Olam starts Gabonese rubber production for Michelin sales

Olam International Ltd., the commodity supplier controlled by Singapore’s Temasek Holdings Pte, said it will commence rubber production from plantations it owns in a venture with Gabon’s government.

Olam intends to sell the rubber to Michelin & Cie., Europe’s biggest tiremaker, Tiburce Bobedzang, a plantation official, said from Batouri in the northern region of Gabon.

About 7,493 hectares (18,516 acres) of rubber plants “are about to go into production,” Bobedzang said.

Olam established itself in the central African country in 1999 and has concluded a deal with its government to develop at least 28,000 hectares of rubber plantations. Olam’s partnerships with the nation extend to palm oil and fertilizer.

“Our objective is to plant 5,000 hectares per year in order to become major rubber producers in Africa,” Bobadzeng said.

 – Bloomberg