New 30ktpa rubber additives plant starts up in Thailand

Rayong, Thailand — Chinese rubber additives supplier Shandong Yanggu Huatai Chemical has started up a 30 kilotonne per annum (ktpa) production plant in Rayong, Thailand, as part its strategy to growth in Southeast Asia.

The phase I of the facility, located in the Rayong rubber industrial park, represents a total investment of Yuan273 million (€35 million), said the group in a 25 March statement.

The project was completed in just over a year with construction having begun in February last year.

According to Yanggu Huatai, the first phase includes 10ktpa production capacity for each of rubber protective wax, rubber processing additives, and high-performance silane coupling agents.

The Chinese group stressed that the start-up of the Thailand base would enhance its “global core competitiveness” and enable it to better serve overseas customers.

The move comes as Southeast Asia continues to emerge as a key hub for the global tire industry.

According to Yanggu Huatai, Thailand hosts 29 tire plants with annual capacity exceeding 142 million units, while combined capacity in Vietnam, Indonesia and Cambodia is nearly 240 million units per year.

By 2026, the group said, additional tire output in Thailand is expected to exceed 12 million units.

Against this backdrop, Yanggu Huatai said its investment in Thailand reflects a “strategic move” to globalise rubber value chain.

The new plant is expected to supply both Chinese tire makers in the region and “radiate” to global tire majors expanding across Southeast Asia.

Founded in 1994 and listed on the Shenzhen Stock Exchange in 2010, Yanggu Huatai is a producer of rubber additives, with total annual capacity of 300ktpa.

The Thailand project, it said, will optimise the group’s production footprint, reduce reliance on a single market and support deeper participation in international competition.