KOBE, Japan (Sept. 8, 2008) — Sumitomo Rubber Industries Ltd. said it will buy Hwa Fong Rubber Industry Co. Ltd.'s two-wheeler tire factory in Thailand for about $20 million.
The 19-year-old plant, located near Bangkok in the Bangpoo Industrial Estate, has an annual production capacity of 1.2 million units, according to Sumitomo. Hwa Fong describes the plant as having 278,000 square feet under roof on a site of 556,400 square feet.
Hwa Fong retains ownership of a second plant in Thailand on the same site—one that produces industrial and farm tires. SRI operates a car and light truck tire plant in Rayong, Thailand.
Sumotomo owns 10 percent of Taiwan's Hwa Fong, and Hwa Fong owns a minority stake in the Japanese company's plant in Changshu, China.