THAILAND: China roadshow to tempt investors to rubber city

The Industry Ministry is scheduled to hold a roadshow in China in Feb. 2016 in a bid to attract Chinese businesses to invest in Thailand's latest rubber city in the southern province of Songkhla, says Industry Minister Atchaka Sibunruang.

The move is part of the government's effort to raise the consumption of Thai natural rubber amid falling prices. The China roadshow will be held in Qingdao, a major Chinese rubber city, she said. "Apart from China, the government aims to hold roadshows in Korea, Japan and the US to promote investment in the first half of the year," said Atchaka.

But the main focus is China, the world's biggest rubber consumer, which could help mop up excess rubber supply from Thailand, helping to prop up falling prices, she said.

The price of natural rubber has collapsed from a record high of 120 baht a kilogramme in 2011 to 32-37 baht now, forcing the government to issue several support measures. Thailand is the world's biggest rubber producer and exporter.

Somkid Wongchaisuwan, the Industrial Works Department's director-general, said the Industry Ministry was about to accelerate new investment for 79 rubber companies. It expects these companies to start outlays this year to raise demand for natural rubber.

The government estimates new investment in the rubber industry could help consumption increase by 500,000 to 800,000 tons per year. Thailand produces 4.3 million tons of rubber annually, with 87 % slated for export.

Veerapong Chaiperm, governor of the Industrial Estate Authority of Thailand (IEAT), said the plan to promote the rubber city also aimed to create demand for other rubber-related industries such as medical equipment and tyres for special vehicles, trucks and aircraft.

He said the rubber city was expected to be fully invested by 2021. To cost 8 billion baht, it is located in Hat Yai district on 2,284 rai of land. It is in the second phase, with the IEAT developing 775 rai after developing 1,000 rai in the first phase. The rubber city is expected to be part of the government's special economic zones in which investors receive substantial Board of Investment privileges.

Source: Daily “The Bangkok Post”, Bangkok; 25 Jan 2016
(Syed Rashid Ali, Karachi, Pakistan)