Shanghai Huayi Group Co., to set up manufacturing plant in Thailand.
Shanghai Huayi Group Co., the holding company of Chinese tyre maker Double Coin Holdings, is setting up a tyre production joint venture in Thailand, in the country’s rubber industrial zone LK-Rubber Industrial City Hub (LK-RICH).
The new company, Huayi Group (Thailand), is a joint venture with Bangkok-based Tribeca Enterprise Co. Ltd., a subsidiary of Thai rubber company Thai Hua Rubber Public Co. Ltd. and the promoter of the LK-RICH estate.
A contract for the project was signed in May, according to the website of China’s Ministry of Commerce. The companies’ respective ownership stakes were not disclosed.
The companies plan to pump $285 million in investment funding into the new plant, which is projected to have annual capacities for 1.5 million truck and bus tyres and 50,000 industrial tyres.
Taking up an area of 3.23 million square feet, the plant will employ 800 and generate more than $400 million in annual revenue when in operation, scheduled to begin in next March or April.
Tyres made at the site will be sold in Thailand and other ASEAN countries as well as North America, according to the ministry report.
The plant’s annual rubber consumption will start at 60,000 to 80,000 metric tons and reach 100,000 tons by 2019, the report said.