Chinese-Thai tire venture on hold

LSRUNQI

Chinese-Thai tire venture on hold
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; ^% J# S. @' x1 r0 qTuesday, September 27, 2011

Bangkok - A 5-billion-baht joint venture between Thai Hua Rubber and China’s Hangzhou Zhongce Rubber has been postponed over concerns about the uncertain outlook in Europe. Last year, Thai Hua announced the joint venture in tire production in Rayong with Hangzhou Zhongce Rubber. It was to be the first overseas investment by the Chinese partner. The investment will be postponed until next year, possibly the first half, in order to see the European effect, as 80% of the production would be exported to Europe and the U.S. The original plan was to begin production in 2012 with an annual capacity of three million tires, with 20% to be shipped to China, Australia, Japan and Asean. Of the total investment, 85% will come from China and 15% from Thai Hua.