Teijin ups investment in Thailand
The Teijin Group will accelerate the automotive rubber materials business in Thailand by establishing Teijin FRA Tire Cord (Thailand) Co Ltd in partnership with Ayaha Corp.
Ayaha is a Japanese company specialising in tire cord production. It will hold a 33.34 per cent stake in the venture, while Teijin Ltd and Teijin Frontier Co Ltd will own the rest.
In an announcement yesterday (June 24), the new joint venture, with initial capital of Bt380 million, will operate at the same venue as Teijin (Thailand) Ltd in Bang Pa-in Industrial Estate, Ayutthaya. The operations will start in October 2015 with the 16,000-tonne annual capacity.
"The Teijin Group will develop midstream business by accelerating sales to Asia's expanding automotive industry, aiming to strengthen its local supply of automotive rubber materials, such as tire cord and hose cord, to customers in China and the Asean region," it said.
The group also announced that it will expand the production capacity for automotive hose cord at a separate subsidiary, Teijin Cord (Thailand) Co Ltd. The factory in Rojana Industrial Park in Ayutthaya will be upgraded at a cost of Bt29 million to increase its annual capacity by 70 per cent in April 2015.
The group's main fields of operation are high-performance fibres such as aramid, carbon fibres and composites, healthcare, films, resin & plastic processing, polyester fibres, products converting and IT. With operations in over 20 countries, it showed consolidated sales of US$7.7 billion during April 2013-March 2014.