The Completion Of A 20 Billion Latex Glove Factory In Thailand Can Boost Rubber Prices

- Sep 01, 2020-

According to Thai news on August 14th, Ratchai Rubber Industrial Park, Rayong, Thailand will welcome a 20 billion baht latex glove factory. It is a project invested by Thailand Thai Hua Rubber Co., Ltd. It is expected to be completed within 5 months. Although investment projects can boost the price of rubber, they still cannot reach the 70 baht per kilogram.

The price of rubber in Thailand has continued to rise since April, with an average of 40-45 baht per kilogram. It is expected to exceed the price of 50 baht per kilogram, but it has not reached the 70 baht per kilogram in the past, because the price of rubber mainly depends on the automobile tire industry. Still sluggish.

Ratchai, chairman of the Thai Beka Enterprise Co., Ltd., a development enterprise of the Rayong Province Ratchai Rubber Industrial Park, said that many domestic and foreign companies intend to establish rubber glove factories in the Ratchai Rubber Industrial City. Recently, Taihua Rubber Co., Ltd. is preparing to establish a joint venture. , It is estimated that it will take 3-5 months to complete factory construction and equipment installation. As for the investment projects of foreign companies in the negotiation process, including companies from the European Union, the United States, Malaysia, China, Taiwan and Japan. The total investment scale is more than 20 billion baht, and 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.

Thailand has sufficient raw materials and a good logistics transportation system. Although labor costs are high, the production of rubber gloves is mainly based on robot automation systems, so labor costs can be ignored. Therefore, many foreign companies invest in Thailand to build factories.

The Thai Rubber Management Bureau unites private companies, cooperatives, and community cooperatives to establish a rubber glove factory project in Nakhon Si Thammarat Province. The feasibility of establishing a rubber glove factory project in Nakhon Si Thammarat Province is less feasible, because these cooperatives lack funds, and the sooner the rubber glove factory is invested, the better. After 2021, there will be a large number of rubber glove products. The market entry competition will be very fierce.