Thailand’s Vee Rubber to Increase Capacity for Export Markets
Thailand based manufacturer and exporter of car and motorcycle tyres, the Vee Rubber Group, has disclosed plans to invest up to a billion Thai baht (£15.5 million) over a period of several years. According to the Bangkok Post, the company desires to increase its car tyre production output to better serve its export markets.
The first phase of the company’s expansion will take place by the end of 2008, when Vee Rubber’s factory in Samut Sakhon Province will reach a new monthly output level of 200,000 to 300,000 tyres per month, up from the current monthly output of 100,000 car and light truck tyres. Reaching this capacity will require an investment of 400-500 million baht (£6.2-7.8 million). The remaining money will, over the next two to three years, be used to further boost the factory’s output to between 600,000 and 700,000 tyres per month. All of the added tyre output will be for export, primarily to Asia, Africa and North and South America.
”We ship all our tyre output because of greater market potential overseas,” said deputy managing director Vichit Sukanjanapong. “Consumers abroad also have varying needs that can be met by our products,”
The company’s new motorcycle tyre factory in Phetchaburi Province opened at the start of 2008, added Mr. Vichit. The plant, which cost between 300 and 400 million baht (£4.7-6.2 million) to build, produces two million tyres per year for the domestic market. Total production output from both plants is currently 15 million tyres per year, of which 60 per cent are earmarked for export.
Vee Rubber was formed in 1977 as a manufacturer of bicycle and motorcycle tyres and tubes. Worldwide it operates more than 10 branches, employing around 4,000 people.