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TEGH Promotes Low-Carbon Block Rubber to Foster Sustainability for Entrepreneurs as Carbon Reduction Concerns Everyone

Esg strategy09 May 2026 09:00 GMT+7

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TEGH Promotes Low-Carbon Block Rubber to Foster Sustainability for Entrepreneurs as Carbon Reduction Concerns Everyone

Thai Eastern Group Holdings Public Company Limited (TEGH) is an investor in the agriculture and renewable energy industries, with three main business sectors: natural rubber, crude palm oil, and renewable energy along with organic waste management.

They organized the TEGH Low Carbon Partnership Forum 2026, a collaborative platform involving government, private sector, climate institutions, and value chain partners to jointly drive Thailand toward a robust and genuinely growing low-carbon economy.

A key highlight of the event was announcing a global achievement as the World’s First Carbon Neutral Rubber Products leader, producing carbon-neutral block rubber and carbon-neutral concentrated latex.

To achieve low-carbon rubber, the company manages the process from upstream to downstream. Upstream, they encourage rubber plantations to reduce chemical fertilizer use and shift towards organic farming, resulting in raw materials with lower carbon emissions than conventional rubber.

At the factory level, the company has modified production by replacing fossil fuels with clean energy. Currently, about 30-40% of the electricity used is clean energy, with a target to reach 100% clean energy use by 2030.

/ Sineenuch Kokanutaporn, Managing Director of Thai Eastern Group Holdings Public Company Limited (TEGH), revealed that the company’s business strategy focuses on building sustainability alongside competitive advantage.

Opening the Premium Low Carbon Market

TEGH believes the company’s capacity enables competitive pricing easily due to high production volume, but there is virtually no competitor who can produce cheap products and compete in the premium market simultaneously.

Therefore, the company does not aim to be just a standard product manufacturer but elevates itself to the Premium Low Carbon group to create a clear differentiation without abandoning its existing market.

In the future, if carbon tax laws such as CBAM are enforced, this new market will become a lifeline for customers to save on carbon tax expenses.

Currently, TEGH’s total rubber production capacity is 430,000 tons per year, with 150,000 tons already produced as carbon-neutral rubber annually.

The company aims that within 2-3 years (after successfully listing its subsidiary on the stock market), it will expand low-carbon rubber production to 100% of total capacity, meaning it will no longer sell conventional rubber.

TEGH’s low-carbon rubber is already exported globally to all continents, with over 20 world-class tire customers receiving certification from the company.

In building a comprehensive business ecosystem, cooperation between the parent company (TEGH) and its subsidiary TEBP (Thai Eastern Bio Power Company Limited), a biogas producer and distributor, plays a key role.

TEBP’s organic waste management process generates carbon credits, and the company also extends this waste into producing and selling clean energy.

Regarding cost control amid crises, the company manages cost risks such as war or rising transportation costs. It is not directly affected because domestic transport costs account for less than 0.1% of total costs, and it stocks plastic packaging in advance, keeping the overall cost of goods sold increase below 5%.

Beyond rubber, the palm oil business generates over 3 billion baht annually. The company is negotiating with a Chinese partner to convert waste from biogas and palm oil production into Sustainable Aviation Fuel (SAF), creating a new revenue stream.

This business advancement marks a significant step for Thailand’s natural rubber industry, elevating it from raw material producer to leader in low-carbon materials across the supply chain.


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