Bangkok--21 Aug--KASIKORNBANK
Connecting Chinese businesses with the Thai market, KBank emphasizes Thailand’s role as the investment hub for China in the ASEAN Economic Community (AEC). The Bank recently granted 1.2 billion Baht of loans to Shandong Linglong Tire, the third-largest automobile tire producer in China, for construction of a factory at Hemaraj Eastern Seaboard Industrial Estate. The Bank is also providing complete financial and non-financial services for the customer.
According to KASIKORNBANK Chairman of the Board Mr. Banthoon Lamsam, KBank has granted loans to LLIT (Thailand) Co., Ltd., a subsidiary of Shandong Linglong Tire, a major Chinese tire producer, to finance construction of its automobile tire factory in Thailand. For the first production phase, KBank is offering P/N facilities, L/C and T/R totaling USD40 million or approximately 1.2 billion Baht. The company is planning to expand with a second phase of production in the future.
Given our abundant raw materials, LLIT (Thailand) aims to invest in Thailand, one of Asia’s major automobile manufacturing hubs, making the country its automobile tire production base. Apart from the domestic market, the company plans to export its products to the AEC market and other countries. Its move is in accordance with the Chinese government’s “going out” policy which promotes market expansion and brand-building for Chinese products in overseas markets. This will increase Chinese investment in Thailand ahead of the AEC inception over the next two years.
KBank’s key strategies to support Chinese businesses in Thailand include the Bank’s service network in China, Sino-Thai trade promotion, and service enhancement for all groups of Chinese customers in the Thai market under a customer-centric strategy and complete financial solutions. These customers usually need financial services together with business information. Services are also provided in Chinese.
With KBank’s vast customer base covering a variety of business fields, the Bank is ready to facilitate business expansion for Chinese customers in Thailand via a business-matching service. They will meet high-quality and trustworthy trade partners in relevant business segments from upstream to downstream, getting an opportunity to access Thai customers and operate sustainable and stable businesses.
Mr. Banthoon added that the cooperation marks the launch of KBank’s complete financial solutions being available both in Thailand and China. The Bank stands ready to support the Chinese customer’s business expansion in Thailand for the entire production chain of the automobile tire industry. The agreement of business information exchange will not only benefit the two parties, but also promote Thailand’s tire manufacturing market as well as bilateral economic partnership.
Mr. Wang Feng, President and CEO of Shandong Linglong Tire Co., Ltd., said with 37 years of experience in automobile tire production, his company has become a top-three producer in China and a top-20 tire company in the world. The company offers more than 3,000 products under diverse brands for passenger cars and trucks. Exporting to more than 160 countries worldwide, the company’s 2012 sales topped CNY10.06 billion.
LLIT (Thailand), 99.98-percent owned by Shandong Linglong Tire, is constructing a factory on approximately 330 rai of land, which is scheduled for completion by the end of 2013. With a tax privilege granted by the Thailand Board of Investment, the factory’s production capacity will amount to around 12 million units per year, which is expected to increase in the future. Its main products will be semi-steel radial tires and other related tire products, to be distributed through leading tire service centers and merchants.