Green Rubber Global has entered into an agreement to purchase machinery from YMS Process Engineering Pte Ltd in order to strengthen its patented DeLink elastomer recycling facility.
The subsidiary of Petra Group signed the agreement which amounted to US$8.3mil (RM325.86mil).
In a statement on Monday, Petra said the deal is part of Green Rubber’s Malaysian plant at the Putra Industrial Park in Selangor, to expand global production.
“The new 25,000 sq ft plant is capable of producing 25,000 tonnes per annum for export. It is also expected to create a new revenue stream in Malaysia at US$40mil (USRM1.57bil) annually.
“The new machinery will help contribute in meeting global demand for affordable as well as environmentally sustainable production material,” it added.
Petra said Green Rubber Global is planning to annually produce 105,000 tonnes of green rubber within three years to meet commercial demand and tackle an environmental headache by reducing the amount of disposed vehicle tyres.
Green rubber is like virgin rubber and can be remade into a host of high-end applications such as tyres, shoe soles, automotive and industrial products, as well as sporting goods.
The new factory will be equipped with a laboratory, research and development and a quality department to back the technical service and support teams in the field, while working with the Tun Abdul Razak Centre in the United Kingdom.