Hwa Fong Rubber to build a tyre plant in Thailand
As reported by “The Taipei Times”, the tyre maker Hwa Fong Rubber Ind. Co., Ltd. plans to spend about THB 1.53 billion (~ EUR 39.1 million) to expand its capacity in Thailand to meet growing demand in Southeast Asia.
The firm, which operates its Thai business through Hwa Fong Rubber (Thailand) PCL, will build a new plant to produce motorcycle and bicycle tyres. The first phase is scheduled to be completed by the end of 2018. The company’s two existing plants in Samutprakarn, Thailand, produce 25,000 motorcycle tyres and 32,000 bicycle tyres per day. Through collaborations with Japanese conglomerate Sumitomo Corp., the company sells its Thai products to Japanese motorcycle brands such as Yamaha Motor Co. Ltd. and Honda Motor Co. Ltd., according to the report. Hwa Fong, which set up an Indonesian subsidiary at the beginning of 2017, announced that it is also considering building new plants in the country as it eyes strong business potential in Southeast Asian nations. The company’s two major Taiwanese competitors — Cheng Shin Rubber Industry Co. and Kenda Rubber Industrial Co. — have also both announced plans to expand their presence in Indonesia, reported the newspaper.