Green Rubber Global inks US$8.3m machinery deal

PETALING JAYA: Green Rubber Global, a subsidiary of conglomerate Petra Group has signed a US$8.3 million (RM32.62 million) agreement with YMS Process Engineering Pte Ltd for the purchase of machinery for its new plant in Putra Industrial Park, Selangor.
The machinery will support Green Rubber's patented DeLink elastomer recycling process.
Green Rubber processes and develops rubber compounds from waste rubber. Its products include tyres, shoe soles, automotive and industrial products, as well as sporting goods.
In a statement yesterday, Petra Group said the deal is part of the company's plans to expand its global production.
The new 25,000 sq ft green rubber factory is capable to produce 25,000 tonnes per annum for export and is expected to create a new revenue stream in Malaysia valued at US$40 million annually.
"The new machines will produce 25,000 tonnes of green rubber annually that will help contribute in meeting global demand for affordable as well as environmentally sustainable production material," it said. The company plans to produce 105,000 tonnes of green rubber annually, in three years time.
Commenting on the agreement, Green Rubber Global founder and executive chairman Datuk Vinod Sekhar said the demand for its product is rising and on a healthy incline, validating its belief that it is possible to create a commercially sustainable and environmental-friendly solution to the challenge of rubber waste.
"This has been the vision behind our investing into the DeLink technology over the years through its evolution. These machines represent a further leap in ability to meet the commercial demand," he added.
Meanwhile, Vinod said the new factory will be equipped with a laboratory, research and development and quality department to support its technical service and support team in the field, working in conjunction with the Tun Abdul Razak centre in the UK.