Thailand's Largest Latex Glove Manufacturer's Net Profit Growth In 2020

- Feb 19, 2021-

According to a Thai media report on February 17, while the new crown epidemic is devastating global trade and economy, it has brought huge profits and profits to surgical latex glove manufacturers that use natural rubber as the main raw material. Thailand’s largest latex glove manufacturer STA The published financial report showed that the total revenue for the whole year of 2020 was 75.479 billion baht, an increase of 25%, and the net profit increased by 6418%. Among them, the net profit in the fourth quarter alone reached 5.499 billion baht, an increase of 7331%.

  Thailand is the world's largest producer and exporter of natural rubber, and most of its rubber raw materials are exported to China. Due to China's reduced demand for imported rubber, the price of rubber in Thailand has hovered at 50-60 plants per kilogram for the past few years, which is about 10 yuan. At the beginning of the outbreak, there was even a short-term price drop, but with the support of government subsidies, Thailand's domestic rubber prices basically remained above 50 baht.

   Despite the overall poor performance of the natural rubber industry, for surgical latex glove manufacturers, they have ushered in a bumper harvest in sales and net profits. The financial report released by STA, the largest manufacturer of surgical latex gloves in Thailand, shows that the company's revenue in 2020 totaled 75.479 billion baht, an increase of 25% from the previous year's 60.286 billion baht, of which net profit was 9.531 billion baht, an increase of 6418% . In particular, the performance in the fourth quarter was record-breaking, with net profit reaching 5.499 billion baht, an increase of 7331%.

  Thailand is the world's largest rubber producer, but the domestic rubber usage rate is not high. Most of the raw materials are exported to China and neighboring Malaysia. Taking latex as an example, most of the concentrated latex in Southern Thailand is exported to Malaysia, which has the world's largest condom foundry. There are many rubber tire companies in China, but compared with the annual output of several million tons, the domestic utilization rate is very low. This is also the reason why Thai rubber prices are easily affected by global price fluctuations.

  As the world's third largest manufacturer of surgical latex gloves, STA is still optimistic about the prospects of the global rubber glove market in 2021, and believes that the company's sales and net profit still have the opportunity to hit record highs.

The Thai government has always regarded the rubber industry as an important agricultural economic project, and even planned a special park dedicated to supporting the development of the rubber industry in the Songkhla province of southern Thailand. The purpose is to use policies and investment incentives to increase the use of rubber in Thailand. Rate, to create a strong alliance between southern Thailand rubber and tourism. Especially during the outbreak of the epidemic, BOI also launched special investment promotion projects, hoping to stimulate investment in medical projects in the special zone. However, judging from the results, the projects that have really landed and progressed on schedule are still limited.