Chuwit Jungtanasomboon, CEO of North East Rubber Public Company Limited (SET: NER), a leader in manufacturing and distributing high-quality rubber sheets, rubber blocks, compound rubber, and end-products such as rubber flooring for automotive industries and intermediaries both domestically and internationally, announced a production target of 500,000 tons for 2025, with expected sales around THB 34 billion, marking a 24% increase.
The company is strengthening its investment with plans to build a third plant dedicated to producing rubber blocks and compound rubber, investing THB 2 billion.
This expansion aims to support the continuously growing rubber market and meet increasing orders from domestic and international clients, particularly China, NER’s major customer. The company also plans to expand its customer base within Asia, where demand for rubber is rising.
NER anticipates that once the third rubber block plant is completed, production lines will gradually be installed. By 2026, production capacity will increase to 675,000 tons per year (a rise of 159,400 tons from 2025). In 2027, full production capacity will boost output to 835,600 tons per year (an additional 160,600 tons from 2026).
This expansion will elevate the company’s total production capacity from 515,600 tons per year to 835,600 tons annually, representing a 62% growth, adding 320,000 tons per year.
This new facility plays a crucial role in enhancing NER’s global market competitiveness by expanding its production potential to sustainably meet increased demand from existing and new international clients, especially in Asia.
Moreover, NER is promoting standard-compliant rubber cultivation among farmers to ensure quality and quantity in raw material supplies, aligning with EUDR specifications. The company has adjusted its hedging strategy, reducing risk from 100% to 80% to capitalize on opportunities for profit, given the tight supply of raw materials.
Previously, NER fully hedged its sales, which provided consistent profits but required high rubber inventories held for 4-5 months before delivery, leading to higher inventory values than competitors. During rising rubber price trends, NER did not gain due to locked-in costs and selling prices.
NER is confident that this production expansion is a critical step towards long-term business stability and sustainability, driving the company’s ascent to regional leadership in the rubber industry. While emphasizing employee development at all levels through workplace motivation, NER also remains committed to continuous ESG activities promoting community quality of life alongside social development efforts.
Staying true to its foundational business goal NER creates value beyond rubber and vision .“We are a world-leading natural rubber manufacturer, striving to create value and a sustainable future for every community with us,” stated the CEO. NER is dedicated to becoming a top producer of high-quality natural rubber recognized internationally, operating with integrity, transparency, and fairness, fully aware of environmental and societal impacts.
Chuwit concluded by stating the company’s ongoing commitment to growth and sustainability in the rubber industry.
