Ministry of Industry and Thaton Township officials discussed plans to build a new rubber manufacturing plant in the Mon State, according to a report Myawady Daily newspaper.
The plan for the No. 21 Heavy Industry Tyre and Rubber Factory – including the need for agricultural land leases, new manufacturing methods to produce good quality rubber and better use of fertilizer — was discussed at the annual general meeting of Thaton Township Rubber Planters and Producers Association on 23 June.
Association Chairman Dr. Than Myo said the
project is needed because of the high level of international demand for high-quality rubber.
Myanmar has struggled to produce high-quality rubber at sufficient volume to interest international buyers. Currently, most of Myanmar’s rubber producers are small holder farmers using traditional farming methods.
Thaton Township is a rubber growing hub with 40,000 acres under cultivation, although only half of that acreage produces rubber of sufficient quality for export to China, India, South Korea and Japan.
Myanmar has more than 1.6 million acres of rubber plantations and rubber latex is produced by over 700,000 acres of rubber land.
Most of Myanmar’s rubber goes to China through cross-border trade stations, while other countries receive shipments by sea.
Rubber prices are correlated to global petroleum prices and the dollar exchange rate. Recent global economic trends have pushed rubber prices down.