Joint Ventures
Eastern Polymer Group invest in Joint Venture with Sumiriko Eastern Rubber (Thailand) Co.,Ltd. and Zeon Advanced Polymix Co., Ltd.
Sumiriko Eastern Rubber (Thailand) Company Limited (SRK-ER)
Investment in Sumiriko Eastern Rubber (Thailand) Co., Ltd. for manufacturing of shock absorbing rubber and fuel hoses for motorcycles.
The Company has associated with Japanese firm, Sumitomo Riiko Company Group – one of the world biggest manufacturers of anti-vibration rubber. The product ranges include rubber covers for engine and fuel hoses for cars and motorcycles which are distributed to large manufacturers with production based in Thailand and worldwide.
Effective June 1, 2018, the Company changed its corporate name from Tokai Eastern Rubber (Thailand) Co., Ltd. to Sumiriko Eastern Rubber (Thailand) Co., Ltd. (SRK-ER), reflecting its alignment with the Sumitomo Riko Group’s global branding strategy. The Company holds 30% of ordinary shares (not included preferred shares) in Sumiriko Eastern Rubber but is entitled to receive dividend and has voting rights at 20% in Sumiriko Eastern Rubber (Thailand) Co., Ltd. The reason is based on the fact that Sumitomo Riiko Co., Ltd. holds 25,000 preferred shares which allows voting right and receive dividend 30 times of ordinary shares.
However, according to the joint venture agreement, any significant amendment must be approved by at least 81% of represented shares.
Sumiriko Eastern Rubber primarily serves domestic automotive manufacturers and assemblers. In addition, the Company supplies products to other entities within the Sumitomo Riko Group as well as automotive manufacturers across global markets. Manufacturing operations are conducted at two wholly-owned production facilities located in the IPP Industrial Park, NikhomPhatthana District, Rayong Province, and the Eastern Seaboard Industrial Estate, Pluak Daeng District, Rayong Province.
Investment in Zeon Advanced Polymix Co., Ltd. (ZAP)
This business is production and distribution of rubber compound for natural and artificial rubber used in various industries. Customers are from within the country and oversea whereby more than 70% of them are automotive industry which produces anti-vibration rubber, seals, car doors including rubber parts used in construction site.
The Company holds 27% of shares in Zeon Advanced Polymix Co., Ltd. Majority of products from Zeon Advanced Polymix are distributed to more than 100 automotive part manufacturers (0riginal Equipment Manufacturer “OEM”) both domestically and overseas.
