Search form

Login - Register | FOLLOW US ON

Logo of Phnom Penh Post newspaper Phnom Penh Post - SEA firms to ship $2b of rubber to China

SEA firms to ship $2b of rubber to China

120404_07b

Cambodia's Prominence Investment Enterprise and Thailand’s Panpee Group have signed an agreement to supply China’s Yunnan Rubber Co Ltd with 500,000 tonnes, or US$2 billion worth, of rubber per year, Sam Kay, general manager of the local partner, said yesterday.

{jathumbnail}

The companies would source rubber in Cambodia, Thailand and Laos to meet the contract, he said.

The amount of rubber Cambodia would contribute is unknown, however, as domestic rubber capacity is uncertain, Sam Kay said.

Cambodia’s supply would most likely fall short this year, he said.

The deal, however, should lead to an increase in domestic production of rubber resin.

“This is the biggest rubber deal Cambodia has ever had. It will have farmers planting even more so they can earn as much money as in neighbouring countries,” Sam Kay said, adding that the company will cooperate with local rubber-producing companies and households.

Under the agreement, both companies also plan to invest in rice, pepper and cassava, according Sam Kay.

Cambodia’s current domestic production of rubber would meet about a fifth of the Chinese quota, according to officials

“Very soon, I think we will have more than 100,000 tonnes of rubber to be exported,” president of Golden Rice Co Ltd Sok Hach said at a meeting on Cambodian exports on Monday.

He noted that exact data on rubber output was still unavailable.

According to the Ministry of Commerce, Cambodia exported about 46,727 tonnes of rubber worth $200.9 million in 2011.

To contact the reporter on this story: Sieam Bunthy at sieam.bunthy@phnompenhpost.com

0

Comments

Please, login or register to post a comment

Latest Video

Bodies of Cambodian peacekeepers returned to Kingdom

The bodies of four Cambodian peacekeepers killed by a Christian militia in Central African Republic were repatriated to the Kingdom and honoured in an airport ceremony on May 21.

Phnom Penh eats: Ptas Nak Battambang

As the name suggests, Ptsa Nak Battambang – which in English means Battambang's house – is the right place for those who want to try some of the province's typical dishes in Phnom Penh.

Opposition leader Kem Sokha uses his hat to gesture to supporters during a campaign rally yesterday in Siem Reap province. Facebook

Prime Minister Hun Sen yesterday threatened to unleash war on the opposition party if he loses patience with their campaign for the June 4 commune

The Ministry of Foreign Affairs yesterday sought to deflect criticism that the ruling party invited election observers of questionable credibility