Shandong Yinbao Tyre Group Enters Thailand via Joint Venture
Thailand: Shandong Yinbao Tyre Group
Co. Ltd., China’s tire manufacturing giant, entered in a joint venture with Thailand’s
local tire makers P. Siam Tyre Ltd. and N.D. Rubber Public Co. Ltd. to set up a
truck and passenger car tire manufacturing facility.
Both the companies, ND Rubber
and Siam Rubber would hold a 30% share, each, while Shandong Yinbao would hold
a 40% share in their joint venture. The production output of the new facility
is still not confirmed by the company spokesperson, however, the plant is
expected to produce 3 million passenger car tires and 1.2 million truck tires,
annually, after the construction is completed by 2018. Further, the joint
venture has registered a capital of around USD29 million.
As per TechSci Research, P.
Siam Tyre Ltd. and N.D. Rubber Public Co. Ltd. are renowned tire brands across
Thailand, whereas, the joint venture of the companies with Chinese
multinational is anticipated to expand the company’s product portfolio, which
would further generate sales by the domestic companies.
According to a recent report published by TechSci Research, “Thailand
Tyre Market Forecast & Opportunities, 2020’’, Thailand
has emerged as one of the most preferred destinations for automobile production
for various leading global automotive players due to availability of cheap
labor and geographical advantage of its location in the ASEAN (Association of
Southeast Asian Nations) region. Thailand is the leading rubber producing
country worldwide, and accounted for around one-third of the global rubber
production in 2014. Major global automotive OEMs such as General Motors,
Toyota, Honda, Mitsubishi, Honda, Isuzu, Ford, Nissan, etc., have established
their manufacturing plants in Thailand, in order to address increasing domestic
as well as global demand for automobiles, which in turn, has been surging
demand for automotive tires in the country. Thai automotive OEM companies
cumulatively produced around 3 million light commercial vehicles and
two-wheelers in 2014, thereby propelling demand for tires from the OEM segment.