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MOAC to promote Thailand as rubber glove manufacturing hub


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MOAC to promote Thailand as rubber glove manufacturing hub

 

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BANGKOK(NNT) - Rubber growers in Thailand have been suffering from low produce pricing for quite some years, with several efforts already made by the government to help improve their livelihood. The Ministry of Agriculture and Cooperatives (MOAC) has stressed its policy is to promote Thailand as a global hub for rubber glove manufacturing to help increase the demand for natural rubber.

 

Mr Alongkorn Ponlaboot, an Advisor to the Minister of Agriculture and Cooperatives, said today that global demand for rubber gloves this year will reach 360 billion pieces, worth 40 billion baht, and promising growth opportunities for rubber glove manufacturers and farmers, as Thailand is currently the second biggest rubber glove exporter in the world with 8-15 percent annual growth.

 

He said the MOAC is working with the Ministry of Commerce to position Thailand as a global rubber gloves manufacturing hub.

 

At the upcoming committee meeting on rubber pricing on 9th September, the MOAC will be delivering its policy at the Agritech and Innovation Center (AIC) to support the Rubber Authority of Thailand (RAOT) in the development of innovative rubber products, which will help raise rubber pricing, giving farmers a better income.

 

The RAOT Governor Nakorn Takkawirapat said that the Thai rubber processing industry is moving in a good direction, especially rubber glove manufacturing.

 

The RAOT has recently launched special loan offers worth a total of 25 billion baht to assist rubber glove manufacturers to increase their production capacity and upgrade their equipment, in an effort to fortify the Thai rubber industry as it strives to become the leading global exporter of natural rubber and rubber products.

 

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Gloves are a cheap disposable multi-source commodity, there is little profit and no IP in making and selling gloves. This is gross stupidity. Think why doesn't the GPO expand and sell generics outside Thailand? Because things with no IP to make them exclusive are usually very low margin, like rubber gloves.

If making gloves make them latex free....at least there is some pricing power at the latex free end.

Edited by Pedrogaz
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Thailand is very strong in the rubber glove industry already. IIRC, it's number two behind Malaysia, which is by far leading in this business, however. And the need for rubber gloves has been growing permanently. Increasing hygene standards everywhere in the world, increasing demand from hospitals, demand in the electronics and semiconducter industry, increased standards in cantine cooking. In Malaysia the rubber glove industry is one of the countries key industries. Numerous entrepreneurs founded their companies 30, 40 years ago, and all are quite rich today.

 

I visited several such factories myself. In Hat Yai and other places in South Thailand, for example the Thai Sri Trang group is investing heavily in new production lines, and expanding its capacities every year.. Also the Austrian Semperit was active here in a joint venture (Siam Sempermed).

 

This is one of the rare cases, where it makes sense for Thailand to talk about beeing a hub.

Edited by Flying Saucage
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