Written on 16.02.2011 - Industry
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Thai Hua and Hangzhou Zhongce to construct JV tyre plant in Thailand

The Thai rubber manufacturer
Thai Hua Rubber plans to set up a joint venture tyre plant with the Chinese tyre manufacturer Hangzhou Zhongce Rubber Co. for THB 5 billion (~EUR 121.3 million) in Rayong, Thailand. Thai Hua will hold a 15 % stake in the JV with the Chinese firm owning the remainder. The plant is expected to start production in 2012 with an annual capacity of 10 million tyres of which 90 % will be exported to Europe, the USA, China, Australia, Japan and Asean countries.

Thai Hua currently has a combined production capacity of rubber (latex, rubber sheet and block) totalling 380,000 t of which about 300,000 t are exported. The company’s revenue in 2010 is estimated at THB 32?–?33 billion, an increase of 50 % from a year earlier. Thai Hua expects its exports to rise to 420,000 t in 2011 as production increases. Its rubber block production facility of 60,000 t at Buriram is due to be completed this year. Another rubber block plant with a capacity of 60,000 t in Yasothon will be finished by the end of 2012.

The company says it will invest about THB 1.5 billion each in 2011 and 2012. Outside Thailand, it has invested USD 20 million in a 32,000 ha rubber plantation in Laos. It expects the first shipments in 2013 when the rubber trees are mature.