Price of rubber raw materials rises by 15 per cent, says Rubber World Industries

Price of rubber raw materials rises by 15 per cent, says Rubber World Industries

Company maintains prices and ensures sufficient supply of rubber insulation products across the region amidst global price hike

August 18, 2009

The average price of rubber raw materials across the globe has risen by 15 per cent in 2009, says Rubber World Industries (RWI), the leading manufacturer of closed-cell rubber insulation 'Gulf-O-flex' in the Gulf and South-East Asia, and part of the international business conglomerate, the Memon Group of Companies. Amidst the upward movement of global prices, RWI, which accounts for 86 per cent of the Middle East rubber insulation market share, has committed to maintain its prices and ensure sufficient supply of rubber insulation products across the region, including pipes, sheets and other rubber-derived products.

Following a long period of continuous decline, the price of rubber raw material in the world market has seen an increase in the second quarter of 2009. Furthermore, three of the largest rubber producers in Southeast Asia - Thailand, Malaysia and Indonesia, agreed to cut down their exports to push up the export price. Rubber producers and exporters have also decided to cut down output, which could translate to a 6.2 per cent drop in world rubber production in 2009 to hit 9.36 million tons. Amidst increasing global rubber raw materials prices, RWI maintains a positive outlook on the regional market taking pioneering efforts to enhance its processes and production capacity.

“Amidst present challenges, we are strengthening our efforts to increase our production by 600 containers to sufficiently address the need for rubber insulation products in the region,” said Abu Baker Shaikhani, Managing Director, Rubber World Industries, and Chairman of the Memon Group. “We expect the region to witness a steady increase in the demand for high quality rubber insulation products, which motivates us to explore more technologies to further enhance the quality of our products and the efficiency of our processes.”

RWI has also recently revealed its expansion goals, which is to be able to produce 3,600 containers by 2013, thereby cementing its leading position as the source of high quality products for major property developments by real estate leaders in the UAE. As the only producer of rubber insulation in the Middle East region, RWI delivers a versatile range of rubber insulation products that meet the requirements in the oil and gas fields, construction, shipping and automobile industries. RWI products are used in more than 90 countries, including the US, Germany, Russia, Canada and Singapore.