The Plastics and Rubber Institute of Sri Lanka, and the Sri Lanka Association of Manufacturers and Exporters of Rubber Products, together with the assistance of the Export Development Board, conducted a two- day virtual workshop on Advanced Technology/Smart Manufacturing For The Rubber Product Industry In Sri Lanka, in December 2020. Despite the fact that the country was just raising its head from the deleterious aftermath of the first and second waves of Covid -19, the participation was beyond all expectations, thus indicating the weightage placed in keeping abreast of modern trends and moving with times by the industry community and the professionals and I presume that this is the current trend throughout the world.

As a member of the organising committee of the event and more as a hands-on person of the technologists of the not so modern generation, I realised that I was a curious and a rather passive observer of the currently fast unfolding industry scenario. The array of topics presented by local as well as overseas experts on their respective specialties was impressive. They covered Smart Energy Monitoring, IOT Built Industry Automation, Big Data Processing and applications, Conditioned based Monitoring for Maintenance, 3D/4D Printing, Virtual Product Design and Testing, Finite Element Analysis, and Product Failure Analysis.

It made me guessing with fascination, how much the information utilisation scenario in the manufacturing industry has metamorphosed during the past few decades since the times of two great discoveries/inventions, of Charles Babbage and Arthur. C. Clarke, that paved way for the evolution of the Information and Communications revolution. Charles Babbage (1791-1871) was an extraordinarily talented scientist, mathematician, economist and engineer. He is best known today - as he was in his lifetime - for inventing two types of cogwheel calculating machines, the forerunners of the modern computers. It was Arthur C. Clarke. after the crest of World War II, from his base in Stratford-On-Avon, England, as a young officer in the Royal Air Force, who dabbled in science fiction writing, floated the idea of global communications satellites in a 1945 letter to the publication Wireless World. It will be of interest to learn that the latter made Sri Lanka his second home and contributed in no small way to the development of ICT and astronomy in our country during the sixties and seventies.

As I gathered, with my rather limited knowledge of ICT, that the common features, of the modern-day innovations are generating a vast amount of real time data on all key aspects of the value chain, and interfacing between the value adding activities. Automation and reducing the dependability on the human factor has been another significant trend. Another key driver has been the necessity for reliability, agility and robustness in delivering products and services to the customer in the ever-changing customer preferences, which are again fueled willfully through product promotion and creation of new needs through massive adverting campaigns and mass communications. Companies are increasingly embracing the innovative technologies, to enable business growth, wealth accumulation, contribution to the national economies, which has helped in achieving improved quality of life, particularly in the traditionally termed developed countries.

Right through his anthropogenic evolution, Homo Sapiens or the “thinking man” has been characterised by the use of his brain to find easier and faster ways of doing things, which was an absolutely vital advantage for his survival in the primitive hostile environment. Commencing with use of stone tools, discovery of fire, and iron, this trend has continued throughout the history of mankind. During the more recent period of the last three centuries, which culminated in the Industry 4.0, some key landmarks, which reflect the quest of the mankind to better lives, through increased and efficient resource utilisation can be identified.

Revolutions

This process began in Britain in the 18th century and from there spread to other parts of the world. Although used earlier by French writers, the term Industrial Revolution was first popularised by the English economic historian Arnold Toynbee (1852–83) to describe Britain's economic development from 1760 to 1840. The first industrial revolution came with the advent of mechanisation, steam power and water power. This was followed by second industrial revolution which revolved around mass production and assembly lines using electricity. Henry Ford’s conveyor belt system was put into motion in December 1^st of 1913 in his Detroit manufacturing plant. Fully mechanised, or partially mechanised, assembly lines allowed Ford to offer a vehicle for a working family. One of his goals was to have a car that every family could own.

The car that every family would soon come to own was the Model T. His manufacturing plants would go on to produce over 15 million Model Ts and this is due almost entirely to his assembly line. In order to achieve a production of the Model T at such a high rate, he needed to break down the process of assembling the car to make it as efficient as possible to produce, while still being financially accessible.

The third industrial revolution came with electronics, IT systems and automation, which led to the fourth industrial revolution that is associated with cyber- physical systems. Some of the principles of which were the topics of the December Workshop. Generally speaking, Industry 4.0 describes the growing trend towards automation and data exchange in technology and processes within the manufacturing industry, including:

•  The internet of things (IoT)
• The industrial internet of things (IIoT)
• Cyber-physical systems (CPS)
• Smart manufacture
•  Smart factories
• Cloud computing
• Cognitive computing
• Artificial intelligence

This automation creates a manufacturing system whereby machines in factories are augmented with wireless connectivity and sensors to monitor and visualise an entire production process and make autonomous decisions. Wireless connectivity and the augmentation of machines will be greatly advanced with the full roll out of 5G

The fourth industrial revolution also relates to digital technologies that can create virtual versions of real-world installations, processes and applications. These can then be robustly tested to make cost-effective decentralised decisions. In short, this should allow for digital transformation and  for automated and autonomous manufacturing with joined-up systems that can cooperate with each other.

Black spots

It can thus be unanimously agreed that the emerging technologies have already resulted in tremendous benefits for mankind and that they have vast future potential in changing the entire human civilisation. While appreciating and accepting the usefulness of the technologies, I cannot refrain from contemplating on the black spots in the white cloth. The disadvantages of the digital technologies have been well documented throughout the world and some of these, include, data security, digital media manipulation, job insecurity, over reliance on gadgets, addiction, depersonalization, and social alienation, and stress related physical and mental illnesses and the list is not exhaustive. Diminishing of the human touch is considered by many, as a matter of grave concern, and its effect on the personal, ethical, family and social has already begun to reveal its dark side.

As an adaptive measure of the new normal mentality that followed the Covid-19 pandemic, “Social Distancing” intruded our day to day activates over the past one and half years. However, on thinking reflectively, it will be evident that Social Distancing actually had its beginnings in the first three industrial revolutions, while it got aggravated in the recent years. Dilemmas and debatable questions as to whether  dehumanisation is still progressing and what will be the outcome, if the current rate of rapid technology trend continues? These will become key challenges for the sociologists and sociopsychologists and the modern HR specialists. Prioritising automation and sub optimisation of the human resource, in the disguise of improving operational efficiency, as a business strategy of maintaining sustainability, could turn out to be short lived.

Over dependence on technology at the expense of losing the much-required human touch and interpersonal relationships, can be witnessed in many of the day-to-day activities, such as internet or online banking, bill payments, buying at super markets, home deliveries, and on-line webinars. I have personal experience of the short comings of on-line lecturing for students and on virtual workshops, which can only be utilised as a stop gap measure. As a person of the “old generation,” I find it an exhilarating experience to walk to the local bank, greet good morning to the staff, and having a friendly chat with the familiar cashier, while getting my transaction done. Some may equate such practices to lack of time management and productivity. Human interaction of this kind holds a special position in countries such as India and Sri Lanka, which has rich religious and cultural heritages, and adopting the new technologies as a panacea for improving all the aspects of efficiency and productivity in an effort be stay competitive can only be a short-term strategy.

It was Robert Frost, the American poet (1874-1963), who once philosophically remarked, “don’t ever take fence down, until you know why it was put up”

Obsolescence due to ineffective use or total non -use which we witness with machinery and equipment, may be applicable to the humans as well. It is said that the human body has about one hundred, vestigial organs, including the appendix, which have become nonfunctional, during the evolutionary process as a result on non-use and obsolescence. (TT)

Eurogrip Tyres, the leading tyre manufacturer in India, showcased its premium two-wheeler tyres at the 17th edition of Feria 2 Ruedas (F2R) International Motorcycle exhibition held at Plaza Mayor, Medellin, Colombia. The dates of this high-profile business event in South America's two-wheeler sector are 15–18 May 2025.

For more than 17 years, the Feria de las 2 Ruedas (F2R) has been the leading motorcycle industry event in Latin America. The expo, which takes place every year in Medellín, Colombia, is a vibrant venue for commerce, innovation and growth in the motorcycling sector. Additionally, it gives aficionados the chance to investigate the most recent developments and trends in the industry. The company showcased its premium lineup at exhibit N24 in the Tented Pavillion, which included a range of sport touring, off-road and trail tyres. High-performance versions including the Roadhound, Protorq Extreme, Trailhound STR, Climber, Bee Connect, Terrabite DB+ and Badhshah LX were on display.

P Madhavan, Executive Vice-President – Marketing & Sales, TVS Srichakra Ltd, said, “Eurogrip is focused to deliver innovative products for the global markets. Latin America is a priority market for us, and F2R Expo is a promising platform to engage with our target audience. We are looking forward to interesting business opportunities arising from this expo. Such specialised industry tradeshows add exceptional value to our quest in becoming a leading global tyre brand delivering world class tyre technology.”

Denka Company Limited announced it would record an extraordinary loss of approximately 16.1 billion yen (£85.8 million) as an impairment on manufacturing facilities at its US subsidiary. It will indefinitely suspend chloroprene rubber production at the Louisiana plant.

The Japanese chemical manufacturer, which holds a 70 percent stake in Denka Performance Elastomer LLC (DPE), cited mounting operational challenges, including unexpectedly high costs for pollution control equipment and declining production volumes at the American facility.

“DPE has faced significant cost, production and other challenges at its facility in the United States,” the company said in a statement. “Rising costs are attributable to, among other factors, identification, design, purchase, installation, and operation of pollution control equipment to reduce chloroprene emissions that DPE did not anticipate being required when it acquired the facility from E.I. DuPont de Nemours and Company.”

The subsidiary was established in December 2014 and acquired the chloroprene rubber business from DuPont in November 2015. The Louisiana facility was intended to serve as a second manufacturing site in North America, complementing Denka’s Omi Plant in Itoigawa, Niigata, Japan.

However, according to the company statement, DPE has struggled with multiple operational issues, including “rising energy costs and a shortage of qualified staff necessary to operate new pollution control equipment and implement other emission reduction measures. “

Production volumes have declined partly due to “operational restrictions arising from the pollution reduction measures and unscheduled plant outages associated with supply chain disruptions and severe weather events,” Denka said.

The company noted that these challenges, combined with changes in the global economic environment for chloroprene rubber, have pressured profitability, making near-term improvement difficult.

Denka confirmed that DPE employs 250 people as of December 2024 and will not restart its chloroprene rubber manufacturing facilities following a regular maintenance shutdown. Instead, “all options for the business, including a potential sale of the business or its assets, will be considered,” the statement said.

The company emphasised that “no decision regarding a permanent closure of the facility has been made at this time.”

Customers will continue to be supplied from current inventories and production at the company’s Omi Plant in Japan.

DPE is 70 percent owned by Denka USA LLC, a wholly owned subsidiary of Denka Company Limited, and 30 percent by Diana Elastomers, Inc., a subsidiary of Mitsui & Co., Ltd.

Yokohama Rubber reported a 56.9 percent year-on-year decline in profit attributable to owners for the first quarter of 2025, despite posting a 9.0 percent increase in sales revenue.

The Japanese tyre maker recorded a profit of 8.53 billion yen for the three months ended 31 March, down from 19.8 billion yen in the same period last year. Business profit fell 3.2 percent to 24.07 billion yen, while sales revenue rose to 275.12 billion yen.

The company maintained its full-year forecast, projecting an 11.4 percent increase in sales revenue to 1.22 trillion yen and an 8.8 percent rise in profit to 81.5 billion yen for the fiscal year ending 31 December 2025.

Yokohama Rubber attributed the profit decline to one-time costs related to its February acquisition of Goodyear’s off-the-road (OTR) tyre business, which it purchased for approximately 143 billion yen.

“Profit from existing businesses was strong,” the company said in its earnings statement. “In addition to increased sales volume for the company’s consumer tyres, mainly in overseas markets, and continued expansion of sales of high-value-added ADVAN, GEOLANDAR, and Winter tyres as well as high-inch tyres, profit was boosted by the MB segment’s MIX improvements and structural reforms.”

The tyre segment, which accounts for 91percent of the group’s consolidated sales revenue, saw a 10.4 percent increase in sales to 250.32 billion yen. Original equipment tyre sales were higher year-on-year, driven by “strong sales in Japan of vehicle models equipped with YOKOHAMA tyres and expansion of shipments for Chinese automakers’ new energy vehicles,” the company said.

Replacement tyre sales also increased, supported by higher sales of summer and winter tyres in Japan, increased sales of high-inch tyres in Europe, and stepped-up sales efforts in Asia.

The MB (Multiple Businesses) segment, which represents 8.4 percent of total sales, experienced a 3.2 percent revenue decline to 23.02 billion yen. This was attributed to lower demand from construction machinery makers in Japan and automakers in North America.

The company described an “upbeat” business sentiment in Japan for the quarter, noting that “a steady recovery in inbound demand and increasing orders for construction and logistics projects compensated for weak consumption by domestic households curbing spending in response to rising prices of consumer goods.”

Overseas, the company observed rising inflation concerns weighing on consumer spending in the United States, while in Europe, “manufacturing industries are rebounding and corporate business sentiment is improving.” In China, personal consumption was boosted by the Spring Festival holiday, but high US tariffs “reduced China’s exports and created uncertainty about the future that is weakening industrial activity.”

Swedish speciality chemicals firm Nynas reported solid financial results for 2024, posting an Adjusted EBITDA of 1,333 million Swedish kronor, marginally higher than the 1,316 million kronor recorded in 2023.

The company, which specialises in naphthenic speciality oils and bitumen products, attributed its performance to operational efficiency and commercial success in its niche markets.

“We are delighted with the progress made during 2024, evidencing our right-sized cost base and a more targeted commercial and manufacturing footprint. We have redefined our strategic direction, positioning Nynas as a speciality chemicals company, enabling the energy transition and setting our course for 2035,” Nynas CEO Eric Gosse said in a statement.

The firm highlighted strong cash generation from operations, which it said would support planned investments and longer-term growth initiatives. Nynas also mentioned the ongoing transformation of its Harburg site with plans to monetise the asset eventually.

All three of the company’s production facilities maintained high operational reliability between 95 percent and 99 percent. The Nynäshamn refinery achieved a notable milestone: in May 2024, it set a new monthly production record for naphthenic speciality oils at 42,000 tonnes.

Strategic pivot towards sustainability

Nynas outlined a strategic shift focused on higher-margin speciality materials with sustainable characteristics. The company aims to strengthen its position in European markets through innovation and sustainability initiatives.

“Nynas is uniquely positioned to contribute to the energy transition. Our strategy reflects our purpose to advance a more sustainable society, and our product development pipeline is fully aligned with this goal," Gosse added.

In 2024, the company received an EcoVadis Gold rating, placing it in the top 5 percent of globally rated businesses for sustainability performance.

With consecutive years of strong financial performance, Nynas indicated it continues to monitor debt capital markets to optimise its capital structure “at the appropriate time potentially”.

The Swedish chemicals producer noted that, having ceased operations in the United States in 2022, it remains largely insulated from recent global trade tensions surrounding US import tariffs. The company imports only minimal feedstock from America, shielding it from potential cross-border trade disputes.