24 Jun 2022
Danang Rubber, PHI, Tin Thanh aim to increase production and implement innovative marketing programme
New York – Vietnam’s Danang Rubber Joint Stock Co. (DRC) is to increase tire production and implement a sales & marketing programme targeting annual sales of $5.5 billion (€5.2 billion) by 2025.
The project, announced 23 June, involves partners PHI Group Inc., a company linked to a group of Luxembourg-based bank funds, and Vietnamese conglomerate Tin Thanh Group (TTG).
The announcement did not include details about planned investments or about the increase in tire production capacity.
The scheme was stated to include a DRC-TTG truck tire leasing service programme with a package including: Smart tires with mounted chips to track and manage journeys and savings of 10-20% compared to buying tires.
Consumers, said the partners, will also benefit from: No cost to change tires; no environmental fees when replacing old tires; and no need to pay for periodic tire maintenance checks.
Meanwhile, DRC will leverage Tin Thanh capabilities as a supplier of energy from renewable fuels – derived from sorghum crops – to more than 40 industrial plants in Vietnam and around the world.
However, again, no further details were provided about this aspect of the agreement.
With global sales of over $500 million, DRC, which claims to be the biggest tire brand in Vietnam, manufactures tires for bicycles, motorcycles, bus, trucks, ATVs, OTR and agricultural tires.
Vietnamese joint stock company Tin Thanh Group supplies energy from renewable fuels to more than 40 industrial plants in Vietnam and around the world. The company grows sorghum crops as a clean energy source.
PHI is primarily focused on PHILUX Global Funds, a group of Luxembourg bank funds operating as the ‘Reserved Alternative Investment Fund’, and building the Asia Diamond Exchange in Vietnam.