ZC Rubber to Redirect Funds from IPO

China's ZC Rubber has decided to reallocate unused funds from its IPO, which were initially intended to invest in expanding production in Thailand, and invest them in building a plant in Jintan (Jiangsu, China).

ZC Rubber announced plans to launch a plant in Jintan back in 2012, and it was expected to become a major supplier of passenger tires to the US market, however, after Washington imposed new tariffs on tires from China in 2014, the project was frozen, and the company focused on localizing production abroad, including in Thailand.

In its recent statement, ZC Rubber noted that the resumption of the project is primarily due to the rapid development of the Chinese market for new energy vehicles, as well as high demand for the company's tires abroad. Last year, it was reported that the plant would produce around 25 million passenger tires annually.

Currently, construction of a new facility is underway in Jintan, and ZC Rubber emphasizes that the expansion of the plant in Thailand will continue according to the original plans, with the project expected to be completed in June 2026. The total investment amount ($165 million) will also remain unchanged, and further financing will be carried out using the tire manufacturer's own funds.

ZC Rubber adds that the Jintan plant will provide the company with strong connections with Chinese electric vehicle manufacturers, and will become a "model enterprise that meets the Industry 4.0 standard". According to the company's latest statement, $94 million from the IPO funds (17.07% of the total amount raised) will be invested in the project, which were previously intended for expanding production in Thailand.