APF acquires a 36% stake in Japan's Showa rubber

Showa Rubber, listed on the Tokyo Stock Exchange, is a large-scale rubber producer of moulded rubber, sports equipment like tennis balls, rubber lining, artificial nipples, medical care parts, and industrial rubber parts.

APF chief executive Mitsuji Konoshita said it bought 15 million shares with a value of 1.24 billion yen (Bt396 million) through investment firm Asukano Holdings.

The stake of about 36 per cent of the company's stock cost ¥83 per share and was expected to bring a return on investment of more than 15 per cent a year.

"I will use my management experience in foreign countries to develop a professional team, increase production capacity, enhance technology to international standard and make good returns to our shareholders," he said.

He said APF was negotiating to persuade Japanese partners to expand the rubber-lining plant in Thailand.

The special rubber lining is used for coating tanks, barrels, and pipes in the oil-refining and petrochemical industries. Currently, the company has two manufacturing plants in Chiba and Osaka.

"Business matching in Thailand is one of our future plans. We aim to push our company and our partners to be high-capacity rubber business leaders together with protecting the environment, such as reductions in electric power, oil consumption, and water supply," he said.

Recently, APF entered the hospitality industry by taking over Zeavola Phi Phi resort for some Bt630 million.

The move is aimed at tapping the Japanese-tourist market.

Konoshita was not worried about the Thai political turmoil, saying he was moving into hotels, not banking or real estate.

"We are very happy to invest here. Next month we also expect to finalise our deal to acquire another insurance company in Thailand," he said.

However, he declined to provide details on those deals.