Displaying items by tag: tire

MAI-listed tyre maker N.D. Rubber Plc (NDR) has teamed up with Chinese truck-tyre maker Shandong Yinbao Tyre Group to construct a tyre plant for trucks and passenger cars in Chon Buri.

Managing director Chaiyasit Samrittivanicha said NDR holds a 30% stake in the joint venture, with the Chinese partner holding 40% and a Thai manufacturing peer, P. Siam Rubber, owning the rest.

"Our goal is to diversify our tyre production to other vehicles from only motorcycle tyres," he said. "The Shandong-based firm wants to expand its production base to overseas for exports to the US and India, as direct shipments from China are subject to hefty anti-dumping duties."

Mr Chaiyasit said the venture will enable NDR to grow faster than making all the investments on its own.

Construction of the new plant is scheduled for June next year, with operation due by 2018, he said. The new factory will be located on a 500-rai plot and will produce 1.2 million truck tyres and 3 million car tyres.

NDR already raised capital by issuing warrants to purchase newly issued ordinary shares of NDR, up to 107.5 million units, to be allocated to existing shareholders at a ratio of one warrant per two existing shares.

Founded in 1990, NDR makes motorcycle tyres mainly for the replacement market. In 2013 it expanded production capacity of its factory in Chon Buri's Ban Bung district to 3.5 million tyres from 2.4 million.

NDR's main export markets are Malaysia and India, where it ships 150,000-170,000 tyres each a month.

The company has also secured overseas sales in eight other countries such as Myanmar, Laos and the Philippines, with Vietnam a new destination.

Mr Chaiyasit expects NDR's revenue to increase by 8% to 860 million baht in 2016, well below its target of 1 billion. Some 45% of total revenue is from the domestic market.

NDR shares closed yesterday on the MAI at 4.74 baht, up 14 satang, in trade worth 203 million baht.