Royong, Thailand – Shanghai Huayi (Group), the holding company of Chinese tire maker Double Coin, is setting up a manufacturing operation in Rayong’s rubber industrial zone LK-RICH.
The new company, Huayi Group (Thailand), is a joint venture with Bangkok-based Tribeca Enterprise, a subsidiary of rubber company Thai Hua group.
A contract for the project was signed in May, according to the website of China’s Ministry of Commerce.
The companies plan to pump 10 billion baht (€260 million) investment into the new plant with 1.5 million truck and bus tire annual capacity and 50,000 industrial tire annual capacity.
Taking up an area of 300,000 square metres, the plant will employ 800 staff and bring in €312 million when in operation, scheduled to begin in next March or April.
Tires made at the site will sell to Thailand and other ASEAN countries as well as North America, said the website.
The new plant’s annual rubber consumption will start at 60-80 kilotonnes (kt) and reach 100kt by 2019.