HO CHI MINH CITY, Vietnam (Jan. 25)—Vietnam's Southern Rubber Industry Co. will make Sime-brand bias-ply light truck tires for Continental Sime Tyres Sdn. Bhd. for sale in Asia, according to a five-year off-take production agreement signed recently by the two firms.
Southern Rubber, also known as Casumina, will make 100,000 to 120,000 tires a year—valued at $5 million—at its plant in Dong Nai.
Continental Sime Tyre—the Kuala Lumpur, Malaysia-based subsidiary of Germany's Continental A.G.—selected Southern Rubber as its "cost-effective" outsourcing partner after auditing the Vietnamese company for management and product quality, according to Dieter Saar, CEO of Continental Sime Tyre.
Southern Rubber already supplies Continental with motorbike and scooter tires.