By The Nation
Chinese firm Prinx Chengshan Tyre (Thailand) Co Ltd, a subsidiary of Chengshan Group, has set aside an investment budget of Bt10.1 billion for its first production line in the region.
The plant will have an annual production capacity of 4 million car radial tyres (PCR) and 800,000 truck and bus radial tyres (TBR).
The new facility on 280 rai (44.8 hectares) at WHA ESIE3 in Chon Buri province is expected to start operations by mid-2020.
The plant will require an initial workforce of 1,200 people, and will exceed 2,000 once the annual production capacity increases to 10 million PCR and 2 million TBR tyres.
“Setting up our first overseas production facility at WHA ESIE 3 in Thailand is truly a significant advancement of our group’s expansion,” said Che Hongzhi, chairman of the board of Chengshan Group.
He added that after two years of scrutiny and evaluation, Thailand had emerged as the obvious choice for the plant due to its reputation as a Southeast Asian economic hub, and its position as the world’s leading supplier of natural rubber.
The Eastern Economic Corridor (EEC) and the WHA ESIE 3 offer outstanding location advantages, qualified human resources, high-standard service facilities, convenient logistics and infrastructure, Che said.
“These are important factors for our investment that will enhance the competitiveness of our products. We look forward to a long-term mutually beneficial relationship with WHA Industrial Development,” he said.
A China-based tyre company listed on the Hong Kong Stock Exchange since October 2018, Prinx Chengshan selected Thailand’s EEC and WHA ESIE 3 for its first tyre plant in the region. The company yesterday signed a contract to purchase 280 rai of land from WHA Industrial Development Plc, an industrial estate firm under the WHA Group, on WHA ESIE 3 in Chon Buri province.
“We are proud to have Prinx Chengshan Tyre (Thailand) as our first customer at WHA ESIE 3, our 10th industrial estate in Thailand,” said Jareeporn Jarukornsakul, chairman and group chief executive officer of WHA Corporation Plc.
“Prinx Chengshan’s investment in Thailand is also a significant step forward for our automotive industry and a clear confirmation of the EEC’s attractiveness to foreign investors.
We are expecting more investors to join us in the near future, with an estimated Bt140 billion in investments at WHA ESIE 3 over the next five years.”
WHA Group’s newest industrial estate, WHA ESIE 3, comprises a total of 2,198 rai (352 hectares) of developed land strategically situated in the Nong Yai district of Chon Buri.