Hwa Fong Rubber Building New Tyre Plant in Thailand
TAIPEI, Taiwan – According to a recent report in the Taipei Times, tyre maker Hwa Fong Rubber Industry Co. plans to invest about USD 46m in expanding its production capacity in Thailand to meet growing demand.
The company which operates its Thai business through Hwa Fong Rubber (Thailand) PCL, is to build a new plant to produce motorcycle and bicycle tyres. The first phase is scheduled to be completed by the end of next year, Hwa Fong said.
32,000 bicycle tyres per day
The company’s two existing plants in Samutprakarn, Thailand, produce 25,000 motorcycle tyres and 32,000 bicycle tyres per day. Through collaborations with Japanese conglomerate Sumitomo Corp, the company sells its Thai products to Japanese motorcycle brands such as Yamaha Motor Co Ltd and Honda Motor Co Ltd.
Plant in Indonesia
Hwa Fong, which set up an Indonesian subsidiary at the beginning of this year, said it is also considering building new plants in that country as it eyes strong business potential in Southeast Asian nations.
The company’s two major Taiwanese competitors — Cheng Shin Rubber Industry Co and Kenda Rubber Industrial Co — have both announced plans to expand their presence in Indonesia this year.