Stretching the potential of rubber from upstream, midstream to downstream possibilities
FGV’s foray into the resilient rubber industry is part of our crop diversification programme to rebalance our reliance on palm oil. As processed rubber continues to enjoy a growing global market, Rubber Cluster is poised to tap new opportunities by expanding its operations and leveraging on our strengths in the industry.
Rubber Cluster was conceptualised to stepchange the trajectory of the Group’s current rubber processing businesses into a leading integrated rubber player. Led by FGV Rubber Sdn Bhd (FGVR), Rubber Cluster has made significant contribution to the natural rubber industry backed by over 6 decades of experience in upstream plantation followed by ventures in the midstream segment.
In tandem with the Group’s business plan, Rubber Cluster focuses on expanding upstream land bank and processing capacity. Plans to venture into the downstream segment are also in the pipeline as Rubber Cluster seeks to expand its presence across the natural rubber value chain.
We currently manage a total of approximately 14,000 Ha of rubber plantation and operate 5 midstream rubber processing facilities plus one specialised processing facility for green rubber production. Most of the raw material sourced is from within the Group’s rubber plantations.
Rubber Cluster also has overseas presence with rubber processing facilities in Thailand, Indonesia and Cambodia. In addition, we have a strategic partnership in Myanmar to explore opportunities of expansion both in upstream and midstream.
KEY GROWTH TARGET: FGV is on track to expand into more value added midstream and downstream products and to be a global processed rubber player by 2020
Given the increasing awareness and concern for the environment, buyers are placing high priority on ‘green’ products. After working very closely with the Malaysian Rubber Board (MRB) and various consultation teams, Rubber Cluster has ventured into commercialisation of Ekoprena™ and Pureprena™ – two trademarked variations of Green Rubber that have a host of diverse market applications.
EKOPRENA™ is a form of Epoxidised Natural Rubber and an established class of speciality rubber. Its properties provide a good wet grip, low rolling resistance and low noise, it is ideal for use as tyre treads especially for passanger cars and trucks. Being oil resistant and gas permeable it is also ideal for producing bladders, inner tubes, tyre lines, hoses, seals, connectors and tubes.
PUREPRENA™ is a new generation of Deproteinised Natural Rubber, produced by treating fresh natural latex with an industrial enzyme that hydrolyses all natural-occurring proteins in the latex into water-soluble forms. It is suitable for use in hydromounts, large absorbers, suspension bushes and helicopter rotor bearings. It also has low water absorption and low protein and ash contents; making it ideal for use in underwater, medical, pharmaceutical and food applications.
Having signed a Technology Transfer Agreement with MRB to commercialise Ekoprena™ and Pureprena™, Rubber Cluster has started production of Green Rubber at FGVR’s Palong 8 Processing Facility.
- FGV Rubber Sdn Bhd
- Felda Rubber Industries Sdn Bhd
- Feltex Co Ltd
- PT Felda Indo Rubber
- FGV-CVC (Cambodia) Co. Ltd
* The list of subsidiaries is not comprehensive. Further details on the equity shareholdings of FGV in its subsidiaries can be referred to in the Financial Statements
# Joint ventures or Associated company