Sinochem Int'l and Thaitex Agreed to Establish A JV

On Oct 7, Sinochem International Corp. signed an agreement with Thai Rubber Latex Corporation (Thailand) Public Company Ltd. to establish Hainan Sinochem-ai Rubber Latex Co., Ltd., a rubber joint venture in Hainan, China. Mao Jianong, director, deputy general manager of Sinochem Int'l and general manager of rubber department, and Zhuang Bingquan, president of Thaitex, signed the agreement on behalf of both parties.

Sinochem Int'l and Thaitex agreed to establish a 30,000 t/a latex plant in Qionghai, Hainan Province with an equity arrangement of 65:35 between Sinochem Int' and Thai Rubber. The new plant is expected to start construction in the beginning of 2009 and put into operation at the end of the year. The total investment is estimated to reach RMB150 million. The joint venture will apply Thaitex's 1.5 times centrifugation technology and utilize Sinochem Int'l's access to the upstream raw materials as well as its marketing and distribution capabilities to produce high-end latex products.

Three years ago, Sinochem Int'l signed a 10-year distribution agreement with Thaitex, which paved the way for the cross-border strategic cooperation between the two companies.

Thaitex is a leading manufacturer and exporter of latex concentrate, disposable rubber glove, extruded rubber thread, talcum coated rubber thread, and various rubber products.