11-12 Oct, 2012 - Yangon, MYANMAR
PARKROYAL Yangon
PARKROYAL Yangon
As a response to rising operating costs, Thai Hua Rubber has shifted its focus to Indochina, where it plans to develop not just supply, but exports as well, aiming to take its place among the world’s largest rubber producers and traders by 2020.
The company plans to manage business in Laos, Cambodia, Myanmar and Thailand, resulting in a combined total rubber-plantation area of 400,000 rai (64,000 hectares), and achieve Bt120billion in sales revenue. Investing in Indochina will allow lower production cost. Chief Executive Officer & President Luckchai Kittipol said that the company had considered not only how to benefit from Asean integration but also how to achieve efficient production. He said, “Having rubber plantations outside Thailand will enhance our cost-control management, and the most important thing is that we don’t want to compete with small rubber growers [in Thailand] in purchasing land. Our strategy here is to focus on expansion of manufacturing rather than of plantation area.”
China, India and other countries will receive the rubber tapped in Laos. Thai Hua plans to set up its first processing plant in Laos by next year. In Cambodia, it will operate under the company’s joint venture with Indian interests to manage 62,000 rai of leased land to grow rubber trees in Kampong Thom province. The company plans to invest US$1.5 million (Bt48 million) in Myanmar, once the government announces clearer regulations on investment and the financial system. Dr. Luckchai explained that Myanmar has one of the highest potentials for growing rubber as its climate is similar to that of Thailand’s Southern region, while it still has plenty of denuded forestland that its government plans to turn into valuable farming areas for rubber and oil palm.
Dr. Luckchai Kittipol will be sharing more information on the above and his expertise at the 2nd Commercial Farm Asia in Yangon on 11-12 October, in a session entitled “Rubber Plantation Investment in ASEAN”. His talk will include demand/supply projections, challenges and opportunities, price trends, a comparison of investment in Laos, Cambodia & Thailand, analysis of business models, and an update on their venture in Myanmar. Register here to attend this summit. Or forward enquiries to Ms. Grace at grace@cmtsp.com.sg
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