As mergers and acquisitions go, the deal announced by Sri Trang Agro-Industry recently seems insignificant. Yet, it was enough for the group to claim that it is maintaining its leading position in the rubber sector in terms of processing capacity even as some of its peers engage in much more aggressive deals. And, it suggests that Sri Trang has no intention of ceding its leading position as the industry consolidates after years of low rubber prices.

On April 1, Sri Trang said it would purchase a 9% stake in Thaitech Rubber Company from Itochu for THB111.5 million ($4.3 million). That will raise Sri Trang’s stake in TRC from 33.5% to 42.505%. TRC has three production facilities in Thailand with a combined capacity of 315,360 tonnes a year. It sells rubber to tyre companies around the world. TRC was founded in 1989 by Itochu, Sri Trang and Southland Rubber. It is currently loss-making.

“Following the additional investment, Sri Trang will take active roles in managing the business and operation of TRC,” the company says in an announcement. With TRC in its fold and management control, Sri Trang says its processing capacity would have been a pro forma 2.2 million tonnes per annum in 2015, up from 1.9 million tonnes. Including its planned organic expansion initiatives, Sri Trang’s processing capacity is set to hit a new high of 2.4 million tonnes per annum this year. That is equivalent to about 19% of the current global capacity of 12.7 million tonnes per annum.