Sri Trang aims to become global leader by 2014
Thailand's largest rubber processing and exporting company, Sri Trang Agro-Industry, is hoping to become a market leader in the global market by 2014 and is kicking off this plan by putting aside Bt2 billion to build three new plants over 2013-2014.Company director Kitichai Sincharoenkul said his firm wanted to boost its production capacity to 1.5 million tonnes by 2014 from its current scope of 1.1 million to 1.2 million tonnes.
"We aim to double our global market share from 9 per cent to 15 per cent by 2014," he said.
This year Sri Trang was able to boost its production capacity to 100,000 tonnes at its factory in Udon Thani province and by another 100,000 tonnes in Palembang, Indonesia. The boost in its production capacity should help the company's sales volume grow by 10 per cent next year, Kitichai said.
Sri Trang's revenue this year is expected to be Bt100 billion, less than last year's Bt133 billion because the price of rubber has plunged 40 per cent this year to US$2,700 (Bt84,645) per tonne.
He said the global demand for rubber was dropping due to the economic slowdown, though demand for the material in the automotive industry is rising thanks to the booming Chinese economy. China is the key importer of rubber at 37 per cent of total sales volume, followed by the United States and Europe.
Sri Trang stocks yesterday closed at Bt14.40 yesterday, dropping 0.69 per cent from Thursday.