Grand Asset Expands into Healthcare Sector

Establishes New Joint Venture to Produce and Export Rubber Gloves

 

Grand Asset is expanding its business into the healthcare sector by establishing a joint venture called “Grand Global Golf” to produce and export rubber gloves. The company plans to invest in a new factory in Chachoengsao, aiming to become the second-largest rubber glove manufacturer in Thailand.

Mr. Vichai Thongtang, Chairman of Grand Asset Hotels and Property Public Company Limited, revealed that the company has entered into a joint investment with Wattanachai Rubbermet Co., Ltd., holding a 50.5% stake to establish Grand Global Golf Co., Ltd. (GGG) for the production and export of rubber gloves. The new factory will be located in the TFD Industrial Estate in Chachoengsao, with a production capacity of 5 billion pieces per year, aiming to become the second-largest rubber glove manufacturer in Thailand.

“This investment may seem like a shift in business direction, but in reality, it is merely an expansion into the healthcare sector, in addition to our current hotel and real estate businesses. The COVID-19 crisis has had a tremendous impact on the economy and people's lifestyles. The world must adapt as the global context has changed, prompting all businesses to adjust to new business models. Thailand has been recognized by the global community for its outstanding capabilities in healthcare, making it a strong potential market. Grand Asset is aware of these changes and has chosen to align its strategies with the country's strengths. We are confident that integrating with health-related businesses will mark a New Future for real estate and other sectors,”

This expansion into rubber glove production also recognizes the significant growth opportunities for the company, driven by the continuous global demand for rubber gloves. The joint venture with Wattanachai Rubbermet, which has over 30 years of experience and is a leader in the production and export of rubber gloves worldwide, positions the company as a new player in this industry with confidence, supported by partnerships in the healthcare and medical industries, which are direct users in the country, as well as the expertise of executives in the science and medical fields.

 

The company will start by producing rubber gloves for medical and other industries, with key products including natural latex gloves and synthetic nitrile gloves, adhering to new standards in design and production technology. These products will be manufactured and distributed domestically, as well as exported to countries with high demand for rubber gloves. Market expansion is projected to include Europe (30%), Asia (25%), the United States (15%), the Middle East (15%), and others (15%).

Currently, the global market share of rubber gloves is heavily concentrated in Southeast Asia, accounting for up to 86%, including Malaysia, Thailand, and Indonesia, which are significant sources of rubber cultivation. Malaysia, which holds the largest market share, imports natural latex from Thailand for production. As the world's leading producer and exporter of concentrated latex, Thailand has the potential to increase its share of the global rubber glove market. The company is ready to support rubber farmers and push Thailand to become the global center for natural rubber glove production by establishing a global distribution and logistics company to cater to international buyers and end-users worldwide.

“According to the World Health Organization (WHO), from 2010 to 2019, global demand for rubber gloves grew at an average rate of 8% per year, driven by population growth and usage in both industrial and healthcare sectors. In 2020, the COVID-19 pandemic significantly increased global demand for rubber gloves to meet the needs of the new lifestyle, with demand exceeding 330 billion pieces per year. It is projected that from 2021 to 2023, demand will grow to 500 billion pieces per year, primarily due to the growth of the medical industry and increasing consumer focus on hygiene, reflecting opportunities for rubber glove manufacturers to accelerate exports to global markets.”