Goodway Considers Chinese Compounding Plant

Goodway Rubber chief executive, Tai Boon Wee, has spoken of the company’s plans to build a Chinese compounding plant. “Goodway is looking into the possibility of setting up a rubber compounding plant, possibly in Dongguan in China, via a joint venture with a local partner,” Mr Tai said.

However the company is still “in the early stages of discussion and planning,” the CEO told Malaysian newspaper, The Star. The initial investment in the proposed plant is estimated at 10 million ringgits (roughly £1.5 million). “With the setting up of the plant, we would even have better competitive edge. We foresee that the China market will need over 5,000 tyre retreading plants to cater to future demand.”

Therefore, the market will require a huge amount of rubber compounds for use at those retreading enterprises. “Tyre retreading is currently one of those many industries that have registered significant growth in China. This is also partly due to the Chinese government’s emphasis on environmental issues and recycling of products as the country develops and progresses,” Mr Tai told The Star.