Guangdong Guangken Rubber Group and Thailand-based Thai Hua Rubber Public have signed a strategic cooperation agreement in Thailand.
After the equity delivery, Guangken Rubber is to hold a 60% stake in Thai Hua Rubber Public and become a controlling shareholder.
Guangken Rubber invested 1.8 billion yuan in the Thailand company and the transaction will boost its natural rubber processing capacity to 1.5 million tons per year, with an overall planting area of 2 million mu.
To facilitate the acquisition, China Agricultural Industrial Development Fund and China Cinda Asset Management officially injected capital into Guangken Rubber.
Guangken Rubber is a subsidiary of Guangdong Agribusiness Group. After the acquisition, Guangken Rubber is capable controlling natural rubber production of nearly 2 million tons, accounting for one fifth of the world’s total, thus to enhance the supply of China’s natural rubber industry and reduce dependency on imports.
China is the world’s largest natural rubber consumer with an annual consumption of around 4 million tons, while its own output is less than 800,000 tons and the say in the international market has been weak.
