Mr. Chuwit Jungtanasomboon, Chief Executive Officer of North East Rubber Public Company Limited (NER), stated that the company planned to invest in a machine producing rubber mat for livestock shelter which the company has jointly developed with Prince of Songkla University at a value of 240 million baht.
The installation of the aforementioned machine will be completed in 2Q21 and is expected to begin the sales of rubber mat in 3Q21. This will support NER’s 2021 revenue to reach its projection at 22,000 million baht as the rubber mat has a high gross profit margin (GPM).
The sales revenue for the company will remain at a 50:50 ratio from domestic and international sales in line with the reallocation of Chinese factories to Thailand as the demand remains high in the international market, while the number of producers in Thailand decreases.
NER expected 2020 revenue to be in line with its projection at 17,000 million baht as the production from existing factories and new factories met their production target, coupled with an increase of orders from international customers, resulting in the company to nearly hit its max production capacity this year. More importantly, the company was able to maintain its GPM at a higher level due to its matching order scheme.