Leading sustainable rubber company Sri Trang Agro-Industry (STA) has lifted the total capacity of its plants in Bueng Kan and Trang, pushing up production of all rubber products to 3.1 million tonnes a year.
The Bueng Kan plant's block rubber production capacity has been expanded to 87,600 tonnes a year, while the Trang plant's capacity has risen to 70,080 tonnes a year.
Veerasith Sinchareonkul, STA chief executive and director, said the move reinforced the company's position as the world's largest provider of integrated natural rubber products.
He added that the capacity expansion at these two plants has been made possible by the introduction of modern technologies and automatic machinery, which helps to speed up production, increase efficiency, and reduce production waste without the need for additional labour.
As a result, the Trang plant will increase its per-person annual yield to an average of 35 tonnes by 2025, more than double the 2021 yield of 16 tonnes per person per year.
Furthermore, by the end of the year, the expansion of two more concentrated-latex plants will be completed.
The plant in Narathiwat province will have an additional capacity of 18,396 tonnes per year and will start operating in August.
Another plant in Surat Thani province will provide additional capacity of 113,004 tonnes per year. This plant will start operating in December.
Mr Veerasith said that despite the poor global economic outlook, rising energy prices and soaring inflation rates, STA products are still in high demand.
"Our company is in a strong financial position, which makes it possible for us to keep investing in capacity expansion," he said. "Past investments have been financed by operating cash flow, proceeds from the issuance of debentures, and long-term loans from financial institutions.
"The company is well-prepared to expand in both local and overseas markets to increase sales and the share of the global rubber market to 12% from 10% in the previous year."