Rubber producers eye own tyre factory

The Rubber Growers Cooperative Federation of Thailand has plans to involved rubber planters in establishing a tyre factory in Thailand, with an estimated investment of three billion baht.

Federation chairman Perk Lertwangpong said the project opened up an investment opportunity for all rubber farmers and would be a boost for local business. Most rubber is grown in the South.

He described the proposal as a "significant strategy" for rubber growers to assist each other, instead of relying on others.

He said several financial institutions had expressed interest in providing the capital for the investment. 

The idea would be discussed further at a federation meeting on Wednesday. 

The federation would try to explain the project to rubber growers nationwide, starting in the South and later to the Northeast and the North.

Rubber planters are unhappy with the falling price of rubber. The buying price of unsmoked rubber sheet was around 50 baht a kilogramme on Monday, less than a third of its peak at 172 baht a kilo in February 2011.

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