DC Advisory (DC) exclusively advised Sumitomo Rubber Industries Ltd (SRI), a Japanese tire and rubber company with international operations, on its two joint ventures with Thai Eastern Group Co. Ltd (TEG), one of the world’s leading natural rubber and palm oil producers and exporters.
DC advised SRI on the setting up of these two joint ventures, namely the Sumirubber Thai Eastern Plantation which involves managing a natural rubber plantation, and the Sumirubber Thai Eastern factory for processing of natural rubber.
SRI will own 49% of the Sumirubber Thai Eastern Plantation, with TEG owning the remaining 51%.
SRI will own 70% of the Sumirubber Thai Eastern factory for processing of natural rubber, with TEG holding the remaining 30% stake.
The joint ventures will enable SRI to SRI speed up its research and development toward enhancing the performance of fossil-resource-free tires and high fuel-efficient tires.
The joint ventures also enable SRI to expand international operations further, into Thailand.