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| Sunday, 19 October 2003 |
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| News Business Features Editorial
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Rubber industry in the driving seat All stakeholders in the rubber sector will have to unite and act fast to get the maximum benefits from the study tour undertaken to re-position crepe rubber in the USA. The US study tour has shown positive results, therefore the private sector should grab the gold mine which is in front of them without waiting for government hand-outs, said Export Development Board (EDB) Chairman Ratna Sivaratnam. He said no money will be coming forward unless the private sector takes the responsibility and becomes accountable. Acting Chief of Party, The Competitiveness Initiative (TCI), Leila Calnan said as the industry is now in the driving seat with the USAID, TCI and the EDB collectively helping the private sector upto this stage, "it is your responsibility to take it forward". Rubber Cluster Chairman T. Ellawala said 'Lankaprene', the branded product, was introduced to the USA and there were several inquiries and trial shipments have already been made. However, the major issue that has arisen is who will own the brand. "In my opinion, it will have to be owned by the Sri Lanka Rubber Cluster (SLRC) as it represents all sectors of the industry. Therefore, it is better we resolve it soon," he added. He said it is the duty of the members to take the initiative forward and "we have to derive a strategy fast on how do it". Consultant to the SLRC Mevan Peiris said Sri Lanka has to derive a core competency if we are to sustain the brand Lankaprene and it can be done by integrating all other resources so that copying becomes difficult. The industry should act quickly and embark on a resource-based strategy rather than a market-driven strategy. "First of all, initiate an awareness campaign, get the physical resources together, have an information management system in place and most importantly, have the necessary funds, but everybody has to work together and act quickly to get the maximum benefits of the available opportunity," said Peiris. Rubber Cluster Representative Ranjith Peiris said most US buyers did not even know that Sri Lanka produces rubber. "Therefore, it was a rare opportunity for us to meet the end user, which gave us an understanding of their requirements. "We had some inquiries and have done some trial shipments too but we have to upgrade the factories and act fast to get the maximum benefits," he added. Coordinator, TCI/Rubber Cluster, Lakna Paranawithana, explaining the background of the crepe rubber re-positioning programme, said Sri Lanka exported 65,000 metric tons of rubber in 1985, which dropped to 21,000 metric tons in 2001. Sri Lanka for several decades has remained the sole producer of premium quality 'water white' latex crepe. However, as this rubber has been marketed as a visually graded polymer, buyers never noticed its excellent properties. Therefore, the SLRC evolved a strategy to position this rubber in the global market as a premium branded product supported by a technical data sheet to reflect the unique features. This new polymer is being offered under the brand name, Lankaprene. The excellent white colour, high purity, very low ash content and the very low non-rubber content make the polymer an excellent material to manufacture a range of sophisticated products such as health and exercise products, high elastic rubber bands, food jar seals, conveyer cleaner bars, clear adhesives and rubber catheters. He said that many of the existing users will find the new brand as the ideal substitute for the more costly synthetic polyisoprene. The team visited the States of Ohio, New Jersey and Indiana where they met five leading rubber importers. The team consisted of six members from the private sector, two members from the Rubber Research Institute, one member representing the rubber traders, three members from the TCI and a representative from the EDB. The Sri Lanka Rubber Cluster was formed in 2000 with support from the USAID-sponsored TCI to promote economic growth. |
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