Bangkok – Two Thai tire & rubber companies and China’s Shandong Yinbao Tyre Group Co. have signed a joint-venture agreement to manufacture passenger car and truck tires in Thailand, according to a filing by one of the partners ND Rubber.
ND Rubber, which mainly produces motorcycle tires, will own a 30% share in the JV, while Thai truck tire manufacturer P. Siam will hold another 30% of the venture. The Chinese tire-maker will own a 40% share in the business.
The 1-billion bhat (€26.5 million) venture is expected to be established by June 2017 in Chonburi, Thailand.
Local news reports have suggested that construction of the plant is scheduled to complete by 2018 with the capacity to produce 1.2 million truck tires and 3 million passenger car tires.
The products are expected to be distributed to both domestic and overseas markets.
According to Bangkok Post, the main target markets for the produced tires will be neighbouring countries in the ASEAN region, as well as India and the US.