrolysis business has come under attack for causing environmental pollution.

To get rid of waste tyre, many tyre pyrolysis plants simply ignore the rules to be followed to avoid hazardous impact of the process on local community. Green Rubber Energy, according to Anansinee Thaboon, strictly adheres to rules specified by the authorities.

“We have been commended by the Board of Investment (BOT), Ministry of Commerce, as a manufacturer who focuses on creating high renewable energy, stimulates the manufacturing process to be more efficient, reduce costs and save time to generate profits in the long run,” says Anansinee Thaboon.

“We believe that our plant is one of the best pyrolysis systems in Thailand. Our technology is different from those of our peers. We have been fully supported by NIA (National Innovation Agency) under the Ministry of Science and Technology, and BOI which has enhanced the reputation of our products and processes. We carefully select raw material which is waste tyre, control temperature and pressure for all the processes.

Every process is monitored and controlled automatically. We also have our own lab to

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TyreWorld

Tyre recycling plant of Green Rubber Energy

GREEN FORMULA CONCEPT

employees. Green Rubber Energy has made adequate investments to protect our employees and the people who live around our plant, according to Anansinee Thaboon.

“To ensure the safety of employees, we have invested in filter and dust collector system, waste gas treatment, waste water treatment, and fire safety system. Every process is monitored by CCTV for 24 hours. We have also introduced a healthcare plan for all our employees,” she adds.

Green Rubber Energy is currently supplying its carbon black domestically, but in the future the company has plans to export its new product Eco-Compound (Compound Carbon Black) to international markets such as Japan, Korea, China, Malaysia and the European Union.

ensure the quality of our products,” says the CEO. “We have confidence in our technology to produce carbon black, which distinguishes us from other pyrolysis plants.

We would like to create a new class of buyers who have the same concern for environment,” she says.

Safety of operation Another concern about pyrolysis tyre plants relates to the health and safety of Rubber Asia

Commenting on the acceptance of carbon black produced by pyrolysis compared to virgin carbon black for making tyres, Anansinee Thaboon points out that pyrolysis carbon has gained acceptance in the world markets including China for nearly 10 years due to its comparatively low cost and environment-friendly features. It is a good replacement for soft grade carbon.

“Our carbon has some distinct parameters that suit the varying applications of users.

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Apollo to commission Hungary facility next year T

he greenfield facility of Apollo Tyres Ltd in Hungary, the first of its kind to be set up by an Indian tyre company outside the country, is expected to roll out tyres early next year. The capacity will then be gradually ramped up over the next few years, according to Onkar S Kanwar, Chairman of the company.

Onkar S Kanwar

Addressing a Press conference in Kochi on the eve of the company's 43rd Annual General Meeting, he said this facility will have a capacity to produce 5.5 million PCLT (passenger car & light truck) and 675,000 HCV (heavy commercial vehicle) tyres. Producing both Apollo and Vredestein brand of tyres, this facility will complement Apollo Tyres’ existing facility in the Netherlands.

Chennai unit expansion Kanwar said the expansion of Apollo Tyres’ Chennai facility to increase the truck-bus radial facility from 6,000 tyres per day to 12,000 tyres per day is currently in full swing. Company is investing Rs 27 billion towards this expansion. The first phase of this expansion is likely to be completed by October 2016.

The entry into the two-wheeler tyre space has made Apollo Tyres a full range player.

The company’s two-wheeler tyres have been well-received by the customers and business partners. Seeing this demand, the company is increasing the number of outlets selling two-wheeler tyres from 2,000 currently to 3,000 outlets very soon.

The acquisition of Reifencom GmbH, Germany based leading tyre distributor with both online and offline presence, will help the company improve its mix of distribution channels in Germany and Europe.

It will also aid in increasing the visibility of Apollo and Vredestein brand of tyres in the offline, and especially, in the fast growing 100

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online retail space. Learning from this acquisition, the company could also look at expanding the presence and reach of this platform, Kanwar said.

Conversion of bias facility The conversion of the truck-bus bias facility to Off-Highway tyres is currently underway in the Kalamassery unit of Apollo Tyres. With 35 tonnes of capacity already converted, the company is targeting to finish this conversion process by 2019-20.

Meanwhile, the company kicked off the crucial Kannur Kandal or the Mangrove Conservation project in Kannur, Kerala, in association with Wildlife Trust of India (WTI). This project in Kunhimangalam village in Kannur district is aimed at ensuring the survival of existing mangroves and increasing the acreage of such habitats across Kannur.

Apollo Tyres has recently initiated a livelihood generation project for the wives of rubber tappers in Kottayam and helped them form self-help groups. In addition, several health camps have also been organized by the company for the rubber tappers in the region.

Recently, the Kerala Chapter of the National Institute of Personnel Management conferred the “NIPM Kerala Best Corporate Citizen Award” to Apollo in recognition of the company's CSR activities.

Watershed year Later, while addressing the Annual General Meeting, Kanwar described 2015-16 as a "watershed year for the company" and said Apollo will continue to invest in its brands, have a sharp focus on technologies and expand into new markets and consolidate and increase existing market shares.

"The economic revival that is underway in India is an opportunity for us to benefit from all our past investments. The global economic scenario, while not as exciting as India's, still affords a smart and agile player like us many windows to further grow our business profitably," he added.

Rubber Asia

Tyre news from around the world is brought to you

by Rubber Asia in association with Tyres & Accessories of the UK, Rubber & Plastics News, USA and a host of other tyre-related publications across the globe

Conti to build dandelion rubber research facility Continental A.G. is planning to step up its research initiative into the use of latex derived from dandelions. The company proposes to build a dedicated research facility in Anklam, Germany, with an investment of $ 39 million.

The company will focus on industrializing the cultivation and processing of the plantderived material, which Conti is developing under the brand name “Taraxagum.” The research facility will be called Taraxagum Lab Anklam.

the company’s fifth in Europe. The centre features a modern workshop and training classroom where employees will be able to acquire extra skills for working with tyre pressure monitoring systems, electronic systems and brake systems. The company’s other training centres are located in France, Germany, Italy and Spain.

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WWF lauds Michelin’s sustainability policy The World Wildlife Fund (WWF) has commended Group Michelin for adopting a “zero deforestation sustainability” policy regarding natural rubber and has urged other tyre makers and users of NR to consider similar positions.

Michelin’s policy, developed in partnership with WWF-France, will help address one of the leading causes of deforestation in Southeast Asia, the source of most of the world’s NR, says Jean Bakouma, head of the Forest Program at WWF-France.

The tyre maker has been developing the material for the past five years in collaboration with the IME Fraunhofer Institute in Münster, Germany, the Julius Kühn Institute in Quedlinburg, Germany, and the plant breeding company ESKUSA in Parkstetten, Germany.

Continental has produced winter passenger tyres and engine mounts from the Taraxagum rubber and aims to introduce commercial products in the next five to 10 years.

Test Centre in China: Meanwhile, Continental has opened its newest Test Centre in Yancheng, Jiangsu province, China. The new Test Centre is expected to provide Continental with a more solid foundation for technical support and product development in China.

At the Yancheng site, Continental will work together with the China Automotive Technology & Research Center (CATARC) on the testing and evaluation of tyres and other Continental products and systems, including electronic and hydraulic brake systems and advanced driver assistance systems (ADAS).

Training centre in Vienna: Continental has opened a new training centre in Vienna, Rubber Asia

Michelin’s policy states that an important first step to making NR production sustainable is to develop responsibly managed plantations on degraded land with full consent by tenure-holding local communities, instead of grabbing land and clearing high quality natural forests.

The WWF has urged the world’s biggest users of natural rubber, tyre manufacturers, car makers and vehicle fleet operators to procure deforestation-free and ethically produced natural rubber and tyres.

Mexico plant: Meanwhile,Michelin has conducted the groundbreaking ceremony for its production facility in the center of Mexico to manufacture high-end tyres for passenger cars and light trucks. The new plant in León (Guanajuato state) is the Group’s 21st in North America and 69th worldwide.

The approximately €450 million that Michelin has earmarked to set up the plant represents the company’s largest global investment for 2016.

The first tyres are expected to come off the production line in fourth-quarter 2018. In the initial production phase, the plant is expected to produce four to five million tyres a year, says a Michelin Press release. september-october 2016

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R&D Centre in France: Michelin has also officially inaugurated its new Research and Development Centre in Ladoux, France.

The tyre maker is investing approximately €280 million in erecting a state-of-the-art, 67,000 square metre building. The centre will employ about 1,700 new engineers and technicians.

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Apollo launches new range of TBR tyres India’s leading tyre major, Apollo Tyres has introduced a new range of technologically superior truck-bus radial tyres. The new products -- Apollo EnduRace RD HD, Apollo EnduMile LHD and Apollo EnduComfort CA --were unveiled in the presence of company’s countrywide large Fleet Operators, Business Partners, The Great Khali, power lifter and wrestler, and Milind Soman, winner of Ironman title and fitness enthusiast.

Designed and developed at the company’s Global R&D Centre in Chennai, this new range of TBRs have been extensively tested in the target markets across the country with some excellent results, the company says in a Press release.

Speaking at the launch event, Satish Sharma, President, Asia Pacific, Middle East and Africa (APMEA), Apollo Tyres Ltd, said that the new product introduction is part of Apollo’s overall strategy to dominate the truck-bus radial category in India. “Our TBR journey is getting a booster dose with the improving road infrastructure across the country, which would take the radialisation

levels to 65% and above in the commercial vehicle segment in the next 4-5 years,” he added.

P K Mohamed, Chief Advisor, R&D, Apollo Tyres, was also present at the launch function.

Partnership with Man Utd: After a successful completion of 3-years of regional association with Manchester United Football Club, which helped Apollo Tyres increase its brand visibility across geographies, the two organisations have announced a global sponsorship agreement for the next 3 years.

Apollo Tyres would now be the official ‘Global Tyre Partner’ for the world’s leading football club.

The three years of regional association which started with India and the United Kingdom in August 2013, was later extended to more than 100 countries. During the period, the association has been effective in raising the awareness of the Apollo brand across key markets including India, Middle East, South East Asia and Africa, Apollo says in a Press release.

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Bridgestone India enters two-wheeler tyre market Bridgestone India, a group company of Bridgestone Corporation, announced its foray into the two-wheeler tyre market in India under the brand ‘NEURUN’ for motorcycles and scooters.

NEURUN tyres are designed to deliver exceptional riding pleasure with proficiency for dry and wet braking. The tyres showcase high durability coupled with its excellent grip for a comfortable and safe ride. The tread blocks and grooves deliver superior grip with comfortable maneuverability for riders, the company says in a Press release.

Bridgestone India, which is a market leader for Passenger Tyre Radials and is a strong player in the Truck, Bus and Off the Road tyre segments, will now expand its spectrum of tyre products with the launch of the two wheeler tyres brand.

New plant in Russia: Meanwhile,Bridgestone officially opened its passenger car tyre plant in Ulyanovsk Oblast, Russia. Volume production will commence in the fourth quarter of 2016.

(From left) Satish Sharma, The Great Khali, Milind Soman and P K Mohamed at the launch of new range of TBR tyres 102

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The plant is operated by Bridgestone Tire Manufacturing C.I.S. LLC (BMCIS), a tyre Rubber Asia

manufacturing company jointly established

by Bridgestone Corporation and Mitsubishi Corporation. The facility will produce 2 million tyres a year when running at full capacity.

has a blueprint of scaling up to 2 million truck radials and 10 million PCRs. The capacity of the Mexico plants too is expected to go up to 5 million tyres from the existing 3.5 million units per year, Dr Singhania added.

JK rolls out 10 millionth truck/bus radial tyre

R&D centre in Mysuru: Meanwhile, JK Tyre is planning to set up a world-class research centre at Mysuru in Karnataka state to cater to global auto majors with better R&D.

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Indian tyre major JK Tyre and Industries Limited reached a historic milestone when it became the first Indian tyre company to produce 10 million truck/bus radial tyres.

Currently, JK Tyre undertakes R&D at several locations and now the company plans to combine all these R&D efforts under one roof. The proposal involves an investment of Rs1 billion, says media reports quoting JK Tyre & Industries Chairman and Managing Director Raghupati Singhania.

The new facility, to be commissioned within two months, will house the most modern and advanced equipment, manned by highly experienced engineers and scientists.

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US imposes anti-dumping duty on Chinese tyres The US Department of Commerce (DOC) has imposed anti-dumping duties on Chinese-made truck and bus tyres imported into the USA.

Dr Raghupati Singhania launching the company’s 10 millionth TBR tyre

The 10 millionth TBR tyre produced by the company rolled off the line at the company’s Vikrant plant in Mysore on August 22, 2016.

The tyre maker produced its first truck and bus radial in 1999 and currently holds the capacity to produce 3.5 million units per annum.

JK Tyre operates 12 plants globally and the recent Rs 22 billion acquisition of Cavendish Industries saw the company enter the high growth 2-3 wheeler segment with its brand Challenger already hitting the market.

While launching the 10 millionth tyre, Dr Raghupati Singhania, Chairman & Managing Director, JK Tyre, informed that JK Tyre has completed the second phase of construction of its modern and pure radial plant at Chennai with a total investment of Rs 14 billion.

The plant makes truck radials and car radials and has a production capacity of 1.2 million TBRs and 4.5 million PCRs. The plant Rubber Asia

In a preliminary determination, DOC antidumping duties of between 20.87 % to 22.57 % would be applied to products. These duties are in addition to countervailing duties recommended for the same products in June. As a result, total import tariffs would come to around 40 %.

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Global tyre demand forecast to rise 4.3% The Cleveland-based Freedonia Group, the world’s leading industrial research company, says growth from Asia, in particular China and India, would drive up global tyre demand by 4.3 per cent to 2.9 billion units in 2017. In value terms, sales of tyres are projected to increase 7.9 per cent annually to $281 billion. The demand growth will be driven by rising incomes in developing countries, which will contribute to higher levels of vehicle ownership. The global demand for tyres will also be supported by improved economic conditions in the developed countries of Western Europe and North America, september-october 2016

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the research group says.

The per capita usage of both motor vehicles and motorcycles would rise, that would lead to heightened demand for tyres in replacement applications. Production of new vehicles will increase to meet the growth in demand in the OEM segment.

OTR market: Meanwhile, TechSci Research has in its latest report predicted that the global OTR tyre market would grow at a CAGR of 8% during 2016-2021. Despite Eurozone crisis in 2012 and decline in oil prices over the last couple of years, the global OTR tyre market grew at a steady pace during 2011-2015. However, the OTR vehicle production and sales across the world witnessed sluggish growth during the same period, the research agency says.

India forecast: According to TechSci Research, India’s tyre market may witness a CAGR of over 9% during 2016-2021. Though the replacement tyre demand had a majority share in 2015, the OEM tyre demand is expected to outpace replacement tyre demand during 2016-2021.

In 2015, Northern region accounted for the largest share in India’s tyre market, followed

by Southern, Eastern and Western regions.

Over the next five years as well, Northern and Southern regions are forecast to continue their market dominance and grab a cumulative market share of nearly 59% in 2021, the research report says.

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Goodyear, ATMA drive to promote road safety Goodyear India, in association with Institute of Road Traffic Education (IRTE), conducted a unique road safety programme, ‘Safer Roads, Safer You.’ The focus of this initiative was to offer complimentary training to 2,400 selected taxi drivers in Delhi and Mumbai. A one-day workshop was

Some of the participants of Goodyear India’s road safety programme with company officials 104

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conducted for groups of 20 taxi drivers to create awareness and cover critical aspects such as defensive driving, passenger comfort and safety, vehicle maintenance, personal management and incident management. The participants were also given an incentive of Rs 500 along with a complimentary accidental death Insurance policy of Rs 200,000.

Meanwhile, leading tyre manufacturers under the aegis of Automotive Tyre Manufacturers Association (ATMA) carried out a comprehensive 2-day Tyre Care & Road Safety campaign at Infosys Mysuru campus.

Around 30 service engineers from tyre companies inspected the tyres of around 700 cars at the campus and sensitised motorists about tyre related safety aspects. Speaking on the occasion, K M Mammen, Chairman, ATMA, stressed the role of well-maintained tyres in overall road safety.

Tyre companies, which participated in the campaign titled There is a lot riding on your tyres, included Apollo Tyres, Birla Tyres, Bridgestone, Ceat, Continental, Goodyear, JK Tyre, Michelin, MRF and Yokohama.

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Pirelli launches new Calendar website Pirelli has launched a new website dedicated to the Pirelli Calendar. The www. pirellicalendar.com site primarily serves as a vehicle for sharing the various creative aspects of next year’s Calendar, which will be unveiled towards the end of November. The site also contains information and imagery from previous editions.

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ETRMA posts slight rise in H1 2016 tyre sales Members of European Tyre and Rubber Manufacturers’ Association(ETRMA) reported marginal rise in replacement tyre sales in the consumer, truck and two-wheeler segments in the first half of 2016 (January-June). Sales in the agricultural segment however showed a consistently decreasing trend.

Sales in the consumer segment touched 102,574 units, up 2% compared to the same period of 2015. Sales in the truck tyre segment stood at 3,683 units(+3.6%) and in the two-wheeler segment at 6,102 units( + 6.7%).

Sales in the agricultural segment remained critically low at 784,000 units, down 7.8% compared to H1 2015.

Rubber Asia

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ITEC highlights included the keynote address by David Stafford, Executive Vice President for Michelin North America and past COO, Michelin Americas Research Co. In addition, the Harold Herzlich Distinguished Technology Achievement Award was presented to Prof. Dr. Ing. Andreas Limper, Managing Director, Freudenberg Plant. There was a special group of programs celebrating the 100th Anniversary of the Banbury® Mixer.

The 70+ presentations in the technical program included Unit Operations Workshops covering Tire Materials, Modeling, Heavy Machinery, Consumer Information, Testing, Production Processes and More. Finally, the networking reception, sponsored once again by VMI on the show’s opening night gave everyone a chance to get to know each other better at either the full bar or over an Ohio craft-brewed beer in HF Group’s Banbury Beer Garden.

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Watch for information on ITEC, as well as ITEC InFocus, the International Hose Conference, the Rubber in Automotive Conference and the International Latex Conference in the coming months.

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RubbeR Trends NR output falls despite rise in mature area Total production of natural rubber (NR) in all member-countries of Association of Natural Rubber Producing Countries (ANRPC) fell by 0.3 per cent, year-on-year, to 6.905 million tonnes during the first eight months (January-August) of 2016, as against 6.923 tonnes during the corresponding period of 2015.

This is despite a marginal rise in production in Thailand, Indonesia and Vietnam during the period. Production fell in China by 9 per cent and in Malaysia by 8 per cent, year-on-year, during the first eight months of 2016, says ANRPC. Based on the revised outlook, total production during the year 2016 is anticipated at 11.069 million tonnes, up 0.2 per cent from the previous year.

The fall in production during the first eight months of the year is despite the expansion in total mature area in all ANRPC membercountries by 240,000 ha. This is a result of the high rate of planting undertaken seven years ago in response to high rubber prices that prevailed during the period. However, the prevailing unattractive price dissuade farmers from proper maintenance of holdings and from undertaking intensive tapping, bringing down the average yield per hectare.

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SR production slightly exceeds consumption The world SR consumption decreased marginally by 0.2% to 7.31 million tonnes in H1 2016, as against 7.2 million tonnes in the corresponding period of 2015, according to data compiled by International Rubber Study Group (IRSG). The slowing growth rate in global SR consumption is attributed mainly to the falling consumption in the EU-28 and the USA as well as to the weakening export of passenger cars.

Meanwhile, the world SR production expanded marginally by 1.0% to 7.34 million tonnes in H1 2016. The world exports of SR increased at a rate of 6.7 % to 4.89 million tonnes in H1 2016, while world SR imports 108

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increased by 3 % to 5.06 million tonnes.

Uptrend in India’s NR production India’s natural rubber production increased 2.3 per cent on year-on-year basis in the first quarter of 2016-17(AprilJune), according to priliminary estimates made by the Rubber Board.

This marks a shift in the decreasing trend in natural rubber production in the past few months.

If the positive trend continues, production of NR during the fiscal will reach the anticipated 6.54 lakh tonnes.

The stability in price also may boost production, says the Board in a Press release. Last year saw the production sink to 562,000 tonnes. Adverse weather, high wages, lack of skilled labourers, grower’s reluctance in harvesting or maintaining trees in response to the low NR prices etc affected production.

Even though the tappable area under natural rubber was 559,000 ha during 2015-16, only 391,000 ha has contributed to the NR production during the year. Consequently, the average yield, measured in terms of production per hectare of tapped area, declined during the year to 1,437 kg/ ha as against 1,443 kg/ha in the previous year, the Board says.

3.9% rise in NR consumption Consumption of NR in ANRPC membercountries grew 3.9 per cent to 5.369 million tonnes during the eight months ended August 2016, as against 5.165 million tonnes in the corresponding period of 2016.

Consumption grew in all member-countries during the period. It grew 1.1 per cent in China and 3.2 per cent in India. Thailand, Indonesia and Vietnam registered relatively faster growth in consumption, which increased by 8.5 per cent in Thailand, 12.9% in Indonesia and 13.8% in Vietnam.

Based on the revised outlook, ANRPC expects consumption during the year 2016 Rubber Asia

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RubbeR Trends to increase by 3.7 per cent to 7.910 million tonnes from 7.632 million tonnes in 2015.

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NR exports up 1.4% Total export volume of NR by ANRPC member-countries increased by 1.4 per cent to 5.883 million tonnes during January to August 2016 compared to the same period in the previous year. While export during the period rose in Thailand by 9.6 per cent and in Vietnam by 6 per cent, export fell in Indonesia (-7.2 per cent), Malaysia (-7.1 per cent) and Cambodia (-0.3 per cent).

Total export of NR from ANRPC membercountries during the year 2016 in anticipated at 8.892 million tonnes, down 1.7 per cent year-on-year.

2.6% rise in NR imports ANRPC member-countries imported a total quantity of 3.310 million tonnes of NR during the first eight months of 2016, up 2.6 per cent year-on-year.

During the period, China, the largest importing country in ANRPC, imported 2.529 million tonnes of NR, up 0.5% from the same period in the previous year.

Malaysia, the second largest importing country, imported 591,000 tonnes, down 0.3% from the same period in the previous year. Import of NR in India fell by 0.1%, year-on-year, to 282,000 tonnes during the period, while Vietnam’s import increased by 40.7%, year-on-year, to 200,000 tonnes.

Total quantity of import by all ANRPC member-countries during the year 2016 is anticipated at 5.582 million tonnes, down 6.6 per cent from the previous year.

SR share drops to 53.8% Share of Synthetic Rubber in total world rubber consumption dropped marginally to 53.8% in H1 2016, from 54.5% in the corresponding period of 2015.

While the USA recorded the highest share of 66.3%, China’s share stood at 46.7%, according to data compiled by International Rubber Study Group (IRSG).

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Gloves exports rise, condoms down in Q1 2016 Exports of Gloves and Threads & Cords reported positive growth rates in the first quarter of 2016, while Condoms and Other Pharmaceutical Goods saw negative growth, according to the latest Rubber Industry Report from International Rubber Study Group (IRSG).

The Glove sector exports increased marginally (0.8 per cent) to 36.8 billion pieces in Q1 2016, compared to 36.5 billion pieces in the same quarter of 2015, driven by accelerated growth in Thailand despite a sharp contraction in China. Gloves exports of Malaysia and India decelerated in Q1.

Export of condoms registered a 10.4 % decline in Q1 2016 to 8,200 tonnes. The exports volume of Condoms in Thailand expanded at a strong growth rate of 8.9 per cent while China exports rose by a more modest 3.5 per cent.

Export of Threads & Cords registered 1.5 per cent increase to 44,700 tonnes in Q1 2016, while Other Pharmaceuticals saw a 2.6 per cent decline to 2,762.6 tonnes.

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Malaysia’s rubber products exports up 18.6% Exports of rubber products by Malaysia recorded a positive growth of 18.6% year-onyear in 2015, contributed mainly by a strong increase in exports of rubber gloves which accounted for 72.8% of the total exports of rubber products in the year. In value terms, exports of rubber products from Malaysia reached nearly RM 18 billion in 2015, compared to RM 15 billion in 2014, according to the Malaysian Rubber Export Promotion Council (MREPC).

The strong growth in exports of rubber products from Malaysia in 2015 was also fuelled by significant increases in exports of other rubber products in the latex goods category namely condoms and latex threads. In the non-latex goods category, tyres, footwear, tubes, pipes and hoses as well as seals and gaskets reported strong export performance. The latex goods remained the largest contributor to Malaysian exports of rubber products, reaching RM14.6 billion in 2015.

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News Digest India Scheme for registration of rubber nurseries A scheme for registration of rubber nurseries and certification of planting materials formulated by the Rubber Board, India, was launched by A Ajith Kumar IAS, Chairman, Rubber Board, at a function held at Rubber Research Institute of India(RRII), Kottayam.

AIRIA delegation visits Taiwan, Korea India's rubber trade with East Asia is poised to receive a big boost with the recent visit of an Indian rubber industry delegation to Taiwan and Korea, supported by the MSME Ministry.

During the six-day visit, the delegation led

by Mohinder Gupta, President, All India Rubber Industries' Association (AIRIA), held a series of B2B meetings with rubber industry associations, visited factories and held meetings with Indian missions to explore business opportunities.

The delegation met the Taiwan Rubber and Elastomer Industries' Association (TREIA), the Taiwan Association of Machinery Industry (TAMI), Importers and Exporters Association of Taipei, India-Taipei Association, Korea Rubber Industry Association (KRIA), Korea Importers’ Association (KOIMA), Indian embassy in Korea, manufacturers of rubber products and rubber machinery and other relevant organisations.

Rubber Board Chairman A Ajit Kumar launching scheme for registration of rubber nurseries

Speaking on the occasion, the Chairman said in order to make rubber cultivation remunerative, production needs to be increased and quality of planting material is an important factor in determining the productivity.

"We need to develop close synergies between the Indian rubber industry and the industry in Taiwan and Korea to enable the development of international brands by sourcing better technology and R&D," he added.

Initially registration and certification of planting materials will be given to the rubber nurseries who voluntarily apply for it.

The Chairman said cooperation from rubber nursery owners and rubber growers is a must for the success of the scheme.

Rubber Board to support block rubber production

V. Mohanan, Jt. Rubber Production Commissioner, who presided over the function, said that certification would help the officers to identify genuine nurseries for recommendation.

Chairman handed over a document describing the standards of quality planting materials to Jose Mathew, rubber nursery owner and a pioneer in this field. The first application for nursery certification was submitted to the Chairman by KT Augustin, rubber nursery owner.

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According to Gupta, the delegation had fruitful meetings with the rubber products manufacturers, machinery manufacturers, R&D centres, testing equipment manufacturers, end-users, number of agencies and trading companies.

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The Rubber Board has received approval from Government of India to encourage block rubber production, with a view to boosting rubber processing in the domestic sector.

The Commerce Ministry has sanctioned Rs 257.4 million to encourage block rubber production, which includes a subsidy of Rs 10/kg for latex to small growers. The pilot scheme envisages a production of around 14,000 tonnes of latex coagulum (LC)-based block rubber for two years.

The scheme will be implemented through factories of RubberMark, Kavanar Latex Rubber Asia

News Digest India

and Pala Marketing Society. The Board has invited representatives of these factories for discussions to chalk out modalities of implementation.

The Board will provide technical and financial assistance to growers besides assuring a higher price by direct procurement of LC through depots of cooperatives and rubber producing societies.

Meanwhile, the Association of Planters of Kerala (APK) has said that the move by the Rubber Board to encourage the block rubber production in India will help the large consuming industry at the cost of the farmers who are struggling due to low prices and high cost of production.

At present, the farmers are receiving more than 90% of the price as their farm gate price. However, the proposed shift in processing will fetch them lower price compared with the sheet rubber and it will also make him dependent on the block rubber processing factories, says APK Chairman C Vinayaraghavan.

The RSS grade sheet rubber can be produced at the backyard of the farmers and they can hold the stock till the prices are at acceptable level. The block rubber production is high in power consumption and also includes the cost of effluent treatment. The association feels that all such costs will be reduced from the ISNR prices and the balance will be transferred to the farmer.

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HLL Lifecare holds musical fete Sonata Musical Club of HLL Lifecare Ltd (HLL) conducted Johnson Master, Dakshinamurthy, Mukesh musical fete recently.

Poet V Madhusoodanan Nair inaugurating HLL Lifecare musical fete. HLL Director E Subramanian is seen sitting to his left

The event was inaugurated by Poet V Madhusoodanan Nair. HLL Director E Subramanian was among those who attended the inaugural function.

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Government approves scheme to train tappers Government of India has given approval for a Scheme, under the ‘Pradhan Mantri Kausal Vikas Yojana’(PMKVY), for the skill development in small rubber holders’ sector.

The Rubber Board will implement the scheme with the active cooperation of National Skill Development Corporation and Rubber Skill Development Council. The Board has submitted a scheme with a financial outlay of Rs.150 million for imparting skill development training for 16,500 labourers in Kerala and Tripura States, now working in the rubber harvesting and processing sector. As a first phase of this scheme, an amount of Rs 28 million has been allotted for the training of 10,000 tappers in the small holder sector in Kerala.

The Scheme will be implemented in the state with the participation of Rubber Producer’s Societies. 150 centres under the jurisdiction of 26 regional offices of the Board have already been identified for the purpose. The training process will start in the second week of October and will continue up to January 2017.

Skill development training for three days will be given to those who have prior experience in tapping and processing. Each batch will have 30 trainees.

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HASETRI organises short-term course Hari Shankar Singhania Elastomer and Tyre Research Institute (HASETRI) and Indian Rubber Institute (Karnataka Branch) jointly organized a Short-Term Course on “Testing and Quality Management System in Rubber Industry” from September 26-28, 2016 at Centre of Management, JSS University, Mysore.

The objective of the Course was to enrich and upgrade knowledge in the field of Raw Material, In-process material and finished product testing in rubber industry and also to cover Quality Management System through ISO 9001: 2008 and ISO/IEC 17025:2005 standard.

A total of 35 representatives from the rubber industry attended the course. Faculties from IRI Karnataka Branch and HASETRI delivered the lectures. A visit to the Laboratory of Department of Polymer Science and Technology, JSS University, Mysore, was also organized during the course.

Rubber Asia

E.V. Mathai & SonS Registered Office:

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Ph: 04256 239295, 239323 Super Rubber Mix APPA Apartments, Flat No. 501, Opp. Mattuthavani, Bus Stand, Melur Road, Madurai - 625 107, Tel. No. 0452 6050234, Mob. 9447122104 Email: srmsuper@gmail.com TIN: 33804941850/CST: 164788/05-0608

News Digest International LANXESS to acquire Chemtura Corporation Leading specialty chemicals company LANXESS has announced plans to acquire US-based Chemtura Corporation, one of the major global providers of high-quality flame retardant and lubricant additives.

The companies have signed a definitive acquisition agreement. The transaction with an enterprise value of approximately EUR 2.4 million is expected to close around mid2017.

Yokohama’s conveyor belt

With the largest acquisition in its history,

By carrying out a number of field trials, using a proprietary evaluation criteria , and making fine adjustments at the compound level, the company is able to develop “Tuftex α” with an abrasion resistance of 64% better than its existing Super Wear Resistant (SWR) cover compound.

LANXESS is building on its own additives portfolio and will become one of the world’s major actors in this growing market.

Six-cylinder boxer engine

Headquartered in Philadelphia, Pennsylvania, Chemtura has 20 sites in 11 countries and approximately 2,500 employees worldwide.

The company reported sales of around EUR 1.5 billion in the last four quarters.

Oil pan module: Meanwhile, LANXESS has developed an oil pan module from polyamide 6 for the new six-cylinder boxer engines of the Porsche 911 Carrera. Motor oil pans from polyamide 6 have high level of functional integration, much lighter than an aluminum design, and outstanding long-term resistance to engine oils, the company says in a Press release.

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Semperit to expand production capacity As part of its growth strategy, the Semperit Group plans to make capital investments of approximately EUR 60 million in 2016. The focus will be on entering into new markets in the Industrial Sector and on the expansion and optimisation of existing production capacities, Semperit says in a Press release.

In the Medical Sector, the focus will be set on the expansion of the glove production in Malaysia in addition to further production and sales optimisations as well as efficiency enhancements.

Yokohama launches new conveyor belt compound

Kossan Rubber Industries Bhd has launched a new patented technology that will ensure the wearers of its gloves have the least possibility of developing allergic reactions.

Yokohama Rubber launched a newest conveyor belt cover compound “Tuftex α” to meet the most demanding applications, such as high-capacity reclaimers handling iron ore and coal at port stock yard facilities.

The new cover compound features Yokohama’s september-october 2016

The new belt’s superior durability also makes it ideal for prolonged use under harsh environmental conditions, such as exposure to ultraviolet rays of the blazing sun, the company says in a Press release.

Polyamide 6 has helped to reduce the weight of the upper and lower sections of the oil pan to 1.3 and 1.8 kilograms respectively.

Overall, the oil pan is more than two kilograms lighter than its aluminium predecessor, due to the lower density of the plastic and the optimised wall thickness, the company says.

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advanced rubber compounding technology, achieving the highest level of abrasion resistance, and consequently providing longer service life.

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Kossan launches `Low Derma' gloves

The technology called Low Derma Technology works to eliminate allergy-causing accelerators in the glove-making process while still ensuring the gloves have the same or superior tensile strength, Rubber Asia

News Digest International flexibility and sensitivity.

Kossan is the first Malaysian glove manufacturer in the world to be granted the "low dermatitis potential" claim in gloves by the US Food & Drug Administration (FDA), says Datuk Lim Kuang Sia, Founder and Group Managing Director/CEO of Kossan. The company has also been granted with patents in Japan, China, Hong Kong and Taiwan.

“The launch of low derma technology would be the starting point of the company to focus on R&D and we aim to introduce more products,” Lim says. Kossan plans to invest about RM100mil in the next five years to expand its lines, automate its plants and also R&D.

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Research on new species of dandelion A group of researchers from the Ohio State University's College of Food, Agricultural & Environmental Sciences are growing a special kind of dandelion native from Kazakhstan to be used as a sustainable source of rubber in the United States.

This dandelion species is known by its scientific name Taraxacum kok-saghyz, but the researchers decided to call it Buckeye Gold.

Unlike other wild dandelions growing in the United States, Buckeye Gold is capable of producing rubber that has nearly identical quality and performance as those produced from Hevea rubber trees grown in South East Asia.

According to a press release from American Chemical Society, the roots of Buckeye Gold contains 10 to 15 % natural rubber. Liquid latex rubber and rubber solids are extracted from the roots of Buckeye Gold in a processing plant using water.

Unlike rubber trees that are growing in Thailand, Indonesia and Malaysia, Buckeye Gold does not take years to grow. Researchers are trying to find a way to modify Buckeye Gold to increase its rubber content. Additional uses for other parts of the dandelion are also being studied to reduce waste being produced by rubber production.

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Toyota Motor adopts Yokohama’s Teflon hoses The Yokohama Rubber’s teflon hose piping for use in the oil supply lines of turbo-diesel engines now will be used by Toyota Motor for use in some of its new Hilux equipped 118

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Yokohama’s teflon hose

with Toyota’s new GD engines, developed in 2015.

The use of teflon hoses reduces the steps and man-hours required to mount oil supply lines.

Yokohama Rubber began manufacturing the teflon hose piping at its Nagano Plant in February 2015 and transferred production to Yokohama Rubber (Thailand) Co. Ltd., from January 2016.

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Mexico-ChemSpec forms new subsidiary Mexico-ChemSpec, Ltd., a member of the Safic-Alcan Group family of companies, has formed a subsidiary that will service the Mexican industrial manufacturing sector.

The subsidiary, ChemSpec México, S. de RL de C.V., will be based out of Mexico City, and will provide sales and technical support to the elastomer compounding industry, such as tyre and technical rubber production, while also supporting Manuel Cortés the other Mexican C.A.S.E." (Coatings, Adhesives, Sealants, Elastomer, and Plastics) market segments.

ChemSpec México has appointed Manuel Cortés as its Sales & Marketing to support this new office.

Rubber Asia

cochinrubbers@gmail.com

Goodyear’s H1 sales down 8% Goodyear tire and rubber company’s sales for the first six months of 2016 stood at UsD 7.6 billion, down 8 percent from the 2015 period. the company reported first half segment operating income of UsD 950 million in 2016, up from UsD 938 million a year ago. the first half net income of UsD 386 million is down from UsD 416 million in 2015’s first half. tyre unit volumes totalled 83.0 million, up 2 per cent from 2015, driven by growth in the asia pacific region, primarily in Japan and china. replacement tyre shipments were up 3 percent, while original equipment unit volume was down 1 percent.

11% fall in Bridgestone’s H1 sales Bridgestone corp. reported a 11% decline in net sales to $ 16.3 billion in the first half of 2016, while its operating income dropped 8% to $2.16 billion. sales at the Group’s tires Business were 13 per cent of sales, at $13.1 billion, while operating income fell 3 per cent to $1.96 billion. regionally, first-half sales fell by 10 % in Japan to $5.13 billion and 14% in North america to $8.13 billion, while sales in the Middle east and africa rose 15% to $2.41 billion.

Michelin’s H1 sales down, income up

Michelin posted a 2.0 per cent decline in net sales to €1.41 billion in the first half of 2016(January-June). However, the company’s net income was up 8.8 per cent year-on-year to €769 million, while operating income increased 11.3% to €1.41 billion.

Michelin attributed the strong business performance in the first half to the quality of its tyres and services, the effective management of the balance among growth and pricing, as well as cost competitiveness.

Steep fall in Pirelli’s H1 net income

the net income of italy’s pirelli & c. spa plummeted from €196.5 million to €8.1 million in the first six months of 120

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corporate affairs the current year ended June 30, 2016, registering a 95.9% decrease over the corresponding period last year. operating income, at €405.6 million, was 9.2 per cent lower than the pirelli Group figure from a year earlier. Net sales of €3.0 billion is 6.6 per cent lower than the net sales achieved by the pirelli Group in the first half of last year.

LANXESS posts 7.7% fall in Q2 Group sales specialty chemicals company LaNXess reported 7.7 per cent fall in Group sales to eUr 1.94 billion in the second quarter of 2016 (april-June), compared with eUr 2.1 billion in the prior-year quarter. Net income for the quarter stood at eUr 75 million, against eUr 87 million in the same period last year. sales in the advanced intermediates segment decreased by 5.3 percent, from eUr 468 million to eUr 443 million. the performance chemicals segment posted a slight year-on-year decline in sales of 1.8 percent, from eUr 553 million to eUr 543 million.

MRF’s income, profit up india’s top tyre maker Mrf Ltd reported 2.3 per cent rise in standalone net profit to rs 4.91 billion in the three months to June 30, 2016. Net income during the quarter amounted to rs 34.82 billion, up from rs 34.77 a year earlier.

Apollo’s Q1 net profit up 11% apollo tyres Ltd reported 11% rise in net profit to rs 3.15 billion in the first quarter of 2016-17(april-June) from rs 2.84 billion in the corresponding quarter of last year. Net sales increased 16% to rs 32.85 billion from rs 28.32 billion, while operating profit stood at rs 5.66 billion, an increase of 8% from rs 5.23 billion.

While indian operations clocked a revenue growth of 6% in the first quarter of the current fiscal, as compared to

the same period last fiscal, european operations’ revenue grew 10%. the Board of Directors have approved the annual dividend payout of 200% per share (rs 2.00 per equity share), for the year ended March 31, 2016.

47% rise in BKT’s Q1 profit Balkrishna industries Ltd. (BKt) reported 46.6% increase in net profit to rs 1.5 billion (£16.7 million) in the first quarter(aprilJune) of its 2016-17 financial year. the company sold 41,456 tonnes of tyres during the quarter, a yearon-year growth of 11%. Net sales were up 7.0 per cent to rs 9.1 billion (£102.2 million). eBitDa jumped 136% rs 2.6 billion (£29.2 million).

JK Tyre’s profit, income fall JK tyre & industries Ltd posted a net profit of rs 1,008.50 million for the quarter ended June 30, 2016 as compared to rs 1088.10 million for the same quarter of 2015. total income decreased to rs 14,845.50 million from rs 14,955.90 million reported for the year-ago quarter.

Conti posts 13.1% rise in H1 net income continental aG reported 13.1% rise in net income to €1.6 billion in the first half of 2016. Net income for the second quarter of the year stood at €904.9 million, a 14.3% rise over the same quarter of last year. the company reported 2.3% rise in sales to €20.0 billion in the first half of 2016. sales rose 1.6 per cent in the second quarter of the year to €10.2 billion.

49.3% fall in Yokohama’s H1 profits the Yokohama rubber co. Ltd. reported 49.3 % decline in its first half 2016 profits to 8.2 billion yen. Yokohama reports that the fall resulted from a 37.9% decline in operating income to 15.7 billion yen and a 9.5 per cent decline in net sales to 268.1 billion yen. operating income in Yokohama’s tyre segment declined 37.6% to 12.1 billion yen, on a 10.1% decline in sales to 208.2 billion yen.

Rubber Asia

ECONOMICTrends Brexit impact: IMF cuts global forecast to 3.1% The International Monetary Fund (IMF) has cut its global growth forecasts for the next two years, citing uncertainty over Britain’s looming exit from the European Union.

In its latest World Economic Outlook forecasts, the IMF said that it now expects global GDP to grow at 3.1 per cent in 2016 and at 3.4 per cent in 2017 — down 0.1 percentage point for each year from previous estimates.

The Fund said that despite recent improvements in Japan and Europe and a partial recovery in commodity prices, the UK’s Brexit vote had created a “sizeable increase in uncertainty” that would take its toll on investment and market and consumer confidence.

The IMF said that Brexit would hit Britian hardest and cut its 2016 growth forecast to 1.7 per cent, down 0.2 percentage points from its earlier forecast.

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1.1% rise in Us Q2 growth The US economy posted 1.1 per cent increase in Gross Domestic Product at an annual rate in the second quarter of 2016, according to the revised estimate released by the Commerce Department. The US economy grew at 0.8 per cent pace in the first quarter and at 1.0 percent in the first half of 2016.

The acceleration in GDP in the second quarter is attributed primarily to an acceleration in personal consumption expenditures (PCE), a smaller decrease in nonresidential fixed investment, an upturn in exports, and a smaller decrease in Federal Government spending.

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China posts 6.7% growth China’s economy grew 6.7% year-on-year in April-June 2016 quarter, the same as the year’s first quarter, as a Government spending 122

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spree and housing boom boosted industrial activity. This is still the slowest pace of growth since the global financial crisis hit the world’s second-largest economy.

Analysts however feel that the a slump in private investment growth could lead to a loss of momentum later in the year. China expects this year’s growth to be in the range of 6.5 per cent to 7 per cent. IMF has forecast a 6.6 per cent growth for Chinese economy in 2016.

India’s Q2 GdP falls to 7.1% India’s GDP expanded by 7.1 per cent in the three months to the end of June, down from the 7.9 per cent acceleration recorded at the start of the year, according to the Central Statistics Office. India still remains the fastest growing among any major economy in the world.

Output in the mining industry contracted by 0.4 per cent in the quarter, with farming expanding 1.8 per cent and construction growing by 1.5 per cent.

Electricity provided the biggest boost to growth at 9.4 per cent. Investment, as measured by fixed capital formation, declined by 1.1 per cent.

Meanwhile, the International Monetary Fund (IMF) has marginally lowered India’s growth forecast to 7.4 per cent for 2016 and 2017, from the 7.5 per cent estimated earlier, due to sluggish recovery in private investment and global economic uncertainty caused by Brexit. The Indian economy grew at 7.6 per cent in 2015-16, while the Government expects it to grow at over 8 per cent in 2016-17.

Japan’s growth slows to 0.2% Japan’s economic growth slowed to an annualized 0.2% in the April-June 2016 quarter, in the wake of falling exports and declining corporate investment. The economy grew 0.5 per cent in the first quarter -- 1.9 percent annualised -- after a contraction in the last three months of 2015.

Rubber Asia

KELACHANDRA Manufacturer of Rubber Processing Machinery

Heavy Production Mills- Mixing/Cracker/Grinder/Refiner Laboratory & Small Production Mills Hydraulic Presses Extruders Calendars Mixers Tyre recycling machinery Manufacturing Facilities / Spare Capacity:

• Vertical Boring Mills • Lathes • Horizondal Boring Machines • Planers • Plano-Millers Large Gear Hobbers • Radial Drills • Shapers • Overhead Cranes We also specialise in Heavy machining, Repair and rebuilding of used machinery

KELACHANDRA MACHINES

(MFRS. OF RUBBER INDUSTRIAL MACHINERY) Chingavanam - 686 531, Kottayam, Kerala, India Phone Off: +91-481-2430596, 2430325 Fax: +91-481-2430406 e-mail : km1912@gmail.com www.kelachandra.com

event

vembanad Rubbers into spices business

Opens outlet at Puthencruz in Ernakulam A

s part of diversification, Vembanad Rubbers Pvt Ltd, a company promoted

by Rubber Board and Rubber Producer

Chairman of Vembanad Rubbers, presided over the function. V P Sajeendran, MLA, delivered the keynote address.

P C Cyriac inaugurating new spices outlet of Vembanad Rubbers at Puthencruz

Societies (RPSs), has opened a new outlet for sale and procurement of spices at Puthencruz in Ernakulam district of Kerala.

The showroom on Kochi-Madurai highway

P K Velayudhan, President, and Ambilly Shiju, Member, Vadavukode-Puthenkruz Panchayat, C K Ayyappankutty, Member, District Panchayat, and Boben N Chacko, President, Merchants Association, spoke on the occasion.

P V Geevergees, Managing Director, Vembanad Rubbers, welcomed the gathering and K P Geevergees, Director, proposed a vote of thanks.

Benefit to farmers The procurement of spices by the company is expected to help local farmers get maximum price for their produce without the intervention of middlemen.

A view of the audience

124

september-october 2016

was inaugurated by P C Cyriac, former Chairman of Rubber Board. V Mohanan, Joint Rubber Production Commissioner and

The company started this additional branch for spices procurement after its existing centre at Murikkassery in Idukki district turned out to be a big success. The shareholders of the company include nearly 50 RPSs functioning in Ernakulam and Idukki districts.

Rubber Asia

9815122119 Website: www.rubberprocessingmachines.com Email: info@premierengineers.net

Rubber Asia

SEPTEMBER-OCTOBER 2016

125

COMPANY NEWS

HLL to set up India’s first Medipark The medical technology manufacturing cluster will come up in 330 acres of land in Chengalpattu in Kancheepuram district of Tamil Nadu

I

n an effort to bolster the Government’s Make in India programme with indigenous manufacture of medical equipment and devices, mini-ratna PSU HLL Lifecare Ltd will set up India’s first medical technology manufacturing cluster in 330 acres of land in Chengalpattu in Kancheepuram district of Tamil Nadu.

Medipark, which will be India’s first medical technology manufacturing cluster, has been given a major push with the Union Cabinet now granting HLL permission to sublease the land, which was originally leased to it by the Ministry of Health & Family Welfare for the implementation of the project.

R P Khandelwal

HLL will develop plug and play state-of-the-art infrastructure and industrial plots and lease them out to investors to set up manufacturing units in medical devices and equipment.

One-stop facility for industry The project shall be a “one-stop facility” for manufacturing units through the creation of an integrated ecosystem to facilitate business, approvals, stimulate innovation and R&D, develop new technologies, prototyping and commercialisation activities and become a hub for the sector in the country.

HLL’s shareholding in the project would be above 50%.

The Government of Tamil Nadu is supporting the initiative through equity participation limited to 10%. The land has been leased to HLL for 99 years at Re 1 per annum; the assessed market value of the land will be paid back to the Government out of surplus 126

september-october 2016

generated from the 7th year onwards.

In 2015, the demand for medical equipment and devices in India was estimated at Rs 300 billion, 70% of which was imported.

Medipark is expected to not only boost investment in the sector but also help reduce dependence on imports and drive down the cost of medical devices which in turn will lower the cost of healthcare delivery.

The phased development of Medipark is expected to be completed over seven years.

Physical infrastructure will be created in the first phase with plots expected to be leased out from the third year. Once fully functional, Medipark is expected to generate direct employment for around 3,000 people.

Affordable medicare “India is currently almost completely dependent on imports for high-end items like imaging equipment, pacemakers, breathing and respiration equipment,” says R P Khandelwal, Chairman and Managing Director of HLL. “This is placing a huge financial burden, especially on public healthcare delivery services. Domestic manufacturing of the devices and equipment would bring down these costs and make healthcare more affordable for the public,” he says.

Khandelwal points out that health security is a major goal for the Government and the draft National Medical Device Policy 2015 aims to align the medical devices sector with “Make in India” programme.

“Lack of proper infrastructure is often cited as one of the reasons for relatively the low manufacturing base for medical equipment and devices in the country. With a state-ofthe-art manufacturing cluster such as Medipark we hope to address this critical gap in infrastructure,” he adds.

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Company profile

Leading player in Rubber Process Oils (RPOs) The Italian company Eni has emerged as a leading player in Rubber Process Oils (RPOs) which play an integral role in the elastomer and polymer industry. Eni is renowned for the high quality RPOs developed by the company’s dedicated R&D wing.

R

ubber Process Oils (RPO) are special fluids which play a fundamental role in the production of polymers and elastomers. These materials, which have marked a milestone in the history of industrialization due to their incredible versatility and fantastic properties (like strength, long lasting, water resistance and heat resistance), are based on huge research and development activities.

These R&D initiatives are mainly focused on the selection of formulations and components which can allow to get better performance of the final products or that can bring benefits during their manufacturing.

RPO assist the mixing operation, reduce compounding time, improve processability and modify the physical properties of the finished product. When used as extender oils, RPOs swell the polymer and provide

eni refinery 128

september-october 2016

Rubber Asia

lubrication between rubber molecules, thus softening the stiff rubbery polymers.

By adding extender oils, the molecular weight, viscosity and solvency of the base polymers can be modified and the finished products can be modulated according to the target requirements. RPOs can be produced only in specialized refineries, processing selected high paraffinic crude oils in dedicated plants able to separate aromatic extracts from the mineral base oils.

Eni Clematis RPO Eni Clematis RPOs are manufactured at the Eni Livorno Refinery (Tuscany, Italy), focused on the manufacturing of Base Oils and Special fluids. Over the last years, Eni has been committed to the R&D of RPO manufacturing, whose results have been used to upgrade and implement the plants of Livorno Refinery dedicated to the production of Eni Clematis.

These modifications have allowed to improve the quality and the quantity of these special products, providing safe oils and completing the RPO product line of Eni. On the other hand, the tight cooperation with Versalis, the chemical company of Eni (market leader in Elastomers and big consumer and distributor of Eni Clematis in Asia), has allowed to better tune the product specifications in order to fit the market needs.

Product range The full range of Eni Clematis RPO includes aromatic safe oils like TDAE, RAE LA, MES, which offer good compatibility with aromatic rubbers, like SBR, BR, CR and

eni: an integrated energy company Eni is a leading integrated energy company committed to growth in the activities of exploring, producing, transporting, transforming and marketing oil and gas and their derivatives. Eni is an important player in refining and marketing of petroleum products in Europe.

Eni is engaged in the production and marketing of high quality special products and offers solutions to an increasingly sophisticated, demanding and competitive market.

Natural Rubber. The extensive work made

by Eni for its RPO line Eni Clematis turned into a lot of technical advantages, which can be summarized in the following points: • versatile range to adjust solvency and compatibility in rubber blend • suitable viscosity and plasticity behavior in order to facilitate the blending and dispersion of the fillers and supporting the elastomer workability • optimization of compounding process to enhance mechanical properties • highly stability and remarkable compatibility with rubber and rubber blend • low volatility during both the high temperature production phases and the storage of the final products • good low temperature characteristics to improve low-temperature performance

Eni Celtis plasticizers Eni can support other rubber applications through the Celtis line, including paraffinic plasticizers, highly compatible with EPDM and Butyl Rubber (IIR) that are widely used in many industries, suitable for the production of light color rubbers where color stability and high oxidation stability are required.

All Eni Clematis and Eni Celtis Oils are non-labeled products and comply with the requirements of the restriction n°50 of the Annex XVII of REACH related to Polycyclic Aromatic Hydrocarbons content in tyres, rubber and plastics components.

Rubber Asia

september-october 2016

129

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EvEnt

77th AGM of AssociAtion of PlAnters of KerAlA (APK) concludes

Govt committed to saving plantation sector: Minister

T P Ramakrishnan inaugurating 77th AGM of APK. Sitting on the dais (L to R) are Thomas Jacob, D Vinod Sivappa and C Vinayaraghavan

thomas Jacob to lead APK The recently held 77th AGM of Association of Planters of Kerala (APK) has elected Thomas Jacob, Director of POABS Group, as its new Chairman.

He succeeds C Vinayaraghavan, President (SBUB) of Harrisons Malayalam Ltd (HML), who has done a commendable job in championing the interests of the plantation industry in Kerala by actively interacting with various stakeholders and taking up pressing industry issues with the Government.

B P Kariappa, General Manager, Kannan Devan Hills Plantations Company Pvt Ltd (KDHP), is the new Vice Chairman of APK. Rubber Asia

T

he Government will expeditiously take a decision on the recommendations of Justice N Krishnan Nair Commission appointed to study the problems of the plantation sector in Kerala and suggest remedial measures, says T P Ramakrishnan, Kerala Minister of Labour and Excise.

Inaugurating the 77th Annual General Meeting of Association of Planters of Kerala (APK) in Kochi, the Minister said the Government is committed to resolving the issues concerning the plantation sector that has contributed immensely to the Kerala’s economy, and is keen on utilizing the plantation sector for the development of the State.

Earlier in his welcome address, C Vinayaraghavan, outgoing Chairman of APK, pointed out that factors such as downturn in global economy, price fall of plantation crops, rise in cost of production, climate change etc have landed the plantation sector in an unprecedented crisis.

He suggested to take urgent measures such as removal of archaic laws relating to land use, abolition of taxes such as Agricultural Income Tax and Plantation Tax, permission for estates to undertake intercropping and interchanging of crops, sharing of part of the welfare cost by the Government, effective curbs on imports of natural rubber etc.

He also suggested creation of a separate Ministry to look after the Rs 150 billion plantation industry, employing 350,000 people and dispensing wages worth Rs 51 billion per year.

D Vinod Sivappa, President, United Planters Association of Southern India (UPASI),was the Guest of Honour. He said there is an imperative need to explore new avenues for the applications of rubber. september-october 2016

131

‘Unholy’ talk John S. Powath

‘Unholy’ mistress Every wife is a ‘mistress’ of her husband: “Miss” for the first year and “Stress” for rest of the life

B

of her husband, “Miss” for the first year and “Stress” for rest of the life.”

I recall what a great philosopher husband had once said: “Every wife is a ‘mistress’

An excited boy turned to his father to announce that he was selected for a role in a play for the school annual day. A sceptical dad inquired what role he was playing.

The boy said he was assigned the role of a

ehind every successful man there is a woman. I can’t agree to it any more. It’s true that only woman can rein in a wild horse like man. Only she can apply the brake.

“Oh GOd, YOu Gave me childhOOd, YOu tOOk it awaY. YOu Gave me YOuth, YOu tOOk it awaY. YOu Gave me a wife. it’s been years now, just reminding You!!”

132

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Rubber Asia

The writer is Chief Executive Officer Asian Business Media LLP (ABM)

husband. “Stupid,” the father barked. “Ask for a role with dialogues!”

same boring stuff on the bed and then open the fridge..!!

While these incidents reflect the role the husband and wife play in daily life, even those who do not discriminate on the basis of gender would have to agree to some home truths like this guy, the CEO of a top company.

After a hectic day in his office the CEO returns home tired and exhausted. His wife asks him whether she should prepare curry or soup. He says: “First make it, we will name it later!”

He keeps his wife’s photo as screen-saver on his mobile phone. He explains why his spouse’s picture is on the mobile. “Whenever I face a problem, I see the picture and say to myself: “If I can handle this, I can handle anything!”

It is not surprising that this attitude has seen his career-graph consistently grow.

He now sits in the corner office and stares at the phone screen whenever he has to take critical decisions.

It was the 15th time his secretary knocked at his door and left quietly seeing him with the phone glued to his ears. However, because of the urgency of the matter the secretary decided to interrupt him.

“Sir, sorry to disturb you, but there is an urgent company information I want to convey. You were holding the phone for 29 minutes. But you haven’t spoken a word.”

The CEO muttered: “See, I‘m talking to my wife.”

Later he called his loyal and hard-working secretary and explained to him that his position as a husband is just like a Split AC. No matter how loud he is outdoor, he is designed to remain silent indoor!

I’m not surprised when I saw this advertisement in the newspaper’s classified column under ‘For Sale’. “For Sale – A Wedding Suit, used only once by mistake.”

Sea change After marriage, a man goes through major metamorphosis. Before marriage, men come home, open the fridge, see the same boring stuff in it and then go to bed..!! Married men come home, see the Rubber Asia

He often gets irritated trying to work on the computer. Once he blurted out aloud: “Dear Google, please do not behave like my wife. Please allow me to complete my sentence before you start guessing and suggesting.”

As a religious-minded person, he goes to church regularly and prays to God to unburden his disappointment in life, and seeks His empathy. He prays: “Dear God, You gave me childhood, You took it away.

You gave me youth, You took it away. You gave me a wife. It’s been years now, just reminding You!!”

It was not surprising why this CEO gets frustrated often. The other day after work he brought his best buddy home for dinner unannounced. His wife began screaming at him while his friend just sat in the living room and listened in.

“My hair and make-up are not done,” the wife screamed. “The house is in a mess, the dishes are not done, I’m still in my pyjamas and I can’t be bothered with cooking tonight! Why the hell did you bring him home?” The husband answers: “Because he’s thinking of getting married.”

During a get-together in office, his loyal secretary walked up to him and told him that he was like a lion in the office! “What about at home?” she asked. The CEO said: “I’m a lion at home too, but there is a lion tamer!”

Once he took his wife to a fancy restaurant. As the food was served, he said, “The food looks delicious, let’s eat.” Wife: “Honey, you say prayer before eating at home.” He: “That’s at home sweetheart; here the chef knows how to cook.”

The lion of a CEO only murmurs at home. september-october 2016

133

stock watch sharad P Matade

Tyre stocks gain on surge in auto sales Apart from positive auto sales numbers, the passage of the landmark GST bill, impressive corporate earnings, huge inflow of foreign investment etc pushed up the stocks of India tyre companies

F

ollowing the trends on the bourses and consecutive positive auto sales numbers helped stocks of tyre companies to remain in the positive zone. During the period of July 8,2016 to Sept 16,2016, stocks of tyre companies increased in the range of 5% to 60%, as compared to the BSE Sensex’s gain of over 5%.

After the roller-coaster ride in June, Indian equity markets saw the benchmark indices touch their highest levels so far in 2016.

The market’s expectations remained high throughout the month on the expectation of passing the GST bill in the Monsoon session of Parliament. Coupled with this, higherthan-expected earnings of corporates for the April-June quarter lifted the mood of investors and helped to gain momentum on the bourses. In international markets, the US Federal Bank did not change the key rates and the possibility of rate hikes later this year brought some cheers for global equity markets.

landmark legislation, GST bill, was passed in Parliament. Apart from this, huge inflow of foreign investment and value buying at lower levels infused further gains and the benchmark indices touched their highest level in over 13 months. The Reserve Bank of India kept key policy rates unchanged due to inflation, however, the equity markets saw volatilities throughout the month due to weak micro-economic date and caution over US rate hike that dampened investors’ sentiment. Finally, in August the BSE Sensex posted a 1.43% gain to settle at 28,452.17.

Gainers and losers Among tyre companies, JK Tyre, Apollo Tyres and Ceat were top performers, having an increase of 60%,42% and 25% in their stocks respectively, while PTL and Modi Rubber were at the bottom of the chart during the period of July 8,2016 to September 16,2016.

Apollo Tyres Ltd was among the top performers in the period. The company’s stocks moved in tandem with the movement on the bourses and clocked a 42% rise during the period. Stocks of index Apollo, at the start of the period, climbed up slowly then fell in the first week of August. However, after the first week of August, 1472 the company’s stocks kept moving up. On September 9, Apollo’s shares touched a 52-week high of Rs 215.90, after it declared its global sponsorship agreement change in with Manchester United share prices Football Club for the next three years. Apollo’s shares

Indian equity markets’ enthusiasm continued in August too as the most awaited

Performance of stock

28,599

share price on september 16, 2016

134

september-october 2016

27,127

share price on July 08, 2016

Rubber Asia

Performance of stock index (July 08, 2016 to September 16, 2016) share price on september 16, 2016

share price on July 08, 2016

change in share prices

change in %

28,599

27,127

1,472

5.43

Sensex Index

Performance of tyre companies’ stocks (July 08, 2106 to September 16, 2106) share price on september 16,2016 Apollo Tyres MRF Balkrishna Industries

share prices on July 08,2016

change in share prices

change in %

213.3

150.3

63

42

40,503.1

35,277.75

5,225.35

15

829.65

669.5

160.15

24

JK Tyre & Ind.

146.1

91.6

54.5

60

TVS Srichakra

2,746.95

2,388.55

358.4

15

CEAT Premier Tyres PTL Ent Goodyear India Modi Rubber

1064

850.7

-213.3

25

121.35

126.05

-4.7

-3.72

621.3

524.95

96.35

18.35

43.7

45.15

-1.45

-3.22

also rose on the company’s announcement of its plan to double the capacity at its Chennai plant at an investment of around Rs 27.00 billion.

MRF’s stocks increased around 15% in the period. The company ‘s stocks moved flat till the end of the first week of August and then surged on the bourses. The company’s stocks rose further on a marginal increase in the company’s standalone profits in the April-June quarter, which stood at Rs 4.91 billion, as against Rs 4.80 billion during the same period a year ago. MRF’s total income from operations for the quarter remained flat at Rs 34.82 billion as against Rs 34.78 billion in the year-ago period.

BKT’s stocks up 15% Stocks of off-the-road tyre major Balkrishna Industries (BKT) grew 15% during the period. Following the trends on the bourses, the company’s stocks increased slowly till August 22, 2016 and then picked up momentum. However, BKT’s stocks, after September 15, fell till the end of the period. The top gainer was JK Tyre & Industries, reporting a growth of 60% during the period. The company’s stocks were moving pretty flat till the start of August and then surged till the end of the period. However, a slight slump in the JK Tyre’s first quarter earnings slowed down the pace of its stocks on the bourses for a while. For the April-June 2016 quarter, the company’s consolidated net profit stood at Rs1.00 billion as against Rs1.17 billion in the same period of last fiscal. Net sales during 136

september-october 2016

the period under review stood at Rs 17.04 billion against Rs 17.49 billion in the yearago period.

Among top gainers Ceat’s stocks reported a growth of 25% during the period. The Mumbai- headquartered company’s stocks remained flat most of the time during the period. Ceat’s consolidated net profit declined by 17.38% to Rs 930.7 million for the first quarter ended June 30, 2016 as compared to a net profit of Rs 1,126.5 million during the same period of the previous fiscal.

Net sales of the company however rose to Rs 14.61 billion for the April-June quarter of the current fiscal as against Rs 14.04 billion during the same period of 2015-16. Ceat’s stocks started surging only after September 1, 2016 and the trend continued till the end of the period, gaining a 25% surge. Goodyear India’s stocks rose 18.35% and TVS Srichakra’s stocks increased by 15%, however, stocks of PTL and Modi Rubber fell over 3% during the period.

Boom in auto sales In July 2016, passenger car sales increased by 9.62% to 177,604 units due to the growing demand for new launches, according to Society of Indian Automobile Manufacturers (SIAM). The total passenger vehicle sales, which include cars, utility vehicles and vans, grew by 16.78% to 259,685 units in July. The commercial vehicles segment’s sales stood at 51,853 units in the month, while three-wheelers sales too had a growth of 2.10% to 46,098 units. Vehicle sales across categories reported an increase of 13.22% during the month to 1,833,976 units.

Passenger vehicle sales continued for the 14th consecutive month in August, because of new launches, a favourable monsoon and the pay hike to Government employees. Passenger vehicle sales increased by 16.68% to 258,722 units in August from 221,743 units in the same month of last year. Passenger car sales increased by 9.53 % in August to 177,829 units from 162,360 units sold during the corresponding month of last year.

Motorcycle sales in August increased by 22.19% to 1,005,666 units as against 823,051 units in the same month of last year. Total two-wheeler sales in August increased by 26.32 % to 1,648,883 units compared with 1,305,348 units in the year-ago month. Sales of commercial vehicles rose by 1.53 % to 52,996 units in August. Vehicle sales across categories registered a growth of 23.72 % to 2,010,794 units from 1,625,332 units in August 2015, SIAM reports.

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seminars & conferences

ANRPC CONFERENCE 2016

Nirmala Sitharaman to open the

H

on’ble Indian Minister of State for Commerce & Industry, Nirmala Sitharaman, will inaugurate the 9th Annual Rubber Conference (ARC) of the Association of Natural Rubber Producing Countries (ANRPC) to be held on October 17, 2016, at Hotel Radisson Blu, Guwahati, Assam.

The Minister will also release a new natural rubber clone developed by Rubber Research Institute of India (RRII) exclusively for cultivation in the North East by handing over a seedling to Atul Bora, Agricultural Minister of Assam. This is the first time the Rubber Board is releasing an Indian clone for exclusive cultivation in India’s nontraditional North East region.

Conference theme Organized under the theme Preparing for the Paradigm Shift, the ARC aims to explore new strategies for bringing global natural rubber production sector back to a sustained growth path. About 300 invited delegates, including around 100 overseas delegates, are expected to attend the Conference.

The speakers in the Rubber Conference include Sheela Thomas, Secretary General, ANRPC, Dr. Tirthankar Patnaik, India Strategist, Asian Financial Solutions Dept, Mizuho Bank Ltd, Japan, Datuk Dr. Abdul Aziz SA Kadir, Secretary General, International Rubber Research & Development Board, Datuk Dr. Salmiah Ahmad, Chief Executive Officer, International Tripartite Rubber Consortium, and Dr. Lekshmi Nair, 138

september-october 2016

Conference

Head of Economics & Statistics, International Rubber Study Group (IRSG), Singapore. There will also be two panel discussions by renowned global experts focussing on the theme of ARC.

Public-Private Meet The ANRPC is also holding the Open Session of Assembly and the Second ANRPC Public-Private Meet at the same venue in the forenoon of October 18. The PublicPrivate Meet is confined only to an invited small group of industry leaders and policymakers across major rubber producing countries. This is a new initiative by the ANRPC to provide a platform for meaningful interaction between industry players and policy-makers on appropriate strategies to meet emerging challenges.

The 39th Session of the ANRPC Assembly and meetings of the Executive Committee and technical committees will be held from October 18 to 21, 2016. An Organizing Committee presided over by A. Ajith Kumar IAS, Chairman, Rubber Board, India, is coordinating the hosting of the ANRPC events this year.

ANRPC is an intergovernmental organization established in 1970 and has at present 11 member-countries viz. Cambodia, China, India, Indonesia, Malaysia, Papua New Guinea, the Philippines, Singapore, Sri Lanka, Thailand and Vietnam. These 11 member countries together account for around 90% of world NR production and 65% world NR consumption.

Rubber Asia

IRGCE 2016

showcases the

latest in global glove industry

Deputy Minister of Plantation Industries and Commodities Malaysia, Yang Berhormat Datuk Haji Datu Nasrun bin Haji Datu Mansur inaugurating the conference

T

he 8th edition of the International Rubber Glove Conference and Expo showcased the latest innovations, developments and services in the global glove industry in their full magnitude. The event was undoubtedly much stronger, bigger and better than the previous editions and reiterated Malaysia’s unchallenged status as the world’s glove capital.

MARGMA President, Denis Low Jau Foo

Themed, “Beyond Just Infection & Contamination Control”, the 8th IRGCE 2016 showcased a wide array of exciting and innovative products, provided updates on regulatory compliance, green technology and waste management, improvements in processing technologies, advances in latices and usage of rubber gloves in

medical and non-medical settings.

Deputy Minister of Plantation Industries and Commodities Malaysia, Yang Berhormat Datuk Haji Datu Nasrun bin Haji Datu Mansur inaugurated the 8th edition of the event at Kuala Lumpur Convention Centre (KLCC) on September 6th, 2016.

Held for the eighth consecutive time in Kuala Lumpur, the mammoth event saw the participation of 95 exhibitors from 11 countries, 33 of whom were glove makers whilst the rest comprised companies in glove-related supporting industries.

Among the countries which the exhibitors originated from include Malaysia, China, United States, Thailand, Taiwan, Indonesia, Australia, Germany, Japan, Switzerland, the United Kingdom and India.

Going bigger and better YTY, Top Glove, Supermax, Latexx Partners, Kossan, Hartalega, Smart Glove, Excelkos, Tiong Tat, Synthomer, Aquaspersions, Brightway and Chempro Technology are key sponsors for the 3-day event. The IRGCE is a bi-yearly event that facilitates global discussion of Rubber Glove Industry-related developments and exchange of ideas.

MREPC CEO Low Yoke Kiew (far left), Deputy Minister of Plantation Industries and Commodities, YB Datuk Haji Datu Nasrun Haji Datu Mansur (centre) and 8th IRGCE Organising Chairman, KM Lee (4th fr right) Rubber Asia

“The exhibition was fully booked a year ahead in 2015. We had more than 10 companies on waiting list and even a week before the event, we still received enquiries for exhibition booths. There are 272 exhibition booths at this year's 8th IRGCE, a 19% september-october 2016

139

Excellent interactive and networking platform The Conference served as a platform for stakeholders including regulators to exchange ideas on improvements in processing technologies, product innovation, green technology, packaging, automation and other new advances related to product manufacturing.

A view of participants

increase in the number of booths compared to 228 booths in 2014,” said MARGMA President, Denis Low Jau Foo. The exhibition welcomed over 1,000 trade visitors and participants on its first day and the figure crossed 3,600 on the final day of the event.

A total of 18 local and international speakers presented key industry development and research papers to chart new strategies for the Rubber Glove Industry. The topics presented included: “Beyond The Horizon: Longer Term Opportunities of the Rubber Gloves Market and a white paper titled, “The State of the Glove Affair” that touches on trends and economic viability of the industry.

“The IRGCE essentially showcases the Rubber Glove Industry ecosystem and presents an opportunity for investors, entrepreneurs, Synthomer booth

Auaspersions booth

supporting industries, students, the general public and other interested parties to delve and engage industry giants to learn and better appreciate the intricacies and significance of the industry,” said Low. He said the 8th IRGCE 2016 had received full support and participation from all the public-listed companies and big industry players who came out in full force to showcase their expertise and achievements.

“Representatives from the materials and supply services industry have also proven their mettle by showcasing their best and latest innovations and machinery,” he added.

140

MARGMA bridged the gap amongst industry players, fortifying a greater exchange of ideas when it organised the first International Rubber Glove Conference and Exhibition (“IRGCE”) in 2002. “The Rubber Glove Industry, essentially home-grown, charted impressive growth for the past 20 years and continues to thrive under the stewardship of visionary industry captains despite recent challenges.Global demand for rubber gloves is expected to rise by 10% from 192.9 billion gloves in 2015 to 212.2 billion gloves in 2016.

Malaysia is expected to supply 63% of this global demand. This effectively translates to a projected revenue of RM14.3bil for Malaysia in 2016,” said Low. IRGCE 2016 is co-hosted by the Malaysian Rubber Export Promotion Council (MREPC) and supported by the Ministry of Plantation Industries and Commodities, MITI, MATRADE, the Malaysian Rubber Board, the Thai Rubber Glove Manufacturers Association and the Indonesian Rubber Glove Manufacturers Association.

Rubber Asia

India Rubber Expo 2017: Updates T

he Ninth edition of India Rubber Expo 2017 (IRE 2017) organized by the All India Rubber Industries Association (AIRIA) will be held from 19th - 21st January 2017 at the Chennai Trade Centre (CTC), Chennai, India. The expo will witness a grand show with a floor area of more than 25,000 sq.mtrs at the strategically located sprawling exhibition ground, Chennai Trade Centre. The total number of exhibitors is expected to cross 400 and visitors of over 30000.

Large Country Pavilions have been blocked for China, Germany and USA and for a number of companies from Japan, Korea, Malaysia, Sri Lanka, Turkey and Taiwan, among others.

“With over 90% of the space being sold out and a lot of positive response internationally and nationally, IRE 2017 will be one of the Best Rubber Expos that India or Asia has seen.”

Major attractions!!! IRE 2017 App IRE 2017 App has been launched with state of the art technology, where both the exhibitors and visitors can explore this handy tool for browsing Exhibitor details and fix meeting with potential exhibitors well in advance before the expo. The App has a navigation tool to search particular hall & stall no in the floor plan thereby it reduces the time and maximizes business interactions. The Pre-registered visitor’s have the privilege to fix a meeting with exhibitor of his choice and also to book slot’s for workshops which happens concurrently during the expo. The participants can also fix appointments to be part of RBSM. The traders can use IRE APP to Pre register themselves for attending the show at their convenience 24/7.

The App can be used for booking IRE 2017 official hotels and for transit to the venue Rubber Asia

and to other major attractions in the city, Rent a Cab booking is also available in IRE 2017 App. ( DOWLOAD THE APP AND ENJOY THE EXPERIENCE)

Domestic Reverse Buyer Seller Meet (RBSM) The highlight of this year’s Expo is the “Reverse BSM” concurrently.

This would be a 2 day event which will facilitate interaction of the Automobile / Defence / Mining / Railways / Shipping / Marine / Aviation / PSU sectors with the Indian Rubber Industry to identify new business opportunities.

Workshops Brings together both regulatory authorities and commercial players of the rubber world to provide updates on current trends and future challenges faced by rubber industry. It also facilitates the exchange of ideas and insight into the global rubber industry. Workshops deliver latest applications from global research and development programs through a well designed workshop programs.

MSME Pavilion In order to give more thrust to the MSME sector, IRE 2017 has an exclusive MSME Pavilion wherein companies from that sector have been offered stalls at discounted rates. The IRE 2017 Committee announced a special rate of INR 40,000/- plus taxes for Non AIRIA members and INR 35,000/- plus taxes for AIRIA members.

For more details contact: Tel: +91 44 4204 5101 / 5102 l Mobile: +91 98404 79570 l.

Email: ire2017@indiarubberexpo.in l www. indiarubberexpo.in september-october 2016

141

Grand conclusion to nrc 2016

Call for investing in R&D T

he National Rubber Conference (NRC) 2016 held in Mumbai under the auspices of Western Chapter of All India Rubber Industries Association (AIRIA) provided a rare platform to the rubber industry stakeholders to discuss

Statistics, International Rubber Study Group (IRSG), pointed out that in 2015, total global production of rubber, including natural and synthetic rubber, stood at 26.8 million tonnes out of which natural rubber contributed 12.3 million tonnes or 46% of the total production, while synthetic rubber production came to 14.5 million tonnes, accounting for 54% of the total production.

In recent times, rubber consumption of the Southeast Asian countries is showing an upward trend. Though China’s economy is derailing, the country is still the largest rubber user of the world, consuming 39% of natural rubber and 52% of synthetic rubber produced in the world. China is now shifting its focus from investment to consumption and its impact has become very visible now, Dr Nair said.

Lifetime Achievement Award conferred posthumously on Anil Sampat being received by his wife Kumudini Sampat

issues of common concern and update themselves on the global trends affecting them.

After tyre labelling was introduced in the EU region, many countries, including those in Asia like China and Japan, are introducing new regulations, mainly for tyres. These new regulations are expected to bring some major changes in the global tyre industry, said Dr K Rajkumar, Director, Indian Rubber Manufacturers Research

The conference was inaugurated by Yogesh Mahansaria, CEO, Alliance Tire Group, in the presence of Sanjaya Bhatnagar, Managing Director, Indian Synthetic Rubber Limited, Mohinder Gupta, President, AIRIA, and Nikunj Shah, Chairman of the NRC. Eminent speakers from InYogesh Mahansaria lighting the lamp to mark the inauguration of dia and abroad presented NRC 2016 papers on the conference theme: Technological Association(IRMRA).

Innovations, Green Energy and Brand Creation—Key to Success.

Emphasising the need to increase the safety of humans and the environment in the Rubber supply trends handling of chemicals, he said workers get Dr Lekshmi Nair, Head of Economics and 142

september-october 2016

Rubber Asia

driven by R&D efforts, inventions and application of new technologies,” he said. Since availability of finance is a major problem for small entrepreneurs, they should create joint ventures for R&D,” he said.

Boman Moradian, owner of Telesis, Amey Katkar, Founder of The4P Solution, Jamal Mecklai, CEO at Mecklai Financial, Mehul Patel of Witmans Industries and Professor Shridharan were among those who spoke.

A view of the audience

exposed to hazardous elements through inhalation and skin absorption during rubber processing and product manufacturing. The rubber industry needs to protect the workers from these serious health hazards.

Stress on importance of R&D Dr. Anil Bhowmik, Professor, Rubber Technology Centre at IIT Kharagpur, talked on R&D needs and strategies for small and medium-scale industries. “Small and medium rubber manufacturing units have to invest in R&D as future economic progress will be

Rubber Asia

A panel discussion was held on FTAs, imports and future of rubber products manufacturing in India. The panellists included B Prashant, Marketing Manager, Asia, Arlanxeo (LANXESS), D N Suvarna, Managing Director, Bainite Machines, Harsh Gandhi, Director, GRP Ltd, M F Vohra, Chairman, Capexil Rubber Panel, and R S Kasture, Director, Exim Institute.

The organisers of the conference conferred Lifetime Achievement Award posthumously on Anil Sampat, the rubber industry veteran and past President of AIRIA, in recognition of his contribution to the Rubber Industry. The award was received on his behalf by his wife Kumudini Sampat.

september-october 2016

143

on nr trail a. Saj Mathews

HML’s NagaMaLLay estate

HigH productivity, diverse clones T

he rocky tracks ascending vast stretches of green-clad hilly slopes lead to the Nagamallay estate owned by HML’s RPSG Group. Located at Punalur in Kollam district of Kerala, the bastion of Indian natural rubber, the estate is nestled in the lap of the mighty Western Ghats.

Started in the 1905-1910 period initially as a Tea estate, it was later totally transformed into a Rubber estate. Of the total area of 878 hectares, 589 hectares are planted with Rubber while the remaining area has a host of other crops including Pepper, Cloves etc.

The scenic beauty of location, the biodiversity, the diversity of clones, the plethora of crops, the rich flora and fauna make it a tourist haven.

144

september-october 2016

Awaiting tourits Rubber Asia

Estate in the lap of the Western Ghats: A panoramic view

Gateway to the estate rubber Rubber asia Asia

september-october 2016

145

Archway formed by rows of rubber trees

High productivity

conserved and used.

With an annual yield of 1,548 kgs/ha, Nagamallay is a highly productive estate of the company. This is remarkable considering its elevation which ranges from 560 – 1500 MSL with annual rainfall between 200-360 cm / year.

Systematic replanting

The Pale Latex Crepe (PLC) factory in Nagamallay is one of the unique factories producing the highest grades of Pale Latex and Sole Crepes. This old Tea factoryturned Rubber factory can very well boast to fetch the highest natural rubber price in the world.

One of the features of the estate is the production of a wide diversity of clonal material comprising clones of the series PB217, PB 260, RRIM 600, RRII 105, RRIC100, and RRII 400. While the estate has moved on to propagation of modern high-yielding clones of the 400 series, the useful clones of the PB series with distinct characteristics find place in the clonal basket which are still 146

september-october 2016

The estate has planted an area of 192 ha under the accelerated replanting program which is aimed at complete modernisation of the planted areas in the estate . For this, extreme care has been taken in all aspects of production and propagation ensuring that the replantings are the best in class, ensuring high productivity . “The fact that the estate is capable to meet

Clove

Pepper Rubber Asia

Colonial estate Bungalow

PLC sheets of different colours

(From L to R) Tony Thomas, General Manager, Kumbazha estate, Santosh Kumar Senior Vice President, HML (RPSG Group), Anoop Thyagarajan, Senior Manager, Nagamallay estate

all the girth parameters even at the given el-

evation and topographic constraints is striking,” says Santosh Kumar, Senior Vice President, HML (RPSG Group). Nagamallay is divided into the high elevation Nagamallay division and the low elevation Kuruvanthavalam division. Strong winds are a great challenge to growing rubber in Nagamallay division. This multi-crop estate has set apart a sizeable area An aerial view of the PLC Factory

for other crops such as pepper, clove, plantain etc. The crop as

well as ecological biodiversity of the estate is stunning.

Looking into the future

Intercropping of rubber & plantains Rubber Asia

The Estate, poised for a great leap into the future, has clearly worked out a strategies to increase production, productivity and diversification. These include improving mature area with high-yielding clones, introducing low-intensity tapping, putting up wind belts to protect damage to plants and introducing diversified products from the factory such as coloured soles/soles of varying thickness etc. based on customer requirements. “We also have ambitious plans to promote niche ecotourism in a planned manner,” says Santosh Kumar. september-october 2016

147

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Automotive Tyre Manufacturers Association

Ittac Golden Jubilee Celebrations

TESS Conference 5IFNF : Trends and Challenges in Mobility SE UI /PW The Leela Ambience, Gurgaon, New Delhi - NCR | India Indian Tyre Technical Advisory Committee (ITTAC), the august body of tyre technical aspects in India is completing 50 years in 2016. As a part of Golden Jubilee celebrations, an international conference is being organized. Titled as TESS Conference, the event will see the coming together of experts from India and international technical organizations. TESS is an acronym for Technology, Environment, Safety & Standards as ITTAC is striving for excellence in all these four key areas. TESS conference is planned to be a “biennial conference” and the �rst edition is scheduled to be held in Nov 2016.

“

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India is not only emerging as a hub for tyre manufacturing but mobility needs of the country are racing ahead in view of the accelerating growth resulting in impetus to the automotive sector. TESS Conference is an apt platform for the tyre industry, raw material partners, policy makers and regulators to devise a road map for tyre safety, standards and regulation issues.

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Contact : atmaevents@atmaindia.org

calendar of events October 2016

Asian Retread Conference (ARC) 2016

Sime Darby Convention Centre Kuala Lumpur, Malaysia.

October 4-5, 2016 Contact: Antony S. Powath VP – Marketing, M: +91 9833 901586 Email: asp@abm.net.in Website: asianretreadconference.com

...............................................................................

International elastomer Conference (Rubber expo, Rubber Division, ACs) David L. Lawrence Convention Center, Pittsburgh, PA, USA. October 11-13, 2016 ..............................................................................

International Rubber Conference West Japan General Exhibition Center, Kitakyushu, Japan.

October 24-28, 2016 Contact: Ms. Junko Miyamoto E-mail : srij@srij.or.jp miyamotoj@ics-inc.co.jp Website: http://www.irc2016.com

November 2016

Automotive Aftermarket Products expo AAPEX Show, USA. November 1-3, 2016 Sands Expo, Las Vegas Tel: +1 708 226 1300 Jim.winslow@aapexshow.com www.apexshow.com

...............................................................................

specialty equipment Manufacturers Association seMA show UsA Las Vegas Convention Centre.

November 1 – 4, 2016 Tel: +1 224 563 3154 Email: aapexsema@compusystems.com Web: www.semashow.com

December 2016

Rubbertech China/ Reifen China Shanghai New International Expo Center, Shanghai, China.

December 1-3, 2016 Contact: Ms. Ella Liu (Liu Ting) 154

september-october 2016

China United Rubber Corporation Beijing 100101 P.R. China Mobile: +86-13911580967 Tel: +86-10-5377 9793 E-mail: expo@chrubber.com Website: www.rubbertech-expo.com

January 2017

India Rubber expo 2017

Chennai Trade Centre Chennai - 600 006, Tamil Nadu, India.

January 19-21, 2017 Contact: Shirley Abraham Mobile: + 91 98404 79570 Email: ire2017@indiarubberexpo.in, Website: www.indiarubberexpo.in

February 2017

tire technology expo 2017 Hanover, Germany.

February 14-16, 2017 Contact: Colin Scott Sales Director Tel: +44 (0) 1306 74 3744 Emil: colinscott@ukipme.com

March 2017

tyrexpo Asia 2017 Organized by SingEx Exhibitions Pte Ltd. at Singapore EXPO Singapore.

March 21-23, 2017 Contact: Angela Huang Executive (Projects Management) SingEx Exhibitions Pte Ltd Singapore 528729 Mobile: (65) 9067 6481 Web: www.tyrexpo@signex.com

...............................................................................

Automechanika KL Kuala Lumpur Convention Centre Malaysia.

March 23-25, 2017 Contact: Erika Kirsch, Public Relations Officer Messe Frankfurt (HK) Limited Main Line +852 2802-7728 Direct +852 2238-9930 erika.kirsch@hongkong.messefrankfurt.com, www.messefrankfurt.com

...............................................................................

the 6th Indonesia International tyre & Rubber exhibition JIExpo Kemayron, Jekarta, Indonesia.

March 29 & April 1, 2017 Organized by GEM Indonesia Contact: Tel: 62 21 54358118 Email: info@gem-indonesia.net www.tyre-indonesia.net

.............................................................................

north American tire & Retread expo Ernest N. Morial, New Orleans, Louisiana, USA. April 25-27, 2017 Contact:

May 2017

Automechanika Dubai Dubai WTC Dubai, UAE. May 7-9, 2017 Contact: Tel: +971 4 389 45 00 E-mail: automechanika@uae.messefrankfurt.com Web: www.automechanikadubai.com

June 2017

Asian tyre & Rubber Conference (AtRC) 2017 Hyatt Regency, Chennai, India.

June 16- 17, 2017 Contact: Antony Powath Mobile: +91 9833 901 586 Email: antonypowath@rubberasia.com Website: www.atrc.in

July 2017

tyrexpo India 2017 Organized by SingEx Exhibitions Pte Ltd. at Chennai Trade Centre Chennai India.

July 25-27, 2017 Contact: Joan Yu Tel: +65 6403 227 Email joan.yu@singex.com Web: www.tyrexpo@signex.com

October 2017

Asian Latex Conference (ALC) 2017 Sime Darby Convention Centre, KL, Malaysia.

October 3-4, 2017 Contact: Antony Powath asp@abm.net.in, +91 9833 901586 www.asianlatexconference.com Rubber Asia

index to advertisers Acmechem Limited............................ 77 Ansif Global ...................................... 117 ALC 2017 ............................................. 52 Aquaspersions (M) Sdn. Bhd. ........... 33 Associated Rubber Chemicals ....... 148 ATMA ................................................. 153 Atul ..................................................... 13 ATRC ................................................. 130 Auropol ............................................... 43 AutoParts Asia ................................. 135 Bainite Machines Pvt.Ltd. ................. 42 Balaji Rubber...................................... 27 Balkrishna Industries .......................... 2 BBW..................................................... 69 Bremels ............................................... 67 Calcutta Chrome .............................. 148 Ceebee Chemicals Sdn Bhd.............. 29 Ceemax Rubber ............................... 143 Ceyenar ............................................... 85 Cochin Rubbers ............................... 119 D V Deo ............................................. 149 Eastern Threads ................................. 73 Ecobber............................................... 47 Elecon ................................................. 71 ENI ...................................................... 25 EVMathai .......................................... 115 Far East Enterprises.......................... 94 Fishfa Rubbers Ltd. ........................... 96 Gold Star Rubbers ........................... 149

H.F (Harburg-Freudenberger)............ 4 Harrisons Malayalam Ltd. SBU-A .... 49 Harrisons Malayalam Ltd. SBU-B .... 51 Hansung Sysco (Afache & Areca)...... 9 HPCL ................................................... 24 IRC ..................................................... 121 India Rubber Expo 2017 ................. 109 IRE Issue AD .................................... 151 IRMRA ................................................. 95 J G Chemicals..................................... 46 J K Tyres.............................................. 10 Kelachandra...................................... 123 Kurian Abraham Pvt.Ltd. .................. 11 Kwik Patch ........................................ 53 L & T .................................................... 59 Malaya Trade Impex ........................ 111 Mardec R K Latex Pvt.Ltd. .................. 3 Medisafe ...........................(Back Cover) Metallic Rolls...................................... 79 Metro Trading Syndicate................. 148 Munch Chemie International.......... 155 NMCE .................................................. 75 Njavallil Latex .................................... 55 NOCIL.................................................. 81 OCSiAl ................................................... 1 Plantation Corporation Kerala ......... 57 Premier Engineers ........................... 125 R1 International ................................. 17 Raei Polymers .................................. 115

Raj Petro ............................................. 26 Reifen China ..................................... 106 Richter................................................. 22 Rishiroop Polymers ........................... 21 Royal Latex ......................................... 61 Rubamine ............................................ 31 Rubber Asia ...................................... 137 Rubber Asia website........................ 149 Rubber Linkers................................. 148 Rubber Tech China .......................... 107 Rubber & Plastic News/ITEC ......... 105 R S D C ................................................ 93 S Gopal Kamath ............................... 148 Sangani Industries ........................... 149 Schill+Seilacher “Struktol” .. (Front Inside)

Siemens ............................................... 14 Semperit Technische Produkte ........ 23 St. Mary’s Rubbers ............................. 15 Synthomer .......................................... 45 Techno Waxchem............................... 44 Tianjin Saixiang Technology. .......... 56a Tulsiram Hanumanbags .................. 152 Tyre Expo Asia 2017 ........................ 127 Tyre Asia ........................................... 150 Tyre and Rubber Indonesia ............ 113 Vembanad ......................................... 149 V M I .................................................... 12 YTY .................................. (Back Inside) Zenith Industrial Rubber Products .. 16

Innovation & quality our daily motivation The Release Agent specialist!

Discover MK-15504, our aqueous release agent developed for the production of flexible rubber hoses and profiles, especially color filled hoses.

Excellent release and lubrication properties Temperature stable up to 250°C Suitable for all rubber types Can be diluted with water Very good results in the field of long hoses and profiles lying one against the other in the autoclave

Münch Chemie International GmbH Weinheim – Germany

contact person

Distributed in all Asian countries www.muench-chemie.com Rubber Asia facebook.com/muenchchemie

SEPTEMBER-OCTOBER 2016

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Luis Ceneviz

Vincent Charles

Urvaksh C Aga (second from left) of GoldSeal SaarGummi India Pvt Ltd. receiving GM Supplier Award.

HAPPENINGS HAPPENINGS HAPPENINGS HAPPENIN to Bridgestone’s Tosu and Hikone plants in Japan.  US Secretary of Defense Employer Support Freedom Award 2016 to Goodyear Tire & Rubber Company for exceptional support of guard and reserve employees.

Appointed Vijay Nambiar

 Jeff Schumaker as VicePresident, Global Manufacturing, and Luis Ceneviz as Managing Director, Europe Tyre Operations, at Cooper Tire & Rubber.  Dan Funkhouser as Senior Director of Commercial Sales at Yokohama Tire Corporation.  Vincent Charles as Head of Corporate Media Relations at Continental AG.  Manfred Zoni as Hankook Tire’s Sales Director for the ‘DACH’ markets of Germany, Austria and Switzerland.  Vijay Nambiar as General Manager of Magna Tyres Group’s Middle East and Africa office.  Christopher Kennedy as Vice President of Finance 156

september-october 2016

and Operations of Triangle Tire USA.  Tal Dekel as President of Pelmar Group.  Richard Lyons as Trelleborg Wheel System’s Industrial and Construction General Manager for the North Europe region.  John Parker as Director of Business Development and Special Projects of Kirkby Tyres.

Awarded  Innovation and the Green Awards to Continental for its ‘Taraxagum – Dandelion Rubber Tires’ project at Automechanika 2016.  2015 Supplier Quality Excellence Awards instituted

by General Motors Company

 Spain’s “Neumatico del Ano Agricola 2016” (Agricultural Tyre of the Year award) to Trelleborg for its new TM1060 range.  2016 International Design Excellence Awards (IDEA) to Kumho’s Smasher and Sealant tyres.  General Motor’s Supplier Quality Excellence Award 2015 to GoldSeal SaarGummi (GSSG) India Pvt Ltd. Elected  Sasco Chemical Group, Inc. as the most recent Affiliate Member of The International Institute of Synthetic Rubber Producers, Inc.(IISRP).

Launched  The 2016 edition of Tyre Industry of Japan by The Japan Automobile Tyre Manufacturers Association (JATMA).

Celebrated  The 40th anniversary of the opening of Miyazaki plant of Sumitomo Rubber Industries Ltd. Published  The 2016 edition (Vol. 66) of Japanese Carbon Black Association’s Carbon Black Almanac, the only yearbook in the Japanese carbon black industry.

Changed  The name of Double Coin Holding Ltd. as Shanghai Huayi Group Corporation Limited following the China Securities Regulatory Commission’s approval of the company’s asset restructuring.

Expired  Milton J. Rhoad, a former Managing Director of The International Institute of Synthetic Rubber Producers, Inc. (IISRP), on August 13, 2016.  Peter Großklaus, Director of Hankook’s original equipment passenger car tyre business in Europe, after sudden illness.

Rubber Asia

grand Finale to aSian retread conFerence (arc) `200

THE COMPLETE MAGAZINE ON RUBBER

SEPTEMBER-OCTOBER 2016/VOL. 31/ISSUE NO. 5

US$ 20

www.rubberasia.com

SEPTEMBER-OCTOBER 2016 R.N. 44527/85

Iran new era of investments

Salvatore Pinizzotto incoming Secretary general, irSg

Jan Paul de vrieS arlanXeo will emerge a maJor Sr Player

ananSinee thaboon we adhere to ruleS in tyre PyrolySiS