Sumitomo Entering Into Two Natural Rubber JVs

Sumitomo Rubber Industries has announced its intention to establish two joint venture companies in Thailand, together with Thai Eastern Group. One of these joint venture companies will centre on a natural rubber plantation, while the other on the setting up of a natural rubber processing plant.

The joint venture natural rubber plantation, to be known as Sumirubber Thai Eastern Plantation, is being established in December 2009 and operations will start in 2014. Investment in the site stands at 400 million baht (£7.4 million), and Sumitomo will hold a 49 per cent share in the venture. Sumitomo will hold a 70 per cent stake in the 200 million baht (£3.7 million) natural rubber processing venture, which will be named Sumirubber Thai Eastern corporation. This will be established by February 2010, with operations commencing the following year.  Operations will commence in 2011. Approximately 140 staff will be employed in the operation.

The main purposes of the establishment of these joint venture companies are to stabilise the quality and procurement of natural rubber to facilitate the technological development of eco-tyres and to alleviate potential risks that may occur due to fluctuations in natural rubber prices. Through the establishment of these joint venture companies, Sumitomo Rubber says its research and development activities to enhance the performance of its fossil-free and high fuel-efficient tyres will be speeded up.