Local rubber firm eyes China bump

Local rubber firm eyes China bump

CS Rubber Industry Co, a Thai-Taiwanese rubber compound maker, is looking to spend 500 million baht to expand monthly production to 5,000 tonnes next year from 1,200 tonnes now, mainly to serve China's automotive industry.

deputy managing director Jerry Chen said the company is building connections with Chinese car and tyre makers that run facilities in Thailand.

"If we can supply materials to the Thailand plants of those firms, we will be able to get our products through the automotive supply chains in China," he said.

Several Chinese automotive firms have announced plans for Thai plants including SAIC Motor, Great Wall Motors and Shandong Linglong Tyre.

Late last year, SAIC formed a joint venture with Charoen Pokphand Group on a first-phase investment of 9 billion baht in a Thai factory.

Great Wall Motors, China's biggest maker of sport-utility vehicles and one of its leaders in pickup trucks, in April revealed plans to build a US$300-million SUV plant in Thailand.

Shandong Linglong Tyre will spend up to $600 million in Thailand over the next four years after deciding last year to put its first international plant here.

Mr Chen said Chinese cars made in Thailand will be cheaper than Japanese ones and should find favour in Cambodia, Laos, Myanmar and Vietnam.

CS Rubber Industry was founded in 2004 by Charoensin Group and Taiwanese investors, with the Thai firm controlling a 70% stake.

The company's key output includes rubber compounds, rubber products and polyurethane items.

The rubber products go mostly to makers of auto parts, appliances, sporting goods and shoes.

CS Rubber Industry expects revenue to grow by a third this year to 400 million baht, with 95% coming from domestic sales and 5% from exports.

Key export markets include China, Indonesia, Vietnam, the Philippines, Poland and Portugal.

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