According to reports, Thailand’s Minister of Agriculture Chalenchai revealed that Chinese state-owned enterprises intend to invest in the construction of a rubber glove factory in the Thai Rubber Bureau Park in Nakhon Si Thammarat Province, covering an area of 20,000 rai, with a planned annual production of 1.8 billion pieces. More details and investment models are currently being negotiated, and conditions are being adjusted with the BOI to attract investors. The current investment model is 51% of state-owned enterprises and 49% of private enterprises, using domestic rubber raw materials for production.
The Ministry of Agriculture of Thailand is studying the development of the above-mentioned factories into the rubber production center of Thailand in order to promote the rubber industry in Thailand to become a comprehensive and innovative rubber product production center. Prime Minister Prayut also expressed that he would maximize the use of domestic agricultural products in order to stabilize rubber prices. It is also one of the agricultural products affected by the new crown epidemic. In July, it is expected to go to the local area to inspect and formulate a factory establishment plan, and the results are expected to be obtained soon.
In addition, it also ordered the Rubber Bureau of Thailand to deal with the 104,000 tons of rubber in domestic stocks as soon as possible, for example, to invest more in the use of national institutions, because the annual warehouse lease costs will account for a large budget. According to data, the State-owned Enterprise Policy Committee chaired by Prime Minister Prayut analyzed the budget for warehouse lease, insurance, rubber production and employment costs, and found that the budget for the period from March 2016 to February 2020 was about 772 million. In Thai baht, the budget for March 2020-March 2021 is about 126.3 million baht, for a total of about 898 million baht.
Previously, due to the increase in demand due to the outbreak of the new crown pneumonia, the Rubber Authority of Thailand cooperated with agricultural research institutions and private companies to establish a rubber glove and medical glove factory. The factory was built in Nakhon Si Thammarat, costing 500 million baht and an annual production capacity of 1.8 billion. only. The total annual global output of rubber gloves is 228 billion, Malaysia produces 136 billion, and Thailand produces more than 46 billion annually.