“Sri Trang Group” is proud to announce unprecedentedly “Traceable Natural Rubber (GPS)” with 100-percent traceability of rubber sources. This initiative demonstrates the Group’s readiness to comply with inspection measures and regulation from around the world, including Europe, which is set to implement the European Union Deforestation-Free Regulation (EUDR) by the end of this year. This marks a significant step towards sustainability and enhances the competitiveness of the Thai natural rubber industry. Meanwhile, the Company’s executive anticipates to see the growth in the natural rubber industry in 2024 due to the recovering demand from Europe and the United States.  Sri Trang Group targets total natural rubber sales volume at 1.5 million tons for this year, or an increase of 15 percent.

Mr. Veerasith Sinchareonkul,  Chief Executive Officer & 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, led the grand event to launch the “Traceable Natural Rubber (GPS)”  along with executives and employees from 26 Sri Trang Group branches in Thailand and 2 subsidiaries in Indonesia via an online system. Additionally, Mr. Nakorn Tangavirapat, Governor of Rubber Authority of Thailand (RAOT), participated to provide updates on the situation involving the European Union Deforestation-Free Regulation (EUDR) and shared insights on how the “Traceable Natural Rubber (GPS)” will impact the Thai natural rubber industry, explaining the EUDR regulations to those present at the factories and to farmers and rubber traders participating online. The event aimed to create collaboration in developing the Thai natural rubber industry across all sectors.

Mr. Veerasith revealed that Sri Trang Group has launched “Traceable Natural Rubber (GPS)” to demonstrate the Group’s readiness to comply with measures or regulations gradually being implemented internationally that require traceability of the sources of natural rubber sold, and to demonstrate its determination to conduct its business in a sustainable, transparent and verifiable manner. Currently, the Company expects to be the pioneer in enforcing the EUDR in the region by the end of 2024. This regulation requires the verification of the sources of natural rubber and products processed from natural rubber that are exported to the EU countries, to ensure they do not originate from areas involved in deforestation and forest degradation.

Sri Trang Group is fully committed to elevating the Thai natural rubber industry to international standards, incorporated with 100-percent traceability system for the source of rubber. This initiative aims to position the Thai natural rubber industry to surpass other countries’, while also offering and opportunity to enhance Thailand’s commercial advantage, competitive advantage, and potential for higher rubber prices. Moreover, Thailand currently holds an advantage position over other countries, thanks to the continuous support and promotion from the RAOT toward the Thai natural rubber industry. Therefore, “Traceable Natural Rubber” will serve as another key factor in strengthening Thailand’s position, addressing not only the specific demands of the EU market but also catering to global market needs.

Ms. Paphawee Srisuttipong, Business Development & Partnership Manager of Sri Trang Agro-Industry Plc., said “Traceable Natural Rubber (GPS)” encompasses natural rubber products such as cup lump, field latex, rubber sheets, etc., which can be identified or traced back to their exact sources and geolocation, specifying which farm originated with the requirement that they are legally registered plantations. The Traceable Natural Rubber (GPS) registration targets 100,000 farmers and rubber traders who supply rubber to Sri Trang Group to be completed by the end of 2024, and expand to 220,000 farmers and rubber traders by the end of 2025.

Traceable Natural Rubber (GPS) initiative will further enhance the “Sri Trang ecosystem” to be more sustainable and reinforce Sri Trang’s work processes to be transparent and traceable, through Sri Trang Group’s innovation and various technologies, such as Sri Trang Friends application, Sri Trang Friends Station application, Super Driver Service, and Smart Factory System. This comprehensive infrastructure facilitates to digitize the rubber procurement process linked to all who inhabit the ecosystem, including rubber farmers, rubber traders, rubber drivers, communities, trading partners, and other stakeholders who are involved in the rubber industry. This will introduce the new dimension to Thailand’s natural rubber industry and transform of the global natural rubber industry.

Mr. Veerasith said that the overall trend of the natural rubber industry in 2024 signaled a tendency to grow in relation to the previous year. A driven factor is the recovering demands for rubber in Europe and the United States, as customers have depleted their inventories back to normal levels. Another factor is the concern over the El Niño phenomenon that is causing the decrease in precipitation that will eventually affect the production of rubber entering the market. In addition, if the economic situation in China starts to recover, this factor will have a positive effect on the overall demand for the natural rubber industry, because China is one of the world’s largest consumers of rubber. Meanwhile, the price situation for natural rubber has gradually increased since the end of last year, with the average price of TSR 20 rubber at the SICOM market in the January-February 2024 period standing at 152.7-155.1 cents per kilogram. This is an increase from the December average price of 145.4 cents per kilogram, or equivalent to an increase of approximately 5-7 percent.

The Company has set a target for sales volume of all types of rubber in 2024 at a total of 1.5 million tons, an increase of 15 percent over the previous year’s total sales volume of 1.3 million tons. The focus will be on managing rubber stocks to match with the demand, and to increase production efficiency by continually implementing additional automation and AI technology into the factory work process. The Company also intends to further grow the business with an expansion of production capacity in Thailand, the opening of a raw material procurement station in the Republic of Côte d’Ivoire in West Africa. This is a country and region with high potential for growth in rubber production. Additionally, the preparation for traceability inspections is significant in every aspect to support EUDR or other measures implemented by worldwide markets. It must also be noted that sustainable operation is the Company’s DNA, along with being the growth Company that never ceases to develop and is ever ready to adapt to always remain “The leading fully integrated and sustainable organization of green rubber”.