Chinese, Thai tire firms forming Thai JV

CHONBURI, Thailand (Nov. 29, 2016) — China's Shandong Yinbao Tyre Group Co. Ltd. is in the process of setting up a car and truck tire joint venture in Thailand with local tire makers N.D. Rubber Public Co. Ltd. and P. Siam Tyre Ltd.   

Shandong Yinbao, producer of the Goodtire, Gold Tire and Yinbao brands, will own 40 percent of the new venture with ND Rubber and Siam Rubber holding 30 percent each, according to a document submitted by ND Rubber Managing Director Chaiyasit Samrittivanicha to the Stock Exchange of Thailand.

ND Rubber's document does not spell out the venture's name nor production targets, but local news reports have suggested that construction of the plant is scheduled to be complete by 2018 with the capacity to produce 1.2 million truck tires and 3 million passenger car tires annually.

The Chonburi-based venture has registered capital of 1 billion Thai baht, or roughly $29 million, according to the filing.

Founded in 1996 in Shouguang City, Shandong Province, Shandong Yinbao claims production capacity for bias-ply car tires, all-steel light and medium truck tires, bias-ply OTR tires, agricultural tires, special tires, etc.

Chonburi-based N.D. Rubber is a motorcycle tire and tube producer established established in 1992 as a battery manufacturer by the Samrittivanicha family group. The company added motorcycle tubes in 1994 and motorcycle tires in 1997.

P. Siam Tyre is described by N.D. Rubber in its filing as a truck tire manufacturer.

According to Thaii news reports, the venture's main target markets will be neighboring countries in the ASEAN region, as well as India and the US.

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European Rubber Journal contributed to this article.