Conti Sime Tyres to source LT tyres from Vietnam

Ho Chi Minh City - Vietnam's Southern Rubber Industry Co. will make Sime-brand cross-ply light truck tyres for Continental Sime Tyres Sdn. Bhd. for sale in Asia, according to a five-year off-take production agreement signed recently by the two firms.

Southern Rubber, also known as Casumina, will make 100 000 to 120 000 tyres a year--valued at $5 million--at its plant in Dong Nai.

Continental Sime Tyre-the Kuala Lumpur, Malaysia-based subsidiary of Germany's Continental AG-selected Southern Rubber as its "cost-effective" outsourcing partner after auditing the Vietnamese company for management and product quality, according to Dieter Saar, ceo of Continental Sime Tyre.

Southern Rubber already supplies Continental with motorbike and scooter tyres.

From Rubber & Plastics News (A Crain publication)