China tire cord maker Shenma to establish Thai factory

Shanghai, China – Chinese tire cord manufacturer Shenma Co., Ltd is investing Yuan252 million (€32 million) in a new PA66 tire cord facility in the Thai ‘Eastern Economic Corridor’ industrial zone, in Rayong, Chonburi.

The plant, to be built in two phases, will have a production capacity of 20 kilotonnes per annum (ktpa) of ‘differentiated fibre’ for use in tire production, said the company in stock exchange filing 18 Jan.

The first phase of the project, estimated to be completed in 15 months, will have a nameplate capacity to produce 10ktpa of nylon yarn.

The investment, said Shenma, is part of the group’s ‘internationalisation strategy’ and is in response to moves by Chinese tire makers to set up overseas bases.

“Being close to downstream customers in southeast Asia will help reduce sales costs, enhance product profitability, and provide rapid response in downstream market," Shenma said.

Furthermore, the tire cord major aims to expand exports from its Thai base to other Asian markets, including India.