According to reports, STA, the largest manufacturer of latex gloves in Thailand, released financial reports showing that in 2020, the total revenue was 75.479 billion baht, up 25%, and the net profit increased by 6418%, of which the net profit in the fourth quarter alone was 5.499 billion baht, up 7331%.
Thailand is the world's largest producer and exporter of natural rubber, and most of its rubber raw materials are exported to China. Due to China's decreasing demand for imported rubber, the price of rubber in Thailand has been hovering at 50-60 baht per kilogram for many years, about 10 RMB. At the beginning of the outbreak, there was even a short-term price drop, but with the support of government subsidies, the domestic rubber price in Thailand basically remained above 50 baht.
Although the overall performance of natural rubber industry is not good, but for surgical latex glove manufacturers, it ushered in a bumper harvest of sales and net profit. STA, Thailand's largest manufacturer of surgical latex gloves, reported revenue of 75.479 billion baht in 2020, an increase of 25% over 60.286 billion baht in the previous year, including net profit of 9.531 billion baht, an increase of 6418%. In particular, the performance in the fourth quarter was even more astonishing, with net profit reaching 5.499 billion baht, an increase of 7331%.
Thailand is the world's largest rubber producer, but the domestic rubber utilization rate is not high, most of which are exported to China and neighboring Malaysia as raw materials and primary products. Take latex as an example, most of the concentrated latex in Tainan is exported to Malaysia, which has the world's largest condom factory. There are many rubber tire enterprises in China, but compared with the annual output of several million tons, the domestic utilization rate is very low. This is also the reason why Thailand rubber prices are easily affected by global price fluctuations.
As the world's third largest manufacturer of surgical latex gloves, sta is still optimistic about the global rubber gloves Market in 2021, and believes that the company's sales and net profit will still have the opportunity to reach a record high.
The Thailand government has been focusing on the rubber industry as an important agricultural economic project, and even planned a special park to support the development of the rubber industry in songka Prefecture of southern Thailand. The purpose is to use policies and investment incentives to improve the utilization rate of domestic rubber in Thailand and create a situation of strong combination of rubber and tourism in southern Thailand. Especially during the outbreak of the epidemic, boi also launched special investment projects, hoping to stimulate investment in medical projects in the SAR. However, from the results, there are still limited projects that can be implemented and pushed forward according to the schedule.
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