20 Billion Baht Latex Glove Factory Or Boost Rubber Prices

- Aug 19, 2020-

Foreign media reported on August 14 that Thailand Taihua Rubber Co., Ltd. is preparing to build a latex glove factory by joint venture. The new factory is located in the Ratchai Rubber Industrial Park, Rayong Province. It is planned to complete the factory construction and equipment installation within 3-5 months. . The project plans to invest more than 20 billion baht. Most of the factories planned by the investment companies are medium-sized factories, and the investment scale of each factory is about 5 billion baht.

Ratchai, Chairman of the Thai Beka Enterprise Co., Ltd., a development company in the Rayong Province Ratchai Rubber Industrial Park, said that the reason why foreign companies decided to invest in building factories in Thailand is mainly because there are sufficient raw materials and a good logistics and transportation system, although the labor cost is relatively high. However, the production of rubber gloves is mainly based on robot automation systems, so the labor cost can be ignored. But at the same time, I also hope that the government will give greater support to investment projects, because it is very difficult for companies to lend.

The price of local rubber in Thailand began to rise in April, and the current average price per kilogram is 40-45 baht; the 20 billion baht latex glove factory project may further promote rubber prices, which is expected to exceed the 50 baht per kilogram. However, the impact of the new crown pneumonia epidemic on the automobile tire industry has not yet dissipated. The downturn in downstream rubber demand cannot be changed in the short term. The new latex glove factory project has limited boost to the increase in rubber prices, and may not reach the previous price of 70 baht per kilogram.

Investment projects for foreign companies are currently under negotiation, including companies from the European Union, the United States, Malaysia, China, Taiwan and Japan. Due to the lack of funds, the Thai Rubber Management Bureau in conjunction with private companies, cooperatives, and community cooperatives to establish a rubber glove factory project in Nakhon Si Thammarat is less feasible. The sooner the rubber glove factory is invested, the better. After 2021, a large number of rubber glove products will enter the market. Very intense.