March 11, 2025 – Tongcheng New Materials (603650) announced on March 7 that its wholly-owned subsidiary, Hong Kong Tongcheng, will join hands with its related party, Gold Dynasty Limited, to establish a controlled subsidiary in Thailand. The joint venture aims to build a production base with an annual output of 30,000 tons of rubber additives. The total investment budget for the project is up to 70million(approximatelyRMB500million,subjecttoactualinvestment),withHongKongTongchengcontributingnomorethan35.7 million for a 51% stake, while Gold Dynasty Limited will hold the remaining 49%. According to reports, the rubber additive production base project is currently in the preparation stage, which mainly includes land acquisition, factory construction, and equipment procurement in Thailand. The entire project is expected to be fully completed and operational by 2027.
Tongcheng New Materials, as a manufacturer and service provider in the chemical materials sector, offers a wide range of products including electronic materials, specialty materials for automotive and tire industries, fully biodegradable materials, and other industrial chemicals. The company has witnessed continuous growth in its performance. For the first three quarters of 2024, Tongcheng New Materials reported revenue of RMB 2.425 billion, up 10.45% year-on-year, with a net profit of RMB 439 million, representing a 25.31% increase.
AsiaMB understands that Tongcheng New Materials has excelled in the traditional rubber additive sector, maintaining its position as a leader in the specialty rubber additive industry for consecutive years. In the 2023 rankings of processing rubber additive companies, Tongcheng New Materials topped the list. Notably, nearly 90% of rubber additives are utilized in the automotive industry, with about 70% directly applied in tire production.
The decision to establish a production base in Thailand marks a significant strategic move for Tongcheng New Materials to expand its overseas market presence and optimize its industrial structure. As a major producer of natural rubber globally, Thailand’s abundant resources and strategic location provide Tongcheng New Materials with advantageous conditions for its production base construction, poised to further meet the growing demand for rubber additives in the global rubber industry.