Hangzhou Zhongce ‘looking at Europe’ before proceeding with JV
According to unconfirmed news published by the Bangkok Post, concerns about an “uncertain outlook” in Europe may have prompted a postponement of the planned joint venture between China’s Hangzhou Zhongce and Thailand’s Thai Hua Rubber. In its September 26 article, ‘Chinese-Thai venture on hold’, the newspaper reports Thai Hua CEO Luckchai Kittipol as saying investment in the joint venture has been suspended as Hangzhou Zhongce wishes to monitor European economic conditions.
“The investment will be postponed until next year, possibly the first half, in order to see the European effect, as 80 per cent of the production would be exported to Europe and the US,” Mr Luckchai told the Bangkok Post. The newspaper notes that the original plan called for production to begin in 2012. When first phase work is complete the plant will be capable of producing half a million passenger car tyres and 100,000 truck and bus radials per annum; while no official word has been given on the factory’s final intended capacity, various Thai news reports put the figure at between three and five million tyres a year.