Sekhar Research Innovations CEO, Gopinath B. Sekhar

See coverage on Bernama, New Straits Times, The Edge, and European Rubber Journal

PRESS RELEASE

FOR IMMEDIATE RELEASE

SEKHAR RESEARCH INNOVATIONS ANNOUNCES THE WORLD’S

FIRST COMMERCIALLY VIABLE TIRE RECYCLING TECHNOLOGY

Malaysian company makes landmark ‘disruptive clean technology’ announcement for rubber compound production; Announces plans for global expansion

12 May 2010, KUALA LUMPUR, MALAYSIA: SEKHAR RESEARCH INNOVATIONS SDN BHD (“SRI”), a leading developer of cleantech solutions for tire recycling technologies, today announced the world’s first commercially viable recycling solution that addresses the problem of scrap tires globally.

SRI is focused on making a difference with a viable solution that is cost effective, volume based, value added and compatible with existing rubber manufacturing equipment and processes.

“SRI’s technology will fundamentally change the landscape of rubber manufacturing and tire waste management, as we know it today.  For the first time scrap tire material can be utilized in substantial proportions in the manufacture of premium rubber goods, such as tires,” said Gopinath B. Sekhar, Chief Executive Officer, Sekhar Research Innovations Sdn Bhd.

Globally, there are in excess of 1 billion tires produced yearly, valued at more than USD 130 billion. These very same tires, when they reach end of life, pose a global public health and solid waste management problem. Across Europe and United States the majority are burnt for fuel (“TDF”) or used in roads and similar low-end applications. In Asia, end of life tires (“ELT”) routinely disposed of in landfills or irresponsible manner that has a negative impact on the health and the environment of the surrounding communities.

“For lack of an alternative, these low end and toxic practices have been wrongly accepted as sound solid waste management. By products of burning tires for fuel include harmful emissions and contamination of fresh water sources,” said Sekhar. “What we have today is a solution that makes these end of life tires a valuable industrial raw material for premium rubber products such as new and retread tires. This is good for the environment, the economy and the consumer!”

A 100% Malaysian company, SRI has been developing its proprietary solutions since 2006, having invested more than RM 3 million to date. The proprietary SRI Activation Technology has successfully produced compounds that are currently being tested and evaluated by leading global tire manufacturers. Locally, SRI is involved in ongoing evaluations and road testing trials with the Rubber Research Institute of Malaysia.

SRI Compound Masterbatch (MB) is derived from the recycling of scrap tire rubber that has been devulcanized and converted into raw material rubber compound.  The primary input material for our process is 40 mesh (less than 0.42mm) crumb rubber from ordinary whole car and truck tires.

In two months, SRI will produce 50 metric tons of SRI Compound Masterbatch per month at our present test facility located in Malaysia.

This initial production will be targeted towards the retread tire and general rubber goods market, and is expected to generate revenues in excess of RM 2 million per annum.

“In the meantime we are finalizing sites for a full size production facility in Port Klang which is expected to be operational by the end of this year. This plant will produce approximately 20,000 metric tons of SRI Compound Masterbatch annually and represents an investment of RM 35 million. This facility, targeting the demands of Malaysia and ASEAN markets, will generate revenues in excess of RM 80 million per annum,” said Sekhar.

As part of SRI’s global expansion strategy, it has a licensee in the United States for the eventual production of SRI Compound Masterbatch. Similar agreements are underway in Europe and Asia.

“Tire manufacturing is a demanding and highly competitive industry and any savings in raw material costs – even one percent – is a significant gain. What we are offering here is a solution that provides a savings of between four to eight percent in terms of raw material cost.  Given that profit margins in the industry are uniformly less than 10 percent, this has the potential to double profits!” Sekhar said.

For more information on Sekhar Research Innovations Sdn Bhd and SRI Compound Masterbatch please visit www.srielastomers.com.

PDF copy of this release

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ABOUT SEKHAR RESEARCH INNOVATIONS (“SRI”)

SRI is a research and development cleantech company focused on providing solutions to the growing challenge posed by the need to recycle tires. It is currently using its Activation Process to produce next generation rubber recycling solutions in the form of SRI Compound Masterbatch and SRI Activation Technology, processing aids and advanced state-of-the-art equipment for the global market.

For media enquiries:

Stephen P Francis

Arcis Communications

t: +6.03.7805.1733 t: +6.03.7805.1733 / +6.012.3165.670

e: stephen@arciscommunications.com

For business enquiries:

Anthony Umann

Sekhar Research Innovations

t: +6.03.7957.6777 / +6.012.6174.050

e: anthony@srielastomers.com

Virgin compound blended with SRI Compound Masterbatch in proportions ranging from 5% to 20%

The significance here is that recycled content, converted to compound in the form of SRI Compound Masterbatch, has been successfully used to replace virgin rubber compound in this application (retread) in proportions of up to 20% without any appreciable loss in properties or performance. This directly translates to immediate raw material savings of between 5% to 7%  and potentially substantial consumption in a high volume, highly competitive application.

The full report is available as PDF here

SRI’s proprietary machine effectively devulcanizes 40 mesh tire crumb in a mechano chemical process. The system allows for a batch size in excess of 250kg with a very low energy footprint, low heat signature and a process time of under 20 minutes per batch. Having achieved this milestone, production will begin shortly in both Malaysia and the USA with the equipment being shipped this month.

Light truck tires manufactured using SRI Compound Masterbatch have successfully cleared the 5,000 km mark under normal commercial road conditions while carrying maximum payload. Reaching this very significant benchmark means that from this point forward the evaluation process will be identical to that of a normal production tire. SRI has achieved an industry first as no other comparable material has previously qualified at this level.  These road test results show very similar wear patterns even down to axel related variations and have thus far cleared the evaluation process without issue. Having crossed the 10,000 km threshold, we await official measurement results and will be publishing them in due course.

Click the image above to download the full results

The SRI team was impressed with the sheer size of the Hudson, Colorado site and what it represented in terms of available raw material feedstock.

From left: Joseph Glusic, Frank Steinleitner, Gopi Sekhar and Bryan Brammer.

One of the biggest environmental problems plaguing the world is the estimated one billion tyres lying in dumps around the world. The tyres cannot be easily disposed of or recycled and lie in massive dumps — some up to six football fields deep — leaking chemicals into the ground. Some catch fire spectacularly. These fires do not burn out easily. YouTube has videos showing tyre dumps on fire, spewing out thick black smoke and flames. The fires will last for days, the smoke for years. One tyre dumpsite was simmering deep in its bowels, releasing smoke for five incredible years.

“It is a common occurrence,” says Gopi Sekhar, CEO of SRI, who nonetheless believes he has found the solution to the rising mountains of discarded tyres around the world. He and his research team have created a compound which goes into making retread tires. More importantly, a light tyre for trucks, which was made with more than 14% recycled rubber, has been independently validated and tested by the Rubber Research Institute (RRI) of the Malaysian Rubber Board. The RRI noted that the performance of the tyre made by SRI was even better than that of a tyre made of virgin rubber (read full RRI report at http://magnumresources.net/investors/565).

An ecstatic Gopi welcomes the RRI validation. “What we have here is nothing less than the solution to the global tyre and rubber scrap problem. It will address not only the annual  accumulation [of tyres] but also the backlog in the landfills. The introduction of SRI Compound Masterbatch as an industrial raw material effectively means cost-effective value-added consumption, which will make it irresistible as a green raw material. We believe that this is the future of global rubber recycling,” he says.

The rest of the article can be read at The Edge

RRI inspecting inspecting light truck tire

SRI is pleased to announce 2,500km mark of the RRI on the road validation trials of our light truck tires  has been passed successfully. The RRI results confirm no appreciable difference in abrasion resistance and performance to date. SRI will be clearing the 5,000km mark in the coming week. This is a significant performance marker for new tires. SRI now expects to quickly progress through the protocol so that we may carry out the required tests with European Light truck compounds.

Dr. Alias Othman the Director of the Technology and Engineering and Puan. Che Su Head of the Advance Technology unit were on hand to witness the historic event and take a close look at the tires and measurements taken.

Sekhar Research Innovations announces Worlds’ first ever Light Truck Tires produced with 20% Recycled Rubber Compound (SRI Compound).

Video #3 Revolutionary Technology: SRI Compound based Light Truck Tire Production:

Sekhar Research Innovations is proud to announce that it has successfully produced Light Truck Tires in a commercial production plant using a significant proportion of its custom compound. All preliminary tests have been positive and in accordance with specifications of the original control.  SRI is confident that its current attained success is of critical importance and great significance to the rubber industry. Moreover,  SRI is certain that this represents ‘History in the Making.’

The  SRI  Compound was originally produced in full production batch in a Banbury Mixer in the World Renowned Malaysian Rubber Board’s, Rubber Research Institute facility in Sg. Buloh http://www.lgm.gov.my/ and subsequently shipped to the manufacturer’s plant.

SRI Compound was then mixed and formulated with virgin light truck compound in a range of pre-agreed proportions. This blending process was successful without any alteration. Upon completion, the resultant compound was put through the balance of the manufacturing process.

Upon the success of the process the tires have now been shipped for independent testing at the World Renowned Malaysian Rubber Board’s, Rubber Research Institute facility in Sg. Buloh http://www.lgm.gov.my/. Where they will be subjected to a two phase process:

First, the Institute will conduct a full range of tire lab tests which will include abrasion resistance. The tests will be carried out on both the original control tires in parallel with the tires containing the SRI Compound. Second,  SRI Compound based light truck tires will be tested and compared alongside the control units.

Further, the tires will also be installed on a commercial truck operating in real time conditions for their useful life under standard load. The vehicle will return to the Rubber Research Institute Tire Testing Lab, where results should show the compounds aligned with all the protocols in terms of kilometers run tests so that proper measurements may be taken.

SRI, through it’s partners and licensees, is positioned to become a major player in the international tire compound market.  SRI possesses unique technology and will soon be introducing it to the global market.

Gopi Sekhar, CEO of SRI, stated, “In an industry that has now come to terms with ever increasing raw material costs, both from natural and synthetic rubbers which are further exacerbated by very serious environmental concerns, in terms of the responsible management of the resultant used tire scrap, there has been no real solution that could adequately address either the backlog nor the growing annual accumulation that has it in a literal stranglehold.

All efforts thus far have either, in some way added to the already burgeoning global pollution problem or ended up being niche applications, which relative to the problem are irrelevant.

Today SRI has unveiled a technology and process which for the very first time can address both the accumulation of scrap tires and over time the enormous backlog. The SRI process is designed to match industry volume processes and conditions; it further lends itself easily to a full and wide range of applications as a real value added raw material. This makes it a very valuable cost saving raw material to manufacturers at a time that they really need it, while at the same time allowing them to be environmentally responsible by substantively and meaningfully addressing a very serious global pollution problem.”

RECAP FROM VIDEO 1 AND 2:

If you watch Video #1

Successful Production of SRI Compound in Full Commercial Scale

and then take Video #2

SRI Compound Successfully Blended in Actual Manufacturing Conditions

it will start to paint the big picture. By the time you watch the Video #3, released in today’s news, it clearly proves how SRI is making history and stands to have an enormous positive effect on the global market of rubber.