LONDON—Sinochem Group has signed an agreement with the Rubber Authority of Thailand to purchase 200,000 metric tons of natural rubber.
The deal marked Sinochem's largest natural rubber order in 2015, according to a statement from the China state-owned enterprise. The announcement coincides with on-going trade talks between China and Thailand, focused on enhancing cooperation between the countries.
The talks included a Dec. 17 meeting between Thai Prime Minister Gen Prayut Chan-o-cha and Wang Yong, Chinese state councillor. These discussions “touched upon” an agreement involving 200,000 tons of rubber between the Thai and Chinese governments, said a Thai government statement.
It added that Prayut invited China to invest in Thailand's southern economic area, which is a major production base for rubber among other crops and commodities.
By the end of 2014, Sinochem Group had more than 80,000 hectares of rubber and oil palm plantation, with 22 natural rubber processing factories in China, Thailand and West Africa and a total capacity of more than 700,000 tons per year.
Last year the group sold more than 800,000 tons of natural rubber, claiming the third spot in global market share.