Rubber Group to expand tyre, tube production

Despite the difficulties caused by the COVID-19 pandemic and natural disasters that directly affected it, the Vietnam Rubber Group achieved its revenue and profit targets for 2020.

The Vietnam Rubber Industry Group plans to invest in rubber tyre and tube production to check a fall in revenues. (Photo: VNA)

HCMCity (VNS/VNA) - Despite the difficulties caused by theCOVID-19 pandemic and natural disasters that directly affected it, the Vietnam RubberGroup achieved its revenue and profit targets for 2020.

It reported after-tax profit of 5 trillion VND on sales of 25.477 trillion VND(1 billion USD).

But with COVID-19 still a threat, it expects 2021 to be a difficult year.

It has advised its subsidiaries to not stockpile to wait for prices to rise orsell too soon if prices fall.

They should work closely together with respect to processing to control qualityand make their products consistent.

It would focus on restructuring and step up investment in the rubber sector,and M&As would help close the rubber tyre and tube products value chain, itsaid.

Currently it has five main lines of interest: growing rubber trees andprocessing latex, processing rubber wood, making industrial products fromrubber, operating industrial parks amid rubber plantations, and high-techagriculture.

In the natural rubber segment, GVR manages more than 400,000ha of land underrubber trees, but this business has been on a downward trend in recent yearsdue to low rubber prices.

The COVID-19 pandemic has further hurt demand for rubber, pushing productioneven lower.

Expanding tyre and tube production could help revive revenues.

It entered this segment in 2017 through a partnership with the Southern RubberIndustry Joint Stock Company (Casumina) to produce the VRG brand of tyres./.
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