ZC Rubber Adding OTR Tires to its Thai plant

The Chinese tire multinational introduced industrial tires at its Thailand tire plant

Thailand: The China based tire manufacturer, Zhongce Rubber Group Co. Ltd. intends to expand by adding industrial tires, i.e. skid steer tires and bias-ply forklift tires to its car and truck tire factory in based in Rayong, Thailand. The company plans to initiate skid steer tires, telehandler tires and backhoes tires this year, whereas, it would add radial OTR tires in coming years.

"The demand for industrial tires is increased in Southeast Asia based on the market research," said Richard Li, ZC Rubber marketing director, "and we will produce targeting industrial products to meet customers' demands." He further added that the introduction of radial OTR tires by Zhongce Rubber (Thailand) Co. Ltd. would assist the company to strengthen the competition in the local as well as in entire Southeast Asian market. However, the official did not disclose its investment capitalization for the expansion of its plant.

As per TechSci Research, ZC Rubber tires are becoming widely popular among other players in Thailand tire market. By launching new radial OTR tires in the country, the company would able to penetrate a huge chunk of consumers specific to industrial equipment segment across the region. In addition, it is expected that with the launch of such products in Thailand market, the sale of ZC Rubber tires would eventually rise over the coming period.

According to a recent report published by TechSci Research, “Thailand Tire Market Forecast and Opportunities, 2022”, the country’s tire market is projected to cross $5.6 billion mark by 2022. In 2016, two-wheeler tire segment dominated the country’s tire market, followed by light commercial vehicle, passenger car, medium and heavy commercial vehicle and off-the-road tire segments. Tire replacement segment accounts for around two-thirds of the tire demand emanating in the country in 2016, and the segment is anticipated to maintain its dominance through 2022. Moreover, sales of radial tires in the country is also expected to witness an uptrend in the coming years. Rising innovation and technological advancements in manufacturing of tires by various flagship brands are predicted to fuel tire ASP in the country during 2017–2022.