Chinese rubber additives supplier Red Avenue New Materials Group says it will invest US$70 million to build a new rubber additives factory in Thailand, in a bid to boost its international sales.
The new plant, slated to be built in Rayong, will have a production capacity of 30,000 tonnes/year of rubber additives. It is scheduled to be completed and running by 2027.
The factory will be a joint venture with Gold Dynasty, a business owned by Zhang Ning, Red Avenue’s chairwoman and controlling shareholder. Red Avenue will own 51% and Gold Dynasty the rest.
As well as consolidating Red Avenue’s position as a core supplier to overseas clients, the project will benefit from Southeast Asia’s cost advantages, it said.
The factory also will enhance the firm’s global sales capabilities and enable it to respond more flexibly to changes in the economic environment, industrial policies, and the international trade landscape, the company added.
Specialty additives for tyres are Red Avenue’s main revenue driver, with sales of 141,000 tonnes in 2023 generating operating revenue of US$310 million, which accounted for about 78% of the firm’s total revenue that year. Its clients include global tyre makers such as Bridgestone, Michelin and Pirelli.