Chinese rubber additives supplier Shandong Yanggu Huatai Chemical has started up a 30 kilotonne per annum (ktpa) production plant in Rayong, Thailand, targeting the growing Southeast Asian tire industry. This move strengthens supply-chain options for overseas tire manufacturers and formulators seeking regional sourcing of rubber protective wax, processing additives, and silane coupling agents.
Plant details and investment
The phase I facility, located in the Rayong rubber industrial park, represents a total investment of Yuan273 million (€35 million). Construction began in February 2025 and was completed in just over a year, according to a 25 March statement from the group. The first phase includes 10ktpa production capacity for each of rubber protective wax, rubber processing additives, and high-performance silane coupling agents.
Strategic rationale
Yanggu Huatai stated that the Thailand base would enhance its "global core competitiveness" and enable better service for overseas customers. The investment reflects a "strategic move" to globalise the rubber value chain, as Southeast Asia continues to emerge as a key hub for the global tire industry. The new plant is expected to supply both Chinese tire makers in the region and global tire majors expanding across Southeast Asia.
Regional tire industry context
Thailand hosts 29 tire plants with annual capacity exceeding 142 million units, while combined capacity in Vietnam, Indonesia, and Cambodia is nearly 240 million units per year. By 2026, additional tire output in Thailand is expected to exceed 12 million units, according to Yanggu Huatai. This growing demand underpins the need for localised rubber additives supply.
What buyers should watch
Overseas tire manufacturers and rubber compounders should monitor Yanggu Huatai's Thailand output for potential supply diversification and reduced lead times. The plant's capacity for silane coupling agents and processing additives may offer alternatives to existing sources. Buyers should also track how this capacity integrates with the group's total annual capacity of 300ktpa and its impact on regional pricing and availability.
Company background
Founded in 1994 and listed on the Shenzhen Stock Exchange in 2010, Yanggu Huatai is a producer of rubber additives. The group said the Thailand project will optimise its production footprint, reduce reliance on a single market, and support deeper participation in international competition.
Source: Read the original report | Published: April 09, 2026