Paris – Société Internationale de Plantations d’Hévéas (SIPH) has said that a 15% increase in its natural rubber production has helped it largely offset lower sales prices in the first nine months of the year.
In a statement on 16 Nov, the French group said that in the nine months to 30 Sept, total production stood at 150.6 kilotonnes (kt) compared to 130.7kt the previous year.
The average price of rubber in the third quarter 2016, said SIPH, showed a slight decline of 2% compared to the same period in 2015 at €1.18/kg, compared to €1.21/kg.
However, the recent price recovery continued in October with an average price of €1.33/kg.
External purchases comprised nearly 25% of SIPH sales, with volumes increasing 38.4% in third quarter alone.
Rubber sales at 9 months rose by 9% at €168.7 million, compared to €154.7 million in the first three quarters of 2015.
Earlier in August, SIPH said it was on track with plans to increase production by 22 percent in 2016, while continuing to reduce costs.
The group has earmarked a budget of €19 million for ‘growth of surfaces’ and to enhance its industrial capacity in line with price developments.
In the Ivory Coast, SIPH is focused on increasing its capacity to process purchased rubber and on producing finished products based on in-demand grades.
SIPH produces and processes NR for industrial use, managing over 40,000 hectares of mature rubber trees. Its current production capacity is 250 kilotonnes spread over Côte d’Ivoire, Ghana, Nigeria and Liberia.
Treated latex comes both from SIPH’s own rubber plantations and from purchases made from independent growers, with end materials supplied mainly to the global tire industry.