Hangzhou Zhongce Investing in Thai Tyre Plant
China’s Hangzhou Zhongce Rubber has entered into a joint venture agreement with Thai Hua Rubber to establish a tyre production facility in Thailand’s Rayong Province. According to Bangkok based newspaper The Nation, the plant will be set up with a five billion baht (₤102.7 million) investment from the two parties; Hangzhou Zhongce holds an 85 per cent share in the joint venture, with the remainder belonging to the Thailand based rubber company.
The factory is Hangzhou Zhongce’s first investment outside China and is expected to enter production next year. Planned annual capacity is said to be five million tyres; most of these will be exported to Europe, the US and ASEAN markets.