Chinese Companies May Open A Rubber Glove Factory With An Annual Output Of 1.8 Billion Pieces In Thailand

- Jun 29, 2020-

As of 06:33 on June 29, Beijing time, a total of 10,072,616 cases of global new pneumonia were diagnosed, with a cumulative death of more than 500,000 cases, to 500,321 cases. The new crown pneumonia epidemic has caused serious setbacks in the rubber market. As the world's largest rubber producer, Thailand's rubber exports have suffered a major blow. Taking China as an example, the amount of rubber imported from Thailand is expected to be reduced to half by 2020, so Thailand continues to promote domestic rubber consumption.

Thailand’s Prime Minister Pak Yuk ordered the country’s rubber bureau to dispose of 104,000 tons of rubber stocks in the country as soon as possible and put it into the use of national institutions. A few days ago, Thailand’s Minister of Agriculture Chalong Chai said: Chinese companies are interested in investing in a rubber glove factory with an annual capacity of 1.8 billion pieces. The factory is planned to be built in the Thailand Rubber Bureau Park in Nakhon Si Thammarat Province. The investment model is that state-owned enterprises account for 51% and private enterprises account for 49%, and domestic rubber raw materials are used for production.

At present, the factory is negotiating more details and investment models. In July, it will inspect the localities and formulate plans for setting up the factory. The Ministry of Agriculture of Thailand stated that it is studying the development of the above-mentioned factories as a Thai rubber production center to promote the Thai rubber industry to become a comprehensive and innovative rubber product production center. The Prime Minister of Pak Yu also expressed that he would maximize the use of domestic agricultural products to stabilize rubber prices.

The Thai rubber industry generates a large amount of warehouse lease fees, insurance fees, rubber production and employment fees every year. It is understood that the budget of about 772 million baht was invested between March 2016 and February 2020, and March 2021 The March budget was approximately 126.3 million baht, for a total of approximately 898 million baht. If the factory is successfully completed, it will inevitably promote the consumption of Thai rubber, which is of great significance for stabilizing the price of Thai rubber and promoting the development of Thai rubber economy.