Guangdong Guangken Rubber Group Co expects to list its operation in Thailand on stock exchanges in Thailand and Hong Kong in two years after its acquisition of Thai Hua Rubbr Public Co, the world’s third largest natural rubber group…Full Article: Nov 2016

Key Points

  • In August 2016, Guangdong Guangken Rubber Group acquired a 60% stake in Thai Hua Rubber for CNY 1.2 billion (~$174 million). Guangdong Guangken Rubber Group’s processing capacity in mainland China totals 200,000 MTs per year while Thai Hua Rubber’s domestic capacity totals 1 million MTs per year.
  • Guangdong Guangken Rubber Group received a CNY 500 million [US$72.4 million] investment from the China Agricultural Industry Development Fund and Cinda Asset Management.
  • China’s annual rubber demand totals 4.8 million MTs, but only has an annual output of 800,000 MTs.

ChinaAg Comments

  • In July 2016, SinoChem acquired a 30.07% stake of Halcyon Agri Corporation’s (SGX:5VJ). At the same time Halcyon Agri acquired Sinochem’s natural rubber processing/trading assets in China and Malaysia.
  • In January 2016, SinoChem was looking into acquiring Halcyon Agri Corporation (SGX:5VJ), a Singaporean company that operates 14 rubber processing facilities in Indonesia and Malaysia.
  • In June 2015, representatives from China’s SinoChem (state-owned) traveled to Thailand to negotiate the rubber contract.
  • In April 2015, China reportedly agreed to purchase/import 200,000 MTs of rubber from Thailand.
  • In December 2012, China established its first state-backed agricultural fund. The fund reportedly received CNY 1 billion (US$160 million) contributions from the Ministry of Finance, CITIC Group, China Agricultural Bank and Cinda Asset Management.
  • From 2006 to 2011, Chinese imports of natural rubber steadily increased, with Thailand, Malaysia, Indonesia, Vietnam, and Myanmar as the top suppliers. Import volumes surpassed 2 million MTs in 2011 after being relatively stable at 1.6 million to 1.8 million MTs from 2006 to 2010.
  • Founded in 2002 and headquartered in Guangzhou, Guangdong Province, Guangdong Guangken Rubber Group (subsidiary of Guangdong Agribusiness Group) is a rubber producer with operations in mainland China (50,000 ha as of 2014), Cambodia, and Malaysia. The company also has (as of 2014) rubber processing factories in Thailand and Indonesia, and a trading office in Singapore.
  • Founded in 1951 and headquartered in Guangzhou, Guangdong Province, the Guangdong Agribusiness Group is a producer of rubber, gum rosin, turpentine, pine oil, and agrochemicals (fertilizers, pesticides).

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