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 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.

Sekhar Research Innovations announces Successful Production of SRI Compound in Full Commercial Scale.

Sekhar Research Innovations has successfully produced and tested the Revolutionary SRI Compound in a full production scale using a conventional Banbury mixer in the World Renowned Malaysian Rubber Board’s, Rubber Research Institute facility in Sg. Buloh http://www.lgm.gov.my/. This is the same facility where final compounds and products produced with our activateSRI Compound

d compound will be immediately sent for independent testing and analysis.

We now have a commercially viable way to consume the tire crumb in large volume. The material will be processed for added value which will reflect in cost savings for consuming manufacturers, while still providing a healthy margin for licensees.

The material will be a raw material compound with specified properties not a processing aid or filler. The compounds that we are working with are of high volume and high value and have requirements in terms of performance parameters that would preclude the addition of recycled material in any volume beyond the minimal.

Our tests have shown that we have processed powdered tire scrap (from truck tires) into performing compound on a commercial scale. Further, our results have shown that we have blended our activated compound into a range of value added product compounds in proportions ranging from 5% to as high as 20% depending on the application, without any appreciable loss of properties. This is a history making event.

The recovery process and our ability to sustain real time conditions on a commercial scale has shown that our technology has enabled us to achieve our goals thus making this process the first of its kind that will have an impact on the rubber market today.

Once our results of SRI Compound have been independently verified, it will lead to demand on an enormous scale. There has never been an alternative performing material like this that can immediately provide manufacturers with substantial savings. Having successfully cleared an array of tests, including abrasion resistance, our current expectations are very high.

An evaluation of the potential of using the buffings from OTR tyres to produce premium compounds. The compound for these specialized tyres are generally of superior properties and although for commercial reasons are currently being used for the production of rubber chips and coloured mulch, we are investigating the potential production of high end, premium compounds allowing for greater returns. Obviously our primary focus is still on the recovery from whole tyre crumbs however the opportunity that presents itself in the current equation may have some very interesting and profitable ramifications.

Overview and Simplified Preliminary Demonstration

Our starting point is the standard production output from a 40 mesh crumb rubber producer. While the “Surface Activation Process” is effective with material ranging from 40 mesh and better all the way to Cryogenic crumb in the 120 to 200 mesh range, we will be carrying out our process trials with standard generic 40 mesh “whole truck” dust. Once activated the highly reactive material is subjected to either a modified reclaim process or any one of the devulcanization technologies currently available. Proprietary processing aids would then be added to the mix and the resultant reactivated compound is then blended with a modified version of the virgin compound used by manufacturers. What you have at this point is a custom compound that has been tailored to whichever product category intended (in this case heavy truck retread compound). This material which is now a thoroughbred raw material, can be added into their process line with no material modification, added process activity or any additional cost factors in the manufacturers operation and most importantly without any appreciable loss in properties. This has never been viably and cost effectively done before, there have been material approximations, mostly in the form of fillers or processing aids masquerading as raw materials, none of which are remotely comparable. This in itself is a significant factor, effectively the SRI Compound would be dropped into the final minute of their normal production mixing cycle in their Banburys or intermixs. The manufacturer would be able to substitute virgin compound with our recycled compound ranging in proportions from 5% to up to 30% subject to the application and the properties required without any appreciable loss in properties allowing them to be environmentally responsible while enhancing their viability. The SRI Compound once fully developed will be a world beating recycling solution, setting a totally new standard for performance and viability.