Thailand woos global tyre manufacturers
Thailand, currently the world’s largest rubber producer with an output of 3 million tonnes/year, is seeking to attract investment from international tyre producers in an effort to promote its domestic market and simultaneously contain its rubber export volume. Deputy Agriculture Minister Yutthapong Charasathian invited tyre makers to come and construction manufacturing plants in the South East Asian country, saying the Thai government has already sounded out “leading tyre manufacturers in the US, China and Japan” to expand tyre manufacturing operations in the country.
According to local news reports, in order to prevent surpluses in the world rubber markets, which will result in falling commodity prices, Thailand has resolved to reduce its export volume of rubber by 170,000 tonnes/year while Malaysia and Indonesia are also following suit and will reduce export volumes by a combined 130,000 tonnes/year.
“In the face of the government’s plans to reduce the rubber export volume, we’ll have to increase the domestic consumption of the rubber from 16 to 20 per cent annually. For that reason, we’ve suggested the leading tyre manufacturers come to Thailand and open tyre factories,” Yutthapong said, adding that the government has resolved to push the domestic rubber price up from US$2.60 per/kg to not lower than US$3.30 per/kg.