Yokohama to build natural rubber factory in Thailand

ERJ staff report (DS)

Tokyo - The Yokohama Rubber Co., Ltd. is to cooperate with Teck Fu Joint Venture Co., Ltd. to build a natural rubber processing factory in Surat Thani Province, southern Thailand. Construction of the factory will start in January 2009 with the scheduled start of operation in October of the same year. The joint venture is named Y. T. Rubber Co., Ltd., and capitalised at 100 million baht (approximately Euro 2.26 million). Y T Rubber was established on 3 Sept. Yokohama holds 95 percent of the equity; Teck Fu the remaining 5 percent. One billion yen (Euro 8.5 million) will be invested for the construction of the new factory with a planned monthly production capacity of 3000 tons.

Teck Fu is a subsidiary company of Teck Bee Hang Co., Ltd., which is a natural rubber processing company in Thailand. Yokohama Rubber aims for stable supply and quality of natural rubber by operating its own factory.

Currently Yokohama Rubber purchases natural rubber from Thailand and Indonesia, with Teck Bee Hang one of the largest suppliers to Yokohama Rubber in Thailand. However, Teck Bee Hang's NR processing factory, which supplies mainly to Yokohama Rubber, has been considered uncertain in terms of supply stability because of its insecure location near the Malaysian boarder area. The new factory area Surat Thani is expected to relieve this concern with its better public security.

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Press release from Yokohama.