Sumitomo Rubber Industries plans to establish two joint venture companies with Thai Eastern Group in Thailand in order to secure natural rubber supply.
The first JV, Sumirubber Thai Eastern Plantation, involves managing a natural rubber plantation that will begin operations in 2014. Sumitomo Rubber will own 49% of the $13.5 million venture.
The second, operation of a natural rubber processing plant, will commence this year and employ some 140 people. Sumitomo will own 70% of the $6.7 million venture, called Sumirubber Thai Eastern Corp.
The JVs will serve to stabilize the quality and procurement of natural rubber for promotion of technology development of eco-tires and to alleviate possible risk due to fluctuation in the price of natural rubber, according to Sumitomo.
“Through establishment of these joint-venture companies, Sumitomo Rubber will speed up its R&D activities to enhance the performance of fossil resource-free tires and high fuel-efficient tires to protect the world environment,” the company stated.
