On July 31, 2016, double money from one of China’s largest tire companies had to invest and build factories in Thailand. Of course, it still made tires. Allegedly based on China's "One Belt and One Road" development strategy (the Silk Road Economic Belt and the 21st Century Maritime Silk Road), the overcapacity of China's domestic tires was exported to Eurasia. Of course there is a reason for setting up factories here to avoid the high tariffs imposed on tires manufactured in China by many markets. Shanghai Huayi Group Co., Ltd. (the main holder of the Shuangqin Group entity) has signed an agreement to build a new tire factory in Thailand to supply North American and Southeast Asian markets.

The joint venture agreement between Shanghai Huayi (Group) Co., Ltd. and the Thai company Tribeca Enterprises Co., Ltd. was actually signed on May 16, 2016, marking the start of the establishment of Huayi Group (Thailand). The joint venture company will operate a new plant to be built at the local LK Rubber Industrial Centre (LK-RICH), which is located in a 391-hectare rubber plantation in Rayong Province, Thailand. The two sides will invest a total of 300 million U.S. dollars (about 1.95 billion U.S. dollars) to build factories that can produce 1.5 million sets of truck-bus radial tires and 50,000 industrial tires per year.

The Huayi Group (Thailand) factory explained that this was accompanied by a project in the implementation of China's 13 five-year plans, and that Shanghai Huayi (Group) described it as an “important step” in its internationalization strategy. The plant construction area covers an area of ​​30 hectares and will employ about 800 employees. Shanghai Huayi (Group) expects that the annual turnover of its joint venture will be around US$400 million.

LK-RICH Rubber Industrial Park is located about 150 kilometers southeast of Bangkok, Thailand. It is said to be the first industrial zone in Thailand and is set up specifically for the rubber industry. "We have provided an integrated manufacturing supply chain, the most competitive new business environment and a rubber-related industry hub," explained the local organization.

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