Industry News

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.

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