Showa Holdings sets foot in Vietnamese rubber lining market
Showa Holdings sets foot in Vietnamese rubber lining market
TSE listed, Asian multi-business firm Showa Holdings Co., Ltd. recently held the grand opening ceremony for its Vietnamese subsidiary Showa Rubber Vietnam Co., Ltd.
During the event, the company introduced its group’s business to interested parties and potential investors in Vietnam.
The ceremony marks the firm’s first step into the Vietnamese rubber industry, as it saw huge rubber material sources and potential for fruitful expansion of its market here.
Showa Holdings started its rubber business in 1886. With more than 100 years of experience, technology, and know-how, the company is a pioneer of the Japanese rubber lining business. So far, Showa Holdings has factories in Japan, Malaysia, and Thailand.
While continuing the deep exploration of its existing markets, the company announced that it will aggressively target market development in the ASEAN region and expand its infrastructure and medical markets in Japan. In 2015, it acquired a rubber lining factory from AJINOMOTO in Thailand and established subsidiaries in China, Indonesia, and Vietnam.
According to Showa Holdings, rubber lining for anti-corrosion and anti-abrasion is used widely in many industries and has become irreplaceable in chemical plants, fertilizer plants, thermal power plants, mining, and steel plants, among the myriad sectors it is applied in. In addition, the rubber lining market in Vietnam is still underdeveloped and less competitive compared to neighbouring countries like Thailand, Indonesia, Malaysia, and Singapore.
“Backed by the acceleration of industrialisation and modernisation plan till 2020, approved by the National Congress of the Communist Party of Vietnam, we have seen a rapid growth in demand for rubber lining in Vietnam, in line with the increase in number of industrial plants in recent years,” Showa Holdings noted in a press release.
Furthermore, the abundance of raw materials is also a reason for Showa Holdings to expand its business in Vietnam, as the country famous for rubber material export. As one of the top five producers and exporters of natural rubber, Vietnam is a potential market for Showa Holdings to outsource OEM rubber products, as well as manufacture rubber sheets used for its rubber lining business.
“As one of the top 4 rubber lining firms in Japan, Showa Holdings would like to participate in the Vietnamese rubber lining market to deliver high quality rubber lining products to our Vietnamese clients. Having Showa Rubber Vietnam in our rubber lining network covering the entire ASEAN will pave the way for our further business expansion strategies in the ASEAN. We will aim for Rubber lining No. 1 in Asia," Showa Holdings stated.
