'news' for you via the nation. i'll be sure and shut off the lights on my way out.
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Date: 5/20/99
Publication: The Nation
Section: Business
Lift cap on synthetic gloves, say makers
NATURAL rubber-glove makers have urged the Board of Investment (BOI) to increase flexibility for firms to shift to synthetic gloves in the wake of an anti-natural rubber-glove campaign in the US, a major market.
Citing allergies, US consumers have avoided natural rubber-gloves in favour of synthetic products.
Safeskin Corporation (Thailand) Co Ltd, one of the country's five largest rubber-glove makers, has proposed to the BOI to increase the synthetic glove output ratio from 10 per cent to 50 per cent of total output in line with the export market.
Thailand is a major producer of natural rubber. The BOI currently caps synthetic output of glove makers, who mainly supply the products for medical activities.
A company source said it has become difficult to export natural rubber gloves to the US because users have changed their preference because of allergy reasons. Moreover, exporters have seen prices falling due to an oversupply.
Besides Safeskin, several newly-set-up latex manufacturers with BOI privileges have sought BOI approval for synthetic glove expansion as the US, a major importer, has been encouraging consumers to use synthetic gloves instead of latex rubber gloves.
Rubber gloves are mostly used in medical activities. The users include doctors, dentists and nurses who are allergic to the corn-starch powder which is used to facilitate easy donning and to prevent the sides from sticking together. As a result, the amount of synthetic glove use in the US has been increasing since last year.
This has forced manufacturers to increase their ratio of synthetic-glove production in order to survive.
The BOI has yet to approve Safeskin's proposal. The authority is worried that more synthetic output will lead to falling rubber prices, especially if other manufacturers also want to shift to synthetic gloves.
Viyavood Sinchareonkul, managing director of Sri Trang Agro-Industry Plc, a leading rubber-glove manufacturer, said synthetic gloves cannot replace latex gloves because of limited markets and they are two-times more expensive than latex gloves.
Synthetic-glove manufacturers have to import raw materials from Germany.
He said manufacturers should concentrate on the country's strength in natural rubber, adding that some latex-glove manufacturers in Malaysia have moved production plants to Thailand because of lower production costs and availability of raw materials.
World glove consumption is about 35 billion pieces. Thailand's total capacity is about 20 billion pieces.
There is an annual demand for about 10 billion synthetic gloves, usually used in industrial purposes.
Nitrile gloves, meanwhile, are more popular among users but cost three to four times more than rubber and synthetic.
Viyavood said the export of synthetic gloves not only faces high production costs but are also subject to high import tariffs of between 8 to 10 per cent in the EU market. The EU has granted GSP tax privileges to China only. This has reduced Thailand's competitiveness.
Nevertheless, synthetic gloves can sell well only in the United States while other importing countries prefer latex gloves. Synthetic-glove exports are going down as seen in orders in the second half of this year while rubber gloves have grown by 10-20 per cent annually.
Latex glove exports, however, are facing declining prices due to an oversupply problem. It is seen that production has exceeded demand by 10-15 per cent of the world's consumption.
Viyavood said the industry is trying to develop new products by reducing protein content, which cause allergies.
A senior researcher in the Rubber Research Institute of Malaysia, Dr Esah Yip said absorption of proteins by powder should be insignificant in gloves with low extractable protein content. This has been a misconception among many users that powdered gloves are high protein gloves. In fact, powdered gloves can have low extractable protein content, which are immuno-friendly.
Somruetai Patana-anek, regional business development manager of National Starch & Chemical, the country's biggest corn-starch powder manufacturer, said its US parent company's production of absorbable dusting powder has been approved by the US Department of Health and Human Services.
The certificate has guaranteed Thailand's corn-starch product also meets the US regulatory requirements for medical gloves.
The company is also one among five companies worldwide whose products have met requirements.
Somruetai warned that many manufacturers are trying to produce powder-free gloves to meet market demand. They use calcium carbonate or a mixture of calcium carbonate in processing instead of corn-starch powder. The chemical could cause higher irritation than corn starch. Moreover, calcium carbonate costs are lower than corn-starch powder.
She said latex-glove exports dropped by 10 per cent last year due to a ban by the US. It also has affected the company's corn starch sales.
BY ACHARA PONGVUTITHAM
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