Message from the Chairman

Investor Relations

 

Our subsidiary Sri Trang Gloves (Thailand) PLC (STGT) completed the listing on the Stock Exchange of Thailand. STGT has been producing and distributing gloves worldwide for more than 30 years. The completion of an initial public offering on 2 July 2020 was the culmination of over 30 years of steady growth, demonstrating the true value of our operations and strengthening STGT’s position as the world’s third largest glove producer.

STA has maintained its position as the world’s leading natural rubber company amid the challenges throughout the years. 2020 was the year many industries, including natural rubber, felt the impact of COVID-19. The suspension of operations by tire manufacturers in early 2020 led to a sharp slowdown, with demand for the whole year estimated to be at the lowest level in 5 years. The drop in demand also caused natural rubber prices to sink to the lowest level since 2013.

But there exist opportunities in any crisis. We have demonstrated to customers, suppliers and financial institutions the strength of our operations and finances. Our expertise and experience have seen us through many a crisis. Despite the impact from COVID-19 and the slowdown in the natural rubber industry, our operations have remained profitable. This is why STA has remained for so many years at the top of the natural rubber industry in the eyes of customers and suppliers. We intend to strengthen our operations even further and are committed, as a leader, to steering Thailand’s natural rubber industry toward sustainable growth.

STA posted a record profit. The outbreak of COVID-19 has ushered in the “New Normal,” that has brought with it challenges and opportunities. Our glove operations have seen significant growth, with consumer base expanding beyond the healthcare industry to encompass new users with high growth potential. Our natural rubber operations, meanwhile, have seen continuous improvement in production and productivity, with being “flexible and agile” having been firmly established in the mindset. Driven by the strength of our 2 businesses, we were able to post a record profit in every quarter of the year. For the whole of 2020, we recorded Baht 9,531 million in net profit, the highest since our founding 33 years ago.

Sri Trang Group remains committed to our practices in community engagement and development. In this coming year, we expect sales in our natural rubber operations to increase in concert with the recovery of the global economy. For our glove operations, we are committed to our capacity expansion plan to serve the global demand that keeps growing. We also view our expansion plan as a community development project that helps create jobs and income, strengthening the local economy. In the long run, we want to see the province of Trang become the “Glove City” of the world, a development that will benefit the whole natural rubber supply chain in Thailand.

Lastly, I would like to thank our shareholders, business partners, customers, all employees and stakeholders who have trusted in and supported Sri Trang Group throughout the years. I can assure that Sri Trang Group will keep growing, will keep strengthening our operations to reinforce our status as a leader in the natural rubber industry.

Dr. Viyavood Sincharoenkul
Chairman and Managing Director
Sri Trang Agro-Industry Public Company Limited