Thailand-based Sri Trang Agro-Industry has established a rubber trading joint venture in Myanmar with local firm Ayeyar Hinthar Holdings Co, the firm said in a filing to the Stock Exchange of Thailand and the Singapore Exchange (SGX).
Kitichai Sincharoenkul, a director of Sri Trang, said the new company, Sri Trang Ayeyar Rubber Industry Co, is expected to start operations next quarter.
The new company, established by the firm’s wholly owned subsidiary Sri Trang International, will be registered with $1 million in capital. While the Singapore-based subsidiary will hold a 59 percent stake in the joint venture, Kitichai will hold another 1 percent while the remaining 40 percent will be owned by Ayeyar Hinthar Holdings.
“The company will produce and sell block rubber and other rubber products and trade all rubber products in domestic and/or international markets,” he said in the filing. Agreements on the joint venture and other relevant items were signed last week.
Sri Trang Agro-Industry is a fully integrated natural-rubber company with a market share of 9 per cent of global consumption. It offers a full range of natural rubber products with a total production capacity of 1.2 million tonnes per annum.
With five offices in Yangon, Nay Pyi Taw, Mandalay, Hinthada and Pyay, Ayeyar Hinthar Holdings is a major trader of agricultural products in Myanmar. In 2007-08, Ayeyar Hinthar Group exported 50,000 tonnes of white rice to Bangladesh, Sri Lanka and African countries.