(Yicai) March 10 -- Red Avenue New Materials Group, the world's largest supplier of specialty additives for tires, said it will invest USD70 million to build a new rubber additives factory in Thailand in a bid to boost its international sales.

The new plant, slated to be built in Rayong, will have an annual production capacity of 30,000 tons of rubber additives, the Shanghai-base company announced late on March 7. It is scheduled to be completed and put into operation by 2027.

The factory will be a joint venture with Gold Dynasty, a business owned by Zhang Ning, Red Avenue’s chairwoman and controlling shareholder. Red Avenue will own 51 percent and Gold Dynasty the rest.

As well as consolidating Red Avenue's position as a core supplier to overseas clients, the project will benefit from Southeast Asia’s cost advantages, it said.

The factory also will enhance the firm’s global sales capabilities and enable it to respond more flexibly to changes in the economic environment, industrial policies, and the international trade landscape, the company added.

Specialty additives for tires are Red Avenue's main revenue driver, with sales of 141,000 tons in 2023 generating operating revenue of CNY2.28 billion (USD310 million), which accounted for about 78 percent of the firm’s total revenue that year. Its clients include global tiremakers such as Bridgestone, Michelin and Pirelli.

Red Avenue’ shares [SHA: 603650] rose 0.2 percent to close at CNY34.74 (USD4.78) each in Shanghai today. The stock is down 0.7 percent since the end of last year.

Editor: Tom Litting