Policy and Commitment

The Company has R&D projects covering all product groups such as Technically Specified Rubber (TSR), Ribbed Smoked Sheets (RSS), Concentrated Latex, and rubber glove products and the research and development policy has been updated to include additional provisions on developing digital and artificial intelligence (AI) technology to align with the company's mission. The Company focuses on improving the efficiency of production processes and enhancing the quality of products to respond to customers’ needs and sustainably manage the environment, which leads to an increase in opportunities and competitiveness for the Company. The Company has a research and development policy with 3 main objectives and goals as follows:

To enhance STA competitiveness

(to increase productivity and reduce cost)
To promote the sustainable and

environmentally friendly operation

To create business opportunities and
support new businesses

Research and Development Policy

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Goals
Number of innovations in energy,
production process, products and sustainability
at least
5 cases/year

Performance in 2025

Innovation Development Projects in 2025 Projects
To enhance STA competitiveness (Productivity, Automation and AI) 69 Projects
To promote sustainable and environmentally friendly operation 7 Projects
To create business opportunities and support new businesses 5 Projects
Total Projects* 81 Projects*
Total R&D expenses in 2025 103.4 million Bath

Remark: *The number of consecutive projects from the previous year is 58 projects.

Innovations and technologies to reduce environmental impact for sustainable business operations

Innovation in artificial intelligence development for natural rubber and glove factories

In 2024, the Sri Trang AI Machine (SAM) project was further developed with the objective of utilizing digital technology to transform work processes. Artificial Intelligence (AI) was developed to create an automated control system in the rubber block production process, used in analytical and decision-making processes to enhance product efficiency and save energy in production. Examples include the AI DRYER Project, which features an automated control system designed to optimize energy management in rubber drying ovens according to product types, resulting in reduced energy consumption; the Gloves Defect Detection Project, which utilizes vision cameras combined with AI-based deep learning to detect and segregate defective or non-conforming gloves during the production process; and the Smart Energy System, which integrates sensors with a dashboard monitoring system to collect and track real-time energy consumption data. Together, these initiatives reflect the company’s commitment to intelligent manufacturing and sustainable industrial development.

Energy Monitoring System Dashboard

Machine Modernization Project

This project focuses on the research, development, and design of a new rubber block manufacturing process aimed at enhancing production efficiency while reducing the consumption of key resources, including electricity, water, and biomass fuel such as woodchips. At the same time, the project seeks to improve product quality to meet applicable standards and align with customer requirements.
This initiative represents a comprehensive transformation across the entire production process, extending beyond machinery modernization. Key areas of focus include improving process efficiency, strengthening product quality consistency, enhancing workplace safety, and advancing toward a fully automated manufacturing model (Dark Factory) to support long-term sustainable operations.

Biochar Project

The Biochar Project is a collaborative research and development initiative between the company and Chiang Mai University, designed to advance circular economic practices within the natural rubber industry. The project transforms production by-products—such as wastewater treatment sludge, boiler ash from woodchip combustion, and other biomass residues—into valuable resources for biochar production.
By utilizing industrial waste as primary feedstock, the project significantly reduces waste disposal while lowering environmental impacts and promoting efficient resource circulation. The resulting biochar delivers multiple sustainability benefits, including soil quality improvement, long-term carbon storage, and enhanced carbon sequestration potential, supporting greenhouse gas reduction efforts and future opportunities for carbon credit generation. Through waste valorization and low-carbon innovation, the Biochar Project reflects the company’s strong commitment to ESG principles, climate action, and the long-term sustainability of the natural rubber industry.

Innovation to add value to the products

  • The Research and Development Department has focused on enhancing the capability to produce concentrated latex at lower cost while improving its specificity for glove manufacturing under various conditions and product types. Key initiatives include reducing the aging period of concentrated latex prior to glove production (zero- or low-aging latex) and studying the application of biochemical approaches to further enhance the performance and efficiency of concentrated latex.
  • Glove Business: The Company continues to strengthen its research and development capabilities to enhance glove products in line with evolving customer needs and market requirements. Key developments include surgical gloves designed to support more convenient double-gloving for healthcare professionals; double-chlorinated natural rubber gloves; black natural rubber gloves; accelerator-free nitrile gloves; and diamond-textured nitrile gloves for industrial applications. In addition, the Company has expanded its product portfolio with natural rubber gloves manufactured from EUDR-compliant latex to support customers in the European market and align with emerging regulatory expectations.
  • The company actively collaborates with government agencies, private sector partners, and customers in research and development across upstream, midstream, and downstream products. For example, a partnership with a leading tire manufacturer focuses on improving the quality of natural rubber raw materials. In addition, the company’s glove manufacturing subsidiaries work closely with universities to develop innovative and sustainable products, including oil-resistant gloves, biodegradable gloves, and the upcycling of used gloves and cornstarch powder into coasters, alongside other sustainable technologies. These initiatives reflect a strong commitment to product innovation, circular economy practices, and long-term sustainability.

Intellectual Property Development

  • In the development of intellectual property (IP), the company has actively promoted the registration of patents with the Department of Intellectual Property. As a result, the company has been granted two petty patents for a block rubber grading system and the robotic system for pulling rubber, with one additional petty patent currently in the announcement stage.
  • Regarding gloves, the company has filed a total of three international patents, all of which are currently in the international announcement stage.

(The detail can be found in the 2025 Sustainability Report under the section on Innovation Management)