North East Rubber Public Company Limited (SET: NER) is poised to further capitalize on the EU Deforestation-free Regulation (EUDR) by exporting certified rubber to China and potentially garnering increased orders from India.
Mr. Chuwit Jungtanasomboon, the CEO of NER, informed ‘Kaohoon’ that Indian clients are currently inspecting their EUDR facilities this week in preparation for exports to Europe.
The EUDR is a policy aimed at addressing and mitigating the environmental repercussions of deforestation, allowing commodities to be traded or exported only if they meet specific criteria like being deforestation-free, legally produced, and engaging in due diligence.
NER anticipates substantial orders from Indian clients, estimated at around 3,000-4,000 tonnes monthly. While focusing predominantly on the Chinese market, the company recently inked an agreement with Chinese partners to supply the first batch of EUDR rubber by September, with higher margins expected to boost sales this year.
Looking ahead, NER plans to fully launch EUDR rubber exports next year and secure additional orders from Chinese customers. The company foresees enhanced operations in the latter half of the year, benefiting from robust selling prices and fully booked orders, which is anticipated to drive revenue growth in 2024.
