SRI plans RM35m investment in Klang

SEKHAR Research Innovations Sdn Bhd (SRI) plans to invest RM35 million to set up its first large-scale scrap tyre recycling manufacturing plant in Klang, Selangor, by year-end.

The raw material rubber compound produced from the recycling of the scrap tyre will be used for the general rubber goods market and to retread tyres initially.

The proposed facility will produce about 20,000 tonnes of SRI Compound Masterbatch, or raw material rubber compound annually.

"SRI's technology will fundamentally change the landscape of rubber manufacturing and tyre waste management, as we know it today. For the first time, scrap tyre can be used in substantial proportions in the manufacture of premium rubber goods such as tyres," SRI chief executive officer Gopinath B. Sekhar.

He is the lesser known son of natural rubber industry icon, Tan Sri BC Sekhar.

Petra Group president and chief executive officer Datuk Vinod Balachandra Sekhar, which is also involved in the business of scrap tyre recycling, is Gopinath's brother.

Gopinath inherited SRI following the death of of his father in 2006. SRI was established in 2004.

While there are other similar technologies out there, SRI claims to be able to incorporate the highest percentage of recycled compound, without affecting performance of the product.

Gopinath claims that between 5 per cent and 14 per cent of SRI’s rubber compound can be used in the production of tyres; up to 20 per cent of the compound could be used in the production of retread tyres; and up to 30 per cent of the compound could be used in production of general rubber goods.

Before the setting up of the large facility in Klang, SRI plans to convert its present test facility to cater to current demand.

SRI plans to start producing 50 metric tonnes of SRI Compound Masterbatch a month, which will cater to demands from Malaysia and the Asean region.

The company has also licensed US-based Magnum D'Or Resources to start manufacturing the compound in its facility in Colorado, the US, in the next three to four months.

Besides being tested and evaluated by global tyremakers, SRI is also involved in ongoing evaluations and road-testing trials with the Rubber Research Institute of Malaysia.