The Sri Trang Group announces readiness to introduce " Traceable Natural Rubber (GPS)" and create a new dimension towards sustainability. The endeavour aims at tracking the source of rubber, responding to all traceability measures, and being ready to comply with EUDR regulations for the global market. The introduction of "Traceable Natural Rubber (GPS)" allows for 100% backward traceability of rubber sources, announcing readiness to comply with global inspection measures, including those of the European Union, which plans to enforce the EU Regulation on deforestation-free products (EUDR) within the year. This initiative is considered a new dimension towards sustainability and supports enhancing competitiveness in the Thai rubber industry.
Meanwhile, the Sri Trang Group’s executives foresee growth in the natural rubber industry in 2024, driven by rebounding demand from Europe and the United States. They aim to achieve a sales volume of 1.5 million tons this year, representing a 15% increase.
Mr. Veerasith Sinchareonkul, Chief Executive Officer and Executive Director of Sri Trang Agro-Industry Public Company Limited (STA), the world’s leading fully integrated green rubber company and Thailand’s largest rubber glove manufacturer, presented the introduction of " Traceable Natural Rubber (GPS)" together with the management and staff of the Sri Trang Group's 26 branches in Thailand and its 2 subsidiary companies in Indonesia through online platforms. Mr. Nakorn Tangavirapat, Governor of the Rubber Authority of Thailand (RAOT), participated in updating the EUDR regulations and presenting the vision of GPS Rubber under the topic “How will this affect the Thai rubber industry and EUDR regulations for rubber farmers and traders?” Discussions were also presented both through online channels and within the factories, aiming to foster cooperation in the development of the Thai rubber industry in all sectors.
Mr. Veerasith revealed that “The Sri Trang Group has introduced “Traceable Natural Rubber" or “GPS Rubber" to demonstrate readiness to comply with global measures or regulations that require backward tracing of the natural rubber source and to establish a sustainable and transparent business operation. Currently, the company is prepared to comply with the enforcement of the EU Deforestation Regulation (EUDR), expected to take effect as the first region by the end of 2024. This will impact the export of natural rubber and rubber products to Europe, requiring verification of the source to confirm that it is not related to deforestation or forest encroachment.”
He added that “The Sri Trang Group is ready to promote the development of the Thai rubber industry globally by ensuring 100% traceability of the rubber source, aiming to elevate the Thai rubber industry above international standards and create opportunities to strengthen trade competitiveness for Thailand, leading to increased rubber prices. Currently, Thailand is considered to have more opportunities and advantages than other countries, supported by the Rubber Authority of Thailand (RAOT), which has been overseeing and promoting the Thai rubber industry continuously. Therefore, "Traceable Natural Rubber (GPS)" will be another key factor in enhancing Thailand's strength. Traceable Natural Rubber (GPS) will not only meet the specific needs of the European market but also cater to the global market.”
Ms. Paphawee Srisuttiphong, Business Development and Partnership Manager of Sri Trang Agro-Industry Plc. (STA) stated that “, " Traceable Natural Rubber (GPS)" refers to natural rubber products such as cup lump rubber, latex, rubber sheets, and more that can be identified or traced back to their source, indicating which plantation they come from and who owns them, all in compliance with the law. The goal is to have 100,000 rubber farmers and traders participating in Traceable Natural Rubber (GPS) with Sri Trang by the end of 2024 and to expand to 220,000 participants by the end of 2025.”
“Moreover, " Traceable Natural Rubber (GPS)" will help promote the sustainability of the Sri Trang Ecosystem and reaffirm Sri Trang's transparent working processes that allow for backward traceability. This is achieved through various innovations and technologies within the Sri Trang Group, such as the Sri Trang Friends app, Sri Trang Friends Station app, Super Driver service, and Smart factory system, which digitise the rubber purchasing process, connecting stakeholders within the ecosystem, including rubber farmers, traders, transporters, communities, partners, and industry affiliates. This will bring a new dimension to the Thai rubber industry and transform the rubber industry in the global market,” explained Ms. Paphawee.
Mr. Veerasith discussed the overall outlook for the natural rubber industry in 2024, stating that there is a growth trend compared to the previous year. Factors such as the rebound of rubber demand in Europe and the United States, as customers have gradually depleted their stockpiles and returned to normal levels, along with concerns about the El Niño phenomenon leading to decreased rainfall and impacting rubber production for the market. Additionally, the economic situation in China starting to recover will have a positive impact on the overall outlook for the natural rubber industry, as China is a major consumer of rubber globally. Furthermore, rubber prices have gradually increased since the end of the previous year, with the average price of TSR 20 rubber at the SICOM market in January to February 2024 ranging from 152.7 to 155.1 cents per kilogram, up from an average price in December of 145.4 cents per kilogram, representing an increase of approximately 5-7%.
Furthermore, the company has set a sales target for all types of rubber in 2024 totalling 1.5 million tons, representing a 15% increase from the previous year's sales volume of 1.3 million tons. The focus is on managing rubber stock levels to meet demand and enhancing production efficiency by continuously integrating automation technology within the factories. Additionally, there is a focus on expanding the business and increasing production capacity in Thailand, as well as opening raw material procurement station in the Ivory Coast region of West Africa, which has growth potential for rubber production. This includes preparing for backward traceability (Traceability) on all fronts to comply with EUDR regulations and other market requirements worldwide.
“Sustainability efforts are ingrained in our DNA, and the company is committed to continuous development as a ‘Growth Company’, always ready to adapt to maintain its position as a sustainable leader in the green rubber industry going forward,” Mr. Veerasith amplified.
