LLIT to expand operation

LLIT to expand operation

LLIT (Thailand) Co, plans to spend around US$100 million on the production of automotive equipment chain in Thailand, says executive vice-president, Lance Li.

LLIT, a subsidiary of the China's leading tyre maker Shandong Linglong Tire Co, has been in Thailand since 2013, investing $700 million on the first two phases of production -- radial truck tyres and one-tonne pickup tyres in Rayong. 

Operation began in June last year and it now makes 1.2 million radial truck tyres and 2 million pickup tyres a year, all of which are shipped back to China.

"We are planning to invest on the production of equipment chain this year to serve the automotive industry," Mr Li said, without giving any details.

He added that opportunities for the auto supply chain to invest in production here were ample as many Chinese car makers would be setting up manufacturing facilities in Thailand soon to tap opportunities from the coming Asean Economic Community.

The company plans to use Thailand as its platform to expand its business globally, said Mr Li.

He said the company could see a growing market as a result of the AEC, which it could penetrate through Thailand.

LLIT is looking for the new location for the third phase, either in Chon Buri or Rayong, and expects to make decision soon.

"Thailand is one of three strategic countries for Shandong Linglong because of its strong economy, its location at the centre of  Southeast Asia and it is a production location for car producers globally. But most important is that Thailand has plentiful rubber, our major raw material," he said.

The other two strategic countries will be in Europe and North America, he said, without elaborating.

"The political situation here is not our concern and recent bombing in Bangkok should be the short-term risk factor," said Mr Li.

LLIT (Thailand) Co is a joint of venture between Shandong Linglong, Hong Kong Tiancheng & Trade Investment and Co and Guangxi Linglong Tyre with registered capital 892 million baht.

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