Highlights
 

• Sri Trang posts US$48.8 mn profit, reversing loss of US$12.7 mn in 2023
   
• Sri Trang sells 133,163 tons of EUDR rubber in 2024
   
• North East Rubber setting up plant in Ivory Coast
   

Thailand’s rubber industry witnessed a strong rebound in 2024, with leading company Sri Trang Agro-Industry Public Company Limited (STA) scripting a remarkable recovery while another major North East Rubber Public Company Limited (NER) reported a solid growth in revenue and profitability. The resurgence of the companies was driven by higher natural rubber prices, increased demand, and strategic sales initiatives.

Sri Trang Agro-Industry Public Company Limited (STA), the world’s largest fully integrated natural rubber business and Thailand’s leading rubber glove manufacturer, announced strong results for the fourth quarter of 2024, generating income from sales and services to the tune of THB 33,256.8 million (US$972.9 million), up 53.2% YoY and a 5.2% rise from the previous quarter.

The company recorded a net profit of THB 854.3 million (US$24.9 million) during Q4 2024, a turnaround from the loss in the same period last year, and a 62.5% increase from the previous quarter. This was driven by higher natural rubber prices and the company’s proactive sales strategy.

Absence of El Nino works in favor of Sri Trang

For the full year 2024, the company generated an income from sales and services to the tune of THB 114,373.7 million (US$ 3.34 billion) and net profit of THB 1,670.4 million (US$48.8 million), reversing a loss of THB 434.4 million (US$12.7 million) in the previous year.

Mr. Veerasith Sinchareonkul, Chief Executive Officer of STA, said this year the company had sufficient raw materials, avoiding the supply shortages caused by the El Niño phenomenon in 2023.

In Q4 2024, the total natural rubber sales of the company across all categories reached 386,956 tons, up 23.4% year-over-year and 1.7% quarter-over-quarter. Of this, sales and deliveries of EUDR-compliant rubber totaled 68,867 tons, marking a 9.7% increase from the previous quarter (with no EUDR rubber sales in the same period last year). The company also benefited from the continued rise in the average selling price of natural rubber for the seventh consecutive quarter, reaching 196.6 cents per kilogram.

The total sales volume of all types of natural rubber in 2024 was 1.4 million tons (including the volume of concentrated latex sold to STGT, it is 1.6 million tons), an increase of 8.3% from the previous year. Of this volume, 133,163 tons were EUDR rubber, the company said.

The rubber glove business had a total sales volume of 38,549 million pieces for the year, an increase of 22.8% compared to the previous year and a record high for the company due to recovering global demand. Brazil’s anti-dumping duties on glove imports from China and Malaysia and the United States’ increased tariff on medical and surgical gloves from China worked in favor of STA which faced lower duties in these countries.

In 2025, the company aims to increase the sales volume of all types of rubber from the previous year, while integrating AI to drive the business.

North East Rubber targets sale of 500,000 tons in 2025

Meanwhile North East Rubber Public Company Limited (NER), a key player in Thailand, has said it recorded a sales volume of 439,179 tons in 2024, generating THB 27,448.33 million (US$803.2 million) in revenue, an increase of 9.60% compared to THB 25,045.17 million (US$732.9 million) in 2023.

The company generated THB 1,652 million (US$48.34 million) in net profit in 2024, an increase of 6.91% compared to THB 1,545.60 million (US$45.23 million) in 2023.

The elevated rubber prices in 2024 compared to 2023 enabled the company to post a better revenue and profit in the year. The company noted that the average selling price of rubber products in 2024 increased by 24.04%. NER feels that rubber prices will be on an upward trajectory in the coming five years amid a supply crunch.

Looking ahead, NER has set a sales target of 500,000 tonnes of rubber and rubber products for 2025, up 14% compared to 2024, with a projected revenue of over THB 34,000 million (US$994.9 million), reflecting a 24% year-on-year growth. The company expects net profit to rise by an average of 6-7%.

NER to expand its STR3 rubber block production

Setting its sights in the future, NER has allocated an investment budget of THB 2,059 million (US$60.25 million) to expand its STR3 rubber block production plant, increasing capacity by 320,000 tonnes. The new facility is scheduled to be fully operational in Q3 2026, signaling the company’s confidence in its market position and long-term strategic direction.

Currently, the NER has a production capacity of 515,600 tons, while in 2026, the capacity will go up by 160,000 tons, to 675,600 tons, and in 2027, it will further shoot up by another 160,000 tons, to 320,000 tons, taking the total capacity to 835,600 tons. NER CEO Chuwit Jungtanasomboon said at a function organised by the Stock Exchange of Thailand that the company is in the process of setting up two plants in Thailand and one in Ivory Coast.

He said that the company’s Indian customers are increasing and they will form 15% of its customer base in 2025. Chinese tire companies who have set up plants in Thailand are the key customers of NER while Thai entrepreneurs also form its customer base. The increase in Indian customers will offset the company’s dependence on Chinese customers.

Additionally, NER aims for THB 30 million (US$877,938) finished product sales in 2025, with livestock pen mats for pig and cattle farms as the primary product. The mats have already been introduced to the market and gained acceptance. The company also plans to expand its product line by launching new offerings, including dog mats for use in animal hospitals.

Regarding the tariff introduction by the Trump administration, Mr Chuwit said the United States has imposed import tariffs of approximately 17% on passenger car tires and 27% on large tires for logistics vehicles. The tariff rate on passenger car tires remains relatively lower than those imposed on Vietnam and Indonesia by the US, where rates reach around 24-25%. While this policy has some impact, it is still considered manageable compared to neighboring countries facing tariffs that are up to 7-8% higher.