Thai Rubber City: To attract investment

With its strategic location, complete infrastructure, creating favorable conditions for exports and significant incentives from the Government and the Rubber City project will bring huge business opportunities for investors Thailand and abroad.

Harvesting rubber in Thailand.

The Thai government is a red carpet welcome domestic and foreign businessmen to invest in the project Rubber City in an effort to triple the domestic rubber consumption and supporting rubber prices.

Project US $ 10 billion

The Thai government aims to attract 10 billion investment to develop Rubber City, located in the South Industrial Park in Hat Yai province - 946 km from the capital Bangkok to the south. The project stretches over 364 hectares of area equivalent to half the area of ​​Industrial Park South, by Authority of Thailand Industrial Park (Industrial Estate Authority of Thailand: IEAT) management and development.

City Rubber plans to attract investors to develop industry rubber processing while enhancing create jobs for laborers. Central objective is to raise the value added for manufacturing rubber materials. The Thai government plans to spend about 8 billion baht (228 million dollars) to develop the Rubber City.

He Veerapong Chaiperm, Leadership Authority IEAT Industrial Park Thailand, said: "Investment in City Rubber to raise value-added processing industry for products such as tires, equipment health and spare parts for the automotive industry and aerospace. The project is expected to complete the investment in 2021, while demand is expected to rubber latex and rubber sheet will increase significantly. "

IEAT began selling land to investors to set up factories in the early stages of the project. Michelin tire company began the project at City Rubber. Investors from China and Malaysia expressed concern for the Rubber City. Currently, companies can make reservations at the project site.

Business opportunities

City Rubber will bring great business opportunities for Thai investors and foreign. Due to this project under the Special Economic Zone of the Government, therefore, investors will receive large incentives from the Board of Investment.

The project is located in the province of Hatyai - rubber production centers in Thailand, accounting for 80% of annual rubber production with over 4.47 million tons. The project has a complete infrastructure to create favorable conditions for export such as waterways and airways. Moreover, City Rubber is designed with infrastructure, and managed services to support cluster rubber industry.

Enhance Value

Thailand is the production of natural rubber in the world's largest with 4.47 million tons of production reached in 2015, accounting for about 37% of total global output. However, the domestic rubber consumption reached only 600 491 tonnes in 2015, accounting for 13% of domestic production, the remaining amount is exported raw materials.

Since the incidence of domestic rubber consumption low, Thailand imported most of the rubber products to meet the demand. The total value of imports of rubber products 41.6 billion baht in 2015 (1.18 billion dollars).

With the establishment of the Rubber City, the Thai government hopes to increase the proportion of domestic rubber consumption reached 15% in the initial stage and 30% later stage in order to enhance the added value for industry rubber materials.

according VRA