The Council for the Development of Cambodia (CDC) announced on its Facebook page on Thursday that it had approved a $2.7 million rubber processing factory in Tbong Khmum province.
It said rubber processing factory, TTHS Rubber Co Ltd, will be located in the province’s Kraek district, which has a heavy concentration of rubber plantations and processing factories. CDC did not say if it was a local or foreign investment.
However, Pol Sopha, the director-general of the General Department of Rubber under the Ministry of Agriculture, Forestry and Fisheries, said on Thursday that he was not aware of the plant.
“I have not received any information about the factory, [the company] may merely register first and do some research for its plans.
“If their finished products can bring in investments, it could help the industry and the market.
“If investors merely invest in the processing factory itself, it would not help the rubber market, as we are still dependent on the international market,” he said.
Sopha said some processing factories in the sector had shut down as they failed to access the market.
Cambodia exported 217,500 tonnes of dry rubber last year, a jump of about 15 per cent compared to 2017, with an average price of $1,319 per tonne – a 17 per cent drop compared to 2017 – according to General Department of Rubber data.
However, the same report highlights that the average price of the commodity fell to $1,319 per tonne, resulting in a revenue drop of 3.9 per cent.
According to the CDC, the factory will provide 224 jobs.