An Rep 2005 - Tun Abdul Razak Research Centre

32 Pages·2005·0.43 MB·English

Contents
The Board 3
Senior Staff 4
Chairman’s Foreword 6
Report of the Board 8
Annual Financial Statements 10
Independent Auditors’ Report 10
Notes to the Financial Statements 12
Director’s Report 20
Visitors to Brickendonbury 20
Quality, productivity and efficiency 21
A unified, world-class rubber R&D facility 22
Promotion of the Malaysian rubber industry 23
Technical promotion of DPNR 24
Engineering Products & Design - Promotion of base isolation systems 24
Product design and manufacturing opportunities 26
Materials Research & Development - Nanocomposites containing nanoclays 26
Development of thermoplastic vulcanizates (TPVs) 26
Electrochemical degradation 27
Representation on Standards Committees 28
Contract research 28
Rubber Consultants 29
Scientific Papers 30
Staff Lectures 31
Tun Abdul Razak Research Centre
A research and promotion centre of the Malaysian Rubber Board
Company registration number: 336256
TARRC, Brickendonbury, Hertford, SG13 8NL, United Kingdom
Tel: [phone] Fax: [phone] E-mail: [email protected]
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Datuk Abdul Hamid Sawal Dr Sidek Dulngali
The
Board
Dr Andrew J. Tinker Mr Zulkifli Yahya
Dr Trevor Skinner Mr Oon Kim Hung
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The Board
Chairman
Datuk Abdul Hamid Sawal, PJN, DPMT, DSDK, KMN, SDK, BEcons (Hons) (Malaya), MBA (USA)
Director General of Malaysian Rubber Board, ex-officio
Vice-Chairman
Dr Sidek Dulngali, JSM, BSc (Hons), PhD
London Representative, Malaysian Rubber Board, ex-officio
Other Members
Mr Zulkifli Yahya, BEcons (Malaya), MBA (UKM)
Counsellor (Commodities), Malaysian Trade Commission, London
Appointed by the Minister of Primary Industries, Malaysia (Resigned 31st December 2004)
Dr Trevor Skinner, PhD, FPRI
Appointed by the Minister of Primary Industries, Malaysia (Resigned 31st December 2004)
Mr Oon Kim Hung, BSc (Hons)
Oon Corporation Resources (M) Sdn Bhd
Appointed by the Minister of Primary Industries, Malaysia
Dr Andrew J. Tinker, JSM, PhD
Director of Research, ex-officio
Deputy Company Secretary
Dr Elias Bin Awang, PhD
Accounts Supervisor
Zaila Bakar, CAT
Registered Office and Laboratories
Tun Abdul Razak Research Centre,
Brickendonbury, Hertford, SG13 8NL
United Kingdom
Solicitors
Stephenson Harwood
Auditors
Wagstaffs Chartered Accountants
Bankers
Bank Bumiputra Malaysia Berhad
Barclays Bank PLC
(as at 31st December 2004)..
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Senior Staff
(as at 31st December 2004)
Industry Development & Promotion Division
Division Head
Salleh Subari BSc, ANCRT*
*Seconded from the MRB
Market Intelligence & Promotion Unit Industrial Support Unit
Unit Head Unit Head
K. Lawson MSc, MBA, MCLIP B.W. Evans PhD
Principal Scientist Principal Scientist
Senior Scientist Senior Scientists
R. Newell BSc G.E. Bennett MPRI
G.M. Reader BSc M.S.D. Fernando PhD, DIC, MIChemE
Scientists I.R. Wallace TPRI
D. Cawthra BA Scientist
S.T. Mahyudin BA G.T. Spiller BSc
N. TylerBSc
Deputy Company Secretary
Elias Awang PhD
Administration Site Services
M.P. Harris S. Ballard
Assistant Company Secretary Site Manager
Zaila Bakar CAT
Accounts Supervisor
D.M. Newton BSc
Computer Network Administrator
Quality Assurance Officer/ Health & Safety Officer
F.J. WinfieldMSc
Principal Scientist
Rubber Consultants
I.R. Gelling KMN, PhD
Administrator
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Director of Research
A.J. Tinker JSM, PhD
Research Contract Co-ordinator
A.D. Roberts PhD, FInstP, FIMMM, MRSC
Engineering Products & Design Division
Division Head
K.N.G. Fuller PhD, MInstP
Senior Principal Scientist
Engineering Design Unit Product Evaluation & Testing Unit
Unit Head Unit Head
A.H. Muhr PhD, CPhys, CEng, MIMMM P.S. Brown MA
Principal Scientist Principal Scientist
Principal Scientist Senior Scientist
H.R. Ahmadi MSc C.D. ForgeMSc
Higher Scientists
J. Gough PhD
J.G.R. Kingston PhD, GradIMMM
Scientist
J.K. PickenMSci
Materials Research & Development Division
Division Head
S. Cook PhD
Senior Principal Scientist
Consultant
I.R. Gelling KMN, PhD
Advanced Materials & Product Development Unit Materials Characterization Unit
Unit Head Unit Head
A.V. Chapman PhD I.S. Stephens BSc
Principal Scientist Principal Scientist
Senior Scientists Senior Scientists
T.R. Johnson DPhil, FRSC R.C. Crafts MSc, CChem, MRSC
I.J. Stephens FIMechIE R.T. Davis PhD
Higher Scientists P.C. Gugan BSc
J. Patel BSc, CEng M.J. Perkins PhD (Deputy Unit Head)
T.J. Pond MSc Higher Scientists
Scientist C.J. Lewan BSc
D. J. Lowe BSc S. P. Perkins PhD
P.E. Swinyard BSc, CChem, MRSC
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Datuk Abdul Hamid Sawal
Chairman, Tun Abdul Razak Research Centre
Chairman’s Foreword
The rubber market stayed buoyant in 2004 as prices remained at new highs compared with
previous years. Among the factors sustaining the higher trend in NR prices were tight raw
material supply coupled with strong consumer demand, in particular from China. The year
also saw substantial rises in crude oil prices, generating concerns that surging oil prices and
depleting fossil fuel reserves would result in costlier synthetic rubber, though improving
further the prospects for natural rubber. Better prices are a welcome respite for millions of
smallholders in NR producing countries, as they are now able to enjoy better returns for their
effort. This then is in sharp contrast to the situation experienced three years ago, when
prices fell to depressed levels, prompting the governments of the three major NR producing
countries to devise measures to prop up prices and to improve the plight of the smallholders.
It is hoped that with healthy demand and better supply management, prices will continue to
remain remunerative and that interest in the NR industry will continue to be sustained.
The automotive component sector in Malaysia has been identified as one of the areas
expected to have excellent potential for growth. In 2004 TARRC officers participated in
European automotive exhibitions to promote several Malaysian manufacturers, their
products and the industry in general. Many of the major players in Europe were approached
and these efforts confirm there is genuine interest in investment, outsourcing and Joint
Venture opportunities with the Malaysian industry. In this context it is envisaged that
collaboration with other Malaysian organisations such as the Malaysian Rubber Export
Promotion Council (MREPC), the Malaysian Industry Development Authority (MIDA) and the
Malaysian External Trade Development Corporation (MATRADE) will increase with a growing
number of joint events and visits.
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Although it is not always possible to know the outcome of matchmaking for outsourcing
deals, at least eight instances are known where Malaysian companies have secured business
as a result of initial contact with TARRC officers. Several European companies have visited
Malaysia to meet up with Malaysian manufacturers and at least two companies are pursuing
Foreign Direct Investment (FDI) opportunities with Malaysian manufacturers.
Global competition means that production costs are of vital importance and TARRC’s project
devoted to improving productivity and efficiency in the product manufacturing industry in
Malaysia continued to make encouraging progress in 2004. I am pleased to note that
feedback given by the companies involved in this programme of working visits by TARRC and
Malaysian Rubber Board (MRB) staff is positive and several areas of improvement can be
identified. This work is ongoing and, in addition to reducing costs by addressing basic
manufacturing issues, it is important that advanced manufacturing techniques are passed on
to manufacturers, allowing the industry in Malaysia to further improve their competitiveness.
The Research and Development programme continues to play its part in assisting the rubber
industry to be an important source of growth in the Malaysian economy. With staff from
TARRC and the Rubber Technology Centre (RTC) of the MRB working together on most
projects, interaction can only enhance progress and the joint research programme meetings
held during the year in Malaysia proved extremely fruitful. The Unified Research Programme
between the two laboratories is directed towards product diversification into high-tech
products for transport, aerospace and marine industries and officers at TARRC and RTC
remain at the forefront of latest scientific and engineering developments within these fields
of research.
TARRC’s work on nanocomposites provides an excellent example of development in an
emerging technology expected to provide the performance enhancements necessary for
continued product advances. Although nanocomposites based on thermoplastics and
nanoclay fillers have been commercialised for some years now, work on nanocomposites
based on rubbers has only been undertaken in recent time. TARRC has prepared
nanocomposites based on natural rubber, epoxidised natural rubber and EPDM. Encouraging
results are being obtained: the nanocomposites based on EPDM are showing a substantial
increase in fatigue life. The prospect of achieving much enhanced durability is exciting.
TARRC’s consultancy unit Rubber Consultants continues its efforts to increase income
generation. Attaining ISO 9001:2000 certification in 2004 will assist in this. It is encouraging
that 2004 was another record year for turnover by the consultancy unit, with a substantial
increase over 2003. At the same time, Rubber Consultants also plays its part in assisting the
industry in Malaysia; this was exemplified in 2004 by the vital support played by the
consultancy in a Malaysian manufacturer of isolators securing a large contract for the supply
of seismic isolators for liquefied natural gas storage tanks in China.
Datuk Abdul Hamid Sawal
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Report of the Board
The Board is pleased to submit this its sixty-seventh Annual Report and the Audited Accounts of
the Research Centre for the year ended 31st December 2004.
The Board
Datuk Abdul Hamid Sawal (Chairman) was appointed Director General of the Malaysian Rubber Board (MRB) by the
Minister of Primary Industries, Malaysia on 1st January 2000 and remains a Member and Chairman of the TARRC
Board (ex-officio). Dr Sidek Dulngali as London Representative of the MRB, remains a Member and Vice-Chairman
(ex-officio) and Dr Andrew Tinker, as Director of Research, remains a Member (ex-officio). Mr Zulkifli Yahya and Dr
Trevor Skinner were both re-appointed to the Board by the Minister of Primary Industries, Malaysia on 1st January
2003 and both resigned as members of the Board on 31st December 2004 after over three years. Mr Kong Ping Yee
resigned as a Member of the Board on 31st December 2003 after six years. The Board was pleased to record its
gratitude and appreciation for their service rendered to the Research Centre. Mr Oon Kim Hung was appointed to
the Board by the Minister of Primary Industries on 1st January 2004.
The Board met three times during 2004 to transact business.
The Members of the Board as at 31st December 2004 are listed on page 3.
General Meeting
The sixty-seventh Annual General Meeting of TARRC was held on 3rd August 2004 at the Bangunan Getah Asli, the
headquarters of the Malaysian Rubber Board in Kuala Lumpur.
Legal Status
The Tun Abdul Razak Research Centre (TARRC) is an organization and research centre of the Malaysian Rubber
Board (MRB), the body corporate established by statute in Malaysia for purposes of overseeing the development of
the rubber industry with research and development as the core activity. Incorporated in England since 1938, TARRC
is a Company Limited by Guarantee and not having a share capital, the word 'Limited' being omitted by Licence of
the Department of Trade and Industry. TARRC by reason of the definition in Section 1(1) of the Companies Act 1980
and the bringing into force of Part 1 of that Act became a Private Company on 22nd December 1980.
Principal Activities
The principal activities of TARRC are scientific research into rubber, technological developments in the compounding,
processing, and the improvement of tyre performance and service lifetime of rubber products as a whole. It also
publishes and distributes scientific and technical literature on rubber for, in particular, the promotion of Malaysian
rubber products and Malaysian rubber. Foreign Direct Investment (FDI) opportunities and manufacturing activities
in the Malaysian rubber industry are also promoted and encouraged by participation in international meetings,
seminars and exhibitions. All activities contribute to the aim of expanding markets for Malaysian rubber products.
The Board adopted the Report 'The Continuing Role of the Tun Abdul Razak Research Centre' following its
submission to the Honourable Minister of Primary Industries, Malaysia, in 1999. The Report clearly sets out the core
activities of TARRC as specialized R&D focussing particularly on its prevailing expertise in rubber in engineering
applications and advanced materials, transfer of technology, commercialization of R&D outcomes, promotion of
products, training for personnel both from the Malaysian Rubber Board and the industry in Malaysia and consultancy
services. Clear targets are set for income generation.
In keeping with this policy, the Board charged the Director and Staff to continue to enhance income through
exploitation of TARRC's scientific resources and expertise and commercialization of its R&D findings to increase its
degree of self-financing. The Board was pleased that in 2004 TARRC was running three contracts, two financed by
the European Union and one funded from Biffaward. TARRC was also a partner in 3 others, all financed by the
European Union.
The Board was pleased that YB Datuk Seri Dr Jamaludin Jarjis, the Hon. Minister of Science, Technology and
Innovation, was able to visit TARRC during the year. The Board was also pleased to note the interest demonstrated
by the Minister on the progress made by TARRC's Materials Research and Development Division on studies of
nanocomposite materials, and favourable comments on the conference and meeting facilities offered at
Brickendonbury.
The Board was also pleased that The Deputy Minister of International Trade and Industry YB Dato' Ahmad Husni bin
Mohamad Hanadzlah, Dr Michael Dorsim Lunjew, Deputy Secretary I, the Ministry of Plantation Industries and
Commodities, and a delegation from the Ministry of Agriculture & Agro-based Industry, including Director Generals
and other distinguished visitors from the various departments and agencies, were able to visit TARRC during the
year.
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TARRC plays an ever increasingly important role as Malaysia industrializes. Although technical support for Malaysian
rubber continues, the Centre's much more important role now is to assist Malaysian rubber product manufacturers
by factory visits, transfer of technology, enhancing their product development capabilities and compounding and
processing know-how. TARRC answered 143 recorded technical enquiries in support of the Malaysian rubber
industry, 33 of these coming from Malaysian companies seeking advice and assistance on compounding, product
manufacture and specifications. TARRC has also continued to work closely with other Malaysian organizations,
particularly the Malaysian Rubber Export Promotion Council, the Malaysian External Trade Development Corporation
and the Malaysian Industrial Development Authority, to promote the Malaysian-manufactured rubber products and
the rubber industry as a whole.
The Board was pleased that the TARRC laboratories achieved ISO 9001:2000 certification in 2004 resulting from
culmination of many months of work developing and implementing an organisation-wide quality management
system that meets the stringent requirements of this International Standard.
The Board is pleased with the encouraging start made under the project to investigate the properties of rubber
nanocomposites containing organoclays and that observations so far indicate that it should be possible to obtain
enhanced durability of these new materials through the use of nanoclay fillers.
The Board was pleased with the progress being made in the technical promotion of DPNR to major European
manufacturers of engineering products. The Board is also pleased that the promotion of base isolation systems is
continuing to show promising developments with a final structure agreed for a base isolated demonstration building
in Algeria, incorporating 17 elastomeric isolators that will be manufactured in Malaysia.
The Board was pleased with Rubber Consultants' highest recorded turnover in 2004 for the second year running.
These activities and the work of TARRC as a whole in 2004 are discussed by the Director of Research in his Report
on pages 20-29.
Senior Staff as at 31st December 2004
During the year two appointments were made, one senior officer retired and three resigned. The total senior staff
strength on 31st December 2004 was 42, including five employed on contract.
Supporting Staff as at 31st December 2004
During the year one member retired and five resigned. The total number of supporting staff on 31st December 2004
was 44, including five employed on contract.
The Board records its thanks to all employees for their work in 2004.
Publications
A list of the staff lectures and the scientific and technological papers published in 2004 follows the Report of the
Director of Research on page 30.
Finance
The Income and Expenditure Account and the Balance Sheet as at 31st December 2004, together with Explanatory
Notes and the Auditor's Report, are presented on pages 10 to 19. In the opinion of the Board, the current market
value of TARRC's freehold properties is in excess of the net book value shown in the Balance Sheet.
Auditors
During the year, Wagstaffs Chartered Accountants were appointed auditors to the company and in accordance with
Section 385 of the Companies Act 1985 a resolution proposing their reappointment will be put at the forthcoming
Annual General Meeting.
For and on behalf of the Board
Datuk Abdul Hamid Sawal
30th August 2005
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Annual Financial Statements
for the year ended 31st December 2004
Directors' responsibilities
Company law requires the directors to prepare financial statements for each financial year which give a true and
fair view of the state of the affairs of the company and of the profit or loss of the company for that year. In preparing
these the directors are required to:
- select suitable accounting policies and apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
company will continue in business.
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any
time the financial position of the company and to enable them to ensure that the financial statements comply with
the Companies Act 1985. They are also responsible for safeguarding the assets of the company and hence for taking
reasonable steps for the prevention and detection of fraud and other irregularities.
Independent auditors' report to the members of the Tun Abdul Razak Research Centre
We have audited the financial statements of Tun Abdul Razak Research Centre for the year ended 31st December
2004 which comprise the income and expenditure account, the balance sheet, the cash flow statement and the
related notes. These financial statements have been prepared under the historical cost convention and the
accounting policies set out therein.
This report is made solely to the company's members, as a body, in accordance with Section 235 of the Companies
Act 1985. Our audit work has been undertaken so that we might state to the company's shareholders those matters
we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by
law, we do not accept or assume responsibility to anyone other than the company and the company's shareholders
as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
As described in the statement of directors' responsibilities the company's directors are responsible for the preparation
of the financial statements in accordance with applicable law and United Kingdom Accounting Standards.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements
and United Kingdom Auditing Standards.
We report to you our opinion as to whether the financial statements give a true and fair view and are properly
prepared in accordance with the Companies Act 1985. We also report to you if, in our opinion, the directors’ report
is not consistent with the financial statements, if the company has not kept proper accounting records, if we have
not received all the information and explanations we require for our audit, or if information specified by law
regarding directors' remuneration and transactions with the company is not disclosed.
We read the directors' report and consider the implications for our report if we become aware of any apparent
misstatements within it.
Basis of audit opinion
We conducted our audit in accordance with United Kingdom Auditing Standards issued by the Auditing Practices
Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the
financial statements. It also includes an assessment of the significant estimates and judgements made by the
directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to
the company's circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered
necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements
are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion
we also evaluated the overall adequacy of the presentation of information in the financial statements.
Opinion
In our opinion the financial statements give a true and fair view of the state of the company's affairs as at 31st
December 2004 and of its deficit for the year then ended and have been properly prepared in accordance with the
Companies Act 1985.
Wagstaffs
Chartered Accountants and Registered Auditors
Richmond House, Walkern Road, Stevenage
Hertfordshire, SG1 3QP
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